v3.26.3
Fair Value of Financial Instruments
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
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 total debt is as follows:
September 30, 2026
December 31, 2025
Millions of dollars
Level 1
Level 2
Total fair
value
Carrying
value
Level 1
Level 2
Total fair
value
Carrying
value
Total debt
$6,502
$96
$6,598
$7,162
$6,722
$357
$7,079
$7,158
In the first nine months of 2026, the total fair value of our debt decreased as a result of higher yields.Our debt categorized within level 1 on the fair value hierarchy is calculated using quoted prices in active markets for
identical liabilities with transactions occurring on the last two days of period-end. Our debt categorized within level 2 on the
fair value hierarchy is 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. Differences
between the periods presented in our level 1 and level 2 classification of our long-term debt relate to the timing of when third-
party market transactions on our debt are executed. We have no debt categorized within level 3 on the fair value hierarchy.
Credit risk previously entered into with third-party financial institutions related to borrowings
provided by the financial institutions to one of our primary customers in Mexico matured during the third quarter of 2026.
Accordingly, there were no outstanding notional amounts as of September 30, 2026, compared to $592 million as of
December 31, 2025.
No derivative liabilities were outstanding as of September 30, 2026, and the fair value of the derivative liabilities as of
December 31, 2025 were not material