Dow Chemical 2015 Annual Report Download - page 110

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100
NOTE 12 – 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, 2015
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) $ — $ 5,043 $ — $ — $ 5,043
Interests in trade accounts receivable
conduits (3) — — 943 — 943
Equity securities (4) 564 39 — — 603
Debt securities: (4)
Government debt (5) — 612 — — 612
Corporate bonds — 651 — — 651
Derivatives relating to: (6)
Commodities 5 2 — (1) 6
Foreign currency — 161 — (52) 109
Total assets at fair value $ 569 $ 6,508 $ 943 $ (53) $ 7,967
Liabilities at fair value:
Long-term debt (7) $ — $ 18,000 $ — $ — $ 18,000
Derivatives relating to: (6)
Interest rates — 4 — — 4
Commodities 6 256 — (14) 248
Foreign currency — 84 — (52) 32
Total liabilities at fair value $ 6 $ 18,344 $ — $ (66) $ 18,284
(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 16 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 11 for the classification of derivatives in the consolidated balance sheets.
(7) See Note 11 for information on fair value measurements of long-term debt.