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Fair Value Measurements (Tables)

9 Months Ended

Sep. 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 September 30, 2022 and December 31, 2021.


	Fair Value Measurements at September 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	$	—	$	4,539	$	3,086	$	7,625
Unrealized derivative gains:
Commodity contracts	—		757		702		1,459
Foreign currency contracts	—		751		—		751
Interest rate contracts	—		105		—		105

Cash equivalents	436		—		—		436

Segregated investments	1,332		—		—		1,332

Total Assets	$	1,768	$	6,152	$	3,788	$	11,708

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	681	$	709	$	1,390
Foreign currency contracts	—		337		—		337

Debt conversion option	—		—		3		3
Inventory-related payables	—		902		220		1,122

Total Liabilities	$	—	$	1,920	$	932	$	2,852


	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 September 30, 2022.


	Level 3 Fair Value Asset Measurements at
	September 30, 2022
	Inventories Carried at Market		Commodity Derivative Contracts Gains		Total Assets
	(In millions)
Balance, June 30, 2022	$	3,245	$	880	$	4,125
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	315		345		660
Purchases	13,294		—		13,294
Sales	(13,931)		—		(13,931)
Settlements	—		(456)		(456)
Transfers into Level 3	384		49		433
Transfers out of Level 3	(221)		(116)		(337)
Ending balance, September 30, 2022	$	3,086	$	702	$	3,788

* Includes increase in unrealized gains of $481 million relating to Level 3 assets still held at September 30, 2022.

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, 2021.


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

Balance, June 30, 2021	$	2,824	$	551	$	3,375
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	70		288		358
Purchases	7,351		—		7,351
Sales	(7,346)		—		(7,346)
Settlements	—		(311)		(311)
Transfers into Level 3	205		34		239
Transfers out of Level 3	(602)		(77)		(679)
Ending balance, September 30, 2021	$	2,502	$	485	$	2,987

* Includes increase in unrealized gains of $435 million relating to Level 3 assets still held at September 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 nine months ended September 30, 2022.


	Level 3 Fair Value Asset Measurements at
	September 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*	746		1,297		2,043
Purchases	34,524		—		34,524
Sales	(35,239)		—		(35,239)
Settlements	—		(1,227)		(1,227)
Transfers into Level 3	933		365		1,298
Transfers out of Level 3	(882)		(193)		(1,075)
Ending balance, September 30, 2022	$	3,086	$	702	$	3,788

* Includes increase in unrealized gains of $2.2 billion relating to Level 3 assets still held at September 30, 2022.

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, 2021.


	Level 3 Fair Value Asset Measurements at
	September 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*	875		804		1,679
Purchases	20,899		—		20,899
Sales	(21,334)		—		(21,334)
Settlements	—		(1,134)		(1,134)
Transfers into Level 3	1,131		79		1,210
Transfers out of Level 3	(1,252)		(123)		(1,375)
Ending balance, September 30, 2021	$	2,502	$	485	$	2,987

* Includes increase in unrealized gains of $1.7 billion relating to Level 3 assets still held at September 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 September 30, 2022.


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

Balance, June 30, 2022	$	55	$	960	$	11	$	1,026
Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense*	3		391		(8)		386
Purchases	167		—		—		167
Sales	(5)		—		—		(5)
Settlements	—		(634)		—		(634)
Transfers into Level 3	—		57		—		57
Transfers out of Level 3	—		(65)		—		(65)
Ending balance, September 30, 2022	$	220	$	709	$	3	$	932

* Includes increase in unrealized losses of $394 million relating to Level 3 liabilities still held at September 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 September 30, 2021.


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

Balance, June 30, 2021	$	38	$	1,037	$	24	$	1,099
Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense*	3		310		(7)		306
Purchases	1		—		—		1
Sales	(27)		—		—		(27)
Settlements	—		(654)		—		(654)
Transfers into Level 3	—		60		—		60
Transfers out of Level 3	—		(50)		—		(50)
Ending balance, September 30, 2021	$	15	$	703	$	17	$	735

* Includes increase in unrealized losses of $313 million relating to Level 3 liabilities still held at September 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 nine months ended September 30, 2022.


	Level 3 Fair Value Liability Measurements at
	September 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*	(1)		2,060		(12)		2,047
Purchase	176		—		—		176
Sales	(61)		—		—		(61)
Settlements	—		(2,363)		—		(2,363)
Transfers into Level 3	—		379		—		379
Transfers out of Level 3	—		(182)		—		(182)
Ending balance, September 30, 2022	$	220	$	709	$	3	$	932

* Includes increase in unrealized losses of $2.1 billion relating to Level 3 liabilities still held at September 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 nine months ended September 30, 2021.


	Level 3 Fair Value Liability Measurements at
	September 30, 2021
	Inventory- related Payables		Commodity 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*	3		1,372		(17)		1,358
Purchases	30		—		—		30
Sales	(29)		—		—		(29)
Settlements	—		(1,667)		—		(1,667)
Transfers into Level 3	—		284		—		284
Transfers out of Level 3	—		(204)		—		(204)
Ending balance, September 30, 2021	$	15	$	703	$	17	$	735

* Includes increase in unrealized losses of $1.4 billion relating to Level 3 liabilities still held at September 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 September 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 September 30, 2022 is a weighted average 27.9% of the total price for assets and 18.1% of the total price for liabilities.


	Weighted Average % of Total Price
	September 30, 2022				December 31, 2021
Component Type	Assets		Liabilities		Assets		Liabilities
Inventories and Related Payables
Basis	27.9	%	18.1	%	28.7	%	13.1	%
Transportation cost	2.9	%	—	%	13.0	%	—	%

Commodity Derivative Contracts
Basis	29.9	%	22.8	%	30.0	%	27.1	%
Transportation cost	7.0	%	17.0	%	8.1	%	0.7	%