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Marketable Securities
 12 Months Ended
Dec. 31, 2013
Investments Debt And Equity Securities [Abstract]  
Marketable Securities
3. MARKETABLE SECURITIES

Changes in the value of marketable securities, as reported in current assets on the consolidated balance sheets as at December 31, 2013 and December 31, 2012 are detailed in the tables below:

 

In millions of U.S. dollars   December 31,
2012		     Purchase     Sale     Change in
fair value
included
in OCI* for
available-
for-sale
marketable
securities		     Change in
fair value
recognized in
earnings		     Foreign
exchange
result
through
OCI*		     December 31,
2013		  

Debt securities issued by the U.S. Treasury

     150        —          (150 )      —          —          —          —     

Senior debt Floating Rate Notes issued by financial institutions

     88        —          (34 )      —          —          3        57   

Total

     238        —          (184 )      —          —          3        57   

 

* Other Comprehensive Income

 

In millions of U.S. dollars   December 31,
2011		     Purchase     Sale     Change in
fair value
included
in OCI* for
available-
for-sale
marketable
securities		     Change in
fair value
recognized in
earnings		     Foreign
exchange
result
through
OCI*		     December 31,
2012		  

Debt securities issued by the U.S. Treasury

     100        450        (400 )      —          —          —          150   

Debt securities issued by foreign governments

     81        —          (81 )      —          —          —          —     

Fixed rate debt securities issued by financial institutions

     27        —          (25 )      —          —          (2 )      —     

Senior debt Floating Rate Notes issued by financial institutions

     205        —          (124 )      6        1        —          88   

Total

     413        450        (630 )      6        1        (2 )      238   

 

* Other Comprehensive Income

The U.S. Treasury Bills amounting to $150 million as of December 31, 2012 were sold in 2013. They were rated Aaa by Moody’s as at December 31, 2012. The change in fair value of these marketable securities was not material as at December 31, 2012. The Company estimated the fair value of these financial assets based on publicly quoted market prices, which corresponded to a Level 1 fair value measurement hierarchy.

 

All securities were classified as available-for-sale and recorded at fair value, with changes in fair value recognized as a separate component of the consolidated statements of comprehensive income, except for those declines deemed to be other-than-temporary.

Only two investment positions in Senior debt Floating Rate Notes, with an average rating of Baa2/A-/A, were outstanding as at December 31, 2013, with a duration of 0.05 year. Due to the short duration before maturity, the value of the securities as at December 31, 2013 corresponded to par value; no credit loss was identified on these instruments and the cumulative change in fair value recognized as a separate component of “Accumulated other comprehensive income (loss)” in the consolidated statement of equity was not material as at December 31, 2013. The Company estimated the fair value of these financial assets based on publicly quoted market prices, which corresponds to a Level 1 fair value measurement hierarchy. The aggregate amortized cost basis of these securities totalled $57 million and $89 million as at December 31, 2013 and December 31, 2012, respectively.

As at December 31, 2011, the Company held $5 million in Euro-denominated senior unsecured bonds issued by Lehman Brothers, for an original investment of Euro 15 million. Those debt securities were sold in 2012, generating cash proceeds totalling $5 million. The gain, which was not material, was reported on the line “Gain on financial instruments, net” on the consolidated statement of income for the year ended December 31, 2012.

The debt securities were reported as current assets on the line “Marketable Securities” on the consolidated balance sheet as at December 31, 2013, since they represented investments of funds available for current operations.