XML 41 R20.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Derivative Instruments | 6 Months Ended
--- | ---
Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [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 the impact of market price volatility on our results of operations. Typically, 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. From time to time, we may also enter into interest rate hedging agreements to limit floating interest rate exposure under the DKL Revolver. The following table presents the fair value of our derivative instruments as of June 30, 2018 and December 31, 2017. The fair value amounts below are presented on a gross basis and do not reflect the netting of asset and liability positions permitted under our master netting arrangements, including any cash deficit or collateral on deposit with our counterparties. We have elected to offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements. As a result, the asset and liability amounts below differ from the amounts presented in our accompanying condensed consolidated balance sheets. During the three and six months ended June 30, 2018 and 2017, we did not elect hedge accounting 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 and comprehensive income. See Note 13 for further information regarding the fair value of derivative instruments.
(in thousands) |  |  |  | June 30, 2018 |  | December 31, 2017
Derivative Type |  | Balance Sheet Location |  | Assets |  | Liabilities |  | Assets |  | Liabilities
Derivatives: |  |  |  |  |  |  |  |
Commodity derivatives (1) |  | Accrued expenses and other current liabilities |  | $ | 2 |  |  | $ | (380 | ) |  | $ | — |  |  | $ | (1,087 | )
Total gross fair value of derivatives |  | 2 |  |  | (380 | ) |  | — |  |  | (1,087 | )
Less: Counterparty netting and cash collateral (deficit) (2) |  | (88 | ) |  | (380 | ) |  | — |  |  | (290 | )
Total net fair value of derivatives |  | $ | 90 |  |  | $ | — |  |  | $ | — |  |  | $ | (797 | )
(1) As of June 30, 2018 and December 31, 2017, we had open derivative contracts representing 117,000 barrels and 370,000 barrels, respectively, of refined petroleum products. (2) As of June 30, 2018 and December 31, 2017, we had cash collateral of $0.5 million and $0.3 million, respectively, netted with the net derivative position of our counterparty. Recognized gains (losses) associated with our derivatives for the three and six months ended June 30, 2018 and 2017 were as follows (in thousands):
|  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
Derivative Type | Income Statement Location |  | 2018 |  | 2017 |  | 2018 |  | 2017
Commodity derivatives | Cost of goods sold |  | $ | (843 | ) |  | $ | 606 |  |  | $ | 740 |  |  | $ | 1,116 |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration