3. Derivatives

The following describes our derivative classifications:

Cash Flow Hedges. Includes certain of our foreign currency forward contracts we enter into in order to mitigate the risk of currency exchange rate fluctuations.

Fair Value Hedges. Includes derivatives we enter into in order to hedge price risk associated with our inventory and certain firm commitments relating to fixed price purchase and sale contracts.

Non-designated Derivatives. Includes derivatives we primarily enter into in order to mitigate the risk of market price fluctuations in aviation, marine and land fuel in the form of swaps or futures as well as certain fixed price purchase and sale contracts and proprietary trading. In addition, non-designated derivatives are also entered into to hedge the risk of currency rate fluctuations.

For additional information on our derivatives accounting policy, see Note 1.

As of December 31, 2014, our derivative instruments, at their respective fair value positions were as follows (in thousands, except weighted average fixed price and weighted average mark‑to‑market amount):


								Weighted
						Weighted		Average
						Average		Mark-to-		Fair
	Settlement					Fixed		Market		Value
Hedge Strategy	Period	Derivative Instrument	Notional	Unit		Price		Amount		Amount
Fair Value Hedge	2015	Commodity contracts for inventory hedging (long)	305	BBL	$	74.110	$	(3.203)	$	(977)
	2015	Commodity contracts for inventory hedging (short)	4,977	BBL		77.510		4.599		22,889
									$	21,912

Non-Designated	2015	Commodity contracts (long)	34,192	BBL	$	62.693	$	(15.594)	$	(533,192)
	2015	Commodity contracts (short)	27,013	BBL		83.370		20.735		560,114
	2016	Commodity contracts (long)	1,131	BBL		89.989		(23.195)		(26,234)
	2016	Commodity contracts (short)	722	BBL		85.497		17.734		12,804
	2017	Commodity contracts (long)	92	BBL		46.463		(6.696)		(616)
	2017	Commodity contracts (short)	109	BBL		54.430		7.743		844
	2018	Commodity contracts (long)	1	BBL		25.922		(4.000)		(4)
	2018	Commodity contracts (short)	11	BBL		83.997		21.636		238
	2015	Foreign currency contracts	28,783	AUD		0.850		0.005		158
	2015	Foreign currency contracts	471	BRL		2.580		(0.013)		(6)
	2015	Foreign currency contracts	61,577	CAD		1.140		0.020		1,215
	2015	Foreign currency contracts	112	CHF		0.960		0.036		4
	2015	Foreign currency contracts	4,764,256	CLP		602.490		0.000		27
	2015	Foreign currency contracts	31,884,747	COP		2,174.000		0.000		408
	2015	Foreign currency contracts	126,778	DKK		5.950		0.001		64
	2015	Foreign currency contracts	77,278	EUR		1.250		0.019		1,464
	2015	Foreign currency contracts	208,786	GBP		1.610		0.023		4,903
	2015	Foreign currency contracts	135,879	INR		63.040		0.000		24
	2015	Foreign currency contracts	1,390,740	JPY		113.080		0.000		295
	2015	Foreign currency contracts	2,382,533	MXN		13.920		(0.000)		(321)
	2015	Foreign currency contracts	214,957	NOK		6.720		0.001		253
	2015	Foreign currency contracts	7,912	PLN		3.400		0.016		125
	2015	Foreign currency contracts	32,891	RON		3.570		0.014		452
	2015	Foreign currency contracts	46,921	SGD		1.300		0.004		176
	2015	Foreign currency contracts	78,298	ZAR		11.310		0.001		41
	2016	Foreign currency contracts	8,325	GBP		1.620		0.055		459
	2017	Foreign currency contracts	1,400	GBP		1.610		0.033		46
									$	23,741

The following table presents information about our derivative instruments measured at fair value at their gross amounts and their locations on the consolidated balance sheets (in thousands):


		As of December 31,
	Balance Sheet Location	2014		2013
Derivative assets:
Derivatives designated as hedging instruments
Commodity contracts	Short-term derivative assets, net	$	18,844	$	735
Commodity contracts	Accrued expenses and other current liabilities		4,709		—
			23,553		735
Derivatives not designated as hedging instruments
Commodity contracts	Short-term derivative assets, net		398,924		47,062
Commodity contracts	Identifiable intangible and other non-current assets		12,063		1,642
Commodity contracts	Accrued expenses and other current liabilities		234,077		1,141
Commodity contracts	Other long-term liabilities		4,849		874
Foreign currency contracts	Short-term derivative assets, net		21,244		5,003
Foreign currency contracts	Identifiable intangible and other non-current assets		513		—
Foreign currency contracts	Accrued expenses and other current liabilities		—		3,483
			671,670		59,205
		$	695,223	$	59,940
Derivative liabilities:
Derivatives designated as hedging instruments
Commodity contracts	Short-term derivative assets, net	$	978	$	1,544
Commodity contracts	Accrued expenses and other current liabilities		663		—
			1,641		1,544
Derivatives not designated as hedging instruments
Commodity contracts	Short-term derivative assets, net		76,103		26,876
Commodity contracts	Identifiable intangible and other non-current assets		594		894
Commodity contracts	Accrued expenses and other current liabilities		529,976		15,473
Commodity contracts	Other long-term liabilities		29,286		1,228
Foreign currency contracts	Short-term derivative assets, net		11,961		2,867
Foreign currency contracts	Identifiable intangible and other non-current assets		9		—
Foreign currency contracts	Accrued expenses and other current liabilities		—		8,789
Foreign currency contracts	Other long-term liabilities		—		147
			647,929		56,274
		$	649,570	$	57,818

For information regarding our derivative instruments measured at fair value after netting and collateral and their locations on the consolidated balance sheets, see Note 10.

The following tables present the effect of and financial statement location of our derivative instruments and related hedged items in fair value hedging relationships on our consolidated statements of income and comprehensive income (in thousands):


Derivative		Realized and Unrealized								Realized and Unrealized
Instruments	Location	Gain (Loss)						Hedged Items	Location	Gain (Loss)
		For the year ended December 31,							For the year ended December 31,
		2014		2013		2012				2014		2013		2012
Commodity contracts	Revenue	$	—	$	—	$	265	Firm commitments	Revenue	$	—	$	—	$	(201)
Commodity contracts	Cost of revenue		—		—		(1,417)	Firm commitments	Cost of revenue		—		—		739
Commodity contracts	Cost of revenue		132,199		2,685		(19,717)	Inventories	Cost of revenue		(150,943)		3,059		23,972
		$	132,199	$	2,685	$	(20,869)			$	(150,943)	$	3,059	$	24,510

There were no gains or losses for the year ended December 31, 2014, 2013 and 2012 that were excluded from the assessment of the effectiveness of our fair value hedges.

There were no cash flow hedging activities during 2014 and the cash flow hedging activities during 2013 were not significant.

The following table presents the effect and financial statement location of our derivative instruments not designated as hedging instruments on our consolidated statements of income and comprehensive income (in thousands):


Derivatives	Location	Realized and Unrealized Gain (Loss)
		For the Year ended December 31,
		2014		2013		2012
Commodity contracts	Revenue	$	64,485	$	25,420	$	14,967
Commodity contracts	Cost of revenue		2,239		(5,391)		3,333
Foreign currency contracts	Revenue		4,286		(55)		(2,384)
Foreign currency contracts	Other income (expense), net		12,631		(3,998)		(2,271)
		$	83,641	$	15,976	$	13,645

We enter into derivative instrument contracts which may require us to periodically post collateral. Certain of these derivative contracts contain clauses that are similar to credit-risk-related contingent features, including material adverse change, general adequate assurance and internal credit review clauses that may require additional collateral to be posted and/or settlement of the instruments in the event an aforementioned clause is triggered. The triggering events are not a quantifiable measure; rather they are based on good faith and reasonable determination by the counterparty that the triggers have occurred. As of December 31, 2014, the net liability position for such contracts is $111.7 million, the collateral posted is $89.4 million and the amount of assets required to be posted and/or to settle the positions should a credit-risk contingent feature be triggered is $22.3 million. As of December 31, 2013, the net liability position for derivative instrument contracts that contain credit-risk contingent features was not significant.