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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Assets and Liabilities Accounted for at Fair Value on a Recurring Basis

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, 2024 and December 31, 2023 (in millions).


	Fair Value Measurements at September 30, 2024
	Level 1		Level 2		Level 3		Total

Assets:
Inventories carried at market	$	—	$	3,466	$	2,628	$	6,094
Unrealized derivative gains:
Commodity contracts	—		488		476		964
Foreign currency contracts	—		167		—		167
Interest rate contracts	—		28		—		28

Cash equivalents	218		—		—		218

Segregated investments	1,595		—		—		1,595

Total Assets	$	1,813	$	4,149	$	3,104	$	9,066

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	452	$	474	$	926
Foreign currency contracts	—		222		—		222


Inventory-related payables	—		774		27		801

Total Liabilities	$	—	$	1,448	$	501	$	1,949


	Fair Value Measurements at December 31, 2023
	Level 1		Level 2		Level 3		Total


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

Roll Forward of Assets Measured at Fair Value on a Recurring Basis Using Unobservable Inputs

The following table presents a roll forward of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended September 30, 2024 (in millions).


	Level 3 Fair Value Asset Measurements at
	September 30, 2024
	Inventories Carried at Market		Commodity Derivative Contracts Gains		Total Assets

Opening balance, June 30, 2024	$	2,546	$	395	$	2,941
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	(92)		215		123
Purchases	4,174		—		4,174
Sales	(3,736)		—		(3,736)
Settlements	—		(288)		(288)
Transfers into Level 3	265		158		423
Transfers out of Level 3	(529)		(4)		(533)
Closing Balance, September 30, 2024	$	2,628	$	476	$	3,104

* Includes increase in unrealized gains of $436 million relating to Level 3 assets still held at September 30, 2024.


	Level 3 Fair Value Asset Measurements at
	September 30, 2023
	Inventories Carried at Market		Commodity Derivative Contracts Gains		Total Assets


Opening balance, June 30, 2023	$	2,859	$	886	$	3,745
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	135		330		465
Purchases	6,615		—		6,615
Sales	(6,539)		—		(6,539)
Settlements	—		(356)		(356)
Transfers into Level 3	336		49		385
Transfers out of Level 3	(534)		(19)		(553)
Closing balance, September 30, 2023	$	2,872	$	890	$	3,762

* Includes increase in unrealized gains of $438 million relating to Level 3 assets still held at September 30, 2023.

The following table presents a roll forward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended September 30, 2023 (in millions).


	Level 3 Fair Value Liability Measurements at
	September 30, 2023
	Inventory- related Payables		Commodity Derivative Contracts Losses		Debt Conversion Option		Total Liabilities


Opening balance, June 30, 2023	$	65	$	791	$	—	$	856
Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense*	(3)		290		—		287
Purchases	29		—		—		29

Settlements	—		(529)		—		(529)
Transfers into Level 3	—		10		—		10
Transfers out of Level 3	(4)		(13)		—		(17)
Closing balance, September 30, 2023	$	87	$	549	$	—	$	636

* Includes increase in unrealized losses of $297 million relating to Level 3 liabilities still held at September 30, 2023.

The following table presents a roll forward of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2024 (in millions).


	Level 3 Fair Value Asset Measurements at
	September 30, 2024
	Inventories Carried at Market		Commodity Derivative Contracts Gains		Total Assets


Opening Balance, December 31, 2023	$	2,713	$	731	$	3,444
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	(3)		788		785
Purchases	11,600		—		11,600
Sales	(11,813)		—		(11,813)
Settlements	—		(1,077)		(1,077)
Transfers into Level 3	1,339		214		1,553
Transfers out of Level 3	(1,208)		(180)		(1,388)
Closing Balance, September 30, 2024	$	2,628	$	476	$	3,104

* Includes increase in unrealized gains of $1.3 billion relating to Level 3 assets still held at September 30, 2024.

The following table presents a roll forward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2024 (in millions).


	Level 3 Fair Value Liability Measurements at
	September 30, 2024
	Inventory- related Payables		Commodity Derivative Contracts Losses		Total Liabilities


Opening Balance, December 31, 2023	$	101	$	457	$	558
Total increase (decrease) in net realized/unrealized losses included in cost of products sold*	(9)		875		866
Purchases	10		—		10
Sales	(75)		—		(75)
Settlements	—		(823)		(823)
Transfers into Level 3	—		50		50
Transfers out of Level 3	—		(85)		(85)
Closing Balance, September 30, 2024	$	27	$	474	$	501

* Includes increase in unrealized losses of $892 million relating to Level 3 liabilities still held at September 30, 2024.


	Level 3 Fair Value Asset Measurements at
	September 30, 2023
	Inventories Carried at Market		Commodity Derivative Contracts Gains		Total Assets


Opening balance, December 31, 2022	$	2,760	$	541	$	3,301
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	499		1,282		1,781
Purchases	25,190		—		25,190
Sales	(25,439)		—		(25,439)
Settlements	(4)		(1,195)		(1,199)
Transfers into Level 3	1,488		339		1,827
Transfers out of Level 3	(1,622)		(77)		(1,699)
Closing balance, September 30, 2023	$	2,872	$	890	$	3,762

* Includes increase in unrealized gains of $1.8 billion relating to Level 3 assets still held at September 30, 2023.

Roll Forward of Liabilities Measured at Fair Value on a Recurring Basis Using Unobservable Inputs


	Level 3 Fair Value Liability Measurements at
	September 30, 2024
	Inventory- related Payables		Commodity Derivative Contracts Losses		Total Liabilities


Opening balance, June 30, 2024	$	34	$	367	$	401
Total increase (decrease) in net realized/unrealized losses included in cost of products sold*	(3)		343		340
Purchases	8		—		8
Sales	(12)		—		(12)
Settlements	—		(251)		(251)
Transfers into Level 3	—		22		22
Transfers out of Level 3	—		(7)		(7)
Closing Balance, September 30, 2024	$	27	$	474	$	501

* Includes increase in unrealized losses of $346 million relating to Level 3 liabilities still held at September 30, 2024.


	Level 3 Fair Value Liability Measurements at
	September 30, 2023
	Inventory- related Payables		Commodity Derivative Contracts Losses		Debt Conversion Option		Total Liabilities


Opening 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*	(1)		1,068		(6)		1,061
Purchases	36		—		—		36

Settlements	(34)		(1,236)		—		(1,270)
Transfers into Level 3	1		135		—		136
Transfers out of Level 3	(4)		(21)		—		(25)
Closing balance, September 30, 2023	$	87	$	549	$	—	$	636

* Includes increase in unrealized losses of $1.1 billion relating to Level 3 liabilities still held at September 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 September 30, 2024 and December 31, 2023. The Company’s Level 3 measurements may include basis only, transportation cost only, or both price components.


	Weighted Average % of Total Price
	September 30, 2024				December 31, 2023
Component Type	Assets		Liabilities		Assets		Liabilities
Inventories and Inventory-Related Payables
Basis	36.2	%	81.0	%	25.0	%	33.2	%
Transportation cost	31.7	%	—	%	11.5	%	—	%

Commodity Derivative Contracts
Basis	25.6	%	32.4	%	24.2	%	24.9	%
Transportation cost	21.6	%	—	%	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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