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93
NOTE 11 – FAIR VALUE MEASUREMENTS
Fair Value Measurements on a Recurring Basis
The following tables summarize the bases used to measure certain assets and liabilities at fair value on a recurring basis:
Basis of Fair Value Measurements
on a Recurring Basis
at December 31, 2014
In millions
Quoted Prices
in Active
Markets for
Identical Items
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Counterparty
and Cash
Collateral
Netting (1) Total
Assets at fair value:
Cash equivalents (2) $ — $ 2,705 $ — $ — $ 2,705
Interests in trade accounts receivable
conduits (3) — — 1,328 — 1,328
Equity securities (4) 692 36 — — 728
Debt securities: (4)
Government debt (5) — 584 — — 584
Corporate bonds — 697 — — 697
Derivatives relating to: (6)
Commodities — 6 — (3) 3
Foreign currency — 116 — (90) 26
Total assets at fair value $ 692 $ 4,144 $ 1,328 $ (93) $ 6,071
Liabilities at fair value:
Long-term debt (7) $ — $ 21,450 $ — $ — $ 21,450
Derivatives relating to: (6)
Interest rates — 12 — — 12
Commodities 9 99 — (27) 81
Foreign currency — 161 — (90) 71
Total liabilities at fair value $ 9 $ 21,722 $ — $ (117) $ 21,614
(1) Cash collateral amounts represent the estimated net settlement amount when applying netting and set-off rights included in master
netting arrangements between the Company and its counterparties and the payable or receivable for cash collateral held or placed with
the same counterparty.
(2) Treasury Bills and money market funds included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized
cost, which approximates fair value.
(3) Included in "Accounts and notes receivable – Other" in the consolidated balance sheets. See Note 15 for additional information on
transfers of financial assets.
(4) The Company’s investments in equity and debt securities are primarily classified as available-for-sale and are included in “Other
investments” in the consolidated balance sheets.
(5) U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations.
(6) See Note 10 for the classification of derivatives in the consolidated balance sheets.
(7) See Note 10 for information on fair value measurements of long-term debt.