XML 47 R11.htm IDEA: XBRL DOCUMENT
v3.3.0.814

Derivatives | 9 Months Ended
--- | ---
Sep. 30, 2015
Derivatives |
Derivatives | 3.Derivatives We enter into financial derivative contracts in order to mitigate the risk of market price fluctuations in aviation, marine and land fuel, to offer our customers fuel pricing alternatives to meet their needs and to mitigate the risk of fluctuations in foreign currency exchange rates. We also enter into proprietary derivative transactions, primarily intended to capitalize on arbitrage opportunities in basis or time spreads related to fuel products we sell. We have applied the normal purchase and normal sales exception (“NPNS”), as provided by accounting guidance for derivative instruments and hedging activities, to certain of our physical forward sales and purchase contracts. While these contracts are considered derivative instruments under the guidance for derivative instruments and hedging activities, they are not recorded at fair value, but rather are recorded in our consolidated financial statements when physical settlement of the contracts occurs. If it is determined that a transaction designated as NPNS no longer meets the scope of the exception, the fair value of the related contract is recorded as an asset or liability on the consolidated balance sheet and the difference between the fair value and the contract amount is immediately recognized through earnings. The following describes our derivative classifications: Cash Flow Hedges. Includes certain commodity contracts we enter into to mitigate the risk of price volatility in forecasted purchases and sales. 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 entered into to hedge the risk of currency rate fluctuations. As of September 30, 2015, our derivative instruments, at their respective fair value positions were as follows (in millions, except weighted average fixed price and weighted average mark-to-market amount):
|  |  |  |  |  |  |  |  |  |  |  |  | Weighted |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  | Average |  |  |
|  |  |  |  |  |  |  |  |  | Weighted |  | Mark-to- |  |  |
|  | Settlement |  |  |  |  |  |  |  | Average |  | Market |  | Fair Value
Hedge Strategy |  | Period |  | Derivative Instrument |  | Notional |  | Unit |  | Fixed Price |  | Amount |  | Amount
Fair Value Hedge |  | 2015 |  | Commodity contracts for inventory hedging |  | 5.8 |  | BBL |  | $ | 42.959 |  | $ | (0.224) |  | $ | (1.3)
|  | 2016 |  | Commodity contracts for inventory hedging |  | 0.1 |  | BBL |  |  | 66.989 |  |  | 18.000 |  |  | 1.8
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 0.5
Cash Flow Hedge |  | 2015 |  | Commodity contracts for inventory hedging |  | — |  | BBL |  |  | 64.730 |  |  | — |  |  | 0.5
|  | 2016 |  | Commodity contracts for inventory hedging |  | 1.5 |  | BBL |  |  | 66.772 |  |  | (1.400) |  |  | (2.1)
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1.6)
Non-Designated |  | 2015 |  | Commodity contracts (long) |  | 21.3 |  | BBL |  | $ | 51.090 |  | $ | (13.649) |  | $ | (291.3)
|  | 2015 |  | Commodity contracts (short) |  | 21.1 |  | BBL |  |  | 58.480 |  |  | 14.600 |  |  | 308.3
|  | 2016 |  | Commodity contracts (long) |  | 23.2 |  | BBL |  |  | 62.660 |  |  | (22.101) |  |  | (513.6)
|  | 2016 |  | Commodity contracts (short) |  | 21.6 |  | BBL |  |  | 69.870 |  |  | 23.284 |  |  | 502.8
|  | 2017 |  | Commodity contracts (long) |  | 0.9 |  | BBL |  |  | 26.260 |  |  | (2.065) |  |  | (1.9)
|  | 2017 |  | Commodity contracts (short) |  | 1.0 |  | BBL |  |  | 20.160 |  |  | 2.129 |  |  | 2.1
|  | 2018 |  | Commodity contracts (long) |  | 0.1 |  | BBL |  |  | 17.500 |  |  | (1.572) |  |  | (0.1)
|  | 2018 |  | Commodity contracts (short) |  | 0.1 |  | BBL |  |  | 26.810 |  |  | 4.505 |  |  | 0.5
|  | 2020 |  | Commodity contracts (short) |  | 0.1 |  | BBL |  |  | 18.840 |  |  | 3.895 |  |  | 0.4
|  | 2015 |  | Foreign currency contracts |  | 8.9 |  | AUD |  |  | 0.732 |  |  | 0.034 |  |  | 0.3
|  | 2015 |  | Foreign currency contracts |  | 81.3 |  | CAD |  |  | 1.307 |  |  | 0.009 |  |  | 0.7
|  | 2015 |  | Foreign currency contracts |  | 2,841.4 |  | CLP |  |  | 677.060 |  |  | 0.000 |  |  | 0.2
|  | 2015 |  | Foreign currency contracts |  | 52.5 |  | EUR |  |  | 1.118 |  |  | (0.006) |  |  | (0.3)
|  | 2015 |  | Foreign currency contracts |  | 116.3 |  | GBP |  |  | 1.552 |  |  | 0.008 |  |  | 0.9
|  | 2015 |  | Foreign currency contracts |  | 2,126.1 |  | MXN |  |  | 16.478 |  |  | (0.000) |  |  | (0.3)
|  | 2015 |  | Foreign currency contracts |  | 43.8 |  | NOK |  |  | 8.219 |  |  | 0.002 |  |  | 0.1
|  | 2015 |  | Foreign currency contracts |  | 41.0 |  | RON |  |  | 3.999 |  |  | (0.002) |  |  | (0.1)
|  | 2015 |  | Foreign currency contracts |  | 37.4 |  | SGD |  |  | 1.392 |  |  | 0.011 |  |  | 0.4
|  | 2015 |  | Foreign currency contracts |  | 59.1 |  | ZAR |  |  | 13.019 |  |  | 0.007 |  |  | 0.4
|  | 2016 |  | Foreign currency contracts |  | 40.0 |  | GBP |  |  | 1.553 |  |  | 0.035 |  |  | 1.4
|  | 2017 |  | Foreign currency contracts |  | 4.8 |  | GBP |  |  | 1.569 |  |  | 0.042 |  |  | 0.2
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 11.1
The following table presents information about our derivative instruments measured at fair value and their locations on the consolidated balance sheets (in millions):
|  |  |  | As of
|  | Balance Sheet Location |  | September 30, 2015 |  | December 31, 2014
Derivative assets: |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments |  |  |  |  |  |
Commodity contracts |  | Short-term derivative assets, net |  | $ | 20.1 |  | $ | 18.8
Commodity contracts |  | Accrued expenses and other current liabilities |  |  | 1.0 |  |  | 4.7
|  |  |  |  | 21.1 |  |  | 23.5
Derivatives not designated as hedging instruments |  |  |  |  |  |
Commodity contracts |  | Short-term derivative assets, net |  |  | 237.9 |  |  | 399.0
Commodity contracts |  | Identifiable intangible and other non-current assets |  |  | 16.3 |  |  | 12.1
Commodity contracts |  | Accrued expenses and other current liabilities |  |  | 157.8 |  |  | 234.1
Commodity contracts |  | Other long-term liabilities |  |  | 11.3 |  |  | 4.8
Foreign currency contracts |  | Short-term derivative assets, net |  |  | 9.6 |  |  | 21.3
Foreign currency contracts |  | Identifiable intangible and other non-current assets |  |  | 0.5 |  |  | 0.5
Foreign currency contracts |  | Accrued expenses and other current liabilities |  |  | 0.6 |  |  | —
|  |  |  |  | 434.0 |  |  | 671.8
|  |  |  | $ | 455.1 |  | $ | 695.3
Derivative liabilities: |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments |  |  |  |  |  |
Commodity contracts |  | Other current assets |  | $ | 21.4 |  | $ | 1.0
Commodity contracts |  | Accrued expenses and other current liabilities |  |  | 0.8 |  |  | 0.7
|  |  |  |  | 22.2 |  |  | 1.7
Derivatives not designated as hedging instruments |  |  |  |  |  |
Commodity contracts |  | Short-term derivative assets, net |  |  | 41.4 |  |  | 76.0
Commodity contracts |  | Identifiable intangible and other non-current assets |  |  | 2.3 |  |  | 0.6
Commodity contracts |  | Accrued expenses and other current liabilities |  |  | 346.9 |  |  | 530.0
Commodity contracts |  | Other long-term liabilities |  |  | 25.5 |  |  | 29.3
Foreign currency contracts |  | Short-term derivative assets, net |  |  | 5.4 |  |  | 12.0
Foreign currency contracts |  | Accrued expenses and other current liabilities |  |  | 1.4 |  |  | —
|  |  |  |  | 422.9 |  |  | 647.9
|  |  |  | $ | 445.1 |  | $ | 649.6
The following table presents the effect 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 millions):
|  |  |  | Realized and Unrealized |  |  |  |  |  | Realized and Unrealized
Derivative Instruments |  | Location |  | Gain |  | Hedged Items |  | Location |  | (Loss)
|  |  |  | 2015 |  | 2014 |  |  |  |  |  | 2015 |  | 2014
Three months ended September 30, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity contracts |  | Cost of revenue |  | $ | 52.8 |  | $ | 36.3 |  | Inventories |  | Cost of revenue |  | $ | (48.5) |  | $ | (36.2)
Nine months ended September 30, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity contracts |  | Cost of revenue |  | $ | 36.7 |  | $ | 34.6 |  | Inventories |  | Cost of revenue |  | $ | (29.2) |  | $ | (44.9)
There were no gains or losses for the three and nine months ended September 30, 2015 and 2014 that were excluded from the assessment of the effectiveness of our fair value hedges. The following table presents the effect and financial statement location of our derivative instruments in cash flow hedging relationships on our accumulated other comprehensive income and consolidated statements of income and comprehensive income (in millions):
|  |  | Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Effective Portion) |  | Location of Realized Gain (Loss) |  | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Effective Portion) |  |  | Amount of Gain (Loss) Recognized in Income (Ineffective Portion)
Derivative Instruments |  |  | 2015 | 2014 |  | (Effective Portion) |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014
Three months ended September 30, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity Contracts |  | $ | 0.3 |  | $ | — |  | Revenue |  |  | $ | — |  |  | — |  | $ | (1.2) |  | $ | —
Commodity Contracts |  |  | (1.4) |  |  | — |  | Cost of revenue |  |  |  | — |  |  | — |  |  | 0.9 |  |  | —
Total |  | $ | (1.1) |  | $ | — |  |  | $ | — |  | $ | — |  | $ | (0.3) |  | $ | —
Nine months ended September 30, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity Contracts |  |  | 0.3 |  |  | — |  | Revenue |  |  |  | — |  |  | — |  | $ | (1.2) |  | $ | —
Commodity Contracts |  |  | (1.4) |  |  | — |  | Cost of revenue |  |  |  | — |  |  | — |  |  | 0.9 |  |  | —
Total |  | $ | (1.1) |  | $ | — |  |  | $ | — |  | $ | — |  | $ | (0.3) |  | $ | —
In the event forecasted cash outflows are less than the hedged amounts, a portion or all of the gain or losses recorded in accumulated other comprehensive income are reclassified to the consolidated statements of income and comprehensive income. As of September 30, 2015, the maximum amount that could be reclassified to the consolidated statements of income and comprehensive income for the next twelve months is 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 millions):
|  |  |  | Realized and Unrealized
Derivatives |  | Location |  | Gain (Loss)
|  |  |  | 2015 |  | 2014
Three months ended September 30, |  |  |  |  |  |  |  |
Commodity contracts |  | Revenue |  | $ | 43.2 |  | $ | 19.8
Commodity contracts |  | Cost of revenue |  |  | (39.9) |  |  | 0.7
Foreign currency contracts |  | Revenue |  |  | 3.4 |  |  | 2.9
Foreign currency contracts |  | Other income, net |  |  | 1.9 |  |  | 8.9
|  |  |  | $ | 8.6 |  | $ | 32.3
Nine months ended September 30, |  |  |  |  |  |  |  |
Commodity contracts |  | Revenue |  | $ | 89.2 |  | $ | 43.9
Commodity contracts |  | Cost of revenue |  |  | (68.0) |  |  | 9.8
Foreign currency contracts |  | Revenue |  |  | 2.1 |  |  | 1.6
Foreign currency contracts |  | Other income, net |  |  | 6.9 |  |  | 5.5
|  |  |  | $ | 30.2 |  | $ | 60.8
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 September 30, 2015, the net liability position for such contracts is $62.2 million, the collateral posted is $43.9 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 $30.2 million. 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.

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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624171-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41620-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624163-113959 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579240-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4D -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624177-113959 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80784-113994 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41641-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579245-113959 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4H -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624258-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80748-113994 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4K -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5708775-113959 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4J -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5708773-113959 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5618551-113959 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5580258-113959 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624181-113959 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41638-113959 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration