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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

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, 2022 and December 31, 2021.


	Fair Value Measurements at March 31, 2022
	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	$	—	$	8,033	$	3,959	$	11,992
Unrealized derivative gains:
Commodity contracts	—		1,578		828		2,406
Foreign currency contracts	—		461		—		461
Interest rate contracts	—		67		—		67

Cash equivalents	419		—		—		419

Segregated investments	1,548		—		—		1,548

Total Assets	$	1,967	$	10,139	$	4,787	$	16,893

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	1,544	$	1,856	$	3,400
Foreign currency contracts	—		238		—		238
Interest rate contracts	—		1		—		1
Debt conversion option	—		—		30		30
Inventory-related payables	—		1,860		53		1,913

Total Liabilities	$	—	$	3,643	$	1,939	$	5,582


	Fair Value Measurements at December 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	$	—	$	6,765	$	3,004	$	9,769
Unrealized derivative gains:
Commodity contracts	—		902		460		1,362
Foreign currency contracts	—		238		—		238
Interest rate contracts	—		46		—		46
Cash equivalents	448		—		—		448

Segregated investments	1,338		—		—		1,338

Total Assets	$	1,786	$	7,951	$	3,464	$	13,201

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	944	$	815	$	1,759
Foreign currency contracts	—		191		—		191

Debt conversion option	—		—		15		15
Inventory-related payables	—		859		106		965
Total Liabilities	$	—	$	1,994	$	936	$	2,930

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, 2022.


	Level 3 Fair Value Asset Measurements at
	March 31, 2022
	Inventories Carried at Market		Commodity Derivative Contracts Gains		Total Assets
	(In millions)
Balance, December 31, 2021	$	3,004	$	460	$	3,464
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	647		633		1,280
Purchases	9,552		—		9,552
Sales	(9,315)		—		(9,315)
Settlements	—		(276)		(276)
Transfers into Level 3**	327		23		350
Transfers out of Level 3	(256)		(12)		(268)
Ending balance, March 31, 2022	$	3,959	$	828	$	4,787

* Includes increase in unrealized gains of $1.4 billion relating to Level 3 assets still held at March 31, 2022.

** Inventories carried at market includes Ukraine inventory as discussed in Note 1.

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.

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, 2022.


	Level 3 Fair Value Liability Measurements at
	March 31, 2022
	Inventory- related Payables		Commodity Derivative Contracts Losses		Debt Conversion Option		Total Liabilities
	(In millions)

Balance, December 31, 2021	$	106	$	815	$	15	$	936
Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense*	(2)		1,376		15		1,389
Purchases	2		—		—		2
Sales	(53)		—		—		(53)
Settlements	—		(478)		—		(478)
Transfers into Level 3	—		161		—		161
Transfers out of Level 3	—		(18)		—		(18)
Ending balance, March 31, 2022	$	53	$	1,856	$	30	$	1,939

* Includes increase in unrealized losses of $1.4 billion relating to Level 3 liabilities still held at March 31, 2022.

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.

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, 2022 and December 31, 2021. 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, 2022 is a weighted average 28.9% of the total price for assets and 13.9% of the total price for liabilities.


	Weighted Average % of Total Price
	March 31, 2022				December 31, 2021
Component Type	Assets		Liabilities		Assets		Liabilities
Inventories and Related Payables
Basis	28.9	%	13.9	%	28.7	%	13.1	%
Transportation cost	11.4	%	—	%	13.0	%	—	%

Commodity Derivative Contracts
Basis	22.1	%	22.5	%	30.0	%	27.1	%
Transportation cost	9.1	%	2.6	%	8.1	%	0.7	%