Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2018

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, 2018 and December 31, 2017.



	Fair Value Measurements at September 30, 2018
	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	$	—	$	2,932	$	1,799	$	4,731
Unrealized derivative gains:
Commodity contracts	—		461		217		678
Foreign currency contracts	—		272		—		272
Cash equivalents	492		—		—		492
Marketable securities	25		1		—		26
Segregated investments	1,193		—		—		1,193
Deferred receivables consideration	—		475		—		475
Total Assets	$	1,710	$	4,141	$	2,016	$	7,867

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	619	$	203	$	822
Foreign currency contracts	—		338		—		338
Interest rate contracts	—		13		—		13
Inventory-related payables	—		657		44		701
Total Liabilities	$	—	$	1,627	$	247	$	1,874



	Fair Value Measurements at December 31, 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	$	—	$	3,400	$	1,486	$	4,886
Unrealized derivative gains:
Commodity contracts	—		275		111		386
Foreign currency contracts	—		63		—		63
Cash equivalents	352		—		—		352
Marketable securities	91		1		—		92
Segregated investments	1,733		—		—		1,733
Deferred receivables consideration	—		307		—		307
Total Assets	$	2,176	$	4,046	$	1,597	$	7,819

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	268	$	103	$	371
Foreign currency contracts	—		92		—		92
Interest rate contracts	—		1		—		1
Inventory-related payables	—		680		39		719
Total Liabilities	$	—	$	1,041	$	142	$	1,183

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

The following table presents a rollforward of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended September 30, 2018.



	Level 3 Fair Value Asset Measurements at
	September 30, 2018
	Inventories Carried at Market			Commodity Derivative Contracts Gains			Total Assets
	(In millions)

Balance, June 30, 2018	$	1,378		$	208		$	1,586
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	183			130			313
Purchases	3,518			—			3,518
Sales	(3,282		)	—			(3,282		)
Settlements	—			(150		)	(150		)
Transfers into Level 3	235			38			273
Transfers out of Level 3	(233		)	(9		)	(242		)
Ending balance, September 30, 2018	$	1,799		$	217		$	2,016

* Includes increase in unrealized gains of $243 million relating to Level 3 assets still held at September 30, 2018.

The following table presents a rollforward 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 rollforward of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2018.



	Level 3 Fair Value Asset Measurements at
	September 30, 2018
	Inventories Carried at Market			Commodity Derivative Contracts Gains			Total Assets
	(In millions)

Balance, December 31, 2017	$	1,486		$	111		$	1,597
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	559			302			861
Purchases	7,890			—			7,890
Sales	(8,264		)	—			(8,264		)
Settlements	—			(294		)	(294		)
Transfers into Level 3	235			123			358
Transfers out of Level 3	(107		)	(25		)	(132		)
Ending balance, September 30, 2018	$	1,799		$	217		$	2,016

* Includes increase in unrealized gains of $523 million relating to Level 3 assets still held at September 30, 2018.

The following table presents a rollforward 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 rollforward of liabilities 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 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 rollforward of liabilities 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 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 assets still held at September 30, 2017.

The following table presents a rollforward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2018.



	Level 3 Fair Value Liability Measurements at
	September 30, 2018
	Inventory- related Payables			Commodity Derivative Contracts Losses			Total Liabilities
	(In millions)

Balance, December 31, 2017	$	39		$	103		$	142
Total increase (decrease) in net realized/unrealized losses included in cost of products sold*	12			360			372
Purchases	54			—			54
Sales	(61		)	—			(61		)
Settlements	—			(348		)	(348		)
Transfers into Level 3	—			136			136
Transfers out of Level 3	—			(48		)	(48		)
Ending balance, September 30, 2018	$	44		$	203		$	247

* Includes increase in unrealized losses of $364 million relating to Level 3 liabilities still held at September 30, 2018.

The following table presents a rollforward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended September 30, 2018.



	Level 3 Fair Value Liability Measurements at
	September 30, 2018
	Inventory- related Payables			Commodity Derivative Contracts Losses			Total Liabilities
	(In millions)

Balance, June 30, 2018	$	22		$	200		$	222
Total increase (decrease) in net realized/unrealized losses included in cost of products sold*	4			114			118
Purchases	30			—			30
Sales	(12		)	—			(12		)
Settlements	—			(130		)	(130		)
Transfers into Level 3	—			30			30
Transfers out of Level 3	—			(11		)	(11		)
Ending balance, September 30, 2018	$	44		$	203		$	247

* Includes increase in unrealized losses of $118 million relating to Level 3 liabilities still held at September 30, 2018.

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, 2018 and December 31, 2017. 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, 2018 is a weighted average 24.1% of the total price for assets and 45.3% of the total price for liabilities.



	Weighted Average % of Total Price
	September 30, 2018				December 31, 2017
Component Type	Assets		Liabilities		Assets		Liabilities
Inventories and Related Payables
Basis	24.1	%	45.3	%	12.8	%	99.9	%
Transportation cost	11.6	%	23.0	%	19.2	%	—

Commodity Derivative Contracts
Basis	21.6	%	23.6	%	24.2	%	23.0	%
Transportation cost	14.9	%	22.3	%	12.5	%	10.4	%