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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2021 and December 31, 2020.


	Fair Value Measurements at June 30, 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	$	—	$	4,698	$	2,824	$	7,522
Unrealized derivative gains:
Commodity contracts	—		1,317		551		1,868
Foreign currency contracts	—		324		—		324
Interest rate contracts	—		89		—		89

Cash equivalents	332		—		—		332

Segregated investments	1,001		—		—		1,001

Total Assets	$	1,333	$	6,428	$	3,375	$	11,136

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	892	$	1,037	$	1,929
Foreign currency contracts	—		252		—		252
Interest rate contracts	—		1		—		1
Debt conversion option	—		—		24		24
Inventory-related payables	—		568		38		606

Total Liabilities	$	—	$	1,713	$	1,099	$	2,812


	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 June 30, 2021.


	Level 3 Fair Value Asset Measurements at
	June 30, 2021
	Inventories Carried at Market		Commodity Derivative Contracts Gains		Total Assets
	(In millions)

Balance, March 31, 2021	$	3,070	$	684	$	3,754
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	75		273		348
Purchases	7,163		—		7,163
Sales	(7,356)		—		(7,356)
Settlements	—		(395)		(395)
Transfers into Level 3	410		22		432
Transfers out of Level 3	(538)		(33)		(571)
Ending balance, June 30, 2021	$	2,824	$	551	$	3,375

* Includes increase in unrealized gains of $380 million relating to Level 3 assets still held at June 30, 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 June 30, 2020.


	Level 3 Fair Value Asset Measurements at
	June 30, 2020
	Inventories Carried at Market		Commodity Derivative Contracts Gains		Total Assets
	(In millions)

Balance, March 31, 2020	$	1,938	$	391	$	2,329
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	279		229		508
Purchases	3,012		—		3,012
Sales	(3,625)		—		(3,625)
Settlements	—		(190)		(190)
Transfers into Level 3	306		23		329
Transfers out of Level 3	(511)		(11)		(522)
Ending balance, June 30, 2020	$	1,399	$	442	$	1,841

* Includes increase in unrealized gains of $422 million relating to Level 3 assets still held at June 30, 2020.

The following table presents a rollforward of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the six months ended June 30, 2021.


	Level 3 Fair Value Asset Measurements at
	June 30, 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*	805		516		1,321
Purchases	13,548		—		13,548
Sales	(13,988)		—		(13,988)
Settlements	—		(823)		(823)
Transfers into Level 3	926		45		971
Transfers out of Level 3	(650)		(46)		(696)
Ending balance, June 30, 2021	$	2,824	$	551	$	3,375

* Includes increase in unrealized gains of $1.2 billion relating to Level 3 assets still held at June 30, 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 six months ended June 30, 2020.


	Level 3 Fair Value Asset Measurements at
	June 30, 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*	396		446		842
Purchases	6,419		—		6,419
Sales	(7,135)		—		(7,135)
Settlements	—		(235)		(235)
Transfers into Level 3	306		44		350
Transfers out of Level 3	(64)		(14)		(78)
Ending balance, June 30, 2020	$	1,399	$	442	$	1,841

* Includes increase in unrealized gains of $804 million relating to Level 3 assets still held at June 30, 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 June 30, 2021.


	Level 3 Fair Value Liability Measurements at
	June 30, 2021
	Inventory- related Payables		Commodity Derivative Contracts Losses		Foreign Currency Derivative Contracts Losses		Debt Conversion Option		Total Liabilities
	(In millions)

Balance, March 31, 2021	$	21	$	648	$	11	$	54	$	734
Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense*	—		681		—		(30)		651
Purchases	17		—		—		—		17

Settlements	—		(447)		—		—		(447)
Transfers into Level 3	—		170		—		—		170
Transfers out of Level 3	—		(15)		(11)		—		(26)
Ending balance, June 30, 2021	$	38	$	1,037	$	—	$	24	$	1,099

* Includes increase in unrealized losses of $683 million relating to Level 3 liabilities still held at June 30, 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 June 30, 2020.


	Level 3 Fair Value Liability Measurements at
	June 30, 2020
	Inventory- related Payables		Commodity Derivative Contracts Losses		Total Liabilities
	(In millions)

Balance, March 31, 2020	$	20	$	309	$	329
Total increase (decrease) in net realized/unrealized losses included in cost of products sold*	1		247		248
Purchases	2		—		2
Sales	(9)		—		(9)
Settlements	—		(211)		(211)
Transfers into Level 3	—		19		19
Transfers out of Level 3	—		(1)		(1)
Ending balance, June 30, 2020	$	14	$	363	$	377

* Includes increase in unrealized losses of $253 million relating to Level 3 liabilities still held at June 30, 2020.

The following table presents a rollforward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the six months ended June 30, 2021.


	Level 3 Fair Value Liability Measurements at
	June 30, 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*	—		1,062		—		(10)		1,052
Purchase	29		—		—		—		29
Sales	(2)		—		—		—		(2)
Settlements	—		(1,013)		—		—		(1,013)
Transfers into Level 3	—		224		11		—		235
Transfers out of Level 3	—		(154)		(11)		—		(165)
Ending balance, June 30, 2021	$	38	$	1,037	$	—	$	24	$	1,099

* Includes increase in unrealized losses of $1.1 billion relating to Level 3 liabilities still held at June 30, 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 six months ended June 30, 2020.


	Level 3 Fair Value Liability Measurements at
	June 30, 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*	4		452		456
Purchases	8		—		8
Sales	(25)		—		(25)
Settlements	—		(333)		(333)
Transfers into Level 3	—		55		55
Transfers out of Level 3	—		(10)		(10)
Ending balance, June 30, 2020	$	14	$	363	$	377

* Includes increase in unrealized losses of $463 million relating to Level 3 liabilities still held at June 30, 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 June 30, 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 June 30, 2021 is a weighted average 30.2% of the total price for assets and 16.2% of the total price for liabilities.


	Weighted Average % of Total Price
	June 30, 2021				December 31, 2020
Component Type	Assets		Liabilities		Assets		Liabilities
Inventories and Related Payables
Basis	30.2	%	16.2	%	4.3	%	13.7	%
Transportation cost	12.5	%	—	%	10.6	%	—	%

Commodity Derivative Contracts
Basis	29.5	%	39.6	%	28.3	%	0.7	%
Transportation cost	3.3	%	3.0	%	1.9	%	1.3	%