v2.4.0.6

Financial Instruments and Derivative Contracts (Tables) | 12 Months Ended
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Dec. 31, 2011
Net Carrying Amount of Held to Maturity Investments | These financial instruments appear in the “Cash and cash equivalents” line of our consolidated balance sheet if the maturities at the time we made the investments were 90 days or less; otherwise, these held-to-maturity investments are included in the “Short-term investments” line. At December 31, we held the following financial instruments:
|  | Millions of Dollars |
|  | Carrying Amount |
|  | Cash and Cash Equivalents |  |  | Short-Term Investments* |
|  | 2011 |  |  | 2010 |  |  | 2011 |  |  | 2010 |
Cash |  | $ | 1,169 |  |  |  | 1,284 |  |  |  | — |  |  |  | — |
Time Deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Remaining maturities from 1 to 90 days |  |  | 4,318 |  |  |  | 6,154 |  |  |  | 349 |  |  |  | 302 |
Remaining maturities from 91 to 180 days |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 69 |
Commercial Paper |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Remaining maturities from 1 to 90 days |  |  | 293 |  |  |  | 1,566 |  |  |  | 232 |  |  |  | 525 |
Remaining maturities from 91 to 180 days |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Government Obligations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Remaining maturities from 1 to 90 days |  |  | — |  |  |  | 450 |  |  |  | — |  |  |  | 77 |
Remaining maturities from 91 to 180 days |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 5,780 |  |  |  | 9,454 |  |  |  | 581 |  |  |  | 973 |
* | Carrying value approximates fair value.
Assets and Liabilities Accounted for at Fair Value on a Recurring Basis | The fair value hierarchy for our derivative assets and liabilities accounted for at fair value on a recurring basis was:
|  | Millions of Dollars |
|  | December 31, 2011 |  |  | December 31, 2010 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity derivatives* |  | $ | 2,807 |  |  |  | 1,947 |  |  |  | 72 |  |  |  | 4,826 |  |  |  | 1,456 |  |  |  | 1,744 |  |  |  | 63 |  |  |  | 3,263 |
Interest rate derivatives |  |  | — |  |  |  | 31 |  |  |  | — |  |  |  | 31 |  |  |  | — |  |  |  | 20 |  |  |  | — |  |  |  | 20 |
Foreign currency exchange derivatives |  |  | — |  |  |  | 13 |  |  |  | — |  |  |  | 13 |  |  |  | — |  |  |  | 15 |  |  |  | — |  |  |  | 15 |
Total assets |  |  | 2,807 |  |  |  | 1,991 |  |  |  | 72 |  |  |  | 4,870 |  |  |  | 1,456 |  |  |  | 1,779 |  |  |  | 63 |  |  |  | 3,298 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity derivatives* |  |  | 2,970 |  |  |  | 1,722 |  |  |  | 10 |  |  |  | 4,702 |  |  |  | 1,611 |  |  |  | 1,737 |  |  |  | 36 |  |  |  | 3,384 |
Foreign currency exchange derivatives |  |  | — |  |  |  | 23 |  |  |  | — |  |  |  | 23 |  |  |  | — |  |  |  | 9 |  |  |  | — |  |  |  | 9 |
Total liabilities |  |  | 2,970 |  |  |  | 1,745 |  |  |  | 10 |  |  |  | 4,725 |  |  |  | 1,611 |  |  |  | 1,746 |  |  |  | 36 |  |  |  | 3,393 |
Net assets (liabilities) |  | $ | (163 | ) |  |  | 246 |  |  |  | 62 |  |  |  | 145 |  |  |  | (155 | ) |  |  | 33 |  |  |  | 27 |  |  |  | (95 | )
* | 2010 has been reclassified to conform to current-year presentation.
Fair Value of Derivative Contracts and Gains (Losses) from Derivatives Contracts | The fair value of commodity derivative assets and liabilities and the line items where they appear on our consolidated balance sheet were:
|  | Millions of Dollars |
|  | 2011 |  |  | 2010 |
Assets |  |  |  |  |  |  |  |
Prepaid expenses and other current assets |  | $ | 4,433 |  |  |  | 3,073 |
Other assets |  |  | 415 |  |  |  | 211 |
Liabilities |  |  |  |  |  |  |  |
Other accruals |  |  | 4,350 |  |  |  | 3,212 |
Other liabilities and deferred credits |  |  | 374 |  |  |  | 193 |
Hedge accounting has not been used for any item in the table. The amounts shown are presented gross (i.e., without netting assets and liabilities with the same counterparty where the right of setoff exists). The gains (losses) from commodity derivatives incurred, and the line items where they appear on our consolidated income statement were:
|  | Millions of Dollars |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Sales and other operating revenues |  | $ | 907 |  |  |  | (964 | ) |  |  | 1,717 |
Other income |  |  | (9 | ) |  |  | (5 | ) |  |  | 4 |
Purchased commodities |  |  | (729 | ) |  |  | 915 |  |  |  | (1,502 | )
Income from discontinued operations |  |  | (446 | ) |  |  | (139 | ) |  |  | (854 | )
Net Exposures from Outstanding Derivative Contracts | The table below summarizes our material net exposures resulting from outstanding commodity derivative contracts. These financial and physical derivative contracts are primarily used to manage price exposures on our underlying operations. The underlying exposures may be from non-derivative positions such as inventory volumes or firm natural gas transport contracts. Financial derivative contracts may also offset physical derivative contracts, such as forward sales contracts.
|  | Open Position Long /(Short) |
|  | 2011 |  |  | 2010 |
Commodity |  |  |  |  |  |  |  |
Crude oil, refined products and natural gas liquids (millions of barrels) |  |  | (13 | ) |  |  | (16 | )
Natural gas and power (billions of cubic feet equivalent) |  |  |  |  |  |  |  |
Fixed price |  |  | (57 | ) |  |  | (69 | )
Basis |  |  | (25 | ) |  |  | (43 | )
We had the following net notional position of outstanding foreign currency exchange derivatives:
|  | In Millions |
|  | Notional Currency* |
|  | 2011 |  |  | 2010 |
Foreign Currency Exchange Derivatives |  |  |  |  |  |  |  |
Sell U.S. dollar, buy other currencies** |  | USD | 1,949 |  |  |  | 569 |
Sell euro, buy other currencies*** |  | EUR | 61 |  |  |  | 253 |
* | Denominated in U.S. dollars (USD) and euros (EUR).
** | Primarily euro, Canadian dollar, Norwegian krone and British pound.
*** | Primarily Norwegian krone and British pound.
Fair Value of Derivative Contracts | The fair value of foreign currency exchange derivative assets and liabilities, and the line items where they appear on our consolidated balance sheet were:
|  | Millions of Dollars |
|  | 2011 |  |  | 2010 |
Assets |  |  |  |  |  |  |  |
Prepaid expenses and other current assets |  | $ | 12 |  |  |  | 14 |
Other assets |  |  | 1 |  |  |  | 1 |
Liabilities |  |  |  |  |  |  |  |
Other accruals |  |  | 23 |  |  |  | 7 |
Other liabilities and deferred credits |  |  | — |  |  |  | 2 |
Gains (Losses) from Derivatives Contracts | Gains and losses from foreign currency exchange derivatives and the line item where they appear on our consolidated income statement were:
|  | Millions of Dollars |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Foreign currency transaction (gains) losses |  | $ | (9 | ) |  |  | 115 |  |  |  | (107 | )
Income from discontinued operations |  |  | (5 | ) |  |  | 3 |  |  |  | (14 | )
Commodity Derivative and Financial Instruments | Our commodity derivative and financial instruments were:
|  | Millions of Dollars |
|  | Carrying Amount |  |  | Fair Value |
|  | 2011 |  |  | 2010 |  |  | 2011 |  |  | 2010 |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency exchange derivatives |  | $ | 13 |  |  |  | 15 |  |  |  | 13 |  |  |  | 15 |
Interest rate derivatives |  |  | 31 |  |  |  | 20 |  |  |  | 31 |  |  |  | 20 |
Commodity derivatives |  |  | 814 |  |  |  | 624 |  |  |  | 814 |  |  |  | 624 |
Investment in LUKOIL |  |  | — |  |  |  | 1,083 |  |  |  | — |  |  |  | 1,083 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total debt, excluding capital leases |  |  | 22,592 |  |  |  | 23,553 |  |  |  | 27,065 |  |  |  | 26,144 |
Joint venture acquisition obligation |  |  | 4,314 |  |  |  | 5,009 |  |  |  | 4,820 |  |  |  | 5,600 |
Foreign currency exchange derivatives |  |  | 23 |  |  |  | 9 |  |  |  | 23 |  |  |  | 9 |
Commodity derivatives |  |  | 446 |  |  |  | 426 |  |  |  | 446 |  |  |  | 426 |

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- Definition Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 14 -Subparagraph a -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 18 -Subparagraph c(2), d, e, f -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15 -Subparagraph b-d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13467-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 19 -Subparagraph a, b, c(1), d(1) -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32 -Subparagraph a, c(1), c(2), c(3), d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 10 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13476-108611 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 + Details
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- Definition Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5618551-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 205G -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44C -Subparagraph b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959 + Details
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- Definition Tabular disclosure of price risk derivatives, including, but not limited to, the fair value of the derivatives, statement of financial position location, and statement of financial performance location of these instruments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959 + Details
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