Fair Value Measurements (Tables)

9 Months Ended

Sep. 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 September 30, 2015 and December 31, 2014.



	Fair Value Measurements at September 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	$	—	$	2,952	$	930	$	3,882
Unrealized derivative gains:
Commodity contracts	—		580		202		782
Foreign exchange contracts	1		102		—		103
Interest rate contracts	—		30		—		30
Cash equivalents	28		—		—		28
Marketable securities	810		39		—		849
Segregated investments	1,834		—		—		1,834
Deferred receivables consideration	—		1,067		—		1,067
Total Assets	$	2,673	$	4,770	$	1,132	$	8,575

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	391	$	154	$	545
Foreign exchange contracts	—		314		—		314
Inventory-related payables	—		509		34		543
Total Liabilities	$	—	$	1,214	$	188	$	1,402



	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 September 30, 2015.



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

Balance, June 30, 2015	$	1,026		$	154		$	1,180
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	(106		)	74			(32		)
Purchases	2,652			—			2,652
Sales	(2,695		)	—			(2,695		)
Settlements	—			(45		)	(45		)
Transfers into Level 3	169			43			212
Transfers out of Level 3	(116		)	(24		)	(140		)
Ending balance, September 30, 2015	$	930		$	202		$	1,132

* Includes increase in unrealized gains of $62 million relating to Level 3 assets still held at September 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 September 30, 2015.



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

Balance, June 30, 2015	$	13	$	363		$	376
Total increase (decrease) in net realized/unrealized losses included in cost of products sold*	18		(8		)	10
Purchases	3		—			3
Sales	—		—			—
Settlements	—		(219		)	(219		)
Transfers into Level 3	—		26			26
Transfers out of Level 3	—		(8		)	(8		)
Ending balance, September 30, 2015	$	34	$	154		$	188

* Includes increase in unrealized losses of $12 million relating to Level 3 liabilities still held at September 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 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 net realized/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.



	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 net realized/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 nine months ended September 30, 2015.



	Level 3 Fair Value Asset Measurements at
	September 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 net realized/unrealized gains included in cost of products sold*	(423		)	183			(240		)
Purchases	8,319			—			8,319
Sales	(8,388		)	—			(8,388		)
Settlements	—			(306		)	(306		)
Transfers into Level 3	169			156			325
Transfers out of Level 3	(238		)	(34		)	(272		)
Ending balance, September 30, 2015	$	930		$	202		$	1,132

* Includes increase in unrealized gains of $267 million relating to Level 3 assets still held at September 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 nine months ended September 30, 2015.



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

Balance, December 31, 2014	$	40		$	212		$	252
Total increase (decrease) in net realized/unrealized losses included in cost of products sold*	8			271			279
Purchases	15			—			15
Sales	(29		)	—			(29		)
Settlements	—			(468		)	(468		)
Transfers into Level 3	—			161			161
Transfers out of Level 3	—			(22		)	(22		)
Ending balance, September 30, 2015	$	34		$	154		$	188

* Includes increase in unrealized losses of $283 million relating to Level 3 liabilities still held at September 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 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 net realized/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.



	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 net realized/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.

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, 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 September 30, 2015 is a weighted average 21.2% of the total price for assets and 45.7% of the total price for liabilities.



	Weighted Average % of Total Price
	September 30, 2015				December 31, 2014
Component Type	Assets		Liabilities		Assets		Liabilities
Inventories and Related Payables
Basis	21.2	%	45.7	%	23.4	%	43.4	%
Transportation cost	4.0	%	—	%	4.9	%	15.2	%

Commodity Derivative Contracts
Basis	12.5	%	17.5	%	13.5	%	13.6	%
Transportation cost	9.9	%	26.3	%	10.2	%	19.5	%