v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value measurements are derived using inputs (assumptions that market participants would use in pricing an asset or liability, including assumptions about risk). GAAP categorizes inputs used in fair value measurements into three broad levels as follows:

Level 1:
Quoted prices in active markets for identical assets or liabilities.
Level 2:
Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data.
Level 3:
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes valuation techniques that involve significant unobservable inputs.

The carrying amounts of derivative instruments, certain financing arrangements and environmental credit obligations as of June 30, 2026 and December 31, 2025 were as follows:
Fair Value by Input Level
Carrying AmountLevel 1Level 2Level 3
(In millions)
June 30, 2026
Assets:
Commodity contracts$8 $3 $4 $1 
Foreign currency forward contracts14 — 14 — 
Total assets$22 $3 $18 $1 
Liabilities:
Commodity contracts$5 $— $5 $— 
Financing arrangements - precious metals
95 — 99 — 
Environmental credit obligations498 — 498 — 
Total liabilities$598 $— $602 $— 

Fair Value by Input Level
Carrying AmountLevel 1Level 2Level 3
(In millions)
December 31, 2025
Assets:
Commodity contracts$5 $— $5 $— 
Total assets$5 $— $5 $— 
Liabilities:
Commodity contracts$5 $— $5 $— 
Financing arrangements - precious metals
94 — 96 — 
Foreign currency forward contracts6 — 6 — 
Environmental credit obligations46 — 46 — 
Total liabilities$151 $— $153 $— 
Level 1 Fair Value Measurements: Our futures contracts based on New York Mercantile Exchange (“NYMEX”) pricing are measured and recorded at fair value using quoted market prices, a Level 1 input.

Level 2 Fair Value Measurements: Derivative instruments consisting of foreign currency forward contracts, commodity price swaps, and forward sales and purchase contracts are measured and recorded at fair value using Level 2 inputs. The fair value of foreign currency forward contracts is derived using market quotes for similar types of instruments. The fair value of the commodity price swap contracts is based on the net present value of expected future cash flows related to both variable and fixed rate legs of the respective swap agreements. The measurements are computed using market-based observable inputs and quoted forward commodity prices with respect to our commodity price swaps. The fair value of the forward sales and purchase contracts is computed using quoted forward commodity prices. The fair value of our precious metals financing arrangements, discussed in Note 12, is computed using quoted forward commodity prices. Environmental credit obligations are valued based on quoted prices from an independent pricing service.

Level 3 Fair Value Measurements: Certain of our commodity price swap contracts are measured using unobservable Level 3 inputs that adjust the fair value for regional pricing and grade differentials.

See Note 13 for additional information on derivative instruments and hedging activities.