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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2012
Fair Value Disclosures [Abstract]  
Fair value of financial assets and liabilities measured on recurring basis
The tables below present information (in millions) about our financial instruments recognized at their fair values in our balance sheets categorized according to the fair value hierarchy of the inputs utilized by us to determine the fair values as of December 31, 2012 and 2011.
Cash collateral deposits of $127 million and $136 million with brokers under master netting arrangements are included in the fair value of the commodity derivatives reflected in Level 1 as of December 31, 2012 and 2011, respectively. Certain of our commodity derivative contracts under master netting arrangements include both asset and liability positions. We have elected to offset the fair value amounts recognized for multiple similar derivative instruments executed with the same counterparty, including any related cash collateral asset or obligation under the column “Netting Adjustments” below; however, fair value amounts by hierarchy level are presented on a gross basis in the tables below.
 
Fair Value Measurements Using
 
 
 
 
 
Quoted
 Prices in
Active
 Markets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
 Inputs
(Level 3)
 
Netting
Adjustments
 
Total as of
December 31,
2012
Assets:
 
 
 
 
 
 
 
 
 
Commodity derivative contracts
$
1,270

 
$
60

 
$
—

 
$
(1,195
)
 
$
135

Physical purchase contracts
—

 
11

 
—

 
—

 
11

Investments of certain benefit plans
87

 
—

 
11

 
—

 
98

Foreign currency contracts
1

 
—

 
—

 
—

 
1

Other investments
—

 
—

 
—

 
—

 
—

Liabilities:
 
 
 
 
 
 
 
 
 
Commodity derivative contracts
1,138

 
70

 
—

 
(1,195
)
 
13

Biofuels blending obligation
10

 
—

 
—

 
—

 
10

Foreign currency contracts
1

 
—

 
—

 
—

 
1

 
Fair Value Measurements Using
 
 
 
 
 
Quoted
 Prices in
Active
 Markets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
 Inputs
(Level 3)
 
Netting
Adjustments
 
Total as of
December 31,
2011
Assets:
 
 
 
 
 
 
 
 
 
Commodity derivative contracts
$
2,038

 
$
78

 
$
—

 
$
(1,940
)
 
$
176

Physical purchase contracts
—

 
(2
)
 
—

 
—

 
(2
)
Investments of certain benefit plans
84

 
—

 
11

 
—

 
95

Other investments
—

 
—

 
—

 
—

 
—

Liabilities:
 
 
 
 
 
 
 
 
 
Commodity derivative contracts
1,864

 
101

 
—

 
(1,940
)
 
25

Foreign currency contracts
3

 
—

 
—

 
—

 
3
Reconciliation of the beginning and ending balances for fair value measurements developed using significant unobservable inputs
The following is a reconciliation of the beginning and ending balances (in millions) for fair value measurements developed using significant unobservable inputs (Level 3).
 
Investments of
Certain
Benefit Plans
 
Other Investments
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Balance as of beginning of year
$
11

 
$
10

 
$
10

 
$
—

 
$
—

 
$
—

Purchases
—

 
1

 
—

 
—

 
21

 
1

Total losses included in refining operating expense
—

 
—

 
—

 
—

 
(21
)
 
(1
)
Transfers in and/or out of Level 3
—

 
—

 
—

 
—

 
—

 
—

Balance as of end of year
$
11

 
$
11

 
$
10

 
$
—

 
$
—

 
$
—

The amount of total losses included in income attributable to the change in unrealized losses relating to assets still held at end of year
$
—

 
$
—

 
$
—

 
$
—

 
$
(21
)
 
$
(1
)
Fair value of assets measured on a nonrecurring basis
The table below presents the fair value (in millions) of our nonfinancial assets measured on a nonrecurring basis during the year ended December 31, 2012.
 
Fair Value Measurements Using
 
 
 
Total Loss
Recognized
During the
Year Ended
December 31,
2012
 
Quoted
Prices in
Active
Markets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
Fair Value
as of
December 31,
2012
 
Assets:
 
 
 
 
 
 
 
 
 
Long-lived assets of
the Aruba Refinery
$
—

 
$
—

 
$
—

 
$
—

 
$
903

Materials and supplies
inventories of
the Aruba Refinery
—

 
—

 
—

 
—

 
25

Cancelled capital projects
—

 
—

 
2

 
2

 
65

Property, plant and equipment of
convenience stores
—

 
—

 
8

 
8

 
21
Carrying amounts and estimated fair value of financial instruments
Financial instruments that we recognize in our balance sheets at their carrying amounts are shown in the table below (in millions):

 
December 31, 2012
 
December 31, 2011
 
Carrying
Amount
 
Fair
Value
 
Carrying
Amount
 
Fair
Value
Financial assets:
 
 
 
 
 
 
 
Cash and temporary cash investments
$
1,723

 
$
1,723

 
$
1,024

 
$
1,024

Financial liabilities:
 
 
 
 
 
 
 
Debt (excluding capital leases)
7,000

 
8,621

 
7,690

 
9,298