FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2024

The following table summarizes the carrying value and fair value of other financial instruments:


		December 31, 2024				December 31, 2023
(In millions)	Classification	Carrying Value		Fair Value		Carrying Value		Fair Value
Senior notes	Level 1	$	5,505	$	5,496	$	3,137	$	3,118
ABL Facility - outstanding balance	Level 2	1,560		1,560		—		—
Total		$	7,065	$	7,056	$	3,137	$	3,118

The following tables and information provide additional disclosures:


(In millions)	Pension Benefits				OPEB
Change in benefit obligations:	2024		2023		2024		2023
Benefit obligations — beginning of year	$	4,571	$	4,646	$	1,036	$	1,233
Service cost	28		31		8		10
Interest cost	218		235		50		64
Plan amendments	—		3		7		8
Actuarial loss (gain)	(165)		116		162		(158)
Benefits paid	(429)		(436)		(155)		(163)
Participant contributions	—		—		36		42
Acquired through business combinations	35		—		—		—
Foreign currency exchange	(1)		—		—		—
Effect of settlement	(9)		(24)		—		—
Other	—		—		3		—
Benefit obligations — end of year	$	4,248	$	4,571	$	1,147	$	1,036

Change in plan assets:
Fair value of plan assets — beginning of year	$	4,282	$	4,338	$	739	$	728
Actual return on plan assets	254		375		46		67
Participant contributions	—		—		36		42
Employer contributions	119		29		76		65
Benefits paid	(429)		(436)		(155)		(163)
Acquired through business combinations	21		—		—		—
Foreign currency exchange	(1)		—		—		—
Effect of settlement	(9)		(24)		—		—

Fair value of plan assets — end of year	$	4,237	$	4,282	$	742	$	739
Funded status	$	(11)	$	(289)	$	(405)	$	(297)

Amounts recognized in Statements of Financial Position:
Non-current assets	$	239	$	137	$	188	$	192
Current liabilities1	(7)		(18)		(85)		(76)
Non-current liabilities	(243)		(408)		(508)		(413)
Total amount recognized	$	(11)	$	(289)	$	(405)	$	(297)

Amounts recognized in accumulated other comprehensive loss (income):
Net actuarial gain	$	(400)	$	(304)	$	(1,720)	$	(2,033)
Prior service cost (credit)	89		106		(109)		(131)
Net amount recognized	$	(311)	$	(198)	$	(1,829)	$	(2,164)

1 Current liabilities are classified within Other current liabilities on the Statements of Consolidated Financial Position.

Company contributions and payments we expect to make in 2025, and made in 2024 and 2023 are as follows:


	Pension Benefits		OPEB
(In millions)			VEBA1		Direct Payments		Total
2023	$	29	$	—	$	65	$	65
2024	119		—		76		76
2025 (Expected)	69		—		74		74

1 Pursuant to the applicable bargaining agreements, benefits can be paid from certain VEBAs that are at least 70% funded (all VEBAs were over 70% funded at December 31, 2024). Certain agreements with plans holding VEBA assets have capped healthcare costs. For the Cleveland-Cliffs Steel LLC VEBA, we are required to make contributions based on earnings, and we may withdraw money from the VEBA plan to the extent funds are available for costs in excess of the cap. VEBA withdrawals are represented net of direct payments. There will be no further contributions to the Cleveland-Cliffs Steel LLC VEBA based on earnings for the remainder of the labor agreement with the USW, which expires in September 2026.

The following table summarizes the changes in fair value of the employee benefit commitment:


(In millions)	2024
Beginning balance as of January 1	$	—
Fair value of commitment assumed in connection with Stelco Acquisition	(197)
Total losses included in earnings	(2)
Payments	5
Foreign currency translation	6
Ending balance as of December 31	$	(188)

The following table summarizes the changes in fair value of the MinnTac option:


(In millions)	2024
Beginning balance as of January 1	$	—
Fair value of option acquired in connection with Stelco Acquisition	110
Total losses included in earnings	(12)
Foreign currency translation	(3)
Ending balance as of December 31	$	95