Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS (Tables)

v3.10.0.1
FAIR VALUE MEASUREMENTS (Tables)
 6 Months Ended
Jun. 30, 2018
Fair Value Disclosures [Abstract]  
Fair Value, by Balance Sheet Grouping
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

Fair Value, Recurring and Nonrecurring, Valuation Techniques
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)
Fair Value, Assets Measured On Recurring Basis, Unobservable Input Reconciliation
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 balance1
$
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.
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
 
(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
)
Schedule Of Carrying Value And Fair Value Of Financial Instruments
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