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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 9 – Fair Value
of Financial Instruments
Investments in LTV common
stock reflect the market value at December
31, 2000 and 1999 on 542,000 shares and
842,000 shares, respectively. See note
13 – Non-Recurring Special Items. The fair value of the
Company’s long-term debt was determined
based on a discounted cash flow analysis
and estimated current borrowing rates. The Company had Canadian
forward currency exchange contracts in
the notional amount of $22.5 million at
December 31, 1999. The fair value of the
contracts, which had varying maturity
dates of less than twelve months, was
estimated to be $.4 million, based on
December 31, 1999 forward rates. At December
31, 2000, the Company did not have any
forward currency exchange contracts. At December 31, 2000, the Company’s managed mines had in place forward contracts for the purchase of natural gas in the notional amount of $16.1 million (Company share – $5.4 million). The unrecognized fair value gain on the contracts, which mature at various times through April, 2001, was estimated to be $11.4 million (Company share – $3.8 million) based on December 29, 2000 forward rates. No such contracts were utilized in 1999. |
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