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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

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, 2023 and December 31, 2022.


	Fair Value Measurements at March 31, 2023
	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	$	—	$	5,654	$	3,503	$	9,157
Unrealized derivative gains:
Commodity contracts	—		959		649		1,608
Foreign currency contracts	—		238		—		238


Cash equivalents	397		—		—		397

Segregated investments	1,916		—		—		1,916

Total Assets	$	2,313	$	6,851	$	4,152	$	13,316

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	656	$	455	$	1,111
Foreign currency contracts	—		211		—		211

Debt conversion option	—		—		1		1
Inventory-related payables	—		2,235		57		2,292

Total Liabilities	$	—	$	3,102	$	513	$	3,615


	Fair Value Measurements at December 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	$	—	$	6,281	$	2,760	$	9,041
Unrealized derivative gains:
Commodity contracts	—		796		541		1,337
Foreign currency contracts	—		258		—		258
Interest rate contracts	—		109		—		109
Cash equivalents	405		—		—		405

Segregated investments	1,453		—		—		1,453

Total Assets	$	1,858	$	7,444	$	3,301	$	12,603

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	665	$	603	$	1,268
Foreign currency contracts	—		275		—		275

Debt conversion option	—		—		6		6
Inventory-related payables	—		1,181		89		1,270
Total Liabilities	$	—	$	2,121	$	698	$	2,819

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, 2023.


	Level 3 Fair Value Asset Measurements at
	March 31, 2023
	Inventories Carried at Market		Commodity Derivative Contracts Gains		Total Assets
	(In millions)
Balance, December 31, 2022	$	2,760	$	541	$	3,301
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	2		477		479
Purchases	8,665		—		8,665
Sales	(8,254)		—		(8,254)
Settlements	—		(382)		(382)
Transfers into Level 3	605		50		655
Transfers out of Level 3	(275)		(37)		(312)
Ending balance, March 31, 2023	$	3,503	$	649	$	4,152

* Includes increase in unrealized gains of $632 million relating to Level 3 assets still held at March 31, 2023.

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.

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, 2023.


	Level 3 Fair Value Liability Measurements at
	March 31, 2023
	Inventory- related Payables		Commodity Derivative Contracts Losses		Debt Conversion Option		Total Liabilities
	(In millions)

Balance, December 31, 2022	$	89	$	603	$	6	$	698
Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense*	(2)		243		(5)		236
Purchases	2		—		—		2
Sales	—		—		—		—
Settlements	(31)		(424)		—		(455)
Transfers into Level 3	—		39		—		39
Transfers out of Level 3	(1)		(6)		—		(7)
Ending balance, March 31, 2023	$	57	$	455	$	1	$	513

* Includes increase in unrealized losses of $248 million relating to Level 3 liabilities still held at March 31, 2023.

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.

Transfers into Level 3 of assets and liabilities previously classified in Level 2 were due to the relative value of unobservable inputs to the total fair value measurement of certain products and derivative contracts rising above the 10% threshold. Transfers out of Level 3 were primarily due to the relative value of unobservable inputs to the total fair value measurement of certain products and derivative contracts falling below the 10% threshold and thus permitting reclassification to Level 2.

In some cases, the price components that result in differences between exchange-traded prices and local prices for inventories and commodity purchase and sale contracts are observable based upon available quotations for these pricing components, and in some cases, the differences are unobservable. These price components primarily include transportation costs and other adjustments required due to location, quality, or other contract terms. In the table below, these other adjustments are referred to as basis. The changes in unobservable price components are determined by specific local supply and demand characteristics at each facility and the overall market. Factors such as substitute products, weather, fuel costs, contract terms, and futures prices also impact the movement of these unobservable price components.

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, 2023 and December 31, 2022. 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, 2023 is a weighted average 22.2% of the total price for assets and 20.9% of the total price for liabilities.


	Weighted Average % of Total Price
	March 31, 2023				December 31, 2022
Component Type	Assets		Liabilities		Assets		Liabilities
Inventories and Related Payables
Basis	22.2	%	20.9	%	19.4	%	15.2	%
Transportation cost	12.4	%	—	%	10.5	%	—	%

Commodity Derivative Contracts
Basis	23.9	%	22.3	%	22.7	%	26.5	%
Transportation cost	13.9	%	0.7	%	13.5	%	3.7	%