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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2023 and December 31, 2022.


	Fair Value Measurements at June 30, 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	$	—	$	3,631	$	2,859	$	6,490
Unrealized derivative gains:
Commodity contracts	—		728		886		1,614
Foreign currency contracts	—		211		—		211


Cash equivalents	471		—		—		471

Segregated investments	2,145		—		—		2,145

Total Assets	$	2,616	$	4,570	$	3,745	$	10,931

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	631	$	791	$	1,422
Foreign currency contracts	—		204		—		204


Inventory-related payables	—		1,077		65		1,142

Total Liabilities	$	—	$	1,912	$	856	$	2,768


	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 June 30, 2023.


	Level 3 Fair Value Asset Measurements at
	June 30, 2023
	Inventories Carried at Market		Commodity Derivative Contracts Gains		Total Assets
	(In millions)
Balance, March 31, 2023	$	3,503	$	649	$	4,152
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	362		475		837
Purchases	9,910		—		9,910
Sales	(10,646)		—		(10,646)
Settlements	(4)		(457)		(461)
Transfers into Level 3	547		240		787
Transfers out of Level 3	(813)		(21)		(834)
Ending balance, June 30, 2023	$	2,859	$	886	$	3,745

* Includes increase in unrealized gains of $780 million relating to Level 3 assets still held at June 30, 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 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.

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, 2023.


	Level 3 Fair Value Asset Measurements at
	June 30, 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*	364		952		1,316
Purchases	18,575		—		18,575
Sales	(18,900)		—		(18,900)
Settlements	(4)		(839)		(843)
Transfers into Level 3	1,152		290		1,442
Transfers out of Level 3	(1,088)		(58)		(1,146)
Ending balance, June 30, 2023	$	2,859	$	886	$	3,745

* Includes increase in unrealized gains of $1.4 billion relating to Level 3 assets still held at June 30, 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 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.

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, 2023.


	Level 3 Fair Value Liability Measurements at
	June 30, 2023
	Inventory- related Payables		Commodity Derivative Contracts Losses		Debt Conversion Option		Total Liabilities
	(In millions)

Balance, March 31, 2023	$	57	$	455	$	1	$	513
Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense*	4		535		(1)		538
Purchases	5		—		—		5
Sales	—		—		—		—
Settlements	(3)		(283)		—		(286)
Transfers into Level 3	2		86		—		88
Transfers out of Level 3	—		(2)		—		(2)
Ending balance, June 30, 2023	$	65	$	791	$	—	$	856

* Includes increase in unrealized losses of $545 million relating to Level 3 liabilities still held at June 30, 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 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 six months ended June 30, 2023.


	Level 3 Fair Value Liability Measurements at
	June 30, 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		778		(6)		774
Purchase	7		—		—		7
Sales	—		—		—		—
Settlements	(34)		(707)		—		(741)
Transfers into Level 3	1		125		—		126
Transfers out of Level 3	—		(8)		—		(8)
Ending balance, June 30, 2023	$	65	$	791	$	—	$	856

* Includes increase in unrealized losses of $0.8 billion relating to Level 3 liabilities still held at June 30, 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 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
Purchases	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.

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, 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 June 30, 2023 is a weighted average 21.7% of the total price for assets and 21.5% of the total price for liabilities.


	Weighted Average % of Total Price
	June 30, 2023				December 31, 2022
Component Type	Assets		Liabilities		Assets		Liabilities
Inventories and Related Payables
Basis	21.7	%	21.5	%	19.4	%	15.2	%
Transportation cost	14.1	%	—	%	10.5	%	—	%

Commodity Derivative Contracts
Basis	26.1	%	21.6	%	22.7	%	26.5	%
Transportation cost	6.4	%	2.4	%	13.5	%	3.7	%