Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2017

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

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, 2017 and December 31, 2016.



	Fair Value Measurements at September 30, 2017
	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	$	—	$	3,361	$	1,094	$	4,455
Unrealized derivative gains:
Commodity contracts	—		240		120		360
Foreign currency contracts	—		81		—		81
Interest rate contracts	—		2		—		2
Cash equivalents	49		—		—		49
Marketable securities	376		92		—		468
Segregated investments	1,827		—		—		1,827
Deferred receivables consideration	—		399		—		399
Total Assets	$	2,252	$	4,175	$	1,214	$	7,641

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	300	$	145	$	445
Foreign currency contracts	—		119		—		119
Inventory-related payables	—		493		20		513
Total Liabilities	$	—	$	912	$	165	$	1,077



	Fair Value Measurements at December 31, 2016
	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	$	—	$	3,102	$	1,322	$	4,424
Unrealized derivative gains:
Commodity contracts	—		371		140		511
Foreign exchange contracts	—		102		—		102
Interest rate contracts	—		11		—		11
Cash equivalents	286		—		—		286
Marketable securities	408		69		—		477
Segregated investments	1,613		—		—		1,613
Deferred receivables consideration	—		540		—		540
Total Assets	$	2,307	$	4,195	$	1,462	$	7,964

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	419	$	142	$	561
Foreign exchange contracts	—		90		—		90
Inventory-related payables	—		491		30		521
Total Liabilities	$	—	$	1,000	$	172	$	1,172

Fair Value, Assets 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, 2016.



	Level 3 Fair Value Asset Measurements at
	September 30, 2016
	Inventories Carried at Market			Commodity Derivative Contracts Gains			Total Assets
	(In millions)

Balance, June 30, 2016	$	1,099		$	153		$	1,252
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	(97		)	76			(21		)
Purchases	2,523			—			2,523
Sales	(2,529		)	—			(2,529		)
Settlements	—			(85		)	(85		)
Transfers into Level 3	206			66			272
Transfers out of Level 3	(38		)	(6		)	(44		)
Ending balance, September 30, 2016	$	1,164		$	204		$	1,368

* Includes increase in unrealized gains of $22 million relating to Level 3 assets still held at September 30, 2016.

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, 2017.



	Level 3 Fair Value Asset Measurements at
	September 30, 2017
	Inventories Carried at Market			Commodity Derivative Contracts Gains			Total Assets
	(In millions)

Balance, June 30, 2017	$	1,000		$	106		$	1,106
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	15			54			69
Purchases	2,792			—			2,792
Sales	(2,655		)	—			(2,655		)
Settlements	—			(82		)	(82		)
Transfers into Level 3	37			45			82
Transfers out of Level 3	(95		)	(3		)	(98		)
Ending balance, September 30, 2017	$	1,094		$	120		$	1,214

* Includes increase in unrealized gains of $52 million relating to Level 3 assets still held at September 30, 2017.

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, 2016.



	Level 3 Fair Value Asset Measurements at
	September 30, 2016
	Inventories Carried at Market			Commodity Derivative Contracts Gains			Total Assets
	(In millions)

Balance, December 31, 2015	$	1,004		$	243		$	1,247
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	(210		)	171			(39		)
Purchases	7,565			—			7,565
Sales	(7,272		)	—			(7,272		)
Settlements	—			(302		)	(302		)
Transfers into Level 3	206			132			338
Transfers out of Level 3	(129		)	(40		)	(169		)
Ending balance, September 30, 2016	$	1,164		$	204		$	1,368

*Includes increase in unrealized gains of $36 million relating to Level 3 assets still held at September 30, 2016.

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, 2017.



	Level 3 Fair Value Asset Measurements at
	September 30, 2017
	Inventories Carried at Market			Commodity Derivative Contracts Gains			Total Assets
	(In millions)

Balance, December 31, 2016	$	1,322		$	140		$	1,462
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	(55		)	194			139
Purchases	8,369			—			8,369
Sales	(8,526		)	—			(8,526		)
Settlements	—			(291		)	(291		)
Transfers into Level 3	37			111			148
Transfers out of Level 3	(53		)	(34		)	(87		)
Ending balance, September 30, 2017	$	1,094		$	120		$	1,214

* Includes increase in unrealized gains of $18 million relating to Level 3 assets still held at September 30, 2017.

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

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, 2016.



	Level 3 Fair Value Liability Measurements at
	September 30, 2016
	Inventory- related Payables			Commodity Derivative Contracts Losses			Total Liabilities
	(In millions)

Balance, June 30, 2016	$	12		$	500		$	512
Total increase (decrease) in net realized/unrealized losses included in cost of products sold*	3			(1		)	2
Purchases	3			—			3
Sales	(3		)	—			(3		)
Settlements	—			(247		)	(247		)
Transfers into Level 3	—			33			33
Transfers out of Level 3	—			(167		)	(167		)
Ending balance, September 30, 2016	$	15		$	118		$	133

* Includes increase in unrealized losses of $1 million relating to Level 3 liabilities still held at September 30, 2016.



	Level 3 Fair Value Liability Measurements at
	September 30, 2017
	Inventory- related Payables			Commodity Derivative Contracts Losses			Total Liabilities
	(In millions)

Balance, June 30, 2017	$	32		$	154		$	186
Total increase (decrease) in net realized/unrealized losses included in cost of products sold*	(9		)	82			73
Purchases	2			—			2
Sales	(5		)	—			(5		)
Settlements	—			(123		)	(123		)
Transfers into Level 3	—			35			35
Transfers out of Level 3	—			(3		)	(3		)
Ending balance, September 30, 2017	$	20		$	145		$	165

* Includes increase in unrealized losses of $79 million relating to Level 3 liabilities still held at September 30, 2017.

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, 2016.



	Level 3 Fair Value Liability Measurements at
	September 30, 2016
	Inventory- related Payables			Commodity Derivative Contracts Losses			Total Liabilities
	(In millions)

Balance, December 31, 2015	$	16		$	113		$	129
Total increase (decrease) in net realized/unrealized losses included in cost of products sold*	5			494			499
Purchases	5			—			5
Sales	(11		)	—			(11		)
Settlements	—			(392		)	(392		)
Transfers into Level 3	—			115			115
Transfers out of Level 3	—			(212		)	(212		)
Ending balance, September 30, 2016	$	15		$	118		$	133

*Includes increase in unrealized losses of $499 million relating to Level 3 assets still held at September 30, 2016.



	Level 3 Fair Value Liability Measurements at
	September 30, 2017
	Inventory- related Payables			Commodity Derivative Contracts Losses			Total Liabilities
	(In millions)

Balance, December 31, 2016	$	30		$	142		$	172
Total increase (decrease) in net realized/unrealized losses included in cost of products sold*	(4		)	201			197
Purchases	19			—			19
Sales	(25		)	—			(25		)
Settlements	—			(289		)	(289		)
Transfers into Level 3	—			108			108
Transfers out of Level 3	—			(17		)	(17		)
Ending balance, September 30, 2017	$	20		$	145		$	165

* Includes increase in unrealized losses of $204 million relating to Level 3 liabilities still held at September 30, 2017.

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, 2017 and December 31, 2016. 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, 2017 is a weighted average 16.2% of the total price for assets and 62.7% of the total price for liabilities.



	Weighted Average % of Total Price
	September 30, 2017				December 31, 2016
Component Type	Assets		Liabilities		Assets		Liabilities
Inventories and Related Payables
Basis	16.2	%	62.7	%	16.5	%	67.1	%
Transportation cost	18.2	%	—	%	8.3	%	—

Commodity Derivative Contracts
Basis	22.3	%	21.3	%	16.9	%	27.0	%
Transportation cost	12.9	%	12.3	%	11.6	%	13.4	%