FINANCIAL INSTRUMENTS

A summary of the Company's financial instruments, risk management policies, derivative instruments and hedging activities can be found in Note 11 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. If applicable, updates have been included in the respective section below.

The following table summarizes the fair value of financial instruments at September 30, 2016 and December 31, 2015:



Fair Value of Financial Instruments
	At September 30, 2016											At December 31, 2015
In millions	Cost			Gain		Loss			Fair Value			Cost			Gain		Loss			Fair Value
Marketable securities: (1)
Debt securities:
Government debt (2)	$	599		$	36	$	—		$	635		$	597		$	22	$	(7	)	$	612
Corporate bonds	623			47		(2		)	668			633			26		(8		)	651
Total debt securities	$	1,222		$	83	$	(2	)	$	1,303		$	1,230		$	48	$	(15	)	$	1,263
Equity securities	640			109		(41		)	708			555			108		(60		)	603
Total marketable securities	$	1,862		$	192	$	(43	)	$	2,011		$	1,785		$	156	$	(75	)	$	1,866
Long-term debt including debt due within one year (3)	$	(21,056	)	$	7	$	(2,529	)	$	(23,578	)	$	(16,756	)	$	424	$	(1,668	)	$	(18,000	)
Derivatives relating to:
Interest rates	$	—		$	—	$	(8	)	$	(8	)	$	—		$	—	$	(4	)	$	(4	)
Commodities (4)	$	—		$	15	$	(247	)	$	(232	)	$	—		$	6	$	(248	)	$	(242	)
Foreign currency	$	—		$	17	$	(36	)	$	(19	)	$	—		$	109	$	(32	)	$	77


(1)	Included in “Other investments” in the consolidated balance sheets.


(2)	U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations.


(3)	Cost includes fair value hedge adjustments of $18 million at September 30, 2016 and $18 million at December 31, 2015.


(4)	Presented net of cash collateral, as disclosed in Note 9.

Investments

The Company’s investments in marketable securities are primarily classified as available-for-sale. The following table provides the investing results from available-for-sale securities for the nine-month periods ended September 30, 2016 and September 30, 2015:



Investing Results	Nine Months Ended
In millions	Sep 30, 2016			Sep 30, 2015
Proceeds from sales of available-for-sale securities	$	418		$	279
Gross realized gains	$	34		$	39
Gross realized losses	$	(2	)	$	(5	)

The following table summarizes the contractual maturities of the Company’s investments in debt securities:



Contractual Maturities of Debt Securities at September 30, 2016
In millions	Amortized Cost		Fair Value
Within one year	$	30	$	30
One to five years	332		346
Six to ten years	645		681
After ten years	215		246
Total	$	1,222	$	1,303

At September 30, 2016, the Company had $850 million ($3,354 million at December 31, 2015) of held-to-maturity securities (primarily Treasury Bills) classified as cash equivalents, as these securities had maturities of three months or less at the time of purchase. The Company’s investments in held-to-maturity securities are held at amortized cost, which approximates fair value. At September 30, 2016, the Company had investments in money market funds of $305 million classified as cash equivalents ($1,689 million at December 31, 2015).

The aggregate cost of the Company’s cost method investments totaled $110 million at September 30, 2016 ($157 million at December 31, 2015). Due to the nature of these investments, either the cost basis approximates fair market value or fair value is not readily determinable. These investments are reviewed quarterly for impairment indicators. During the second quarter of 2016, a write-down of $4 million was recorded as part of the 2016 restructuring charge. The Company's impairment analysis resulted in no reduction in the cost basis of these investments, other than the restructuring charge, for the nine-month period ended September 30, 2016 (less than $1 million reduction in the nine-month period ended September 30, 2015).

Accounting for Derivative Instruments and Hedging Activities

The following table provides the fair value and gross balance sheet classification of derivative instruments at September 30, 2016 and December 31, 2015:



Fair Value of Derivative Instruments In millions	Balance Sheet Classification	Sep 30, 2016		Dec 31, 2015
Asset Derivatives
Derivatives designated as hedges:
Commodities	Other current assets	$	10	$	3
Commodities	Deferred charges and other assets	5		—
Foreign currency	Other current assets	8		5
Total derivatives designated as hedges		$	23	$	8
Derivatives not designated as hedges:
Commodities	Other current assets	$	3	$	4
Commodities	Deferred charges and other assets	2		—
Foreign currency	Accounts and notes receivable – Other	38		156
Total derivatives not designated as hedges		$	43	$	160
Total asset derivatives		$	66	$	168
Liability Derivatives
Derivatives designated as hedges:
Interest rates	Accrued and other current liabilities	$	—	$	4
Interest rates	Other noncurrent obligations	8		—
Commodities	Accrued and other current liabilities	33		28
Commodities	Other noncurrent obligations	223		234
Foreign currency	Accrued and other current liabilities	7		1
Total derivatives designated as hedges		$	271	$	267
Derivatives not designated as hedges:
Commodities	Accrued and other current liabilities	$	2	$	—
Foreign currency	Accounts payable – Other	58		83
Total derivatives not designated as hedges		$	60	$	83
Total liability derivatives		$	331	$	350

Foreign currency derivatives not designated as hedges are used to offset foreign exchange gains or losses resulting from the underlying exposures of foreign currency denominated assets and liabilities.

The net after-tax amounts to be reclassified from AOCL to income within the next 12 months are a $2 million loss for interest rate contracts, an $8 million loss for commodity contracts and a $3 million loss for foreign currency contracts.