Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Assets and Liabilities Accounted for at Fair Value on Recurring Basis

The following tables present assets and liabilities accounted for at fair value on a recurring basis as of June 30, 2014 and December 31, 2013 by fair value hierarchy level. We have elected to offset the fair value amounts recognized for multiple derivative contracts executed with the same counterparty, including any related cash collateral as shown below; however, fair value amounts by hierarchy level are presented on a gross basis in the following tables.

	June 30, 2014
	Fair Value Hierarchy
(In millions)	Level 1		Level 2		Level 3		Netting and Collateral(a)			Net Carrying Value on Balance Sheet(b)		Collateral Pledged Not Offset
Commodity derivative instruments, assets	$	44	$	—	$	—	$	(44	)	$	—	$	60
Other assets	2		—		—		N/A			2		—
Total assets at fair value	$	46	$	—	$	—	$	(44	)	$	2	$	60
Commodity derivative instruments, liabilities	$	91	$	—	$	—	$	(91	)	$	—	$	—
Contingent consideration, liability(c)	—		—		647		N/A			647		—
Total liabilities at fair value	$	91	$	—	$	647	$	(91	)	$	647	$	—

	December 31, 2013
	Fair Value Hierarchy
(In millions)	Level 1		Level 2		Level 3		Netting and Collateral(a)			Net Carrying Value on Balance Sheet(b)		Collateral Pledged Not Offset
Commodity derivative instruments, assets	$	21	$	—	$	—	$	(21	)	$	—	$	61
Other assets	2		—		—		N/A			2		—
Total assets at fair value	$	23	$	—	$	—	$	(21	)	$	2	$	61
Commodity derivative instruments, liabilities	$	53	$	—	$	—	$	(53	)	$	—	$	—
Contingent consideration, liability(c)	—		—		625		N/A			625		—
Total liabilities at fair value	$	53	$	—	$	625	$	(53	)	$	625	$	—

^(a)  Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of June 30, 2014 and December 31, 2013, cash collateral of $47 million and $32 million, respectively, was netted with mark-to-market derivative liabilities.

^(b)  We have no derivative contracts that are subject to master netting arrangements that are reflected gross on the balance sheet.

^(c)  Includes $370 million and $159 million classified as current at June 30, 2014 and December 31, 2013, respectively.

Reconciliation of Net Beginning and Ending Balances Recorded for Net Assets and Liabilities Classified as Level 3

The following is a reconciliation of the beginning and ending balances recorded for liabilities classified as Level 3 in the fair value hierarchy.

	Three Months Ended   June 30,				Six Months Ended   June 30,
(In millions)	2014		2013		2014		2013
Beginning balance	$	639	$	600	$	625	$	—
Contingent consideration agreement	—		—		—		600
Unrealized losses included in net income	8		11		22		11
Ending balance	$	647	$	611	$	647	$	611

Fair Value Measurements, Nonrecurring

	Six Months Ended June 30,
	2014				2013
(In millions)	Fair Value		Impairment		Fair Value		Impairment
Property, plant and equipment, net	$	—	$	—	$	1	$	8
Other noncurrent assets	—		11		—		—

Financial Instruments at Fair Value, Excluding Derivative Financial Instruments and Contingent Consideration

The following table summarizes financial instruments on the basis of their nature, characteristics and risk at June 30, 2014 and December 31, 2013, excluding the derivative financial instruments and contingent consideration reported above.

	June 30, 2014				December 31, 2013
(In millions)	Fair Value		Carrying Value		Fair Value		Carrying Value
Financial assets:
Investments	$	25	$	2	$	336	$	14
Other	31		29		31		30
Total financial assets	$	56	$	31	$	367	$	44
Financial liabilities:
Long-term debt(a)	$	3,691	$	3,254	$	3,306	$	3,001
Deferred credits and other liabilities	20		20		21		21
Total financial liabilities	$	3,711	$	3,274	$	3,327	$	3,022

^(a)  Excludes capital leases