FAIR VALUE ACCOUNTING

9 Months Ended

Sep. 30, 2015

FAIR VALUE ACCOUNTING

FAIR VALUE ACCOUNTING

NOTE 14    FAIR VALUE ACCOUNTING

The following table sets forth the Company’s assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	Fair Value at September 30, 2015
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	1,562	$	1,562	$	—	$	—
Marketable equity securities:
Extractive industries		150		150		—		—
Other		16		16		—		—
Marketable debt securities:
Asset backed commercial paper		19		—		—		19
Auction rate securities		7		—		—		7
Trade receivable from provisional copper and gold concentrate sales, net		146		146		—		—
	$	1,900	$	1,874	$	—	$	26
Liabilities:
Debt (1)	$	5,851	$	—	$	5,851	$	—
Derivative instruments, net:
Foreign exchange forward contracts		86		—		86		—
Diesel forward contracts		29		—		29		—
Boddington contingent consideration		10		—		—		10
Holt property royalty		121		—		—		121
	$	6,097	$	—	$	5,966	$	131

⁽¹⁾ Debt, exclusive of capital leases, is carried at amortized cost. The outstanding carrying value was $6,327 at September 30, 2015. The fair value measurement of debt was based on prices obtained from readily available pricing source.

The fair values of the derivative instruments in the table above are presented on a net basis. The gross amounts related to the fair value of the derivatives instruments above are included in Note 15. All other fair value disclosures in the above table are presented on a gross basis.

In addition to the financial instruments listed in the table above, we hold other financial instruments including receivables and accounts payable. The carrying amounts for receivables and accounts payable approximated their fair value.

The following table sets forth a summary of the quantitative and qualitative information related to the unobservable inputs used in the calculation of the Company’s Level 3 financial assets and liabilities at September 30, 2015:  

	At September 30,				Range/Weighted
Description	2015		Valuation technique	Unobservable input	average
Auction Rate Securities	$	7	Discountedcash flow	Recoverability rate		85	%
Asset Backed Commercial Paper		19	Discounted cash flow	Recoverability rate		90	%
Boddington Contingent Consideration		10	Monte Carlo	Discount rate		5	%
				Long-term gold price	$	1,300
				Long-term copper price	$	3.00
Holt property royalty		121	Monte Carlo	Discount rate		5	%
				Long-term gold price	$	1,300
				Weighted average gold production scenarios (in 000's of ounces)		528 - 2,559

The following table sets forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities:

			Asset
	Auction		Backed				Boddington		Holt
	Rate		Commercial		Total		Contingent		Property		Total
	Securities		Paper		Assets		Consideration		Royalty		Liabilities
Fair value at December 31, 2014	$	6	$	24	$	30	$	10	$	179	$	189
Settlements		—		—		—		—		(9)		(9)
Revaluation		1		(5)		(4)		—		(49)		(49)
Fair value at September 30, 2015	$	7	$	19	$	26	$	10	$	121	$	131