Company: MT
Filing Date: 2025-03-10
Form Type: 20-F
Source: 0001243429-25-000017
Chunk: 427

Company: ArcelorMittal
Filing Date: 2025-03-10
Form: 20-F
Chunk 427
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1,350 |     |        373 |     |            486 |     |        -46 |
| Term contracts purchases                                            |             1,538 |     |        267 |     |          1,235 |     |       -166 |
| Option sales/purchases                                              |                18 |     |          — |     |              — |     |          — |
| Total raw materials (base metals), freight, energy, emission rights |                   |     |        640 |     |                |     |       -212 |
| Total                                                               |                   |     |        806 |     |                |     |       -354 |

258

| Consolidated financial statements                          |
| (millions of U.S. dollar, except share and per share data) |

In 2022, the Company unwound natural gas and emission rights

forward purchase contracts with notional of € 0.3 billion and € 0.7

billion, respectively, and carrying amount of 1,025 and 1,086 ,

respectively, designated as a cash flow hedge of future natural

gas and emission rights purchases. The deferred gain

recognized in other comprehensive income is recycled to the

consolidated statements of operations when the hedged item

impacts profit or loss (see note 6.3). In addition, at maturity of

forward purchases of emission rights with notional amount of

€ 0.7 billion and carrying amount of 1,408 designated as a cash

flow hedge of future emission rights purchases, the Company (i)

removed 1,268 ( 953 net of tax) deferred gain recognized in

other comprehensive income from the cash flow hedge reserve

(see note 6.3) and included it in the 671 carrying amount of the

delivered emission rights as basis adjustment and (ii) recycled

140 ( 104 net of tax) to the consolidated statements of

operations in cost of sales.

Derivative financial assets and liabilities classified a s Level 2:

Refer to instruments to hedge fluctuations in interest rates,

foreign exchange rates, raw materials (base metals), freight,

energy and emission rights. The total fair value is based on the

price a dealer would pay or receive for the security or similar

securities, adjusted for any terms specific to that asset or

liability. Market inputs are obtained from well-established and

recognized vendors of market data and the fair value is

calculated using standard industry models based on significant