Fair Value Measurements and Disclosures (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Measurement information for assets and liabilities that are measured at fair value on a recurring basis was as follows: 

	Fair Value Measurements Using
	Quoted Prices in  Active Markets (Level 1) (1)			Significant Other Observable Inputs (Level 2) (2)			Significant Unobservable Inputs (Level 3) (3)		Adjustment (4)			Fair Value Measurement
(millions)
June 30, 2013
Financial Assets
Mutual Fund Investments	$	110		$	—		$	—	$	—		$	110
Commodity Derivative Instruments	—			173			—		(6		)	167
Financial Liabilities
Commodity Derivative Instruments	—			(19		)	—		6			(13		)
Portion of Deferred Compensation Liability Measured at Fair Value	(178		)	—			—		—			(178		)
December 31, 2012
Financial Assets
Mutual Fund Investments	$	103		$	—		$	—	$	—		$	103
Commodity Derivative Instruments	—			113			—		(29		)	84
Financial Liabilities
Commodity Derivative Instruments	—			(39		)	—		29			(10		)
Portion of Deferred Compensation Liability Measured at Fair Value	(160		)	—			—		—			(160		)

⁽¹⁾  Level 1 measurements are fair value measurements which use quoted market prices (unadjusted) in active markets for identical assets or liabilities. We use Level 1 inputs when available as Level 1 inputs generally provide the most reliable evidence of fair value.

⁽²⁾  Level 2 measurements are fair value measurements which use inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly.

⁽³⁾  Level 3 measurements are fair value measurements which use unobservable inputs.

⁽⁴⁾  Amount represents the impact of netting clauses within our master agreements that allow us to net cash settle asset and liability positions with the same counterparty.

Fair Value Measurements, Nonrecurring

Asset Impairments We determined that the carrying amounts of certain assets were not recoverable from future cash flows and, therefore, were impaired. The assets were reduced to their estimated fair values. Information about the impaired assets is as follows:

	Fair Value Measurements Using
Description	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Book Value (1)		Total Pre-tax (Non-cash) Impairment Loss
millions
Three Months Ended June 30, 2013
Impaired Oil and Gas Properties	$	—	$	—	$	—	$	—	$	—
Three Months Ended June 30, 2012
Impaired Oil and Gas Properties	—		—		172		245		73
Six Months Ended June 30, 2013
Impaired Oil and Gas Properties	—		—		—		—		—
Six Months Ended June 30, 2012
Impaired Oil and Gas Properties	—		—		172		245		73

⁽¹⁾ Amount represents net book value at the date of assessment.

Additional fair value disclosures

Fair value information regarding our debt is as follows: 

	June 30, 2013				December 31, 2012
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
(millions)
Total Debt, Net of Unamortized Discount (1)	$	3,800	$	4,330	$	3,797	$	4,570

⁽¹⁾  Excludes FPSO and other capital lease obligations. No floating rate debt was outstanding at June 30, 2013 or December 31, 2012.