Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS (Tables)

v3.19.2
FAIR VALUE MEASUREMENTS (Tables)
6 Months Ended
Jun. 30, 2019
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, 2019
 
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
$

 
$
302.3

 
$

 
$
302.3

Derivative assets

 
0.2

 
118.1

 
118.3

Total
$

 
$
302.5

 
$
118.1

 
$
420.6

Liabilities:
 
 
 
 
 
 
 
Derivative liabilities
$

 
$
2.6

 
$

 
$
2.6

Total
$

 
$
2.6

 
$

 
$
2.6

 
(In Millions)
 
December 31, 2018
 
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
$
0.8

 
$
542.6

 
$

 
$
543.4

Derivative assets

 
0.1

 
91.4

 
91.5

Total
$
0.8

 
$
542.7

 
$
91.4

 
$
634.9

Liabilities:
 
 
 
 
 
 
 
Derivative liabilities
$

 
$
3.7

 
$

 
$
3.7

Total
$

 
$
3.7

 
$

 
$
3.7


Fair Value, Recurring and Nonrecurring, Valuation Techniques
The following table illustrates information about qualitative and 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, 2019
 
Balance Sheet
Location
 
Valuation Technique
 
Unobservable Input
 
Range or Point Estimate
(Weighted Average)
 
 
Customer supply agreement
 
$
102.4

 
Derivative assets
 
Market Approach
 
Management's Estimate of Market Hot-Rolled Coil Steel per net ton
 
$667
 
Provisional pricing arrangements
 
$
15.7

 
Derivative assets
 
Market Approach
 
PPI Estimates
 
179 - 221
(203)
 
Management's Estimate of Platts 62% Price per dry metric ton for respective contract period
$87 - $100
$(96)

Fair Value, Assets Measured On Recurring Basis, Unobservable Input Reconciliation
The following tables reconcile 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,
 
2019
 
2018
 
2019
 
2018
Beginning balance
$
106.7

 
$
93.5

 
$
91.4

 
$
49.5

Total gains included in earnings
74.3

 
158.6

 
89.6

 
202.8

Settlements
(62.9
)
 
(77.5
)
 
(62.9
)
 
(77.7
)
Ending balance - June 30
$
118.1

 
$
174.6

 
$
118.1

 
$
174.6

Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date
$
73.0

 
$
80.6

 
$
88.3

 
$
125.1


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,
 
2019
 
2018
 
2019
 
2018
Beginning balance
$
(9.8
)
 
$

 
$

 
$
(1.7
)
Total gains (losses) included in earnings
4.5

 
(3.7
)
 
(5.3
)
 
(4.3
)
Settlements
5.3

 
0.7

 
5.3

 
3.0

Ending balance - June 30
$

 
$
(3.0
)
 
$

 
$
(3.0
)
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
)
 
$

 
$
(3.0
)

Schedule Of Carrying Value And Fair Value Of Financial Instruments A summary of the carrying value and fair value of other financial instruments were as follows:
 
 
 
(In Millions)
 
 
 
June 30, 2019
 
December 31, 2018
 
Classification
 
Carrying
Value
 
Fair Value
 
Carrying
Value
 
Fair Value
Long-term debt:
 
 
 
 
 
 
 
 
 
Secured Notes
 
 
 
 
 
 
 
 
 
$400 Million 4.875% 2024 Senior Notes
Level 1
 
$
392.8

 
$
406.0

 
$
392.1

 
$
370.2

Unsecured Notes
 
 
 
 
 
 
 
 
 
$700 Million 4.875% 2021 Senior Notes
Level 1
 

 

 
123.8

 
122.3

$316.25 Million 1.50% 2025 Convertible Senior Notes
Level 1
 
240.9

 
454.2

 
235.2

 
352.4

$1.075 Billion 5.75% 2025 Senior Notes
Level 1
 
463.3

 
472.1

 
1,048.8

 
962.0

$750 Million 5.875% 2027 Senior Notes
Level 1
 
714.6

 
730.8

 

 

$800 Million 6.25% 2040 Senior Notes
Level 1
 
292.9

 
263.2

 
292.8

 
232.8

ABL Facility
Level 2
 

 

 

 

Fair value adjustment to interest rate hedge
Level 2
 

 

 
0.2

 
0.2

Total long-term debt
 
 
$
2,104.5

 
$
2,326.3

 
$
2,092.9

 
$
2,039.9