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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2024

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, 2024 and December 31, 2023.


	Fair Value Measurements at June 30, 2024
	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	$	—	$	3,201	$	2,546	$	5,747
Unrealized derivative gains:
Commodity contracts	—		735		395		1,130
Foreign currency contracts	—		188		—		188
Interest rate contracts	—		5		—		5

Cash equivalents	260		—		—		260

Segregated investments	1,748		—		—		1,748

Total Assets	$	2,008	$	4,129	$	2,941	$	9,078

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	545	$	367	$	912
Foreign currency contracts	—		158		—		158


Inventory-related payables	—		1,149		34		1,183

Total Liabilities	$	—	$	1,852	$	401	$	2,253


	Fair Value Measurements at December 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	$	—	$	4,274	$	2,713	$	6,987
Unrealized derivative gains:
Commodity contracts	—		628		731		1,359
Foreign currency contracts	—		187		—		187

Cash equivalents	209		—		—		209

Segregated investments	1,362		—		—		1,362

Total Assets	$	1,571	$	5,089	$	3,444	$	10,104

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	500	$	457	$	957
Foreign currency contracts	—		144		—		144


Inventory-related payables	—		1,219		101		1,320
Total Liabilities	$	—	$	1,863	$	558	$	2,421

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, 2024.


	Level 3 Fair Value Asset Measurements at
	June 30, 2024
	Inventories Carried at Market		Commodity Derivative Contracts Gains		Total Assets
	(In millions)
Balance, March 31, 2024	$	2,948	$	764	$	3,712
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	187		197		384
Purchases	3,637				3,637
Sales	(4,194)		—		(4,194)
Settlements	—		(438)		(438)
Transfers into Level 3	557		29		586
Transfers out of Level 3	(589)		(157)		(746)
Ending balance, June 30, 2024	$	2,546	$	395	$	2,941

* Includes increase in unrealized gains of $325 million relating to Level 3 assets still held at June 30, 2024.

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 six months ended June 30, 2024.


	Level 3 Fair Value Asset Measurements at
	June 30, 2024
	Inventories Carried at Market		Commodity Derivative Contracts Gains		Total Assets
	(In millions)

Balance, December 31, 2023	$	2,713	$	731	$	3,444
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	90		572		662
Purchases	7,426		—		7,426
Sales	(8,077)		—		(8,077)
Settlements	—		(790)		(790)
Transfers into Level 3	1,073		57		1,130
Transfers out of Level 3	(679)		(175)		(854)
Ending balance, June 30, 2024	$	2,546	$	395	$	2,941

* Includes increase in unrealized gains of $889 million relating to Level 3 assets still held at June 30, 2024.


	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

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, 2024.


	Level 3 Fair Value Liability Measurements at
	June 30, 2024
	Inventory- related Payables		Commodity Derivative Contracts Losses		Total Liabilities
	(In millions)

Balance, March 31, 2024	$	62	$	435	$	497
Total increase (decrease) in net realized/unrealized losses included in cost of products sold*	(4)		203		199
Purchases	2		—		2
Sales	(26)		—		(26)
Settlements	—		(282)		(282)
Transfers into Level 3	—		15		15
Transfers out of Level 3	—		(4)		(4)
Ending balance, June 30, 2024	$	34	$	367	$	401

* Includes increase in unrealized losses of $208 million relating to Level 3 liabilities still held at June 30, 2024.

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

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.


	Level 3 Fair Value Liability Measurements at
	June 30, 2024
	Inventory- related Payables		Commodity Derivative Contracts Losses		Total Liabilities
	(In millions)

Balance, December 31, 2023	$	101	$	457	$	558
Total increase (decrease) in net realized/unrealized losses included in cost of products sold*	(7)		532		525
Purchases	3		—		3
Sales	(64)		—		(64)
Settlements	—		(572)		(572)
Transfers into Level 3	1		28		29
Transfers out of Level 3	—		(78)		(78)
Ending balance, June 30, 2024	$	34	$	367	$	401

* Includes increase in unrealized losses of $546 million relating to Level 3 liabilities still held at June 30, 2024.


	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
Purchases	7		—		—		7

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.

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, 2024 and December 31, 2023. 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, 2024 is a weighted average 39.1% of the total price for assets and 42.7% of the total price for liabilities.


	Weighted Average % of Total Price
	June 30, 2024				December 31, 2023
Component Type	Assets		Liabilities		Assets		Liabilities
Inventories and Related Payables
Basis	39.1	%	42.7	%	25.0	%	33.2	%
Transportation cost	17.4	%	—	%	11.5	%	—	%

Commodity Derivative Contracts
Basis	32.7	%	25.3	%	24.2	%	24.9	%
Transportation cost	24.8	%	19.8	%	9.3	%	3.2	%

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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