FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2019

The following table summarizes the fair value of financial instruments at March 31, 2019 and December 31, 2018:



Fair Value of Financial Instruments	Mar 31, 2019											Dec 31, 2018
In millions	Cost			Gain		Loss			Fair Value			Cost			Gain		Loss			Fair Value
Cash equivalents	$	345		$	—	$	—		$	345		$	566		$	—	$	—		$	566
Marketable securities	$	101		$	—	$	—		$	101		$	100		$	—	$	—		$	100
Other investments:
Debt securities:
Government debt ¹	$	694		$	17	$	(9	)	$	702		$	714		$	9	$	(23	)	$	700
Corporate bonds	1,051			43		(21		)	1,073			1,026			20		(63		)	983
Total debt securities	$	1,745		$	60	$	(30	)	$	1,775		$	1,740		$	29	$	(86	)	$	1,683
Equity securities ²	16			5		—			21			16			1		(1		)	16
Total other investments	$	1,761		$	65	$	(30	)	$	1,796		$	1,756		$	30	$	(87	)	$	1,699
Total cash equivalents, marketable securities and other investments	$	2,207		$	65	$	(30	)	$	2,242		$	2,422		$	30	$	(87	)	$	2,365
Long-term debt including debt due within one year ³	$	(19,529	)	$	84	$	(1,405	)	$	(20,850	)	$	(19,594	)	$	351	$	(971	)	$	(20,214	)
Derivatives relating to:
Interest rates	$	—		$	—	$	(181	)	$	(181	)	$	—		$	—	$	(64	)	$	(64	)
Foreign currency	—			86		(14		)	72			—			120		(43		)	77
Commodities ⁴	—			88		(147		)	(59		)	—			91		(178		)	(87		)
Total derivatives	$	—		$	174	$	(342	)	$	(168	)	$	—		$	211	$	(285	)	$	(74	)

1. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations.


2.	Equity securities with a readily determinable fair value.


3.	Cost includes fair value hedge adjustments of $17 million at March 31, 2019 and $18 million at December 31, 2018 on $2,290 million of debt at March 31, 2019 and December 31, 2018.


4.	Presented net of cash collateral

The following table provides the investing results from available-for-sale securities for the three months ended March 31, 2019 and 2018:



Investing Results	Three Months Ended
In millions	Mar 31, 2019			Mar 31, 2018
Proceeds from sales of available-for-sale securities	$	159		$	348
Gross realized gains	$	6		$	7
Gross realized losses	$	(5	)	$	(9	)

The following tables provide the fair value and balance sheet classification of derivative instruments at March 31, 2019 and December 31, 2018:



Fair Value of Derivative Instruments		Mar 31, 2019
In millions	Balance Sheet Classification	Gross		Counterparty and Cash Collateral Netting ¹			Net Amounts Included in the Consolidated Balance Sheet
Asset derivatives:
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current assets	$	161	$	(89	)	$	72
Commodity contracts	Other current assets	31		(5		)	26
Commodity contracts	Deferred charges and other assets	57		(4		)	53
Total		$	249	$	(98	)	$	151
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets	$	29	$	(15	)	$	14
Commodity contracts	Other current assets	8		(1		)	7
Commodity contracts	Deferred charges and other assets	4		(2		)	2
Total		$	41	$	(18	)	$	23
Total asset derivatives		$	290	$	(116	)	$	174

Liability derivatives:
Derivatives designated as hedging instruments:
Interest rate swaps	Other noncurrent obligations	$	181	$	—		$	181
Foreign currency contracts	Accrued and other current liabilities	98		(89		)	9
Commodity contracts	Accrued and other current liabilities	93		(6		)	87
Commodity contracts	Other noncurrent obligations	60		(8		)	52
Total		$	432	$	(103	)	$	329
Derivatives not designated as hedging instruments:
Foreign currency contracts	Accrued and other current liabilities	$	20	$	(15	)	$	5
Commodity contracts	Accrued and other current liabilities	8		(4		)	4
Commodity contracts	Other noncurrent obligations	7		(3		)	4
Total		$	35	$	(22	)	$	13
Total liability derivatives		$	467	$	(125	)	$	342


1.	Counterparty and cash collateral amounts represent the estimated net settlement amount when applying netting and set-off rights included in master netting arrangements between TDCC and its counterparties and the payable or receivable for cash collateral held or placed with the same counterparty.



Fair Value of Derivative Instruments		Dec 31, 2018
In millions	Balance Sheet Classification	Gross		Counterparty and Cash Collateral Netting ¹			Net Amounts Included in the Consolidated Balance Sheet
Asset derivatives:
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current assets	$	98	$	(42	)	$	56
Commodity contracts	Other current assets	47		(13		)	34
Commodity contracts	Deferred charges and other assets	18		(3		)	15
Total		$	163	$	(58	)	$	105
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets	$	128	$	(64	)	$	64
Commodity contracts	Other current assets	41		(1		)	40
Commodity contracts	Deferred charges and other assets	4		(2		)	2
Total		$	173	$	(67	)	$	106
Total asset derivatives		$	336	$	(125	)	$	211

Liability derivatives:
Derivatives designated as hedging instruments:
Interest rate swaps	Other noncurrent obligations	$	64	$	—		$	64
Foreign currency contracts	Accrued and other current liabilities	46		(42		)	4
Commodity contracts	Accrued and other current liabilities	111		(18		)	93
Commodity contracts	Other noncurrent obligations	86		(9		)	77
Total		$	307	$	(69	)	$	238
Derivatives not designated as hedging instruments:
Foreign currency contracts	Accrued and other current liabilities	$	103	$	(64	)	$	39
Commodity contracts	Accrued and other current liabilities	7		(4		)	3
Commodity contracts	Other noncurrent obligations	8		(3		)	5
Total		$	118	$	(71	)	$	47
Total liability derivatives		$	425	$	(140	)	$	285


1.	Counterparty and cash collateral amounts represent the estimated net settlement amount when applying netting and set-off rights included in master netting arrangements between TDCC and its counterparties and the payable or receivable for cash collateral held or placed with the same counterparty.