Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Measurements At Reporting Date

The following tables set forth, by level, the Company’s assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2013 and December 31, 2012.



	Fair Value Measurements at June 30, 2013
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In millions)

Assets:
Inventories carried at market	$	—	$	3,419	$	1,926	$	5,345
Unrealized derivative gains:
Commodity contracts	1,335		653		267		2,255
Foreign exchange contracts	—		152		—		152
Interest rate contracts	—		1		—		1
Marketable securities	2,558		15		—		2,573
Deferred receivables consideration	—		546		—		546
Total Assets	$	3,893	$	4,786	$	2,193	$	10,872

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	1,498	$	509	$	233	$	2,240
Foreign exchange contracts	—		195		—		195
Inventory-related payables	—		324		63		387
Total Liabilities	$	1,498	$	1,028	$	296	$	2,822



	Fair Value Measurements at December 31, 2012
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In millions)

Assets:
Inventories carried at market	$	—	$	5,291	$	1,745	$	7,036
Unrealized derivative gains:
Commodity contracts	1,426		936		143		2,505
Foreign exchange contracts	—		170		—		170
Interest rate contracts	—		1		—		1
Marketable securities	2,451		16		—		2,467
Deferred receivables consideration	—		900		—		900
Total Assets	$	3,877	$	7,314	$	1,888	$	13,079

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	1,600	$	638	$	138	$	2,376
Foreign exchange contracts	—		215		—		215
Inventory-related payables	—		903		33		936
Total Liabilities	$	1,600	$	1,756	$	171	$	3,527

Reconciliation of Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following table presents a reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended June 30, 2013.



	Level 3 Fair Value Asset Measurements at
	June 30, 2013
	Inventories Carried at Market			Commodity Derivative Contracts Gains			Total Assets
	(In millions)

Balance, March 31, 2013	$	2,022		$	223		$	2,245
Total increase (decrease) in unrealized gains included in cost of products sold*	172			93			265
Purchases	4,215			—			4,215
Sales	(4,611		)	—			(4,611		)
Settlements	—			(132		)	(132		)
Transfers into Level 3	160			92			252
Transfers out of Level 3	(32		)	(9		)	(41		)
Ending balance, June 30, 2013	$	1,926		$	267		$	2,193

* Includes gains of $134 million that are attributable to the change in unrealized gains relating to Level 3 assets still held at June 30, 2013.

The following table presents a reconciliation of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended June 30, 2013.



	Level 3 Fair Value Liability Measurements at
	June 30, 2013
	Inventory- related Payables			Commodity Derivative Contracts Losses			Total Liabilities
	(In millions)

Balance, March 31, 2013	$	216		$	171		$	387
Total increase (decrease) in unrealized losses included in cost of products sold*	(161		)	137			(24		)
Purchases	10			—			10
Sales	(2		)	—			(2		)
Settlements	—			(109		)	(109		)
Transfers into Level 3	—			51			51
Transfers out of Level 3	—			(17		)	(17		)
Ending balance, June 30, 2013	$	63		$	233		$	296

* Includes losses of $8 million that are attributable to the change in unrealized losses relating to Level 3 liabilities still held at June 30, 2013.

The following table presents a reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended June 30, 2012.



	Level 3 Fair Value Asset Measurements at
	June 30, 2012
	Inventories Carried at Market			Commodity Derivative Contracts Gains			Total Assets
	(In millions)

Balance, March 31, 2012	$	1,725		$	232		$	1,957
Total increase (decrease) in unrealized gains included in cost of products sold	35			92			127
Purchases	840			(2		)	838
Sales	(1,106		)	—			(1,106		)
Settlements	—			(146		)	(146		)
Transfers into Level 3	88			5			93
Transfers out of Level 3	(120		)	(10		)	(130		)
Ending balance, June 30, 2012	$	1,462		$	171		$	1,633

The following table presents a reconciliation of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended June 30, 2012.



	Level 3 Fair Value Liability Measurements at
	June 30, 2012
	Inventory- related Payables			Commodity Derivative Contracts Losses			Total Liabilities
	(In millions)

Balance, March 31, 2012	$	137		$	184		$	321
Total increase (decrease) in unrealized losses included in cost of products sold	—			90			90
Purchases	—			(1		)	(1		)
Sales	(86		)	—			(86		)
Settlements	—			(104		)	(104		)
Transfers into Level 3	2			41			43
Transfers out of Level 3	(15		)	(31		)	(46		)
Ending balance, June 30, 2012	$	38		$	179		$	217

The following table presents a reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the six months ended June 30, 2013.



	Level 3 Fair Value Asset Measurements at
	June 30, 2013
	Inventories Carried at Market			Commodity Derivative Contracts Gains			Total Assets
	(In millions)

Balance, December 31, 2012	$	1,745		$	143		$	1,888
Total increase (decrease) in unrealized gains included in cost of products sold*	(516		)	229			(287		)
Purchases	8,899			—			8,899
Sales	(8,312		)	—			(8,312		)
Settlements	—			(228		)	(228		)
Transfers into Level 3	160			140			300
Transfers out of Level 3	(50		)	(17		)	(67		)
Ending balance, June 30, 2013	$	1,926		$	267		$	2,193

* Includes gains of $264 million that are attributable to the change in unrealized gains relating to Level 3 assets still held at June 30, 2013.

The following table presents a reconciliation of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the six months ended June 30, 2013.



	Level 3 Fair Value Liability Measurements at
	June 30, 2013
	Inventory- related Payables			Commodity Derivative Contracts Losses			Total Liabilities
	(In millions)

Balance, December 31, 2012	$	33		$	138		$	171
Total increase (decrease) in unrealized losses included in cost of products sold*	(151		)	255			104
Purchases	186			—			186
Sales	(6		)	—			(6		)
Settlements	—			(211		)	(211		)
Transfers into Level 3	1			74			75
Transfers out of Level 3	—			(23		)	(23		)
Ending balance, June 30, 2013	$	63		$	233		$	296

* Includes losses of $110 million that are attributable to the change in unrealized losses relating to Level 3 liabilities still held at June 30, 2013.

The following table presents a reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the six months ended June 30, 2012.



	Level 3 Fair Value Asset Measurements at
	June 30, 2012
	Inventories Carried at Market			Commodity Derivative Contracts Gains			Total Assets
	(In millions)

Balance, December 31, 2011	$	1,624		$	198		$	1,822
Total increase (decrease) in unrealized gains included in cost of products sold	76			257			333
Purchases	2,126			(2		)	2,124
Sales	(1,391		)	—			(1,391		)
Settlements	—			(246		)	(246		)
Transfers into Level 3	160			24			184
Transfers out of Level 3	(1,133		)	(60		)	(1,193		)
Ending balance, June 30, 2012	$	1,462		$	171		$	1,633

The following table presents a reconciliation of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the six months ended June 30, 2012.



	Level 3 Fair Value Liability Measurements at
	June 30, 2012
	Inventory- related Payables			Commodity Derivative Contracts Losses			Total Liabilities
	(In millions)

Balance, December 31, 2011	$	196		$	192		$	388
Total increase (decrease) in unrealized losses included in cost of products sold	—			249			249
Purchases	—			(1		)	(1		)
Sales	(4		)	—			(4		)
Settlements	—			(245		)	(245		)
Transfers into Level 3	2			53			55
Transfers out of Level 3	(156		)	(69		)	(225		)
Ending balance, June 30, 2012	$	38		$	179		$	217

Unobservable Price Components Present in the Level 3 Valuations of Assets and Liabilities Measured at Fair Value on a Recurring Basis



	Weighted Average % of Total Price
	June 30, 2013				December 31, 2012
Component Type	Assets		Liabilities		Assets		Liabilities
Inventories and Related Payables
Basis	18.8	%	34.3	%	13.5	%	26.2	%
Transportation cost	1.8	%	4.7	%	8.4	%	9.1	%

Commodity Derivative Contracts
Basis	13.8	%	21.9	%	45.7	%	17.0	%
Transportation cost	9.7	%	8.7	%	16.2	%	7.7	%

- Definition

The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 33

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19279-110258

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19190-110258

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 6

-Footnote 4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details