|
Financial Instruments and Derivative Contracts (Tables)
|
12 Months Ended |
|
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:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
) |
|
|
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|
|
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|
|
|
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|
|
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|
|
|
|
| * |
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 |
|
|