CORRAL PETROLEUM HOLDINGS AB (PUBL) - Preem

As of December 31, 2008, SEK 21,999 million of our indebtedness required payment at variable rates (of which19,999 were long-term loans).The table below presents, as of December 31, 2008, principal cash flows and related weighted average interestrates by expected maturity dates, which are derived from our audited consolidated financial statements.TotalValue (1)% ofTotalLong-TermDebtEstimatedFairValue2009 2010 2011 2012 2013 2014+(in millions SEK, except %)As of December 31, 2008:Fixed rate debt-amount due...... — — — — — — — — —Weighted average interest rate. — — — — — — — — —Variable rate debt-amount due. 1,787 8,744 9,467 — — — 19,999 100% 19,999Weighted average interest rate. 4.80% 9.00% 5.15% — — — 6.80% — —(1) Includes current portion of long-term debt.Critical accounting policiesThe preparation of our consolidated financial statements requires the use of estimates, judgments andassumptions that affect the reported amounts of assets, liabilities and provisions at the date of the financial statements andthe reported amounts of revenues and expenses during the periods presented. We have identified the accounting policiesdiscussed below as the most critical policies upon which our financial status depends. We believe that these criticalaccounting policies involve management’s most complex or subjective judgments and estimates used in the preparationof our consolidated financial statements that could impact our financial results.Impairment of long-lived assetsWe review long-lived assets used in our business on an annual basis for impairment, or whenever events orchanges in circumstances indicate that the carrying amount of an asset or a group of assets may not be recoverable. Animpaired asset or a group of assets may not be recoverable. An impaired asset is written down to its estimated fair value.We estimate fair value based on independent appraisals and projected cash flows discounted at a rate determined bymanagement to be commensurate with our business risk. The estimation of fair value using these methods is subject tonumerous uncertainties, which require our significant judgment when making assumptions of revenues, operating costs,selling and administrative expenses, interest rates and general economic business conditions, among other factors.InventoryOur inventories are stated at the lower of cost or market. We use the FIFO (“first in, first out”) method todetermine the cost of our crude oil and refined product inventories. The carrying value of these inventories is sensitive tovolatile market prices. If refined product prices decline compared to the acquisition value at the end of a period, then wemay be required to write down the value of our inventories in future periods.ContingenciesWe record an estimated loss from a loss contingency when information available prior to issuance of ourfinancial statements indicates that it is probable that an asset has been impaired or a liability has been incurred at the dateof the financial statements and the amount of the loss can be reasonably estimated. Accounting for contingencies such asenvironmental, legal and income tax matters requires us to use our judgment. While we believe that our accruals forthese matters are adequate, if the actual loss from a loss contingency is significantly different than the estimated loss, ourresults of operations may be over- or understated.33