Fair Value Of Financial Assets And Liabilities

9. Fair Value of Financial Assets and Liabilities

Under existing accounting guidance, fair value is considered to be the exchange price in an orderly transaction between market participants to sell an asset or transfer a liability at the measurement date. The fair value definition focuses on an exit price, which is the price that would be received to sell an asset or paid to transfer a liability versus an entry price, which would be the price paid to acquire an asset or received to assume a liability.

The Duke Energy Registrants classify recurring and non-recurring fair value measurements based on the following fair value hierarchy, as prescribed by the accounting guidance for fair value, which prioritizes the inputs to valuation techniques used to measure fair value into three levels:

Level 1—unadjusted quoted prices in active markets for identical assets or liabilities that Duke Energy has the ability to access. An active market for the asset or liability is one in which transactions for the asset or liability occur with sufficient frequency and volume to provide ongoing pricing information. Duke Energy does not adjust quoted market prices on Level 1 for any blockage factor.

Level 2—a fair value measurement utilizing inputs other than a quoted market price that are observable, either directly or indirectly, for the asset or liability. Level 2 inputs include, but are not limited to, quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted market prices that are observable for the asset or liability, such as interest rate curves and yield curves observable at commonly quoted intervals, volatilities, credit risk and default rates. A Level 2 measurement cannot have more than an insignificant portion of the valuation based on unobservable inputs.

Level 3—any fair value measurements which include unobservable inputs for the asset or liability for more than an insignificant portion of the valuation. A Level 3 measurement may be based primarily on level 2 inputs.

The fair value accounting guidance for financial instruments permits entities to elect to measure many financial instruments and certain other items at fair value that are not required to be accounted for at fair value under other GAAP. There are no financial assets or financial liabilities that are not required to be accounted for at fair value under GAAP for which the option to record at fair value has been elected by the Duke Energy Registrants. However, in the future, the Duke Energy Registrants may elect to measure certain financial instruments at fair value in accordance with this accounting guidance.

The Duke Energy Registrant's Policy for the recognition of transfers between levels of the fair value hierarchy is to recognize the transfer at the end of the period.

Valuation methods of the primary fair value measurements disclosed below are as follows:

Investments in equity securities. Investments in equity securities are typically valued at the closing price in the principal active market as of the last business day of the quarter. Principal active markets for equity prices include published exchanges such as NASDAQ and NYSE. Foreign equity prices are translated from their trading currency using the currency exchange rate in effect at the close of the principal active market. Prices have not been adjusted to reflect for after-hours market activity. The majority of investments in equity securities are valued using Level 1 measurements.

Investments in available-for-sale auction rate securities. Duke Energy held $115 million par value ($97 million carrying value) and $149 million par value ($118 million carrying value) as of September 30, 2011, and December 31, 2010, respectively of auction rate securities for which an active market does not currently exist. During the nine months ended September 30, 2011, $34 million of these investments in auction rate securities were redeemed by the issuer at full par value plus accrued interest. Duke Energy Carolinas held $16 million par value ($12 million carrying value) of these auction rate securities at both September 30, 2011, and December 31, 2010. The vast majority of these auction rate securities are AAA rated student loan securities for which substantially all the values are ultimately backed by the U.S. government. Those auction rate securities which are classified as long-term investments are valued using Level 3 measurements. The methods and significant assumptions used to determine the fair values of the investment in auction rate debt securities represent estimations of fair value using internal discounted cash flow models which incorporate primarily management's own assumptions as to the term over which such investments will be recovered at par, the current level of interest rates, and the appropriate risk-adjusted discount rates when relevant observable inputs are not available to determine the present value of such cash flows. In preparing the valuations, all significant value drivers were considered, including the underlying collateral. Those auction rate securities which are classified as Short-term investments are valued using Level 2 measurements, as they are valued at par based on a commitment by the issuer to redeem at par value. As of September 30, 2011, Duke Energy held $25 million of auction rate securities classified as short-term investments. In October 2011, Duke Energy received $25 million from the issuer who redeemed the securities at par value. As a result, at September 30, 2011, Duke Energy recorded the fair value equal to the par value and transferred these securities from Level 3 to Level 2.

There were no other-than-temporary impairments associated with investments in auction rate debt securities during the nine months ended September 30, 2011 or 2010.

Investments in debt securities. Most debt investments (including those held in the Nuclear Decomissioning Trust Funds (NDTF) are valued based on a calculation using interest rate curves and credit spreads applied to the terms of the debt instrument (maturity and coupon interest rate) and consider the counterparty credit rating. Most debt valuations are Level 2 measurements. If the market for a particular fixed income security is relatively inactive or illiquid, the measurement is a Level 3 measurement. U.S. Treasury debt is typically a Level 1 measurement.

Commodity derivatives. The pricing for commodity derivatives is primarily a calculated value which incorporates the forward price and is adjusted for liquidity (bid-ask spread), credit or non-performance risk (after reflecting credit enhancements such as collateral) and discounted to present value. The primary difference between a Level 2 and a Level 3 measurement has to do with the level of activity in forward markets for the commodity. If the market is relatively inactive, the measurement is deemed to be a Level 3 measurement. Some commodity derivatives are exchange traded contracts, which are classified as Level 1 measurements.

Duke Energy

The following tables provide the fair value measurement amounts for assets and liabilities recorded on Duke Energy's Condensed Consolidated Balance Sheets at fair value at September 30, 2011 and December 31, 2010. Derivative amounts in the table below exclude cash collateral amounts which are disclosed in Note 8. See Note 10 for additional information related to investments by major security type.


	Total Fair Value Amounts at September 30, 2011			Level 1			Level 2			Level 3
	(in millions)
Description
Investments in available-for-sale auction rate securities^(a)	$	97		$	—		$	25		$	72
Nuclear decommissioning trust fund equity securities		1,206			1,154			46			6
Nuclear decommissioning trust fund debt securities		718			151			519			48
Other long-term trading and available-for-sale equity securities^(b)		62			55			7			—
Other trading and available-for-sale debt securities⁽ ^c ⁾		330			27			303			—
Derivative assets⁽ ^d ⁾		89			15			9			65

Total Assets	$	2,502		$	1,402		$	909		$	191
Derivative liabilities⁽ ^e ⁾		(349	)		(57	)		(203	)		(89	)

Net Assets	$	2,153		$	1,345		$	706		$	102

(a)	$72 million of these securities are included in Other within Investments and Other Assets and $25 million are classified as Short-Term Investments on the Condensed Consolidated Balance Sheets.

(b)	Included in Other within Current Assets and Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(c)	$209 million of these securities are included in Other within Investments and Other Assets and $121 million are classified as Short-Term Investments on the Condensed Consolidated Balance Sheets.

(d)	Included in Other within Current Assets and Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(e)	Included in Other within Current Liabilities and Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets.


	Total Fair Value Amounts at December 31, 2010			Level 1			Level 2			Level 3
	(in millions)
Description
Investments in available-for-sale auction rate securities^(a)	$	118		$	—		$	—		$	118
Nuclear decommissioning trust fund equity securities		1,365			1,313			46			6
Nuclear decommissioning trust fund debt securities		649			35			573			41
Other long-term trading and available-for-sale equity securities^(a)		164			157			7			—
Other long-term trading and available-for-sale debt securities^(a)		221			10			211			—
Derivative assets^(b)		186			21			81			84

Total Assets	$	2,703		$	1,536		$	918		$	249
Derivative liabilities^(c)		(132	)		(8	)		(21	)		(103	)

Net Assets	$	2,571		$	1,528		$	897		$	146

(a)	Included in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(b)	Included in Other within Current Assets and Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(c)	Included in Other within Current Liabilities and Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets.

The following table provides a reconciliation of beginning and ending balances of assets and liabilities measured at fair value on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3):

Rollforward of Level 3 Measurements


	Available-for- Sale Auction Rate Securities			Available-for- Sale NDTF Investments		Derivatives (net)			Total
Three Months Ended September 30, 2011
Balance at July 1, 2011	$	90		$	53	$	(22	)	$	121
Total pre-tax realized or unrealized gains included in earnings:
Revenue, regulated electric^(a)		—			—		8			8
Total pre-tax gains included in other comprehensive income:
Gains on available for sale securities and other		8			—		—			8
Purchases, sales, issuances and settlements:
Purchases^(a)		—			—		8			8
Settlements		(1	)		—		(2	)		(3	)
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory asset or liability		—			1		(16	)		(15	)
Transfers out of Level 3		(25	)							(25	)

Balance at September 30, 2011	$	72		$	54	$	(24	)	$	102


(a) Derivative amounts relate to financial transmission rights.

Three Months Ended September 30, 2010
Balance at July 1, 2010	$	178		$	48	$	(7	)	$	219


Total pre-tax realized or unrealized losses included in earnings:
Revenue, non-regulated electric, natural gas, and other		—			—			(15	)		(15	)
Fuel used in electric generation and purchased power—non-regulated		—			—			(3	)		(3	)
Total pre-tax gains included in other comprehensive income:
Gains on available for sale securities and other		2			—			—			2
Net purchases, sales, issuances and settlements		(3	)		(4	)		2			(5	)
Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability		—			2			1			3

Balance at September 30, 2010	$	177		$	46		$	(22	)	$	201


	Available-for- Sale Auction Rate Securities			Available-for- Sale NDTF Investments			Derivatives (net)			Total
Nine months Ended September 30, 2011
Balance at January 1, 2011	$	118		$	47		$	(19	)	$	146
Total pre-tax realized or unrealized gains (losses) included in earnings:
Revenue, regulated electric^(a)		—			—			8			8
Revenue, non-regulated electric, natural gas, and other		—			—			(19	)		(19	)
Total pre-tax gains included in other comprehensive income:
Gains on available for sale securities and other		13			—			—			13
Net purchases, sales, issuances and settlements:
Purchases^(a)		—			7			8			15
Sales		—			(3	)		—			(3	)
Settlements		(25	)		—			(5	)		(30	)
Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability or as non-current liability		—			3			3			6
Transfers out of Level 3		(34	)								(34	)

Balance at September 30, 2011	$	72		$	54		$	(24	)	$	102

Pre-tax amounts included in the Condensed Consolidated Statements of Operations related to Level 3 measurements outstanding at September 30, 2011:
Revenue, non-regulated electric, natural gas, and other	$	—		$	—		$	(12	)	$	(12	)

Total	$	—		$	—		$	(12	)	$	(12	)


(a) Derivative amounts relate to financial transmission rights

Nine months Ended September 30, 2010
Balance at January 1, 2010	$	198		$	—		$	25		$	223
Total pre-tax realized or unrealized losses included in earnings:
Revenue, non-regulated electric, natural gas, and other		—			—			(44	)		(44	)
Fuel used in electric generation and purchased power-non-regulated		—			—			(14	)		(14	)
Total pre-tax gains included in other comprehensive income:
Gains on available for sale securities and other		12			—			—			12
Net purchases, sales, issuances and settlement		(33	)		44			(5	)		6
Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability or as non-current liability		—			2			16			18

Balance at September 30, 2010	$	177		$	46		$	(22	)	$	201


Pre-tax amounts included in the Condensed Consolidated Statements of Operations related to Level 3 measurements outstanding at September 30, 2010:
Revenue, non-regulated electric, natural gas, and other	$	—	$	—	$	15		$	15
Fuel used in electric generation and purchased power-non-regulated		—		—		(1	)		(1	)

Total	$	—	$	—	$	14		$	14

Duke Energy Carolinas

The following tables provide the fair value measurement amounts for assets and liabilities recorded on Duke Energy Carolinas' Condensed Consolidated Balance Sheets at fair value at September 30, 2011 and December 31, 2010. Amounts presented in the tables below exclude cash collateral amounts. See Note 10 for additional information related to investments by major security type.


	Total Fair Value Amounts at September 30, 2011			Level 1		Level 2			Level 3
	(in millions)
Description
Investments in available-for-sale auction rate securities^(a)	$	12		$	—	$	—		$	12
Nuclear decommissioning trust fund equity securities		1,206			1,154		46			6
Nuclear decommissioning trust fund debt securities		718			151		519			48
Derivative assets^(b)		1			—		1			—

Total assets		1,937			1,305		566			66
Derivative liabilities^(c)		(92	)		—		(92	)		—

Net Assets	$	1,845		$	1,305	$	474		$	66

(a)	Included in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(b)	Included in Other within Current Assets and Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(c)	Included in Other within Current Liabilities and Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets.


	Total Fair Value Amounts at December 31, 2010			Level 1			Level 2		Level 3
	(in millions)
Description
Investments in available-for-sale auction rate securities^(a)	$	12		$	—		$	—	$	12
Nuclear decommissioning trust fund equity securities		1,365			1,313			46		6
Nuclear decommissioning trust fund debt securities		649			35			573		41
Derivative assets^(b)		62			1			61		—

Total assets		2,088			1,349			680		59
Derivative liabilities^(c)		(1	)		(1	)		—		—

Net Assets	$	2,087		$	1,348		$	680	$	59

(a)	Included in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(b)	Included in Other within Current Assets and Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(c)	Included in Other within Current Liabilities and Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets.

The following table provides a reconciliation of beginning and ending balances of assets measured at fair value on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3):

Rollforward of Level 3 Measurements


	Available-for- Sale Auction Rate Securities		Available-for- Sale NDTF Investments			Total
	(in millions)
Three Months Ended September 30, 2011
Balance at July 1, 2011	$	12	$	53		$	65
Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability		—		1			1

Balance at September 30, 2011	$	12	$	54		$	66


	Available-for- Sale Auction Rate Securities		Available-for- Sale NDTF Investments			Total
	(in millions)
Three Months Ended September 30, 2010
Balance at July 1, 2010	$	60	$	48		$	108
Total pre-tax gains included in other comprehensive income:
Gains on available for sale securities and other		1		—			1
Net purchases, sales, issuances and settlements		—		(4	)		(4	)
Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability		—		2			2

Balance at September 30, 2010	$	61	$	46		$	107


	Available-for- Sale Auction Rate Securities			Available-for- Sale NDTF Investments			Total
	(in millions)
Nine months Ended September 30, 2011
Balance at January 1, 2011	$	12		$	47		$	59
Purchases, sales, issuances and settlements:
Purchases		—			7			7
Sales		—			(3	)		(3	)
Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability		—			3			3

Balance at September 30, 2011	$	12		$	54		$	66


	Available-for- Sale Auction Rate Securities			Available-for- Sale NDTF Investments			Total
	(in millions)
Nine months Ended September 30, 2010
Balance at January 1, 2010	$	66		$	—		$	66
Total pre-tax gains included in other comprehensive income:
Gains on available for sale securities and other		3			—			3
Net purchases, sales, issuances and settlements		—			44			44
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory asset or liability		(8	)		2			(6	)

Balance at September 30, 2010	$	61		$	46		$	107

Duke Energy Ohio

The following tables provide the fair value measurement amounts for assets and liabilities recorded on Duke Energy Ohio's Condensed Consolidated Balance Sheets at fair value at September 30, 2011 and December 31, 2010. Amounts presented in the tables below exclude cash collateral amounts which are disclosed separately in Note 8.


	Total Fair Value Amounts at September 30, 2011			Level 1			Level 2			Level 3
	(in millions)
Description
Derivative assets^(a)	$	34		$	11		$	8		$	15
Derivative liabilities^(b)		(27	)		(11	)		(8	)		(8	)

Net Assets	$	7		$	—		$	—		$	7

(a)	Included in Other within Current Assets and Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(b)	Included in Other within Current Liabilities and Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets.


	Total Fair Value Amounts at December 31, 2010			Level 1			Level 2			Level 3
	(in millions)
Description
Derivative assets^(a)	$	59		$	20		$	6		$	33
Derivative liabilities^(b)		(32	)		(7	)		(5	)		(20	)

Net Assets	$	27		$	13		$	1		$	13

(a)	Included in Other within Current Assets and Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(b)	Included in Other within Current Liabilities and Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets.

The following table provides a reconciliation of beginning and ending balances of assets measured at fair value on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3):

Rollforward of Level 3 Measurements


	Derivatives (net)
Three Months Ended September 30, 2011
Balance at July 1, 2011	$	7
Total pre-tax realized or unrealized losses included in earnings:
Revenue, non-regulated electric and other		(1	)
Purchases, sales, issuances and settlements:
Settlements		(1	)
Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability		2

Balance at September 30, 2011	$	7

Three Ended September 30, 2010
Balance at July 1, 2010	$	(4	)
Total pre-tax realized or unrealized gains (losses) included in earnings:
Revenue, non-regulated electric and other		29
Fuel used in electric generation and purchased power—non-regulated		(2	)
Net purchases, sales, issuances and settlements		9

Balance at September 30, 2010	$	32


	Derivatives (net)
Nine months Ended September 30, 2011
Balance at January 1, 2011	$	13
Total pre-tax realized or unrealized losses included in earnings:
Revenue, non-regulated electric and other		(7	)
Purchases, sales, issuances and settlements:
Settlements		(2	)
Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability		3

Balance at September 30, 2011	$	7

Pre-tax amounts included in the Condensed Consolidated Statements of Operations related to Level 3 measurements outstanding at September 30, 2011:
Revenue, non-regulated electric and other	$	1

Total	$	1


	Derivatives (net)
Nine months Ended September 30, 2010
Balance at January 1, 2010	$	7
Total pre-tax realized or unrealized gains (losses) included in earnings:
Revenue, non-regulated electric and other		27
Fuel used in electric generation and purchased power—non-regulated		(13	)
Net purchases, sales, issuances and settlements		8
Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability		3

Balance at September 30, 2010	$	32

Pre-tax amounts included in the Condensed Consolidated Statements of Operations related to Level 3 measurements outstanding at September 30, 2010:
Revenue, non-regulated electric and other	$	31
Fuel used in electric generation and purchased power—non-regulated		(1	)

Total	$	30

Duke Energy Indiana

The following tables provide the fair value measurement amounts for assets and liabilities recorded on Duke Energy Indiana's Condensed Consolidated Balance Sheets at fair value at September 30, 2011 and December 31, 2010. Amounts presented in the tables below exclude cash collateral amounts. See Note 10 for additional information related to investments by major security type.


	Total Fair Value Amounts at September 30, 2011			Level 1		Level 2			Level 3
	(in millions)
Description
Available-for-sale equity securities^(a)	$	42		$	42	$	—		$	—
Available-for-sale debt securities^(a)		28			—		28			—
Derivative assets^(b)		6			—		—			6

Total Assets		76			42		28			6
Derivative liabilities^(c)		(62	)		—		(62	)		—

Net Assets	$	14		$	42	$	(34	)	$	6

(a)	Included in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(b)	Included in Other within Current Assets on the Condensed Consolidated Balance Sheets.

(c)	Included in Other within Current Liabilities and Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets.


	Total Fair Value Amounts at December 31, 2010			Level 1		Level 2			Level 3
	(in millions)
Description
Available-for-sale equity securities^(a)	$	47		$	47	$	—		$	—
Available-for-sale debt securities^(a)		26			—		26			—
Derivative assets^(b)		4			—		—			4

Total Assets		77			47		26			4
Derivative liabilities^(c)		(2	)		—		(2	)		—

Net Assets	$	75		$	47	$	24		$	4

(a)	Included in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(b)	Included in Other within Current Assets on the Condensed Consolidated Balance Sheets.

(c)	Included in Other within Current Liabilities and Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets.

The following table provides a reconciliation of beginning and ending balances of assets measured at fair value on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3):

Rollforward of Level 3 measurements


	Derivatives (net)
	(in millions)
Three Months Ended September 30, 2011
Balance at July 1, 2011	$	10
Total pre-tax realized or unrealized gains included in earnings:
Revenue, regulated electric^(a)		8
Net purchases, sales, issuances and settlements:
Purchases^(a)		8
Settlements		(2	)
Total losses included on the Condensed Consolidated Balance Sheet as regulatory asset or liability		(18	)

Balance at September 30, 2011	$	6

Three Months Ended September 30, 2010
Balance at July 1, 2010	$	7
Net purchases, sales, issuances and settlements		(3	)

Balance at September 30, 2010	$	4

(a)	Amounts relate to financial transmission rights.


	Derivatives (net)
	(in millions)
Nine months Ended September 30, 2011
Balance at January 1, 2011	$	4
Total pre-tax realized or unrealized gains included in earnings:
Revenue, regulated electric^(a)		8
Net purchases, sales, issuances and settlements:
Purchases^(a)		8
Settlements		(14	)

Balance at September 30, 2011	$	6

Nine months Ended September 30, 2010
Balance at January 1, 2010	$	4
Net purchases, sales, issuances and settlements		(12	)
Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability		12

Balance at September 30, 2010	$	4

(a)	Amounts relate to financial transmission rights.

Additional Fair Value Disclosures - Long-term debt: The fair value of long-term debt is summarized in the following table. Judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the estimates determined as of September 30, 2011 and December 31, 2010 are not necessarily indicative of the amounts the Duke Energy Registrants could have settled in current markets.


	As of September 30, 2011
	Duke Energy				Duke Energy Carolinas				Duke Energy Ohio				Duke Energy Indiana
	Book Value^(a)		Fair Value		Book Value		Fair Value		Book Value		Fair Value		Book Value		Fair Value
	(in millions)
Long-term debt, including current maturities^(a)	$	19,111	$	21,346	$	8,273	$	9,469	$	2,558	$	2,685	$	3,469	$	3,977

(a)	Includes Non-recourse long-term debt of variable interest entities of $959 million for Duke Energy and $300 million for Duke Energy Carolinas.


	As of December 31, 2010
	Duke Energy				Duke Energy Carolinas				Duke Energy Ohio				Duke Energy Indiana
	Book Value		Fair Value		Book Value		Fair Value		Book Value		Fair Value		Book Value		Fair Value
	(in millions)
Long-term debt, including current maturities^(a)	$	18,210	$	19,484	$	7,770	$	8,376	$	2,564	$	2,614	$	3,472	$	3,746

(a)	Includes Non-recourse long-term debt of variable interest entities of $976 million for Duke Energy and $300 million for Duke Energy Carolinas.

At both September 30, 2011 and December 31, 2010, the fair value of cash and cash equivalents, accounts and notes receivable, accounts payable, commercial paper and non-recourse notes payables of variable interest entities are not materially different from their carrying amounts because of the short-term nature of these instruments and/or because the stated rates approximate market rates.