Financial Instruments and Risk Management (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value of Derivative Instruments Not Designated as Hedging Instruments

At June 30, 2012 and December 31, 2011, the fair value of derivative instruments not designated as hedging instruments are presented in the following table.

	June 30, 2012					December 31, 2011
(Thousands of dollars)	Asset (Liability) Derivatives					Asset (Liability) Derivatives
Type of Derivative Contract		Balance Sheet Location		Fair Value		Balance Sheet Location		Fair Value
Commodity		Accounts receivable	$	13,034		Accounts receivable	$	197
Commodity		Accounts payable		(13,372	)	Accounts payable		(489	)
Foreign exchange		Accounts payable		(2,897	)	Accounts payable		(8,459	)

Recognized Gains and Losses for Derivative Instruments Not Designated as Hedging Instruments

For the three-month and six-month periods ended June 30, 2012 and 2011, the gains and losses recognized in the Consolidated Statements of Income for derivative instruments not designated as hedging instruments are presented in the following table.

		Gain (Loss)
(Thousands of dollars)	Statement of Income Location	Three Months Ended June 30,					Six Months Ended June 30,
Type of Derivative Contract		2012			2011		2012		2011
Commodity	Crude oil and product purchases	$	1,618			12,952		2,263		(1,481	)
Foreign exchange	Interest and other income		(8,318	)		2,463		9,197		11,990
		$	(6,700	)		15,415		11,460		10,509

Fair Value of Interest Rate Derivative Contracts Designated as Hedging Instruments

At December 31, 2011, the fair value of these interest rate derivative contracts, which have been designated as hedging instruments for accounting purposes, are presented in the following table.

	December 31, 2011
(Thousands of dollars)	Asset (Liability) Derivatives
Type of Derivative Contract	Balance Sheet Location		Fair Value
Interest rate		Accounts Payable	$	(25,927	)

Carrying Value of Assets and Liabilities Recorded at Fair Value on Recurring Basis

The carrying value of assets and liabilities recorded at fair value on a recurring basis at June 30, 2012 and December 31, 2011 are presented in the following table.

	June 30, 2012											December 31, 2011
(Thousands of dollars)	Level 1			Level 2			Level 3		Total			Level 1			Level 2			Level 3		Total
Assets
Commodity derivative contracts	$	0			13,034			0		13,034			0			197			0		197
Liabilities
Nonqualified employee savings plans	$	(8,882	)		0			0		(8,882	)		(8,030	)		0			0		(8,030	)
Foreign currency exchange derivative contracts		0			(2,897	)		0		(2,897	)		0			(8,459	)		0		(8,459	)
Commodity derivative contracts		0			(13,372	)		0		(13,372	)		0			(489	)		0		(489	)
Interest rate derivative contracts		0			0			0		0			0			(25,927	)		0		(25,927	)
	$	(8,882	)		(16,269	)		0		(25,151	)		(8,030	)		(34,875	)		0		(42,905	)