XML 40 R26.htm IDEA: XBRL DOCUMENT v3.4.0.3
Fair Value Measurements
 3 Months Ended
Mar. 31, 2016
Fair Value Measurements [Abstract]  
Fair Value Measurements

20.    Fair Value Measurements

 

The following table provides carrying value and fair value measurement information for certain of Devon’s financial assets and liabilities. The carrying values of cash, accounts receivable, other current receivables, accounts payable, other current payables and accrued expenses included in the accompanying consolidated balance sheets approximated fair value at March 31, 2016 and December 31, 2015. Therefore, such financial assets and liabilities are not presented in the following table. Additionally, information regarding the fair values of oil and gas assets, goodwill and other intangible assets is provided in Note 5 and Note 13.







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Fair Value Measurements Using:



 

Carrying

 

Total Fair

 

Level 1

 

Level 2

 

Level 3



 

Amount

 

Value

 

Inputs

 

Inputs

 

Inputs



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

(Millions)

March 31, 2016 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

 1,121 

 

$

 1,121 

 

$

 1,026 

 

$

 95 

 

$

 -

Commodity derivatives

 

$

 54 

 

$

 54 

 

$

 -

 

$

 54 

 

$

 -

Commodity derivatives

 

$

 (28)

 

$

 (28)

 

$

 -

 

$

 (28)

 

$

 -

Interest rate derivatives

 

$

 2 

 

$

 2 

 

$

 -

 

$

 2 

 

$

 -

Interest rate derivatives

 

$

 (95)

 

$

 (95)

 

$

 -

 

$

 (95)

 

$

 -

Foreign currency derivatives

 

$

 (26)

 

$

 (26)

 

$

 -

 

$

 (26)

 

$

 -

Debt

 

$

 (12,545)

 

$

 (11,217)

 

$

 -

 

$

 (11,217)

 

$

 -

Capital lease obligations

 

$

 (13)

 

$

 (13)

 

$

 -

 

$

 (13)

 

$

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015 assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

 1,871 

 

$

 1,871 

 

$

 1,471 

 

$

 400 

 

$

 -

Commodity derivatives

 

$

 35 

 

$

 35 

 

$

 -

 

$

 35 

 

$

 -

Commodity derivatives

 

$

 (18)

 

$

 (18)

 

$

 -

 

$

 (18)

 

$

 -

Interest rate derivatives

 

$

 2 

 

$

 2 

 

$

 -

 

$

 2 

 

$

 -

Interest rate derivatives

 

$

 (22)

 

$

 (22)

 

$

 -

 

$

 (22)

 

$

 -

Foreign currency derivatives

 

$

 8 

 

$

 8 

 

$

 -

 

$

 8 

 

$

 -

Foreign currency derivatives

 

$

 (8)

 

$

 (8)

 

$

 -

 

$

 (8)

 

$

 -

Debt

 

$

 (13,032)

 

$

 (11,927)

 

$

 -

 

$

 (11,927)

 

$

 -

Capital lease obligations

 

$

 (17)

 

$

 (16)

 

$

 -

 

$

 (16)

 

$

 -

 

The following methods and assumptions were used to estimate the fair values in the table above.



Level 1 Fair Value Measurements

Cash equivalents —  Amounts consist primarily of money market investments. The fair value approximates the carrying value.

 

Level 2 Fair Value Measurements

 

Cash equivalents —  Amounts consist primarily of commercial paper and Canadian agency and provincial securities investments. The fair value approximates the carrying value.

 

Commodity, interest rate and foreign currency derivatives — The fair values of commodity, interest rate and foreign currency derivatives are estimated using internal discounted cash flow calculations based upon forward curves and data obtained from independent third parties for contracts with similar terms or data obtained from counterparties to the agreements.

 

Debt — Devon’s debt instruments do not actively trade in an established market. The fair values of its debt are estimated based on rates available for debt with similar terms and maturity. The fair values of commercial paper and credit facility balances are the carrying values.



Capital lease obligations —  The fair value was calculated using inputs from third-party banks.