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Derivative Instruments | 3 Months Ended
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Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | Derivative Instruments Commodity Risk Management The Company uses derivative instruments to reduce price volatility risk on commodities, primarily ethane and natural gas. The Company does not use derivative instruments to engage in speculative activities. The Company had no derivative instruments that were designated as fair value hedges during the three months ended March 31, 2017 and 2016. Gains and losses from changes in the fair value of derivative instruments that are not designated as hedging instruments are included in cost of sales in the consolidated statements of operations for the three months ended March 31, 2017 and 2016. The exposure on commodity derivatives used for price risk management includes the risk that the counterparty will not pay if the market declines below the established fixed price. In such case, the Company would lose the benefit of the derivative differential on the volume of the commodities covered. In any event, the Company would continue to receive the market price on the actual volume hedged. The Company also bears the risk that it could lose the benefit of market improvements over the fixed derivative price for the term and volume of the derivative instruments (as such improvements would accrue to the benefit of the counterparty). The Company had non-hedge designated feedstock forward contracts for approximately 221,800,000 gallons and 8,800,000 MMBtu as of March 31, 2017 and for approximately 257,000,000 gallons and 8,500,000 MMBtu as of December 31, 2016. The fair values of derivative instruments reflected in the Company's consolidated balance sheets were as follows:
|  | Asset Derivatives
|  | Balance Sheet Location |  | Fair Value as of
|  | March 31, 2017 |  | December 31, 2016
Not designated as hedging instruments |  |  |  |  |  |
Commodity forward contracts |  | Accounts receivable, net |  | $ | 3,124 |  |  | $ | 7,589 |
Commodity forward contracts |  | Deferred charges and other assets, net |  | 2,246 |  |  | 5,249 |
Total asset derivatives |  |  |  | $ | 5,370 |  |  | $ | 12,838 |
|  | Liability Derivatives
|  | Balance Sheet Location |  | Fair Value as of
|  | March 31, 2017 |  | December 31, 2016
Not designated as hedging instruments |  |  |  |  |  |
Commodity forward contracts |  | Accrued liabilities |  | $ | 1,048 |  |  | $ | 1,349 |
Commodity forward contracts |  | Other liabilities |  | 5,115 |  |  | 3,724 |
Total liability derivatives |  |  |  | $ | 6,163 |  |  | $ | 5,073 |
The impact of derivative instruments that have not been designated as hedges on the Company's consolidated statements of operations were as follows:
Derivatives Not Designated as Hedging Instruments |  | Location of Gain (Loss) Recognized in Income on Derivative |  | Three Months Ended March 31,
2017 |  | 2016
Commodity forward contracts |  | Cost of sales |  | $ | (9,167 | ) |  | $ | 4,057 |
See Note 15 for the fair value of the Company's derivative instruments. Disclosure about Offsetting Asset and Liability Derivatives Certain of the Company's derivative instruments are executed under an International Swaps and Derivatives Association ("ISDA") Master Agreement, which permits the Company and a counterparty to aggregate the amounts owed by each party under multiple transactions and replace them with a single net amount payable by one party to the other. The following tables present the Company's derivative assets and derivative liabilities reported in the consolidated balance sheets and derivative assets and derivative liabilities subject to enforceable master netting arrangements.
|  | March 31, 2017
|  | Net Presentation |  | Gross Presentation
|  | Net Assets (Liabilities) Presented in the Consolidated Balance Sheets | Risk management assets—Commodity forward contracts |  | Risk management liabilities—Commodity forward contracts
Accounts receivable, net |  |  |  |  |  |
Derivative positions subject to enforceable master netting arrangements |  | $ | 520 |  |  | $ | 1,049 |  |  | $ | (529 | )
Derivative positions not subject to enforceable master netting arrangements |  | 2,604 |  |  | 2,604 |  |  | — |
|  | 3,124 |  |  | 3,653 |  |  | (529 | )
Deferred charges and other assets, net |  |  |  |  |  |
Derivative positions subject to enforceable master netting arrangements |  | — |  |  | — |  |  | — |
Derivative positions not subject to enforceable master netting arrangements |  | 2,246 |  |  | 2,246 |  |  | — |
|  | 2,246 |  |  | 2,246 |  |  | — |
Accrued liabilities |  |  |  |  |  |
Derivative positions subject to enforceable master netting arrangements |  | — |  |  | — |  |  | — |
Derivative positions not subject to enforceable master netting arrangements |  | (1,048 | ) |  | — |  |  | (1,048 | )
|  | (1,048 | ) |  | — |  |  | (1,048 | )
Other liabilities |  |  |  |  |  |
Derivative positions subject to enforceable master netting arrangements |  | (1,629 | ) |  | 978 |  |  | (2,607 | )
Derivative positions not subject to enforceable master netting arrangements |  | (3,486 | ) |  | — |  |  | (3,486 | )
|  | (5,115 | ) |  | 978 |  |  | (6,093 | )
Risk management assets (liabilities)—Commodity forward contracts |  |  |  | $ | 6,877 |  |  | $ | (7,670 | )
|  | December 31, 2016
|  | Net Presentation |  | Gross Presentation
|  | Net Assets (Liabilities) Presented in the Consolidated Balance Sheets | Risk management assets—Commodity forward contracts |  | Risk management liabilities—Commodity forward contracts
Accounts receivable, net |  |  |  |  |  |
Derivative positions subject to enforceable master netting arrangements |  | $ | 1,498 |  |  | $ | 1,636 |  |  | $ | (138 | )
Derivative positions not subject to enforceable master netting arrangements |  | 6,091 |  |  | 6,091 |  |  | — |
|  | 7,589 |  |  | 7,727 |  |  | (138 | )
Deferred charges and other assets, net |  |  |  |  |  |
Derivative positions subject to enforceable master netting arrangements |  | — |  |  | — |  |  | — |
Derivative positions not subject to enforceable master netting arrangements |  | 5,249 |  |  | 5,249 |  |  | — |
|  | 5,249 |  |  | 5,249 |  |  | — |
Accrued liabilities |  |  |  |  |  |
Derivative positions subject to enforceable master netting arrangements |  | — |  |  | — |  |  | — |
Derivative positions not subject to enforceable master netting arrangements |  | (1,349 | ) |  | — |  |  | (1,349 | )
|  | (1,349 | ) |  | — |  |  | (1,349 | )
Other liabilities |  |  |  |  |  |
Derivative positions subject to enforceable master netting arrangements |  | (436 | ) |  | 2,010 |  |  | (2,446 | )
Derivative positions not subject to enforceable master netting arrangements |  | (3,288 | ) |  | — |  |  | (3,288 | )
|  | (3,724 | ) |  | 2,010 |  |  | (5,734 | )
Risk management assets (liabilities)—Commodity forward contracts |  |  |  | $ | 14,986 |  |  | $ | (7,221 | )

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