FAIR VALUE MEASUREMENTS (Notes)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

FAIR VALUE MEASUREMENTS

A summary of the Company's recurring and nonrecurring fair value measurements can be found in Note 23 to the Consolidated Financial Statements included in the 2021 10-K.

Fair Value Measurements on a Recurring Basis

The following table summarizes the bases used to measure certain assets and liabilities at fair value on a recurring basis:

Basis of Fair Value Measurements on a Recurring Basis	Mar 31, 2022								Dec 31, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
In millions
Assets at fair value:
Cash equivalents:
Held-to-maturity securities 1	$	—	$	377	$	—	$	377	$	—	$	317	$	—	$	317
Money market funds	—		580		—		580		—		489		—		489
Marketable securities 2	—		242		—		242		—		245		—		245
Equity securities 3	16		—		—		16		20		—		—		20
Debt securities: 3
Government debt 4	—		675		—		675		—		735		—		735
Corporate bonds	37		1,234		—		1,271		44		1,280		—		1,324
Derivatives relating to: 5
Interest rates	—		270		—		270		—		145		—		145
Foreign currency	—		266		—		266		—		165		—		165
Commodities	13		566		—		579		15		307		—		322
Total assets at fair value	$	66	$	4,210	$	—	$	4,276	$	79	$	3,683	$	—	$	3,762
Liabilities at fair value:
Long-term debt including debt due within one year 6	$	—	$	15,320	$	—	$	15,320	$	—	$	17,125	$	—	$	17,125
Guarantee liability 7	—		—		215		215		—		—		220		220
Derivatives relating to: 5
Interest rates	—		256		—		256		—		284		—		284
Foreign currency	—		266		—		266		—		137		—		137
Commodities	45		376		—		421		37		257		—		294
Total liabilities at fair value	$	45	$	16,218	$	215	$	16,478	$	37	$	17,803	$	220	$	18,060

1.The Company's held-to-maturity securities primarily included treasury bills and time deposits.

2.The Company’s investments in marketable securities are included in “Other current assets” in the consolidated balance sheets.

3.The Company’s investments in debt securities, which are primarily available-for-sale, and equity securities are included in “Other investments” in the consolidated balance sheets.

4.U.S. Treasury obligations, U.S. agency obligations, U.S. agency mortgage-backed securities and other municipalities’ obligations.

5.See Note 18 for the classification of derivatives in the consolidated balance sheets.

6.See Note 18 for information on fair value measurements of long-term debt.

7.Estimated liability for TDCC's guarantee of Sadara's debt which is included in "Other noncurrent obligations" in the consolidated balance sheets. See Note 12 for additional information.

For equity securities calculated at net asset value per share (or its equivalent), the Company had $138 million in private market securities and $24 million in real estate at March 31, 2022 ($106 million in private market securities and $22 million in real estate at December 31, 2021). There are no redemption restrictions and the unfunded commitments on these investments were $59 million at March 31, 2022 and December 31, 2021.

For liabilities classified as Level 3 measurements, the fair value is based on significant unobservable inputs including assumptions where there is little, if any, market activity. The fair value of the Company’s accrued liability related to the guarantee of Sadara’s debt is in proportion to the Company’s 35 percent ownership interest in Sadara. The estimated fair value of the guarantee was calculated using a "with" and "without" method. The fair value of the debt was calculated "with" the guarantee less the fair value of the debt "without" the guarantee. The "with" and "without" values were calculated using a discounted cash flow method based on contractual cash flows as well as projected prepayments made on the debt by Sadara. See Note 12 for further information on guarantees classified as Level 3 measurements.