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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

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 March 31, 2021 and December 31, 2020.


	Fair Value Measurements at March 31, 2021
	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	$	—	$	5,933	$	3,070	$	9,003
Unrealized derivative gains:
Commodity contracts	—		1,590		684		2,274
Foreign currency contracts	—		215		—		215
Interest rate contracts	—		130		—		130

Cash equivalents	302		—		—		302

Segregated investments	995		—		—		995

Total Assets	$	1,297	$	7,868	$	3,754	$	12,919

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	1,165	$	648	$	1,813
Foreign currency contracts	—		302		11		313
Interest rate contracts	—		2		—		2
Debt conversion option	—		—		54		54
Inventory-related payables	—		1,151		21		1,172

Total Liabilities	$	—	$	2,620	$	734	$	3,354


	Fair Value Measurements at December 31, 2020
	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	$	—	$	5,758	$	2,183	$	7,941
Unrealized derivative gains:
Commodity contracts	—		1,905		859		2,764
Foreign currency contracts	—		283		—		283
Interest rate contracts	—		61		—		61
Cash equivalents	297		—		—		297
Marketable securities	1		—		—		1
Segregated investments	1,067		—		—		1,067

Total Assets	$	1,365	$	8,007	$	3,042	$	12,414

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	1,116	$	918	$	2,034
Foreign currency contracts	—		535		—		535
Interest rate contracts	—		15		—		15
Debt conversion option	—		—		34		34
Inventory-related payables	—		498		11		509
Total Liabilities	$	—	$	2,164	$	963	$	3,127

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 March 31, 2021.


	Level 3 Fair Value Asset Measurements at
	March 31, 2021
	Inventories Carried at Market		Commodity Derivative Contracts Gains		Total Assets
	(In millions)

Balance, December 31, 2020	$	2,183	$	859	$	3,042
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	730		243		973
Purchases	6,385		—		6,385
Sales	(6,632)		—		(6,632)
Settlements	—		(428)		(428)
Transfers into Level 3	516		23		539
Transfers out of Level 3	(112)		(13)		(125)
Ending balance, March 31, 2021	$	3,070	$	684	$	3,754

* Includes increase in unrealized gains of $847 million relating to Level 3 assets still held at March 31, 2021.

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 March 31, 2020.


	Level 3 Fair Value Asset Measurements at
	March 31, 2020
	Inventories Carried at Market		Commodity Derivative Contracts Gains		Total Assets
	(In millions)

Balance, December 31, 2019	$	1,477	$	201	$	1,678
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	187		217		404
Purchases	3,407		—		3,407
Sales	(3,510)		—		(3,510)
Settlements	—		(45)		(45)
Transfers into Level 3	441		21		462
Transfers out of Level 3	(64)		(3)		(67)
Ending balance, March 31, 2020	$	1,938	$	391	$	2,329

* Includes increase in unrealized gains of $381 million relating to Level 3 assets still held at March 31, 2020.

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 March 31, 2021.


	Level 3 Fair Value Liability Measurements at
	March 31, 2021
	Inventory- related Payables		Commodity Derivative Contracts Losses		Foreign Currency Derivative Contracts Losses		Debt Conversion Option		Total Liabilities
	(In millions)

Balance, December 31, 2020	$	11	$	918	$	—	$	34	$	963
Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense*	—		381		—		20		401
Purchases	12		—		—		—		12
Sales	(2)		—		—		—		(2)
Settlements	—		(566)		—		—		(566)
Transfers into Level 3	—		54		11		—		65
Transfers out of Level 3	—		(139)		—		—		(139)
Ending balance, March 31, 2021	$	21	$	648	$	11	$	54	$	734

* Includes increase in unrealized losses of $383 million relating to Level 3 liabilities still held at March 31, 2021.

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 March 31, 2020.


	Level 3 Fair Value Liability Measurements at
	March 31, 2020
	Inventory- related Payables		Commodity Derivative Contracts Losses		Total Liabilities
	(In millions)

Balance, December 31, 2019	$	27	$	199	$	226
Total increase (decrease) in net realized/unrealized losses included in cost of products sold*	3		205		208
Purchases	6		—		6
Sales	(16)		—		(16)
Settlements	—		(122)		(122)
Transfers into Level 3	—		36		36
Transfers out of Level 3	—		(9)		(9)
Ending balance, March 31, 2020	$	20	$	309	$	329

* Includes increase in unrealized losses of $210 million relating to Level 3 liabilities still held at March 31, 2020.

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 March 31, 2021 and December 31, 2020. 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 March 31, 2021 is a weighted average 29.2% of the total price for assets and 12.2% of the total price for liabilities.


	Weighted Average % of Total Price
	March 31, 2021				December 31, 2020
Component Type	Assets		Liabilities		Assets		Liabilities
Inventories and Related Payables
Basis	29.2	%	12.2	%	4.3	%	13.7	%
Transportation cost	11.1	%	—	%	10.6	%	—	%

Commodity Derivative Contracts
Basis	30.1	%	37.7	%	28.3	%	0.7	%
Transportation cost	1.1	%	0.5	%	1.9	%	1.3	%