FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2017

The following table summarizes the fair value of financial instruments at June 30, 2017 and December 31, 2016:



Fair Value of Financial Instruments
	At June 30, 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)	$	610		$	15	$	(8	)	$	617		$	607		$	13	$	(12	)	$	608
Corporate bonds	610			30		(3		)	637			623			27		(5		)	645
Total debt securities	$	1,220		$	45	$	(11	)	$	1,254		$	1,230		$	40	$	(17	)	$	1,253
Equity securities	690			84		(29		)	745			658			98		(50		)	706
Total marketable securities	$	1,910		$	129	$	(40	)	$	1,999		$	1,888		$	138	$	(67	)	$	1,959
Long-term debt including debt due within one year (3)	$	(21,027	)	$	6	$	(2,218	)	$	(23,239	)	$	(21,091	)	$	129	$	(1,845	)	$	(22,807	)
Derivatives relating to:
Interest rates	$	—		$	—	$	(5	)	$	(5	)	$	—		$	—	$	(5	)	$	(5	)
Commodities (4)	$	—		$	61	$	(269	)	$	(208	)	$	—		$	56	$	(213	)	$	(157	)
Foreign currency	$	—		$	25	$	(182	)	$	(157	)	$	—		$	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 $14 million at June 30, 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 six-month periods ended June 30, 2017 and 2016:



Investing Results	Six Months Ended
In millions	Jun 30, 2017			Jun 30, 2016
Proceeds from sales of available-for-sale securities	$	383		$	331
Gross realized gains	$	48		$	23
Gross realized losses	$	(1	)	$	(1	)

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



Contractual Maturities of Debt Securities at June 30, 2017
In millions	Amortized Cost		Fair Value
Within one year	$	10	$	10
One to five years	329		338
Six to ten years	656		663
After ten years	225		243
Total	$	1,220	$	1,254

The following table provides the fair value and gross balance sheet classification of derivative instruments at June 30, 2017 and December 31, 2016:



Fair Value of Derivative Instruments In millions	Balance Sheet Classification	Jun 30, 2017		Dec 31, 2016
Asset Derivatives
Derivatives designated as hedges:
Commodities	Other current assets	$	17	$	42
Commodities	Deferred charges and other assets	11		10
Foreign currency	Accounts and notes receivable - Other	38		90
Total derivatives designated as hedges		$	66	$	142
Derivatives not designated as hedges:
Commodities	Other current assets	$	40	$	13
Commodities	Deferred charges and other assets	9		12
Foreign currency	Accounts and notes receivable - Other	137		103
Total derivatives not designated as hedges		$	186	$	128
Total asset derivatives		$	252	$	270
Liability Derivatives
Derivatives designated as hedges:
Interest rates	Accrued and other current liabilities	$	3	$	3
Interest rates	Other noncurrent obligations	2		2
Commodities	Accrued and other current liabilities	67		32
Commodities	Other noncurrent obligations	190		196
Foreign currency	Accrued and other current liabilities	106		55
Total derivatives designated as hedges		$	368	$	288
Derivatives not designated as hedges:
Commodities	Accrued and other current liabilities	$	49	$	4
Commodities	Other noncurrent obligations	1		2
Foreign currency	Accounts payable - Other	226		84
Total derivatives not designated as hedges		$	276	$	90
Total liability derivatives		$	644	$	378