FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2016

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.

Investing Results

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	)

Contractual Maturities of Debt Securities

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

Schedule Fair Values of Derivative Instruments

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