2.0.0.10 false Note 21 - Financial Instruments 00920 - Disclosure - Note 21 - Financial Instruments true false false false 1 usd $ false false Dollars Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 2 Notes to Financial Statements [Abstract] 0 pbra_NotesToFinancialStatementsAbstract pbra false na duration string No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false No definition available. false 3 Note 21 - Financial Instruments 1 pbra_FinancialInstrumentsTextBlock pbra false na duration string No definition available. false false false false false false false false false false false false 1 false false false false 0 0 <div style="PADDING-RIGHT: 0%; PADDING-LEFT: 0%"> 21. Financial Instruments In the normal course of its business activities, the Company acquires various types of financial instruments. a)  Concentrations of credit risk Substantial portions of the Companys assets including financial instruments are located in Brazil while substantially all of the Companys revenues and net income are generated in Brazil. The Companys financial instruments that are exposed to concentrations of credit risk consist primarily of its cash and cash equivalents, the Petroleum and Alcohol account, trade receivables and futures contracts. The Company takes several measures to reduce its credit risk to acceptable levels. All cash and cash equivalents in Brazil are maintained with major banks. Time deposits in U.S. dollars are placed with creditworthy institutions in the United States. Additionally, all of the Companys available-for-sale securities and derivative contracts are either exchange traded or maintained with creditworthy financial institutions. The Company monitors its credit risk associated with trade receivables by routinely assessing the creditworthiness of its customers. At December 31, 2009 and December 31, 2008, the Companys trade receivables were primarily maintained with large distributors. Fair value Fair values are derived either from quoted market prices where available, or, in their absence, the present value of expected cash flows. Fair values reflect the cash that would have been either received or paid if the instruments were settled at year end in an arms length transaction between willing parties. Fair values of cash and cash equivalents, trade receivables, the Petroleum and Alcohol account, short-term debt and trade payables approximate their carrying values. The fair values of other long-term receivables and payables do not differ materially from their carrying values. The Companys debt including project financing obligations, resulting from Codification TOPIC 810 consolidation amounted to US$48,149, at December 31, 2009, and US$20,640 at December 31, 2008, and had estimated fair values of US$48,804 and US$20,032, respectively. </div> <div style="PADDING-RIGHT: 0%; PADDING-LEFT: 0%"> The fair value hierarchy for the Companys financial assets and liabilities accounted for at fair value on a recurring basis at December 31, 2009, was: <div align="left"> <table style="FONT-SIZE: 9pt; WIDTH: 100%; FONT-FAMILY: '''''''''''''''Times New Roman'''''''''''''''" cellspacing="0" border="0"> <tr> <td width="47%"></td> <td width="2%"></td> <td width="13%"></td> <td width="2%"></td> <td width="12%"></td> <td width="2%"></td> <td width="13%"></td> <td width="2%"></td> <td width="6%"></td> </tr> <tr valign="bottom"> <td align="left"> </td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="center" colspan="7">As of December 31, 2009</td> </tr> <tr valign="bottom"> <td align="left"> </td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="right">Level 1 </td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="right">Level 2 </td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="right">Level 3 </td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="right">Total </td> </tr> <tr valign="bottom"> <td align="left">Assets </td> <td> </td> <td align="left"> </td> <td> </td> <td align="left"> </td> <td> </td> <td align="left"> </td> <td> </td> <td align="left"> </td> </tr> <tr valign="bottom"> <td style="TEXT-INDENT: 3px; BACKGROUND-COLOR: #cceeff" align="left">Marketable securities </td> <td style="BACKGROUND-COLOR: #cceeff"> </td> <td style="BACKGROUND-COLOR: #cceeff" align="right">2,551</td> <td style="BACKGROUND-COLOR: #cceeff"> </td> <td style="BACKGROUND-COLOR: #cceeff" align="right">- </td> <td style="BACKGROUND-COLOR: #cceeff"> </td> <td style="BACKGROUND-COLOR: #cceeff" align="right">- </td> <td style="BACKGROUND-COLOR: #cceeff"> </td> <td style="BACKGROUND-COLOR: #cceeff" align="right">2,551</td> </tr> <tr valign="bottom"> <td style="TEXT-INDENT: 3px" align="left">Foreign exchange derivatives (Note 20) </td> <td> </td> <td align="right">-</td> <td> </td> <td align="right">66 </td> <td> </td> <td align="right">- </td> <td> </td> <td align="right">66</td> </tr> <tr valign="bottom"> <td style="TEXT-INDENT: 3px; BACKGROUND-COLOR: #cceeff" align="left">Commodity derivatives (Note 20) </td> <td style="BACKGROUND-COLOR: #cceeff"> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff" align="right">36</td> <td style="BACKGROUND-COLOR: #cceeff"> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff" align="right">- </td> <td style="BACKGROUND-COLOR: #cceeff"> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff" align="right">- </td> <td style="BACKGROUND-COLOR: #cceeff"> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff" align="right">36</td> </tr> <tr valign="bottom"> <td align="left">Total assets </td> <td> </td> <td style="BORDER-BOTTOM: #000000 3px double" align="right">2,587</td> <td> </td> <td style="BORDER-BOTTOM: #000000 3px double" align="right">66 </td> <td> </td> <td style="BORDER-BOTTOM: #000000 3px double" align="right">- </td> <td> </td> <td style="BORDER-BOTTOM: #000000 3px double" align="right">2,653</td> </tr> <tr valign="bottom"> <td style="BACKGROUND-COLOR: #cceeff" align="left">Liabilities </td> <td style="BACKGROUND-COLOR: #cceeff"> </td> <td style="BACKGROUND-COLOR: #cceeff" align="left"> </td> <td style="BACKGROUND-COLOR: #cceeff"> </td> <td style="BACKGROUND-COLOR: #cceeff" align="left"> </td> <td style="BACKGROUND-COLOR: #cceeff"> </td> <td style="BACKGROUND-COLOR: #cceeff" align="left"> </td> <td style="BACKGROUND-COLOR: #cceeff"> </td> <td style="BACKGROUND-COLOR: #cceeff" align="left"> </td> </tr> <tr valign="bottom"> <td style="TEXT-INDENT: 3px" align="left">Commodity derivatives (Note 20) </td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="right">(51)</td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="right">- </td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="right">- </td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="right">(51)</td> </tr> <tr valign="bottom"> <td style="BACKGROUND-COLOR: #cceeff" align="left">Total liabilities </td> <td style="BACKGROUND-COLOR: #cceeff"> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #cceeff" align="right">(51)</td> <td style="BACKGROUND-COLOR: #cceeff"> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #cceeff" align="right">- </td> <td style="BACKGROUND-COLOR: #cceeff"> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #cceeff" align="right">- </td> <td style="BACKGROUND-COLOR: #cceeff"> </td> <td style="BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #cceeff" align="right">(51)</td> </tr> </table> </div>   The fair value hierarchy for the Companys non financial assets and liabilities accounted for at fair value on a non-recurring basis at December 31, 2009, was: <div align="left"> <table style="FONT-SIZE: 9pt; WIDTH: 100%; FONT-FAMILY: '''''''''''''''Times New Roman'''''''''''''''" cellspacing="0" border="0"> <tr> <td width="43%"></td> <td width="2%"></td> <td width="16%"></td> <td width="2%"></td> <td width="11%"></td> <td width="2%"></td> <td width="12%"></td> <td width="2%"></td> <td width="6%"></td> </tr> <tr valign="bottom"> <td align="left"> </td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="center" colspan="7">As of December 31, 2009</td> </tr> <tr> <td colspan="9"> </td> </tr> <tr valign="bottom"> <td align="left"> </td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="right">Level 1 </td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="right">Level 2 </td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="right">Level 3 </td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="right">Total </td> </tr> <tr> <td colspan="9"> </td> </tr> <tr valign="bottom"> <td align="left">Assets </td> <td> </td> <td align="left"> </td> <td> </td> <td align="left"> </td> <td> </td> <td align="left"> </td> <td> </td> <td align="left"> </td> </tr> <tr valign="bottom"> <td style="TEXT-INDENT: 3px; BACKGROUND-COLOR: #cceeff" align="left">Long-lived assets held and used </td> <td style="BACKGROUND-COLOR: #cceeff"> </td> <td style="BACKGROUND-COLOR: #cceeff" align="right">- </td> <td style="BACKGROUND-COLOR: #cceeff"> </td> <td style="BACKGROUND-COLOR: #cceeff" align="right">- </td> <td style="BACKGROUND-COLOR: #cceeff"> </td> <td style="BACKGROUND-COLOR: #cceeff" align="right">135 </td> <td style="BACKGROUND-COLOR: #cceeff"> </td> <td style="BACKGROUND-COLOR: #cceeff" align="right">135 </td> </tr> <tr valign="bottom"> <td style="TEXT-INDENT: 3px" align="left">Equity method investments </td> <td> </td> <td style="BORDER-BOTTOM: #000000 3px double" align="right">- </td> <td> </td> <td style="BORDER-BOTTOM: #000000 3px double" align="right">- </td> <td> </td> <td style="BORDER-BOTTOM: #000000 3px double" align="right">133 </td> <td> </td> <td style="BORDER-BOTTOM: #000000 3px double" align="right">133 </td> </tr> </table> </div>   In accordance with the provisions of ASC Topic 360, long-lived assets held and used with a carrying amount of US$446 were written down to their fair value of US$135, resulting in an impairment charge of US$311, before taxes, which was included in earnings for the period. Fair value of long lived assets is estimated based on the present value of future cash flows, resulting from the companys best estimates. Inputs used to estimate fair value were: prices based on the last strategic plan published, production curves associated with existing products in the Companys portfolio, market operating costs and investments needed for carrying out the projects. Equity method investments in Venezuela, associated with our E&P segment, were determined to have a fair value below carrying amount on the impairment was considered to be other than temporary. As a result, those investments with a book value of US$210 were written down to a fair value of US$133 resulting in a charge of US$77 before-tax, which is included in earnings for the period (See note 10(a)). </div> 21. Financial Instruments In the normal course of its business activities, the Company acquires various types of financial instruments. false false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true