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Fair Value Measurements (Tables)

9 Months Ended

Sep. 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 September 30, 2023 and December 31, 2022.


	Fair Value Measurements at September 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	$	—	$	3,172	$	2,872	$	6,044
Unrealized derivative gains:
Commodity contracts	—		873		890		1,763
Foreign currency contracts	—		287		—		287


Cash equivalents	366		—		—		366

Segregated investments	1,969		—		—		1,969

Total Assets	$	2,335	$	4,332	$	3,762	$	10,429

Liabilities:
Unrealized derivative losses:
Commodity contracts	$	—	$	703	$	549	$	1,252
Foreign currency contracts	—		119		—		119


Inventory-related payables	—		1,070		87		1,157

Total Liabilities	$	—	$	1,892	$	636	$	2,528


	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 September 30, 2023.


	Level 3 Fair Value Asset Measurements at
	September 30, 2023
	Inventories Carried at Market		Commodity Derivative Contracts Gains		Total Assets
	(In millions)
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)
Ending 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 rollforward of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended September 30, 2022.


	Level 3 Fair Value Asset Measurements at
	September 30, 2022
	Inventories Carried at Market		Commodity Derivative Contracts Gains		Total Assets
	(In millions)

Balance, June 30, 2022	$	3,245	$	880	$	4,125
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*	315		345		660
Purchases	13,294		—		13,294
Sales	(13,931)		—		(13,931)
Settlements	—		(456)		(456)
Transfers into Level 3	384		49		433
Transfers out of Level 3	(221)		(116)		(337)
Ending balance, September 30, 2022	$	3,086	$	702	$	3,788

* Includes increase in unrealized gains of $481 million relating to Level 3 assets still held at September 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 nine months ended September 30, 2023.


	Level 3 Fair Value Asset Measurements at
	September 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*	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)
Ending 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.

The following table presents a rollforward of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2022.


	Level 3 Fair Value Asset Measurements at
	September 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*	746		1,297		2,043
Purchases	34,524		—		34,524
Sales	(35,239)		—		(35,239)
Settlements	—		(1,227)		(1,227)
Transfers into Level 3	933		365		1,298
Transfers out of Level 3	(882)		(193)		(1,075)
Ending balance, September 30, 2022	$	3,086	$	702	$	3,788

* Includes increase in unrealized gains of $2.2 billion relating to Level 3 assets still held at September 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 September 30, 2023.


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

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

Settlements	—		(529)		(529)
Transfers into Level 3	—		10		10
Transfers out of Level 3	(4)		(13)		(17)
Ending 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 rollforward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended September 30, 2022.


	Level 3 Fair Value Liability Measurements at
	September 30, 2022
	Inventory- related Payables		Commodity Derivative Contracts Losses		Debt Conversion Option		Total Liabilities
	(In millions)

Balance, June 30, 2022	$	55	$	960	$	11	$	1,026
Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense*	3		391		(8)		386
Purchases	167		—		—		167
Sales	(5)		—		—		(5)
Settlements	—		(634)		—		(634)
Transfers into Level 3	—		57		—		57
Transfers out of Level 3	—		(65)		—		(65)
Ending balance, September 30, 2022	$	220	$	709	$	3	$	932

* Includes increase in unrealized losses of $394 million relating to Level 3 liabilities still held at September 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 nine months ended September 30, 2023.


	Level 3 Fair Value Liability Measurements at
	September 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*	(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)
Ending 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.

The following table presents a rollforward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2022.


	Level 3 Fair Value Liability Measurements at
	September 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*	(1)		2,060		(12)		2,047
Purchases	176		—		—		176
Sales	(61)		—		—		(61)
Settlements	—		(2,363)		—		(2,363)
Transfers into Level 3	—		379		—		379
Transfers out of Level 3	—		(182)		—		(182)
Ending balance, September 30, 2022	$	220	$	709	$	3	$	932

* Includes increase in unrealized losses of $2.1 billion relating to Level 3 liabilities still held at September 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 September 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 September 30, 2023 is a weighted average 28.1% of the total price for assets and 47.3% of the total price for liabilities.


	Weighted Average % of Total Price
	September 30, 2023				December 31, 2022
Component Type	Assets		Liabilities		Assets		Liabilities
Inventories and Related Payables
Basis	28.1	%	47.3	%	19.4	%	15.2	%
Transportation cost	19.5	%	—	%	10.5	%	—	%

Commodity Derivative Contracts
Basis	36.6	%	30.4	%	22.7	%	26.5	%
Transportation cost	12.0	%	21.5	%	13.5	%	3.7	%