Financial Instruments and Risk Management (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value of Derivative Instruments Not Designated as Hedging Instruments

At September 30, 2012 and December 31, 2011, the fair value of derivative instruments not designated as hedging instruments are presented in the following table.

	September 30, 2012				December 31, 2011
(Thousands of dollars)	Asset (Liability) Derivatives				Asset (Liability) Derivatives
Type of Derivative Contract	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
Commodity	Accounts receivable	$	9,496		Accounts receivable	$	197
Commodity	Accounts payable		(3,176	)	Accounts payable		(489	)
Foreign exchange	Accounts receivable		3,612		Accounts payable		(8,459	)

Recognized Gains and Losses for Derivative Instruments Not Designated as Hedging Instruments

For the three-month and nine-month periods ended September 30, 2012 and 2011, the gains and losses recognized in the Consolidated Statements of Income for derivative instruments not designated as hedging instruments are presented in the following table.

		Gain (Loss)
(Thousands of dollars) Type of Derivative Contract	Statement of Income Location	Three Months Ended September 30,						Nine Months Ended September 30,
		2012			2011			2012			2011
Commodity	Crude oil and product purchases	$	(40,241	)		7,381			(37,978	)		5,900
Foreign exchange	Interest and other income		6,585			(7,376	)		15,782			4,614
		$	(33,656	)		5			(22,196	)		10,514

Fair Value of Interest Rate Derivative Contracts Designated as Hedging Instruments

At December 31, 2011, the fair value of these interest rate derivative contracts, which have been designated as hedging instruments for accounting purposes, are presented in the following table.

	December 31, 2011
	Asset (Liability) Derivatives
(Thousands of dollars) Type of Derivative Contract	Balance Sheet Location	Fair Value
Interest rate	Accounts Payable	$	(25,927	)

Carrying Value of Assets and Liabilities Recorded at Fair Value on Recurring Basis

The carrying value of assets and liabilities recorded at fair value on a recurring basis at September 30, 2012 and December 31, 2011 are presented in the following table.

	September 30, 2012											December 31, 2011
(Thousands of dollars)	Level 1			Level 2			Level 3		Total			Level 1			Level 2			Level 3		Total
Assets
Commodity derivative contracts	$	0			9,496			0		9,496			0			197			0		197
Foreign currency exchange derivative contracts		0			3,612			0		3,612			0			0			0		0
	$	0			13,108			0		13,108			0			197			0		197
Liabilities
Nonqualified employee savings plans	$	(9,306	)		0			0		(9,306	)		(8,030	)		0			0		(8,030	)
Commodity derivative contracts		0			(3,176	)		0		(3,176	)		0			(489	)		0		(489	)
Foreign currency exchange derivative contracts		0			0			0		0			0			(8,459	)		0		(8,459	)
Interest rate derivative contracts		0			0			0		0			0			(25,927	)		0		(25,927	)
	$	(9,306	)		(3,176	)		0		(12,482	)		(8,030	)		(34,875	)		0		(42,905	)