Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

The table below shows the outstanding swap quantities used to hedge forecasted purchases and sales as of March 31, 2019 and March 31, 2018:



Hedge Contracts	Classification	March 31, 2019		March 31, 2018
Natural gas (in mmbtus)	Commodity purchase swaps	56,894,000		17,711,000
Tin (in metric tons)	Commodity purchase swaps	1,475		690
Zinc (in metric tons)	Commodity purchase swaps	13,651		10,627
Hot-rolled coils (in tons)	Sales swaps	—		78,000
Foreign currency (in millions of euros)	Foreign exchange forwards	€	296	€	251
Foreign currency (in millions of CAD)	Foreign exchange forwards	C$	48	C$	—

Location and Amounts of Fair Values Related to Derivatives in Financial Statements

The following summarizes the fair value amounts included in our Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018:



(In millions) Designated as Hedging Instruments	Balance Sheet Location	March 31, 2019		December 31, 2018
Sales swaps	Accounts payable	$	—	$	1
Commodity purchase swaps	Accounts receivable	5		2
Commodity purchase swaps	Accounts payable	1		17
Commodity purchase swaps	Investments and long-term receivables	3		—
Commodity purchase swaps	Other long-term liabilities	3		1
Foreign exchange forwards	Accounts payable	1		1
Foreign exchange forwards	Other long-term liabilities	1		1

Not Designated as Hedging Instruments
Foreign exchange forwards	Accounts receivable	14		12

Schedule of Effect of Hedge Accounting on Accumulated Other Comprehensive Income

The table below summarizes the effect of hedge accounting on AOCI and amounts reclassified from AOCI into earnings for the three months ended March 31, 2019 and 2018:



	Gain (Loss) on Derivatives in AOCI						Amount of Gain (Loss) Recognized in Income
(In millions)	March 31, 2019		March 31, 2018			Location of Reclassification from AOCI ^(a)	March 31, 2019			March 31, 2018
Sales swaps ^(b)	$	1	$	(9	)	Net sales	$	(1	)	$	—
Commodity purchase swaps	18		(7		)	Cost of sales ^(c)	(4		)	5
Foreign exchange forwards	1		—			Cost of sales	—			—

^(a) The earnings impact of our hedging instruments substantially offsets the earnings impact of the related hedged items since ineffectiveness is less than $1 million.

^(b)U. S. Steel elected hedge accounting prospectively for iron ore pellet sales swaps on January 1, 2019.

^(c) Costs for commodity purchase swaps are recognized in cost of sales as products are sold.

Location and Amounts of Gains or Losses Related to Derivatives in Financial Statements

The table below summarizes the impact of derivative activity where hedge accounting has not been elected on our Consolidated Statement of Operations for the three months ended March 31, 2019 and 2018:



		Amount of Gain (Loss) Recognized in Income
(In millions)	Consolidated Statement of Operations Location	March 31, 2019		March 31, 2018
Sales swaps ^(a)	Net sales	$	—	$	(1	)
Commodity purchase swaps	Cost of sales	—		1
Foreign exchange forwards	Other financial costs	9		(6		)

^(a)U. S. Steel elected hedge accounting prospectively for iron ore pellet sales swaps on January 1, 2019.