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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2022 and December 31, 2021.


	Fair Value Measurements at June 30, 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	$	—	$	5,686	$	3,245	$	8,931
Unrealized derivative gains:
Commodity contracts	—		1,013		880		1,893
Foreign currency contracts	—		532		—		532
Interest rate contracts	—		95		—		95

Cash equivalents	399		—		—		399

Segregated investments	1,507		—		—		1,507

Total Assets	$	1,906	$	7,326	$	4,125	$	13,357

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	942	$	960	$	1,902
Foreign currency contracts	—		223		—		223

Debt conversion option	—		—		11		11
Inventory-related payables	—		975		55		1,030

Total Liabilities	$	—	$	2,140	$	1,026	$	3,166


	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 June 30, 2022.


	Level 3 Fair Value Asset Measurements at
	June 30, 2022
	Inventories Carried at Market		Commodity Derivative Contracts Gains		Total Assets
	(In millions)
Balance, March 31, 2022	$	3,959	$	828	$	4,787
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	(216)		319		103
Purchases	11,678		—		11,678
Sales	(11,993)		—		(11,993)
Settlements	—		(495)		(495)
Transfers into Level 3	222		293		515
Transfers out of Level 3	(405)		(65)		(470)
Ending balance, June 30, 2022	$	3,245	$	880	$	4,125

* Includes increase in unrealized gains of $253 million relating to Level 3 assets still held at June 30, 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 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 six months ended June 30, 2022.


	Level 3 Fair Value Asset Measurements at
	June 30, 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*	431		952		1,383
Purchases	21,230		—		21,230
Sales	(21,308)		—		(21,308)
Settlements	—		(771)		(771)
Transfers into Level 3**	549		316		865
Transfers out of Level 3	(661)		(77)		(738)
Ending balance, June 30, 2022	$	3,245	$	880	$	4,125

* Includes increase in unrealized gains of $1.7 billion relating to Level 3 assets still held at June 30, 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 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.

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, 2022.


	Level 3 Fair Value Liability Measurements at
	June 30, 2022
	Inventory- related Payables		Commodity Derivative Contracts Losses		Debt Conversion Option		Total Liabilities
	(In millions)

Balance, March 31, 2022	$	53	$	1,856	$	30	$	1,939
Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense*	(2)		293		(19)		272
Purchases	7		—		—		7
Sales	(3)		—		—		(3)
Settlements	—		(1,251)		—		(1,251)
Transfers into Level 3	—		161		—		161
Transfers out of Level 3	—		(99)		—		(99)
Ending balance, June 30, 2022	$	55	$	960	$	11	$	1,026

* Includes increase in unrealized losses of $294 million relating to Level 3 liabilities still held at June 30, 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 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 six months ended June 30, 2022.


	Level 3 Fair Value Liability Measurements at
	June 30, 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*	(4)		1,669		(4)		1,661
Purchase	9		—		—		9
Sales	(56)		—		—		(56)
Settlements	—		(1,729)		—		(1,729)
Transfers into Level 3	—		322		—		322
Transfers out of Level 3	—		(117)		—		(117)
Ending balance, June 30, 2022	$	55	$	960	$	11	$	1,026

* Includes increase in unrealized losses of $1.7 billion relating to Level 3 liabilities still held at June 30, 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 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
Purchases	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.

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, 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 June 30, 2022 is a weighted average 37.3% of the total price for assets and 20.1% of the total price for liabilities.


	Weighted Average % of Total Price
	June 30, 2022				December 31, 2021
Component Type	Assets		Liabilities		Assets		Liabilities
Inventories and Related Payables
Basis	37.3	%	20.1	%	28.7	%	13.1	%
Transportation cost	12.1	%	—	%	13.0	%	—	%

Commodity Derivative Contracts
Basis	24.6	%	29.3	%	30.0	%	27.1	%
Transportation cost	6.3	%	7.6	%	8.1	%	0.7	%