FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

There were no significant assets or liabilities measured at fair value as of December 31, 2020. The following represents the assets and liabilities measured at fair value as of December 31, 2019:

	(In Millions)
	December 31, 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 - Commercial paper	$	—	$	188	$	—	$	188
Other current assets:
Customer supply agreement	—		—		45		45
Total	$	—	$	188	$	45	$	233

The valuation of financial assets classified in Level 2 was determined using a market approach based upon quoted prices for similar assets in active markets, or other inputs that were observable.

Our supply agreement with ArcelorMittal USA contained provisions for supplemental revenue or refunds based on the HRC price in the year the iron ore product was consumed in ArcelorMittal USA’s blast furnaces. We accounted for these provisions as derivative instruments at the time of sale and adjusted the derivative instruments to fair value through Revenues each reporting period until the product was consumed and the amounts were settled. These instruments were classified as Level 3 assets. Upon the completion of the AM USA Transaction, the outstanding derivatives were settled as part of acquisition accounting.

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
	2020		2019
Beginning balance - January 1	$	45	$	89
Total gains included in earnings	122		79
Settlements	(27)		(123)
Settlement of pre-existing relationship	(140)		—
Ending balance - December 31	$	—	$	45
Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date	$	—	$	45

The carrying values of certain financial instruments (e.g. Accounts receivable, net, Accounts payable and Other current liabilities) approximate fair value and, therefore, have been excluded from the table below. A summary of the carrying value and fair value of other financial instruments were as follows:

		(In Millions)
		December 31, 2020				December 31, 2019
	Classification	Carrying Value		Fair Value		Carrying Value		Fair Value
Senior notes	Level 1	$	3,802	$	4,446	$	2,114	$	2,237
IRBs due 2024 to 2028	Level 1	94		91		—		—
EDC Revolving Facility - outstanding balance	Level 2	18		18		—		—
ABL Facility - outstanding balance	Level 2	1,510		1,510		—		—
Total		$	5,424	$	6,065	$	2,114	$	2,237

The fair value of both current and long-term debt was determined using quoted market prices.