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Derivative Financial Instruments, Investments and Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Gain on derivatives | The following outlines the gains recognized on the Company’s derivative activities, all of which are recorded in Cost of materials and other on the condensed consolidated statements of operations:
Gain on Derivatives
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2020 |  | 2019 |  | 2020 |  | 2019
Forward purchases and sales contracts, net | $ | 4 |  |  | $ | 17 |  |  | $ | 55 |  |  | $ | 37 |
Commodity swap instruments | 1 |  |  | — |  |  | 5 |  |  | — |
Futures contracts | — |  |  | 1 |  |  | 10 |  |  | 1 |
Total gain on derivatives, net | $ | 5 |  |  | $ | 18 |  |  | $ | 70 |  |  | $ | 38 |
Schedule of open commodity derivative instruments | The following outlines our open commodity derivative instruments, which are classified as Prepaid expenses and other current assets or Other current liabilities on the condensed consolidated balance sheets:
Open Commodity Derivative Instruments
(in millions of barrels) | September 30, 2020 |  | December 31, 2019
Forward purchases and sales contracts, net: |  |  |
Canadian crude oil | 6 |  |  | 5 |
Derivative offsetting assets | The Company elected to offset the fair value amounts recognized for multiple derivative contracts executed with the same counterparty. These amounts are recognized as current assets and current liabilities within the Prepaid expenses and other current assets and Other current liabilities financial statement line items, respectively, in the condensed consolidated balance sheets as follows:
| Derivative Assets |  | Derivative Liabilities
(in millions) | September 30, 2020 |  | December 31, 2019 |  | September 30, 2020 |  | December 31, 2019
Commodity derivatives | $ | 7 |  |  | $ | 3 |  |  | $ | (1) |  |  | $ | (11) |
Less: Counterparty netting | (1) |  |  | (3) |  |  | 1 |  |  | 3 |
Total net fair value of derivatives | $ | 6 |  |  | $ | — |  |  | $ | — |  |  | $ | (8) |
Derivative offsetting liabilities | The Company elected to offset the fair value amounts recognized for multiple derivative contracts executed with the same counterparty. These amounts are recognized as current assets and current liabilities within the Prepaid expenses and other current assets and Other current liabilities financial statement line items, respectively, in the condensed consolidated balance sheets as follows:
| Derivative Assets |  | Derivative Liabilities
(in millions) | September 30, 2020 |  | December 31, 2019 |  | September 30, 2020 |  | December 31, 2019
Commodity derivatives | $ | 7 |  |  | $ | 3 |  |  | $ | (1) |  |  | $ | (11) |
Less: Counterparty netting | (1) |  |  | (3) |  |  | 1 |  |  | 3 |
Total net fair value of derivatives | $ | 6 |  |  | $ | — |  |  | $ | — |  |  | $ | (8) |
Components of investment income (loss) from marketable securities | Investments consist of equity securities, which are reported at fair value in our condensed consolidated balance sheets. These investments are considered trading securities. Investment loss from marketable securities consists of the following:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2020 |  | 2019 |  | 2020 |  | 2019
Dividend income | $ | 3 |  |  | $ | — |  |  | $ | 7 |  |  | $ | — |
Unrealized (loss) gain | (68) |  |  | — |  |  | (20) |  |  | — |
Investment loss from marketable securities | $ | (65) |  |  | $ | — |  |  | $ | (13) |  |  | $ | — |
Assets and liabilities measured at fair value on a recurring basis | The following tables set forth the assets and liabilities measured or disclosed at fair value on a recurring basis, by input level, as of September 30, 2020 and December 31, 2019:
| September 30, 2020
(in millions) | Level 1 |  | Level 2 |  | Level 3 |  | Total
Location and Description |  |  |  |  |  |  |
Prepaid expenses and other current assets (investments) | $ | 119 |  |  | $ | — |  |  | $ | — |  |  | $ | 119 |
Prepaid expenses and other current assets (commodity derivatives) | — |  |  | 6 |  |  | — |  |  | 6 |
Total Assets | 119 |  |  | 6 |  |  | — |  |  | 125 |
Other current liabilities (RFS obligation) | — |  |  | (83) |  |  | — |  |  | (83) |
Long-term debt and finance lease obligations (senior notes) | — |  |  | (1,459) |  |  | — |  |  | (1,459) |
Total Liabilities | $ | — |  |  | $ | (1,542) |  |  | $ | — |  |  | $ | (1,542) |
| December 31, 2019
(in millions) | Level 1 |  | Level 2 |  | Level 3 |  | Total
Location and Description |  |  |  |  |  |  |
Other current liabilities (commodity derivatives) | $ | — |  |  | $ | (8) |  |  | $ | — |  |  | $ | (8) |
Other current liabilities (RFS obligation) | — |  |  | (7) |  |  | — |  |  | (7) |
Long-term debt and finance lease obligations (senior notes) | — |  |  | (1,180) |  |  | — |  |  | (1,180) |
Total Liabilities | $ | — |  |  | $ | (1,195) |  |  | $ | — |  |  | $ | (1,195) |

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- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624181-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5618551-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624171-113959 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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