XML 31 R17.htm IDEA: XBRL DOCUMENT
v3.22.1

Derivatives | 3 Months Ended
--- | ---
Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | Derivatives Commodity Derivatives Our condensed consolidated balance sheets present derivative assets and liabilities on a net basis. Please read Note 11—Fair Value Measurements for the gross fair value and net carrying value of our derivative instruments. Our cash margin that is required as collateral deposits cannot be offset against the fair value of open contracts except in the event of default. Our open futures and over-the-counter (“OTC”) swaps at March 31, 2022, will settle by March 2023. At March 31, 2022, our open commodity derivative contracts represented (in thousands of barrels):
Contract type |  | Purchases |  | Sales |  | Net
Futures |  | 9,025 |  |  | (10,803) |  |  | (1,778) |
Swaps |  | 500 |  |  | (2,210) |  |  | (1,710) |
Total |  | 9,525 |  |  | (13,013) |  |  | (3,488) |
At March 31, 2022, we also had option collars that economically hedge a portion of our internally consumed fuel at our refineries. The following table provides information on these option collars at our refineries as of March 31, 2022:
|  |  |  |  |  |  | March 31, 2022
Average barrels per month |  |  |  |  |  |  | 75,000 |
Weighted-average strike price - floor (in dollars) |  |  |  |  |  |  | $ | 59.36 |
Weighted-average strike price - ceiling (in dollars) |  |  |  |  |  |  | $ | 75.21 |
Earliest commencement date |  |  |  |  |  |  | April 2022
Furthest expiry date |  |  |  |  |  |  | December 2022
Interest Rate Derivatives We are exposed to interest rate volatility in our ABL Revolver, Term Loan B Facility, Supply and Offtake Agreement, and Washington Refinery Intermediation Agreement. We may utilize interest rate swaps to manage our interest rate risk. In May 2019, we entered into an interest rate swap at an average fixed rate of 3.91% in exchange for the floating interest rate on the notional amounts due under the Retail Property Term Loan. This swap was set to expire on April 1, 2024, the maturity date of the Retail Property Term Loan. On February 23, 2021, we terminated and repaid all amounts outstanding under the Retail Property Term Loan and the related interest rate swap. At March 31, 2022, and December 31, 2021, we did not hold any interest rate derivative instruments. The following table provides information on the fair value amounts (in thousands) of these derivatives as of March 31, 2022, and December 31, 2021, and their placement within our condensed consolidated balance sheets.
| Balance Sheet Location |  | March 31, 2022 |  | December 31, 2021
|  |  | Asset (Liability)
Commodity derivatives (1) | Prepaid and other current assets |  | $ | 6,407 |  |  | $ | 1,260 |
Commodity derivatives | Other accrued liabilities |  | (28,311) |  |  | (1,431) |
J. Aron repurchase obligation derivative | Obligations under inventory financing agreements |  | (58,420) |  |  | (15,151) |
MLC terminal obligation derivative | Obligations under inventory financing agreements |  | 5,742 |  |  | (22,170) |
_________________________________________________________ (1)Does not include cash collateral of $32.4 million and $6.1 million recorded in Prepaid and other current assets as of March 31, 2022, and December 31, 2021, respectively, and $9.5 million in Other long-term assets as of both March 31, 2022, and December 31, 2021. The following table summarizes the pre-tax gains (losses) recognized in Net income (loss) on our condensed consolidated statements of operations resulting from changes in fair value of derivative instruments not designated as hedges charged directly to earnings (in thousands):
|  |  |  |  | Three Months Ended March 31,
| Statement of Operations Location |  |  |  |  |  | 2022 |  | 2021
Commodity derivatives | Cost of revenues (excluding depreciation) |  |  |  |  |  | $ | (18,454) |  |  | $ | 631 |
J. Aron repurchase obligation derivative | Cost of revenues (excluding depreciation) |  |  |  |  |  | (43,269) |  |  | (775) |
MLC terminal obligation derivative | Cost of revenues (excluding depreciation) |  |  |  |  |  | (64,396) |  |  | (24,372) |
Interest rate derivatives | Interest expense and financing costs, net |  |  |  |  |  | — |  |  | 104 |

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 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration