FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2017

The following table summarizes the fair value of financial instruments at March 31, 2017 and December 31, 2016:



Fair Value of Financial Instruments
	At March 31, 2017											At December 31, 2016
In millions	Cost			Gain		Loss			Fair Value			Cost			Gain		Loss			Fair Value
Marketable securities: (1)
Debt securities:
Government debt (2)	$	616		$	14	$	(11	)	$	619		$	607		$	13	$	(12	)	$	608
Corporate bonds	632			27		(4		)	655			623			27		(5		)	645
Total debt securities	$	1,248		$	41	$	(15	)	$	1,274		$	1,230		$	40	$	(17	)	$	1,253
Equity securities	665			106		(35		)	736			658			98		(50		)	706
Total marketable securities	$	1,913		$	147	$	(50	)	$	2,010		$	1,888		$	138	$	(67	)	$	1,959
Long-term debt including debt due within one year (3)	$	(21,087	)	$	31	$	(1,993	)	$	(23,049	)	$	(21,091	)	$	129	$	(1,845	)	$	(22,807	)
Derivatives relating to:
Interest rates	$	—		$	—	$	(4	)	$	(4	)	$	—		$	—	$	(5	)	$	(5	)
Commodities (4)	$	—		$	103	$	(287	)	$	(184	)	$	—		$	56	$	(213	)	$	(157	)
Foreign currency	$	—		$	50	$	(56	)	$	(6	)	$	—		$	84	$	(30	)	$	54


(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 $17 million at March 31, 2017 and $18 million at December 31, 2016.


(4)	Presented net of cash collateral, as disclosed in Note 8.

The following table provides the investing results from available-for-sale securities for the three-month periods ended March 31, 2017 and 2016:



Investing Results	Three Months Ended
In millions	Mar 31, 2017			Mar 31, 2016
Proceeds from sales of available-for-sale securities	$	116		$	121
Gross realized gains	$	14		$	6
Gross realized losses	$	(2	)	$	—

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



Contractual Maturities of Debt Securities at March 31, 2017
In millions	Amortized Cost		Fair Value
Within one year	$	21	$	21
One to five years	327		335
Six to ten years	674		677
After ten years	226		241
Total	$	1,248	$	1,274

The following table provides the fair value and gross balance sheet classification of derivative instruments at March 31, 2017 and December 31, 2016:



Fair Value of Derivative Instruments In millions	Balance Sheet Classification	Mar 31, 2017		Dec 31, 2016
Asset Derivatives
Derivatives designated as hedges:
Commodities	Other current assets	$	25	$	42
Commodities	Deferred charges and other assets	10		10
Foreign currency	Accounts and notes receivable - Other	79		90
Total derivatives designated as hedges		$	114	$	142
Derivatives not designated as hedges:
Commodities	Other current assets	$	73	$	13
Commodities	Deferred charges and other assets	9		12
Foreign currency	Accounts and notes receivable - Other	102		103
Total derivatives not designated as hedges		$	184	$	128
Total asset derivatives		$	298	$	270
Liability Derivatives
Derivatives designated as hedges:
Interest rates	Accrued and other current liabilities	$	2	$	3
Interest rates	Other noncurrent obligations	2		2
Commodities	Accrued and other current liabilities	37		32
Commodities	Other noncurrent obligations	206		196
Foreign currency	Accrued and other current liabilities	64		55
Total derivatives designated as hedges		$	311	$	288
Derivatives not designated as hedges:
Commodities	Accrued and other current liabilities	$	71	$	4
Commodities	Other noncurrent obligations	1		2
Foreign currency	Accounts payable - Other	123		84
Total derivatives not designated as hedges		$	195	$	90
Total liability derivatives		$	506	$	378