Question-and-Answer Session
Operator
(Operator Instructions). Our next question comes from the line of
Kuni Chen from Bank of America. Your line is open.
Kuni Chen - BAS-ML
Hi. Good morning, everybody.
Joseph Carrabba
Good morning.
Laurie Brlas
Good morning.
Kuni Chen - BAS-ML
Just to start off on the bill and hold sales with 4.5 million tons. Does that I can recognize this revenue in 2010 or kind of does that end up pushing tons from 2010 into 2011 and so forth. Can you also talk about the accounting treatment for bill and hold still seems a little bit uncertain there when you expect to get more clarity on that issue?
Laurie Brlas
When we would get the cash in the current year. So that we have clarity on and that the revenue would be recognized as those ton shift and at this point we see no a reason not to expect that they would all shift in 2010.
Kuni Chen - BAS-ML
Okay. And then on the accounting treatment?
Laurie Brlas
The accounting treatment, we get the cash and so we have debit to cash and a credit to liability that we owe the ton to the people and then we get we book revenue when we shift the ton.
Kuni Chen - BAS-ML
Right. All right that's fine. I guess next question, can you perhaps maybe give us a sensitivity around your sales volumes and how you expect that's the correlated steel utilization rates improved. So for example, what level of sales in North American Iron Ore would you expect to see it, I would say 60, 70% and 80% utilization rates?
Joseph Carrabba
But we would certainly see, if those projections on utilization we're to pick up. Certainly we would see the volumes come across then where we are right now. And would be more of I think of effect on the stock piles at year-end and then of course that would translate into higher volumes.
I don't have an absolute number for there is so many variables around an industry average of 60 -- 70% utilization capacity moving up versus the individual glass furnaces and the stock piles have sit between them in the mind at this point in time.
Kuni Chen - BAS-ML
Right. And then last question on acquisitions; would you consider Met Coal to be basically off your radar screen at this point. Do you think it's a good idea to increase your scale in that coal or perhaps add more to your management strength in that area. Can you just comment on whether or not that's strategically appealing?
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