Chevron 2013 Annual Report Download - page 43

Chevron Corporation 2013 Annual Report 41
Assets and Liabilities Measured at Fair Value on a Recurring Basis
At December 31, 2013 At December 31, 2012
Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3
Marketable securities $ 263 $ 263 $ – $ – $ 266 $ 266 $ – $ –
Derivatives 28 – 28 – 86 21 65 –
Total Assets at Fair Value $ 291 $ 263 $ 28 $ – $ 352 $ 287 $ 65 $ –
Derivatives 89 80 9 – 149 148 1 –
Total Liabilities at Fair Value $ 89 $ 80 $ 9 $ – $ 149 $ 148 $ 1 $ –
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
At December 31 At December 31
Total Level 1 Level 2 Level 3
Before-Tax
Loss
Year 2013 Total Level 1 Level 2 Level 3
Before-Tax
Loss
Year 2012
Properties, plant and
equipment, net
(held and used) $ 102 $ – $ – $ 102 $ 278 $ 84 $ – $ – $ 84 $ 213
Properties, plant and
equipment, net
(held for sale) 69 – 69 – 104 16 – – 16 17
Investments and advances 38 – 35 3 228 – – – – 15
Total Nonrecurring
Assets at Fair Value $ 209 $ – $ 104 $ 105 $ 610 $ 100 $ – $ – $ 100 $ 245
Note 9 Fair Value Measurements – Continued
e tables below show the fair value hierarchy for assets and
liabilities measured at fair value on a recurring and nonrecur-
ring basis at December 31, 2013, and December 31, 2012.
Marketable Securities e company calculates fair value
for its marketable securities based on quoted market prices
for identical assets. e fair values reect the cash that would
have been received if the instruments were sold at December
31, 2013.
Derivatives e company records its derivative instruments
– other than any commodity derivative contracts that
are designated as normal purchase and normal sale – on
the Consolidated Balance Sheet at fair value, with the
osetting amount to the Consolidated Statement of Income.
Derivatives classied as Level 1 include futures, swaps and
options contracts traded in active markets such as the New
York Mercantile Exchange. Derivatives classied as Level 2
include swaps, options, and forward contracts, principally
with nancial institutions and other oil and gas companies,
the fair values of which are obtained from third-party
broker quotes, industry pricing services and exchanges. e
company obtains multiple sources of pricing information
for the Level 2 instruments. Since this pricing information
is generated from observable market data, it has historically
been very consistent. e company does not materially adjust
this information.
Properties, Plant and Equipment e company did not
have any material long-lived assets measured at fair value on a
nonrecurring basis to report in 2013 or 2012.
Investments and Advances e company did not have any
material investments and advances measured at fair value on a
nonrecurring basis to report in 2013 or 2012.
Assets and Liabilities Not Required to Be Measured at
Fair Value e company holds cash equivalents and bank
time deposits in U.S. and non-U.S. portfolios. e instru-
ments classied as cash equivalents are primarily bank time
deposits with maturities of 90 days or less and money market
funds. “Cash and cash equivalents” had carrying/fair values
of $16,245 and $20,939 at December 31, 2013, and Decem-
ber 31, 2012, respectively. e instruments held in “Time
deposits” are bank time deposits with maturities greater
than 90 days, and had carrying/fair values of $8 and $708
at December 31, 2013, and December 31, 2012, respectively.
e fair values of cash, cash equivalents and bank time depos-
its are classied as Level 1 and reect the cash that would
have been received if the instruments were settled at Decem-
ber 31, 2013.