The following table provides changes in physical derivatives and financial assets and (liabilities) that are measured at fair value based on Level 3 inputs:
| 2013 | 2012 | |||||||
| (In millions) | ||||||||
|
Balance at January 1 |
$ | 141 | $ | (143 | ) | |||
|
Unrealized pre-tax gains (losses) |
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|
Included in earnings (a) |
175 | (78 | ) | |||||
|
Included in other comprehensive income (b) |
— | 44 | ||||||
|
Purchases (c) |
45 | 247 | ||||||
|
Sales (c) |
(34 | ) | (266 | ) | ||||
|
Settlements (d) |
(61 | ) | 271 | |||||
|
Transfers into Level 3 |
(85 | ) | 99 | |||||
|
Transfers out of Level 3 |
31 | (33 | ) | |||||
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|
Balance at December 31 |
$ | 212 | $ | 141 | ||||
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| (a) | The unrealized pre-tax gains and losses included in earnings were reflected in Sales and other operating revenues and Income from discontinued operations in the Statement of Consolidated Income. |
| (b) | The unrealized pre-tax gains (losses) included in the other comprehensive income (loss) are reflected in the Change in fair value of cash flow hedges in the Statement of Consolidated Comprehensive Income. |
| (c) | Purchases and sales primarily represent option premiums paid or received, respectively, during the reporting period and were reflected in Sales and other operating revenues and Income from discontinued operations in the Statement of Consolidated Income. |
| (d) | Settlements represent realized gains (losses) on derivatives settled during the reporting period and were reflected in Sales and other operating revenues and Income from discontinued operations in the Statement of Consolidated Income. |