The Company may use derivatives to partially offset its business exposure to commodity price, foreign currency, and interest rate fluctuations and their related impact on expected future cash flows and certain existing assets and liabilities. However, the Company may choose not to hedge certain exposures for a variety of reasons including, but not limited to, Company policy, accounting considerations, or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in commodity pricing, foreign currency exchange, or interest rates. Interest rate swaps are entered into to manage interest rate risk associated with the Company’s floating-rate borrowings. We use foreign currency exchange contracts to hedge variability in cash flows in our Canada, Mexico, and China operations when a payment currency is different from our functional currency. From time to time, we may enter into fixed price sales contracts with our customers for certain of our inventory components. We may enter into metal commodity futures and options contracts to reduce volatility in the price of these metals. We may also enter into fixed price natural gas contracts and diesel fuel derivative contracts to manage the price risk of forecasted purchases of natural gas and diesel fuel.

We have two receive variable, pay fixed, interest rate swaps to manage the exposure to variable interest rates of the Ryerson Credit Facility. In June 2019, we entered into a forward agreement for $60 million of “pay fixed” interest at 1.729% and in November 2019, we entered into a forward agreement for $100 million of “pay fixed” interest at 1.539%. The interest rate reset dates and critical terms match the terms of our existing debt and anticipated critical terms of future debt under the Ryerson Credit Facility. The fair value of the interest rate swaps as of March 31, 2020 was a net liability of $4.9 million.

The Company currently does not account for its commodity and foreign exchange derivative contracts as hedges but rather marks them to market with a corresponding offset to current earnings. The Company accounts for its interest rate swaps as cash flow hedges of floating-rate borrowings with changes in fair value being recorded in accumulated other comprehensive income. The Company has made an accounting policy election to offset the fair value of derivative liabilities with related cash collateral. As of March 31, 2020, and December 31, 2019, the Company offset $0.5 million and $2.7 million, respectively, of fair value liabilities with cash held as collateral by the counterparty.

The Company regularly reviews the creditworthiness of its derivative counterparties and does not expect to incur a significant loss from the failure of any counterparties to perform under any agreements.

The following table summarizes the location and fair value amount of our derivative instruments reported in our Condensed Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019:

	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	March 31, 2020		December 31, 2019		Balance Sheet Location		March 31, 2020			December 31, 2019
Derivatives not designated as hedging instruments under ASC 815	(In millions)
Metal commodity contracts	Prepaid expenses and other current assets	$	1.0	$	5.0	Other accrued liabilities	(a)	$	8.2	(b)	$	9.4
Crude oil contracts	Prepaid expenses and other current assets		—		0.1	Other accrued liabilities			—			—
Foreign exchange contracts	Prepaid expenses and other current assets		0.2		—	Other accrued liabilities			—			—
Derivatives designated as hedging instruments under ASC 815
Interest rate swaps	Deferred charges and other assets		—		—	Other noncurrent liabilities			4.9			0.2
Total derivatives		$	1.2	$	5.1		(a)	$	13.1	(b)	$	9.6
(a) The offsetting cash collateral balance of $0.5 million held by the derivative counterparty brings the net metal commodity contract liability to $7.7 million and the net total derivative liability balance to $12.6 million as of March 31, 2020.
(b) The offsetting cash collateral balance of $2.7 million held by the derivative counterparty brought the net metal commodity contract liability to $6.7 million and the net total derivative liability balance to $6.9 million as of December 31, 2019.

The following table presents the volume of the Company’s activity in derivative instruments as of March 31, 2020 and December 31, 2019:

	Notional Amount
Derivative Instruments	At March 31, 2020		At December 31, 2019		Unit of Measurement
Iron ore swap contracts		240,000		420,000	Tons
Hot roll coil swap contracts		30,553		47,155	Tons
Crude oil swap contracts		—		38,000	Barrels
Aluminum swap contracts		14,915		23,949	Tons
Nickel swap contracts		338		3,164	Tons
Foreign currency exchange contracts	2.8 million		2.0 million		U.S. dollars
Interest rate swaps	160 million		310 million		U.S. dollars

The following table summarizes the location and amount of gains and losses on derivatives not designated as hedging instruments reported in our Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2020 and 2019:

		Amount of Gain/(Loss) Recognized in Income on Derivatives
Derivatives not designated as hedging instruments	Location of Gain/(Loss) Recognized in Income	Three Months Ended March 31,
under ASC 815	on Derivatives	2020			2019
Metal commodity contracts	Cost of materials sold	$	(2.0	)	$	1.6
Crude oil commodity contracts	Warehousing, delivery, selling, general, and administrative		—			0.9
Foreign exchange contracts	Other income and (expense), net		0.2			(0.1	)
Total		$	(1.8	)	$	2.4

The following table summarizes the location and amount of gains and losses on derivatives designated as hedging instruments reported in our Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2020 and 2019:

		Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Derivatives designated as hedging instruments	Location of Gain/(Loss) Recognized in Income	Three Months Ended March 31,
under ASC 815	on Derivatives	2020			2019
		(In millions)
Interest rate swaps	Interest and other expense on debt	$	(0.1	)	$	0.3

As of March 31, 2020, the portion of the interest rate swap fair value that would be reclassified into earnings during the next 12 months as interest expense is approximately $1.8 million.

To increase consistency and comparability in fair value measurements, ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows:

The following table presents assets and liabilities measured and recorded at fair value on our Condensed Consolidated Balance Sheet on a recurring basis and their level within the fair value hierarchy as of March 31, 2020:

	At March 31, 2020
	Level 1		Level 2			Level 3
	(In millions)
Assets
Derivatives:
Derivatives not designated as hedging instruments under ASC 815:
Metal commodity contracts	$	—	$	1.0		$	—
Foreign exchange contracts		—		0.2			—
Total derivatives	$	—	$	1.2		$	—
Liabilities
Derivatives:
Derivatives not designated as hedging instruments under ASC 815:
Metal commodity contracts	$	—	$	8.2	(a)	$	—
Derivatives designated as hedging instruments under ASC 815:
Interest rate swaps		—		4.9			—
Total derivatives	$	—	$	13.1	(a)	$	—
(a) The offsetting cash collateral balance of $0.5 million held by the derivative counterparty brings the net metal commodity contract liability to $7.7 million and the net total derivative liability balance to $12.6 million.

	At December 31, 2019
	Level 1		Level 2			Level 3
	(In millions)
Assets
Derivatives:
Derivatives not designated as hedging instruments under ASC 815:
Metal commodity contracts	$	—	$	5.0		$	—
Foreign exchange contracts		—		0.1			—
Total derivatives	$	—	$	5.1		$	—
Liabilities
Derivatives:
Derivatives not designated as hedging instruments under ASC 815:
Metal commodity contracts	$	—	$	9.4	(b)	$	—
Derivatives designated as hedging instruments under ASC 815:
Interest rate swaps		—		0.2			—
Total derivatives	$	—	$	9.6	(b)	$	—
(b) The offsetting cash collateral balance of $2.7 million held by the derivative counterparty brought the net metal commodity contract liability to $6.7 million and the net total derivative liability balance to $6.9 million.

The fair value of each derivative contract is determined using Level 2 inputs and the market approach valuation technique, as described in ASC 820. The Company has various commodity derivatives to lock in nickel prices for varying time periods. The fair value of these derivatives is determined based on the spot price each individual contract was purchased at and compared with the one-month daily average actual spot price on the London Metals Exchange for nickel on the valuation date. The Company also has commodity derivatives to lock in hot roll coil, crude oil, iron ore, and aluminum prices for varying time periods. The fair value of hot roll coil, crude oil, iron ore, and aluminum derivatives is determined based on the spot price each individual contract was purchased at and compared with the one-month daily average actual spot price on the Chicago Mercantile Exchange (hot roll coil and crude oil), the Singapore Exchange, and the London Metals Exchange, respectively, for the commodity on the valuation date. In addition, the Company has numerous foreign exchange contracts to hedge variability in cash flows when a payment currency is different from our functional currency. The Company defines the fair value of foreign exchange contracts as the amount of the difference between the contracted and current market value at the end of the period. The Company estimates the current market value of foreign exchange contracts by obtaining month-end market quotes of foreign exchange rates and forward rates for contracts with similar terms. The Company uses the exchange rates provided by Reuters. Each commodity and foreign exchange contract term varies in length, but in general, contracts are between 1 to 12 months. The fair value of our interest rate swap is based on the sum of all future net present value cash flows for the fixed and floating leg of the swap. The future cash flows are derived based on the terms of our interest rate swap, as well as published discount factors, and projected forward LIBOR rates.

The carrying and estimated fair values of our financial instruments at March 31, 2020 and December 31, 2019 were as follows:

	At March 31, 2020				At December 31, 2019
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In millions)
Cash and cash equivalents	$	188.3	$	188.3	$	11.0	$	11.0
Restricted cash		16.4		16.4		48.8		48.8
Receivables less provisions		490.7		490.7		425.1		425.1
Accounts payable		377.5		377.5		311.5		311.5
Long-term debt, including current portion		1,096.1		1,058.8		981.8		1,014.4

The estimated fair value of the Company’s cash and cash equivalents, restricted cash, receivables less provisions, and accounts payable approximate their carrying amounts due to the short-term nature of these financial instruments. The estimated fair value of the Company’s long-term debt and the current portions thereof is determined by using quoted market prices of Company debt securities (Level 2 inputs).

The fair values less costs to sell of long-lived assets held for sale are assessed each reporting period that they remain classified as held for sale. Any increase or decrease in the held for sale long-lived asset’s fair value less cost to sell is reported as an adjustment to its carrying amount, except that the adjusted carrying amount cannot exceed the carrying amount of the long-lived asset at the time it was initially classified as held for sale. The fair values of each property were determined based upon appraisals obtained from a third-party, pending sales contracts, or recent listing agreements with third-party brokerage firms (Level 2 inputs).

The following tables present assets and liabilities measured and recorded at the lower of its carry value or fair value less cost to sell on the Condensed Consolidated Balance Sheets on a non-recurring basis and their level within the fair value hierarchy as of March 31, 2020 and December 31, 2019:

	At March 31, 2020
	Level 1		Level 2		Level 3
	(In millions)
Assets
Prepaid expenses and other current assets – assets held for sale	$	—	$	1.5	$	—

	At December 31, 2019
	Level 1		Level 2		Level 3
	(In millions)
Assets
Prepaid expenses and other current assets – assets held for sale	$	—	$	1.5	$	—