XML 29 R14.htm IDEA: XBRL DOCUMENT
v3.10.0.1

FAIR VALUE MEASUREMENTS | 6 Months Ended
--- | ---
Jun. 30, 2018
Fair Value Disclosures [Abstract] |
FAIR VALUE MEASUREMENTS | NOTE 8 - FAIR VALUE MEASUREMENTS The following represents the assets and liabilities measured at fair value:
| (In Millions)
| June 30, 2018
Description | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
Assets: |  |  |  |  |  |  |
Cash equivalents | $ | 10.5 |  |  | $ | 546.5 |  |  | $ | — |  |  | $ | 557.0 |
Derivative assets | — |  |  | 0.1 |  |  | 174.6 |  |  | 174.7 |
Total | $ | 10.5 |  |  | $ | 546.6 |  |  | $ | 174.6 |  |  | $ | 731.7 |
Liabilities: |  |  |  |  |  |  |
Derivative liabilities | $ | — |  |  | $ | 0.1 |  |  | $ | 3.0 |  |  | $ | 3.1 |
Total | $ | — |  |  | $ | 0.1 |  |  | $ | 3.0 |  |  | $ | 3.1 |
| (In Millions)
| December 31, 2017
Description | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
Assets: |  |  |  |  |  |  |
Cash equivalents | $ | 66.3 |  |  | $ | 550.6 |  |  | $ | — |  |  | $ | 616.9 |
Derivative assets | — |  |  | — |  |  | 37.9 |  |  | 37.9 |
Total | $ | 66.3 |  |  | $ | 550.6 |  |  | $ | 37.9 |  |  | $ | 654.8 |
Liabilities: |  |  |  |  |  |  |
Derivative liabilities | $ | — |  |  | $ | 0.3 |  |  | $ | 1.7 |  |  | $ | 2.0 |
Total | $ | — |  |  | $ | 0.3 |  |  | $ | 1.7 |  |  | $ | 2.0 |
Financial assets classified in Level 1 include money market funds and treasury bonds. The valuation of these instruments is based upon unadjusted quoted prices for identical assets in active markets. The valuation of financial assets and liabilities classified in Level 2 is determined using a market approach based upon quoted prices for similar assets and liabilities in active markets or other inputs that are observable. Level 2 assets include commercial paper, certificates of deposit and commodity hedge contracts. Level 2 liabilities include commodity hedge contracts. The Level 3 assets and liabilities include derivative assets that consist of freestanding derivative instruments related to a customer supply agreement and certain provisional pricing arrangements with our customers. The supply agreement included in our Level 3 assets includes provisions for supplemental revenue or refunds based on the average annual daily market price for hot-rolled coil steel at the time the iron ore product is consumed in the customer’s blast furnaces. We account for these provisions as derivative instruments at the time of sale and adjust the corresponding asset or liability to fair value as an adjustment to Product revenues each reporting period until the product is consumed and the amounts are settled. The fair value of the instruments are determined using a market approach based on the estimate of the average annual daily market price for hot-rolled coil steel. This estimate takes into consideration current market conditions and nonperformance risk. We had assets of $169.4 million and $37.9 million at June 30, 2018 and December 31, 2017, respectively, related to this supply agreement. The provisional pricing arrangements included in our Level 3 assets/liabilities specify provisional price calculations, where the pricing mechanisms generally are based on market pricing, with the final revenue rate to be based on market inputs at a specified point in time in the future, per the terms of the supply agreements. The difference between the estimated final revenue rate at the date of sale and the estimated final revenue rate at the measurement date is characterized as a derivative and is required to be accounted for separately once the revenue has been recognized. The derivative instruments are adjusted to fair value through Product revenues each reporting period based upon current market data and forward-looking estimates provided by management until the final revenue rates are determined. We had assets of $5.2 million and liabilities of $3.0 million related to provisional pricing arrangements at June 30, 2018 compared to liabilities of $1.7 million related to provisional pricing arrangements at December 31, 2017. The following table illustrates information about quantitative inputs and assumptions for the assets and liabilities categorized in Level 3 of the fair value hierarchy:
Qualitative/Quantitative Information About Level 3 Fair Value Measurements
|  | (In Millions) Fair Value at June 30, 2018 |  | Balance Sheet Location |  | Valuation Technique |  | Unobservable Input |  | Range or Point Estimate (Weighted Average)
Customer supply agreement |  | $ | 169.4 |  |  | Derivative assets |  | Market Approach |  | Management's Estimate of Market Hot-Rolled Coil Steel per net ton |  | $833
Provisional pricing arrangements |  | $ | 5.2 |  |  | Derivative assets |  | Market Approach |  | Management's Estimate of Platts 62% Price per dry metric ton |  | $68 - $69 ($68)
Provisional pricing arrangements |  | $ | 3.0 |  |  | Other Current Liabilities |  | Market Approach |  | Management's Estimate of Platts 62% Price per dry metric ton |  | $68 - $69 ($68)
The significant unobservable input used in the fair value measurement of our customer supply agreement is an estimate determined by management including a forward-looking estimate for the average annual daily market price for hot-rolled coil steel. The significant unobservable input used in the fair value measurement of our provisional pricing arrangements is management’s estimate of Platts 62% Price based upon current market data and index pricing, which include forward-looking estimates determined by management. We recognize any transfers between levels as of the beginning of the reporting period, including both transfers into and out of levels. There were no transfers between Level 1 and Level 2 and no transfers into or out of Level 3 of the fair value hierarchy during the three and six months ended June 30, 2018 and 2017. The following tables represent a reconciliation of the changes in fair value of financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
| (In Millions)
| Level 3 Assets
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
Beginning balance 1 | $ | 93.5 |  |  | $ | 59.2 |  |  | $ | 49.5 |  |  | $ | 30.1 |
Total gains |  |  |  |  |  |  |
Included in earnings | 158.6 |  |  | 51.0 |  |  | 202.8 |  |  | 84.6 |
Settlements | (77.5 | ) |  | (40.0 | ) |  | (77.7 | ) |  | (44.5 | )
Ending balance - June 30 | $ | 174.6 |  |  | $ | 70.2 |  |  | $ | 174.6 |  |  | $ | 70.2 |
Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date | $ | 80.6 |  |  | $ | 17.8 |  |  | $ | 125.1 |  |  | $ | 51.0 |
1 Beginning balance as of January 1, 2018 includes an $11.6 million adjustment for adoption of Topic 606.
| (In Millions)
| Level 3 Liabilities
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
Beginning balance | $ | — |  |  | $ | — |  |  | $ | (1.7 | ) |  | $ | — |
Total losses |  |  |  |  |  |  |
Included in earnings | (3.7 | ) |  | (20.2 | ) |  | (4.3 | ) |  | (20.2 | )
Settlements | 0.7 |  |  | — |  |  | 3.0 |  |  | — |
Ending balance - June 30 | $ | (3.0 | ) |  | $ | (20.2 | ) |  | $ | (3.0 | ) |  | $ | (20.2 | )
Total losses for the period included in earnings attributable to the change in unrealized losses on liabilities still held at the reporting date | $ | (3.0 | ) |  | $ | (20.2 | ) |  | $ | (3.0 | ) |  | $ | (20.2 | )
The carrying amount of certain financial instruments (e.g., Accounts receivable, net, Accounts payable and Accrued expenses) approximates fair value and, therefore, has been excluded from the table below. A summary of the carrying amount and fair value of other financial instruments were as follows:
|  |  | (In Millions)
|  |  | June 30, 2018 |  | December 31, 2017
| Classification |  | Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
Long-term debt: |  |  |  |  |  |  |  |  |
Secured Notes |  |  |  |  |  |  |  |  |
$400 Million 4.875% 2024 Senior Notes | Level 1 |  | $ | 391.3 |  |  | $ | 388.5 |  |  | $ | 390.3 |  |  | $ | 398.0 |
Unsecured Notes |  |  |  |  |  |  |  |  |
$400 Million 5.90% 2020 Senior Notes | Level 1 |  | 88.1 |  |  | 88.4 |  |  | 88.6 |  |  | 88.0 |
$500 Million 4.80% 2020 Senior Notes | Level 1 |  | 122.0 |  |  | 120.5 |  |  | 122.0 |  |  | 118.8 |
$700 Million 4.875% 2021 Senior Notes | Level 1 |  | 124.9 |  |  | 124.6 |  |  | 138.0 |  |  | 130.8 |
$316.25 Million 1.50% 2025 Convertible Senior Notes | Level 1 |  | 229.7 |  |  | 384.5 |  |  | 224.1 |  |  | 352.9 |
$1.075 Billion 5.75% 2025 Senior Notes | Level 1 |  | 1,047.1 |  |  | 1,028.6 |  |  | 1,047.2 |  |  | 1,029.3 |
$800 Million 6.25% 2040 Senior Notes | Level 1 |  | 292.7 |  |  | 241.7 |  |  | 292.6 |  |  | 227.1 |
ABL Facility | Level 2 |  | — |  |  | — |  |  | — |  |  | — |
Fair value adjustment to interest rate hedge | Level 2 |  | 1.2 |  |  | 1.2 |  |  | 1.4 |  |  | 1.4 |
Total long-term debt |  |  | $ | 2,297.0 |  |  | $ | 2,378.0 |  |  | $ | 2,304.2 |  |  | $ | 2,346.3 |
The fair value of long-term debt was determined using quoted market prices based upon current borrowing rates.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI http://asc.fasb.org/topic&trid=2155941 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration