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Fair Value of Financial Instruments (Note)
6 Months Ended
Jun. 30, 2013
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments
Fair Value of Financial Instruments
At June 30, 2013, we held $277 million of investments in fixed income securities, with maturities ranging from less than one year to June 2016, compared to $398 million of investments in fixed income securities held at December 31, 2012. These securities are accounted for as available-for-sale and recorded at fair value as follows:
 
June 30, 2013
 
December 31, 2012
Millions of dollars
Level 1
Level 2
Total
 
Level 1
Level 2
Total
Fixed Income Securities:
 
 
 
 
 
 
 
   U.S. treasuries (a)
$

$

$

 
$
150

$

$
150

   Other (b)

277

277

 

248

248

Total
$

$
277

$
277

 
$
150

$
248

$
398

(a)
These securities are classified as "Other current assets" in our condensed consolidated balance sheets.
(b)
Of these securities, $146 million are classified as “Other current assets” and $131 million are classified as “Other assets” on our condensed consolidated balance sheets as of June 30, 2013, compared to $120 million classified as “Other current assets” and $128 million classified as “Other assets” as of December 31, 2012. These securities consist primarily of municipal bonds, corporate bonds, and other debt instruments.

The fair value of our Level 1 securities are based on quoted prices in active markets and the fair value of our Level 2 securities are based on quoted prices for identical assets in less active markets. We have no financial instruments measured at fair value using unobservable inputs (Level 3). The carrying amount of cash and equivalents, receivables, and accounts payable, as reflected in the condensed consolidated balance sheets, approximates fair value due to the short maturities of these instruments.

The carrying amount and fair value of our long-term debt is as follows:
 
June 30, 2013
 
December 31, 2012
Millions of dollars
Level 1
Level 2
Total fair value
Carrying value
 
Level 1
Level 2
Total fair value
Carrying value
Long-term debt
$
1,665

$
4,292

$
5,957

$
4,820

 
$
1,112

$
5,272

$
6,384

$
4,820



Our Level 1 debt fair values are calculated using quoted prices in active markets for identical liabilities with transactions occurring on the last two days of period-end. Our Level 2 debt fair values are calculated using significant observable inputs for similar liabilities where estimated values are determined from observable data points on our other bonds and on other similarly rated corporate debt or from observable data points of transactions occurring prior to two days from period-end and adjusting for changes in market conditions. We have no debt measured at fair value using unobservable inputs (Level 3).