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Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2013
Fair Value Disclosures [Abstract]  
Fair Value Measurements At Reporting Date
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, 2013 and December 31, 2012.
 
 
Fair Value Measurements at September 30, 2013
 

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
$

 
$
3,654

 
$
1,272

 
$
4,926

Unrealized derivative gains:
 
 
 
 
 
 
 
Commodity contracts
1,364

 
748

 
262

 
2,374

Foreign exchange contracts

 
233

 

 
233

Interest rate contracts

 
1

 

 
1

Marketable securities
2,557

 
17

 

 
2,574

Deferred receivables consideration

 
487

 

 
487

Total Assets
$
3,921

 
$
5,140

 
$
1,534

 
$
10,595

 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Unrealized derivative losses:
 
 
 
 
 
 
 
Commodity contracts
$
1,667

 
$
708

 
$
186

 
$
2,561

Foreign exchange contracts

 
201

 

 
201

Inventory-related payables

 
299

 
9

 
308

Total Liabilities
$
1,667

 
$
1,208

 
$
195

 
$
3,070



 
Fair Value Measurements at December 31, 2012
 
 
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
$

 
$
5,291

 
$
1,745

 
$
7,036

Unrealized derivative gains:
 
 
 
 
 
 
 
Commodity contracts
1,426

 
936

 
143

 
2,505

Foreign exchange contracts

 
170

 

 
170

Interest rate contracts

 
1

 

 
1

Marketable securities
2,451

 
16

 

 
2,467

Deferred receivables consideration

 
900

 

 
900

Total Assets
$
3,877

 
$
7,314

 
$
1,888

 
$
13,079

 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Unrealized derivative losses:
 
 
 
 
 
 
 
Commodity contracts
$
1,600

 
$
638

 
$
138

 
$
2,376

Foreign exchange contracts

 
215

 

 
215

Inventory-related payables

 
903

 
33

 
936

Total Liabilities
$
1,600

 
$
1,756

 
$
171

 
$
3,527

Reconciliation of Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Significant Unobservable Inputs (Level 3)
The following table presents a reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended September 30, 2013.

 
Level 3 Fair Value Asset Measurements at
 
September 30, 2013
 
Inventories
 Carried at
 Market
 
Commodity
Derivative
Contracts
Gains
 
 
Total 
Assets
 
(In millions)
 
 
 
 
 
 
Balance, June 30, 2013
$
1,926

 
$
267

 
$
2,193

Total increase in unrealized gains included in cost of products sold*
162

 
143

 
305

Purchases
2,896

 

 
2,896

Sales
(3,264
)
 

 
(3,264
)
Settlements

 
(153
)
 
(153
)
Transfers into Level 3
35

 
69

 
104

Transfers out of Level 3
(483
)
 
(64
)
 
(547
)
Ending balance, September 30, 2013
$
1,272

 
$
262

 
$
1,534


* Includes gains of $289 million that are attributable to the change in unrealized gains relating to Level 3 assets still held at September 30, 2013.
The following table presents a reconciliation of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended September 30, 2013.

 
Level 3 Fair Value Liability Measurements at
 
September 30, 2013
 
Inventory-
 related
 Payables
 
Commodity
Derivative
Contracts
Losses
 
 
Total 
Liabilities
 
(In millions)
 
 
 
 
 
 
Balance, June 30, 2013
$
63

 
$
233

 
$
296

Total increase in unrealized losses included in cost of products sold*

 
127

 
127

Purchases
4

 

 
4

Sales
(17
)
 

 
(17
)
Settlements

 
(186
)
 
(186
)
Transfers into Level 3

 
30

 
30

Transfers out of Level 3
(41
)
 
(18
)
 
(59
)
Ending balance, September 30, 2013
$
9

 
$
186

 
$
195


* Includes losses of $127 million that are attributable to the change in unrealized losses relating to Level 3 liabilities still held at September 30, 2013.

The following table presents a reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended September 30, 2012.

 
Level 3 Fair Value Asset Measurements at
 
September 30, 2012
 
Inventories
 Carried at
 Market
 
Commodity
Derivative
Contracts
Gains
 
 
Total 
Assets
 
(In millions)
 
 
 
 
 
 
Balance, June 30, 2012
$
1,462

 
$
171

 
$
1,633

Total increase (decrease) in unrealized gains included in cost of products sold
164

 
109

 
273

Purchases
2,390

 

 
2,390

Sales
(2,225
)
 

 
(2,225
)
Settlements

 
(95
)
 
(95
)
Transfers into Level 3
157

 
128

 
285

Transfers out of Level 3
(193
)
 
(31
)
 
(224
)
Ending balance, September 30, 2012
$
1,755

 
$
282

 
$
2,037


The following table presents a reconciliation of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended September 30, 2012.

 
Level 3 Fair Value Liability Measurements at
 
September 30, 2012
 
Inventory-
 related
 Payables
 
Commodity
Derivative
Contracts
Losses
 
 
Total 
Liabilities
 
(In millions)
 
 
 
 
 
 
Balance, June 30, 2012
$
38

 
$
179

 
$
217

Total increase (decrease) in unrealized losses included in cost of products sold

 
86

 
86

Purchases
2

 

 
2

Sales

 

 

Settlements

 
(105
)
 
(105
)
Transfers into Level 3

 
73

 
73

Transfers out of Level 3

 
(16
)
 
(16
)
Ending balance, September 30, 2012
$
40

 
$
217

 
$
257


The following table presents a reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2013.

 
Level 3 Fair Value Asset Measurements at
 
September 30, 2013
 
Inventories
 Carried at
 Market
 
Commodity
Derivative
Contracts
Gains
 
 
Total 
Assets
 
(In millions)
 
 
 
 
 
 
Balance, December 31, 2012
$
1,745

 
$
143

 
$
1,888

Total increase (decrease) in unrealized gains included in cost of products sold*
(677
)
 
372

 
(305
)
Purchases
11,795

 

 
11,795

Sales
(11,576
)
 

 
(11,576
)
Settlements

 
(381
)
 
(381
)
Transfers into Level 3
35

 
209

 
244

Transfers out of Level 3
(50
)
 
(81
)
 
(131
)
Ending balance, September 30, 2013
$
1,272

 
$
262

 
$
1,534


* Includes gains of $553 million that are attributable to the change in unrealized gains relating to Level 3 assets still held at September 30, 2013.
The following table presents a reconciliation of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2013.

 
Level 3 Fair Value Liability Measurements at
 
September 30, 2013
 
Inventory-
 related
 Payables
 
Commodity
Derivative
Contracts
Losses
 
 
Total 
Liabilities
 
(In millions)
 
 
 
 
 
 
Balance, December 31, 2012
$
33

 
$
138

 
$
171

Total increase (decrease) in unrealized losses included in cost of products sold*
(191
)
 
382

 
191

Purchases
190

 

 
190

Sales
(23
)
 

 
(23
)
Settlements

 
(397
)
 
(397
)
Transfers into Level 3

 
104

 
104

Transfers out of Level 3

 
(41
)
 
(41
)
Ending balance, September 30, 2013
$
9

 
$
186

 
$
195


* Includes losses of $237 million that are attributable to the change in unrealized losses relating to Level 3 liabilities still held at September 30, 2013.

The following table presents a reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2012.

 
Level 3 Fair Value Asset Measurements at
 
September 30, 2012
 
Inventories
 Carried at
 Market
 
Commodity
Derivative
Contracts
Gains
 
 
Total 
Assets
 
(In millions)
 
 
 
 
 
 
Balance, December 31, 2011
$
1,624

 
$
198

 
$
1,822

Total increase (decrease) in unrealized gains included in cost of products sold
240

 
366

 
606

Purchases
4,516

 
(2
)
 
4,514

Sales
(3,616
)
 

 
(3,616
)
Settlements

 
(341
)
 
(341
)
Transfers into Level 3
317

 
152

 
469

Transfers out of Level 3
(1,326
)
 
(91
)
 
(1,417
)
Ending balance, September 30, 2012
$
1,755

 
$
282

 
$
2,037


The following table presents a reconciliation of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2012.

 
Level 3 Fair Value Liability Measurements at
 
September 30, 2012
 
Inventory-
 related
 Payables
 
Commodity
Derivative
Contracts
Losses
 
 
Total 
Liabilities
 
(In millions)
 
 
 
 
 
 
Balance, December 31, 2011
$
196

 
$
192

 
$
388

Total increase (decrease) in unrealized losses included in cost of products sold

 
335

 
335

Purchases
2

 
(1
)
 
1

Sales
(4
)
 

 
(4
)
Settlements

 
(350
)
 
(350
)
Transfers into Level 3
2

 
126

 
128

Transfers out of Level 3
(156
)
 
(85
)
 
(241
)
Ending balance, September 30, 2012
$
40

 
$
217

 
$
257


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, 2013 and December 31, 2012. 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, 2013 is a weighted average 27.5% of the total price for assets and 13.8% for liabilities.

 
Weighted Average % of Total Price
 
September 30, 2013
 
December 31, 2012
Component Type
Assets
 
Liabilities
 
Assets
 
Liabilities
Inventories and Related Payables
 
 
 
 
 
 
 
Basis
27.5
%
 
13.8
%
 
13.5
%
 
26.2
%
Transportation cost
15.9
%
 
%
 
8.4
%
 
9.1
%
 
 
 
 
 
 
 
 
Commodity Derivative Contracts
 
 
 
 
 
 
 
Basis
22.4
%
 
16.9
%
 
45.7
%
 
17.0
%
Transportation cost
16.6
%
 
9.9
%
 
16.2
%
 
7.7
%