Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2015

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, 2015 and December 31, 2014.



	Fair Value Measurements at June 30, 2015
	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	$	—	$	3,028	$	1,026	$	4,054
Unrealized derivative gains:
Commodity contracts	—		713		154		867
Foreign exchange contracts	—		108		—		108
Interest rate contracts	—		20		—		20
Cash equivalents	177		—		—		177
Marketable securities	715		80		—		795
Segregated investments	2,087		—		—		2,087
Deferred receivables consideration	—		703		—		703
Total Assets	$	2,979	$	4,652	$	1,180	$	8,811

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	571	$	363	$	934
Foreign exchange contracts	7		143		—		150
Inventory-related payables	—		345		13		358
Total Liabilities	$	7	$	1,059	$	376	$	1,442



	Fair Value Measurements at December 31, 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	$	—	$	3,208	$	1,491	$	4,699
Unrealized derivative gains:
Commodity contracts	—		487		203		690
Foreign exchange contracts	—		186		—		186
Interest rate contracts	—		21		—		21
Cash equivalents	491		—		—		491
Marketable securities	860		80		—		940
Segregated investments	2,158		—		—		2,158
Deferred receivables consideration	—		511		—		511
Total Assets	$	3,509	$	4,493	$	1,694	$	9,696

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	564	$	212	$	776
Foreign exchange contracts	—		150		—		150
Inventory-related payables	—		612		40		652
Total Liabilities	$	—	$	1,326	$	252	$	1,578

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 June 30, 2015.



	Level 3 Fair Value Asset Measurements at
	June 30, 2015
	Inventories Carried at Market			Commodity Derivative Contracts Gains			Total Assets
	(In millions)

Balance, March 31, 2015	$	1,039		$	178		$	1,217
Total increase (decrease) in realized/unrealized gains included in cost of products sold*	17			40			57
Purchases	2,851			—			2,851
Sales	(2,890		)	—			(2,890		)
Settlements	—			(117		)	(117		)
Transfers into Level 3	74			58			132
Transfers out of Level 3	(65		)	(5		)	(70		)
Ending balance, June 30, 2015	$	1,026		$	154		$	1,180

* Includes increase in unrealized gains of $180 million relating to Level 3 assets still held at June 30, 2015.

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, 2015.



	Level 3 Fair Value Liability Measurements at
	June 30, 2015
	Inventory- related Payables			Commodity Derivative Contracts Losses			Total Liabilities
	(In millions)

Balance, March 31, 2015	$	20		$	218		$	238
Total increase (decrease) in realized/unrealized losses included in cost of products sold*	(6		)	215			209
Purchases	6			—			6
Sales	(6		)	—			(6		)
Settlements	—			(114		)	(114		)
Transfers into Level 3	—			54			54
Transfers out of Level 3	(1		)	(10		)	(11		)
Ending balance, June 30, 2015	$	13		$	363		$	376

* Includes increase in unrealized losses of $215 million relating to Level 3 liabilities still held at June 30, 2015.

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, 2014.



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

Balance, March 31, 2014	$	1,871		$	252		$	2,123
Total increase (decrease) in realized/unrealized gains included in cost of products sold*	(32		)	124			92
Purchases	3,845			—			3,845
Sales	(4,465		)	—			(4,465		)
Settlements	—			(183		)	(183		)
Transfers into Level 3	56			59			115
Transfers out of Level 3	(136		)	(13		)	(149		)
Ending balance, June 30, 2014	$	1,139		$	239		$	1,378

* Includes increase in unrealized gains of $149 million relating to Level 3 assets still held at June 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 June 30, 2014.



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

Balance, March 31, 2014	$	27		$	320		$	347
Total increase (decrease) in realized/unrealized losses included in cost of products sold*	3			49			52
Purchases	2			—			2
Sales	(13		)	—			(13		)
Settlements	—			(238		)	(238		)
Transfers into Level 3	—			41			41
Transfers out of Level 3	—			(10		)	(10		)
Ending balance, June 30, 2014	$	19		$	162		$	181

* Includes increase in unrealized losses of $58 million relating to Level 3 liabilities still held at June 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 six months ended June 30, 2015.



	Level 3 Fair Value Asset Measurements at
	June 30, 2015
	Inventories Carried at Market			Commodity Derivative Contracts Gains			Total Assets
	(In millions)

Balance, December 31, 2014	$	1,491		$	203		$	1,694
Total increase (decrease) in realized/unrealized gains included in cost of products sold*	(275		)	109			(166		)
Purchases	5,668			—			5,668
Sales	(5,693		)	—			(5,693		)
Settlements	—			(261		)	(261		)
Transfers into Level 3	73			113			186
Transfers out of Level 3	(238		)	(10		)	(248		)
Ending balance, June 30, 2015	$	1,026		$	154		$	1,180

* Includes increase in unrealized gains of $205 million relating to Level 3 assets still held at June 30, 2015.

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, 2015.



	Level 3 Fair Value Liability Measurements at
	June 30, 2015
	Inventory- related Payables			Commodity Derivative Contracts Losses			Total Liabilities
	(In millions)

Balance, December 31, 2014	$	40		$	212		$	252
Total increase (decrease) in realized/unrealized losses included in cost of products sold*	(11		)	279			268
Purchases	12			—			12
Sales	(28		)	—			(28		)
Settlements	—			(249		)	(249		)
Transfers into Level 3	—			136			136
Transfers out of Level 3	—			(15		)	(15		)
Ending balance, June 30, 2015	$	13		$	363		$	376

* Includes increase in unrealized losses of $270 million relating to Level 3 liabilities still held at June 30, 2015.

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, 2014.



	Level 3 Fair Value Asset Measurements at
	June 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 realized/unrealized gains included in cost of products sold*	(207		)	222			15
Purchases	7,948			—			7,948
Sales	(8,359		)	—			(8,359		)
Settlements	—			(363		)	(363		)
Transfers into Level 3	56			121			177
Transfers out of Level 3	(111		)	(20		)	(131		)
Ending balance, June 30, 2014	$	1,139		$	239		$	1,378

* Includes increase in unrealized gains of $371 million relating to Level 3 assets still held at June 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 six months ended June 30, 2014.



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

Balance, December 31, 2013	$	34		$	261		$	295
Total increase (decrease) in realized/unrealized losses included in cost of products sold*	10			274			284
Purchases	6			—			6
Sales	(31		)	—			(31		)
Settlements	—			(450		)	(450		)
Transfers into Level 3	—			107			107
Transfers out of Level 3	—			(30		)	(30		)
Ending balance, June 30, 2014	$	19		$	162		$	181

* Includes increase in unrealized losses of $286 million relating to Level 3 liabilities still held at June 30, 2014.

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 June 30, 2015 and December 31, 2014. 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 June 30, 2015 is a weighted average 14.6% of the total price for assets and 33.4% of the total price for liabilities.



	Weighted Average % of Total Price
	June 30, 2015				December 31, 2014
Component Type	Assets		Liabilities		Assets		Liabilities
Inventories and Related Payables
Basis	14.6	%	33.4	%	23.4	%	43.4	%
Transportation cost	4.0	%	0.0	%	4.9	%	15.2	%

Commodity Derivative Contracts
Basis	22.1	%	14.4	%	13.5	%	13.6	%
Transportation cost	8.8	%	31.3	%	10.2	%	19.5	%