Hess 2014 Annual Report Download - page 98

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83
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
83
Fair Value Measurements:
The following table provides the Corporation’s net physical derivative and financial assets and (liabilities) that are measured at fair
value based on this hierarchy:
Level 1 Level 2 Level 3
Counterparty
netting Collateral Balance
(In millions)
December 31, 2014
Assets
Derivative contracts
Commodity .................................................. $ 755 $ 390 $ 114 $ (458) $ (36) $ 765
Interest rate and other .................................. (1) 70 — — (1) 68
Collateral and counterparty netting .............. (43) (20) — — — (63)
Total derivative contracts ........................ 711 440 114 (458) (37) 770
Other assets measured at fair value on a
recurring basis .............................................. 27 — — — — 27
Total assets measured at fair value on a recurring
basis .................................................................. $ 738 $ 440 $ 114 $ (458) $ (37) $ 797
Liabilities
Derivative contracts
Commodity .................................................. $ (338) $ (1,265) $ (62) $ 458 $ 299 $ (908)
Other ............................................................ (3) (1) (2) — 3 (3)
Collateral and counterparty netting .............. 43 20 — — — 63
Total derivative contracts ........................ (298) (1,246) (64) 458 302 (848)
Other liabilities measured at fair value on a
recurring basis .............................................. (40) — — — — (40)
Total liabilities measured at fair value on a
recurring basis .................................................. $ (338) $ (1,246) $ (64) $ 458 $ 302 $ (888)
Other fair value measurement disclosures
Long-term debt (a) ............................................ $ — $ (7,003) $ — $ — $ — $ (7,003)
December 31, 2013 (b)
Assets
Derivative contracts
Commodity .................................................. $ 254 $ 579 $ 494 $ (108 ) $ (79) $ 1,140
Interest rate and other .................................. 2 37 3 (1 ) — 41
Collateral and counterparty netting .............. (15) (191) — — — (206)
Total derivative contracts ........................ 241 425 497 (109 ) (79) 975
Other assets measured at fair value on a
recurring basis .............................................. — — — — — —
Total assets measured at fair value on a recurring
basis .................................................................. $ 241 $ 425 $ 497 $ (109 ) $ (79) $ 975
Liabilities
Derivative contracts
Commodity .................................................. $ (97) $ (1,071) $ (285) $ 108 $ 168 $ (1,177)
Other ............................................................ — (3) — 1 — (2)
Collateral and counterparty netting .............. 15 191 — — — 206
Total derivative contracts ........................ (82) (883) (285) 109 168 (973)
Other liabilities measured at fair value on a
recurring basis .............................................. (31) — — — — (31)
Total liabilities measured at fair value on a
recurring basis .................................................. $ (113) $ (883) $ (285) $ 109 $ 168 $ (1,004)
Other fair value measurement disclosures
Long-term debt (a) ............................................ $ — $ (6,641) $ — $ — $ — $ (6,641)
(a) Long-term debt, including current maturities, had a carrying value of $5,987 million and $5,798 million at December 31, 2014 and 2013, respectively.
(b) Assets and liabilities in 2013 include amounts relating to the divested energy marketing business.