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Derivative Instruments (Notes)
 9 Months Ended
Sep. 30, 2013
Derivative Instruments and Hedges, Assets [Abstract]  
Derivative Instruments
Derivative Instruments
From time to time, we enter into forward fuel contracts to limit the exposure to price fluctuations for physical purchases of finished products in the normal course of business. We use derivatives to reduce normal operating and market risks with a primary objective in derivative instrument use being the reduction of the impact of market price volatility on our results of operations.
We enter into forward fuel contracts with major financial institutions in which we fix the purchase price of finished grade fuel for a predetermined number of units with fulfillment terms of less than 90 days. During the three and nine months ended September 30, 2013 and September 30, 2012, we did not elect hedge treatment for these derivative positions. As a result, all changes in fair value are marked to market in the accompanying condensed consolidated statements of income.
From time to time, we may also enter into interest rate hedging agreements to limit variable interest rate exposure under the Amended and Restated Credit Agreement. The prior credit facility required us to maintain interest rate hedging arrangements on at least 50% of the amount funded on November 7, 2012 under the credit facility, which was required to be in place for at least a three-year period beginning no later than March 7, 2013. Effective February 25, 2013, we entered into interest rate hedges in the form of a LIBOR interest rate cap for a term of three years for a total notional amount of $45.0 million, thereby meeting the requirements.
The table below presents the fair value of our derivative instruments, as of September 30, 2013. As of December 31, 2012, there was a nominal amount of financial liabilities accounted for at fair value on a recurring basis (in thousands).
 
 
 
September 30, 2013
Derivative Type
Balance Sheet Location
 
Assets
 
Liabilities
Derivatives not designated as hedging instruments:
 
 
 
 
Interest rate derivatives
Other long term assets
 
$
159

 
$
—

Commodity derivatives
Other current assets
 
$
120

 
$
—

Total net fair value of derivatives
 
 
$
279

 
$
—


Gains (losses) recognized associated with derivatives not designated as hedging instruments for the three and nine months ended September 30, 2013 were as follows (in thousands):
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Derivative Type
Income Statement Location
 
2013
 
2012
 
2013
 
2012
 
 
 
 
 
Predecessors
 
 
 
Predecessors
Interest rate derivatives
Interest expense
 
$
(88
)
 
$
—

 
$
(63
)
 
$
—

Commodity derivatives
Cost of goods sold
 
(311
)
 
71

 
(481
)
 
304

 
 Total
 
$
(399
)
 
$
71

 
$
(544
)
 
$
304


As of December 31, 2012, unrealized gains or losses held on the condensed consolidated balance sheets were nominal.