Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

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 September 30, 2014 and December 31, 2013.



	Fair Value Measurements at September 30, 2014
	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	$	—	$	2,188	$	1,522	$	3,710
Unrealized derivative gains:
Commodity contracts	—		737		552		1,289
Foreign exchange contracts	1		238		—		239
Interest rate contracts	—		3		—		3
Cash equivalents	1,012		—		—		1,012
Marketable securities	779		81		—		860
Segregated investments	1,877		—		—		1,877
Deferred receivables consideration	—		695		—		695
Total Assets	$	3,669	$	3,942	$	2,074	$	9,685

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	804	$	261	$	1,065
Foreign exchange contracts	—		246		—		246
Interest rate contracts	—		4		—		4
Inventory-related payables	—		290		20		310
Total Liabilities	$	—	$	1,344	$	281	$	1,625



	Fair Value Measurements at December 31, 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	$	—	$	4,247	$	1,812	$	6,059
Unrealized derivative gains:
Commodity contracts	31		540		279		850
Foreign exchange contracts	30		88		—		118
Interest rate contracts	—		1		—		1
Cash equivalents	2,518		—		—		2,518
Marketable securities	881		26		—		907
Segregated investments	1,707		—		—		1,707
Deferred receivables consideration	—		757		—		757
Total Assets	$	5,167	$	5,659	$	2,091	$	12,917

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	45	$	343	$	261	$	649
Foreign exchange contracts	—		166		—		166
Interest rate contracts	—		9		—		9
Inventory-related payables	—		708		34		742
Total Liabilities	$	45	$	1,226	$	295	$	1,566

Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

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 September 30, 2014.



	Level 3 Fair Value Asset Measurements at
	September 30, 2014
	Inventories Carried at Market			Commodity Derivative Contracts Gains			Total Assets
	(In millions)

Balance, June 30, 2014	$	1,139		$	239		$	1,378
Total increase (decrease) in unrealized gains included in cost of products sold*	(33		)	285			252
Purchases	2,526			—			2,526
Sales	(2,352		)	—			(2,352		)
Settlements	—			(166		)	(166		)
Transfers into Level 3	266			207			473
Transfers out of Level 3	(24		)	(13		)	(37		)
Ending balance, September 30, 2014	$	1,522		$	552		$	2,074

* Includes increase in unrealized gains of $145 million relating to Level 3 assets still held at September 30, 2014.

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 September 30, 2014.



	Level 3 Fair Value Liability Measurements at
	September 30, 2014
	Inventory- related Payables			Commodity Derivative Contracts Losses			Total Liabilities
	(In millions)

Balance, June 30, 2014	$	19		$	162		$	181
Total increase (decrease) in unrealized losses included in cost of products sold*	—			110			110
Purchases	12			—			12
Sales	(11		)	—			(11		)
Settlements	—			(130		)	(130		)
Transfers into Level 3	—			127			127
Transfers out of Level 3	—			(8		)	(8		)
Ending balance, September 30, 2014	$	20		$	261		$	281

* Includes increase in unrealized losses of $111 million relating to Level 3 liabilities still held at September 30, 2014.

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 September 30, 2013.



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

Balance, June 30, 2013	$	1,926		$	267		$	2,193
Total increase (decrease) in unrealized gains included in cost of products sold*	162			143			305
Purchases	2,896			—			2,896
Sales	(3,264		)	—			(3,264		)
Settlements	—			(153		)	(153		)
Transfers into Level 3	35			69			104
Transfers out of Level 3	(483		)	(64		)	(547		)
Ending balance, September 30, 2013	$	1,272		$	262		$	1,534

* Includes increase in unrealized gains of $289 million relating to Level 3 assets still held at September 30, 2013.



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

Balance, June 30, 2013	$	63		$	233		$	296
Total increase (decrease) in unrealized losses included in cost of products sold*	—			127			127
Purchases	4			—			4
Sales	(17		)	—			(17		)
Settlements	—			(186		)	(186		)
Transfers into Level 3	—			30			30
Transfers out of Level 3	(41		)	(18		)	(59		)
Ending balance, September 30, 2013	$	9		$	186		$	195

* Includes increase in unrealized losses of $127 million relating to Level 3 liabilities still held at September 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 nine months ended September 30, 2014.



	Level 3 Fair Value Asset Measurements at
	September 30, 2014
	Inventories Carried at Market			Commodity Derivative Contracts Gains			Total Assets
	(In millions)

Balance, December 31, 2013	$	1,812		$	279		$	2,091
Total increase (decrease) in unrealized gains included in cost of products sold*	(208		)	507			299
Purchases	10,474			—			10,474
Sales	(10,711		)	—			(10,711		)
Settlements	—			(529		)	(529		)
Transfers into Level 3	266			328			594
Transfers out of Level 3	(111		)	(33		)	(144		)
Ending balance, September 30, 2014	$	1,522		$	552		$	2,074

* Includes increase in unrealized gains of $516 million relating to Level 3 assets still held at September 30, 2014.

The following table presents a reconciliation of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2014.



	Level 3 Fair Value Liability Measurements at
	September 30, 2014
	Inventory- related Payables			Commodity Derivative Contracts Losses			Total Liabilities
	(In millions)

Balance, December 31, 2013	$	34		$	261		$	295
Total increase (decrease) in unrealized losses included in cost of products sold*	10			384			394
Purchases	18			—			18
Sales	(42		)	—			(42		)
Settlements	—			(580		)	(580		)
Transfers into Level 3	—			234			234
Transfers out of Level 3	—			(38		)	(38		)
Ending balance, September 30, 2014	$	20		$	261		$	281

* Includes increase in unrealized losses of $397 million relating to Level 3 liabilities still held at September 30, 2014.

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



	Level 3 Fair Value Asset Measurements at
	September 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*	(677		)	372			(305		)
Purchases	11,795			—			11,795
Sales	(11,576		)	—			(11,576		)
Settlements	—			(381		)	(381		)
Transfers into Level 3	35			209			244
Transfers out of Level 3	(50		)	(81		)	(131		)
Ending balance, September 30, 2013	$	1,272		$	262		$	1,534

* Includes increase in unrealized gains of $553 million relating to Level 3 assets still held at September 30, 2013.



	Level 3 Fair Value Liability Measurements at
	September 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*	(191		)	382			191
Purchases	190			—			190
Sales	(23		)	—			(23		)
Settlements	—			(397		)	(397		)
Transfers into Level 3	—			104			104
Transfers out of Level 3	—			(41		)	(41		)
Ending balance, September 30, 2013	$	9		$	186		$	195

* Includes increase in unrealized losses of $237 million relating to Level 3 liabilities still held at September 30, 2013.

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

The following table sets forth the weighted average percentage of the unobservable price components included in the Company’s Level 3 valuations as of September 30, 2014 and December 31, 2013. The Company’s Level 3 measurements may include Basis only, transportation cost only, or both price components. As an example, for Level 3 inventories with Basis, the unobservable component as of September 30, 2014 is a weighted average 32.1% of the total price for assets and 30.8% for liabilities.



	Weighted Average % of Total Price
	September 30, 2014				December 31, 2013
Component Type	Assets		Liabilities		Assets		Liabilities
Inventories and Related Payables
Basis	32.1	%	30.8	%	21.9	%	13.2	%
Transportation cost	11.4	%	—	%	12.3	%	—	%

Commodity Derivative Contracts
Basis	20.1	%	18.5	%	22.8	%	17.6	%
Transportation cost	8.1	%	24.4	%	32.5	%	12.3	%