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Derivatives | 12 Months Ended
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Dec. 31, 2015
Derivatives |
Derivatives | 3. Derivatives 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. For additional information on our derivatives accounting policy, see Note 1. As of December 31, 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 |  |  |
|  |  |  |  |  |  |  |  |  |  | Weighted |  |  | Average |  |  |
|  |  |  |  |  |  |  |  |  |  | Average |  |  | Mark-to- |  |  | Fair
|  | Settlement |  |  |  |  |  |  |  |  | Fixed |  |  | Market |  |  | Value
Hedge Strategy |  | Period |  | Derivative Instrument |  | Notional |  | Unit |  |  | Price |  |  | Amount |  |  | Amount
Fair Value Hedge |  | 2016 |  | Commodity contracts for inventory hedging |  | 2.8 |  | BBL |  | $ | 54.104 |  | $ | 4.929 |  | $ | 13.8
|  | 2017 |  | Commodity contracts for inventory hedging |  | 0.1 |  | BBL |  |  | 57.576 |  |  | 5.000 |  |  | 0.5
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 14.3
Cash Flow Hedge |  | 2016 |  | Commodity contracts for inventory hedging |  | 9.8 |  | BBL |  |  | 66.947 |  |  | 0.847 |  |  | 8.3
|  | 2017 |  | Commodity contracts for inventory hedging |  | 0.8 |  | BBL |  |  | 66.784 |  |  | 8.625 |  |  | 6.9
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 15.2
Non-Designated |  | 2016 |  | Commodity contracts (long) |  | 50.9 |  | BBL |  |  | 45.030 |  |  | (15.935) |  |  | (811.1)
|  | 2016 |  | Commodity contracts (short) |  | 41.8 |  | BBL |  |  | 54.410 |  |  | 19.770 |  |  | 826.4
|  | 2017 |  | Commodity contracts (long) |  | 3.1 |  | BBL |  |  | 25.400 |  |  | (2.452) |  |  | (7.6)
|  | 2017 |  | Commodity contracts (short) |  | 2.3 |  | BBL |  |  | 26.810 |  |  | 3.348 |  |  | 7.7
|  | 2018 |  | Commodity contracts (long) |  | 0.7 |  | BBL |  |  | 10.000 |  |  | 2.857 |  |  | 2.0
|  | 2018 |  | Commodity contracts (short) |  | 0.5 |  | BBL |  |  | 11.280 |  |  | (1.200) |  |  | (0.6)
|  | 2020 |  | Commodity contracts (long) |  | 0.1 |  | BBL |  |  | 21.750 |  |  | (1.000) |  |  | (0.1)
|  | 2020 |  | Commodity contracts (short) |  | 0.1 |  | BBL |  |  | 18.840 |  |  | 6.000 |  |  | 0.6
|  | 2016 |  | Foreign currency contracts |  | 6.5 |  | AUD |  |  | 0.717 |  |  | (0.031) |  |  | (0.2)
|  | 2016 |  | Foreign currency contracts |  | 4.3 |  | BRL |  |  | 3.881 |  |  | — |  |  | —
|  | 2016 |  | Foreign currency contracts |  | 82.8 |  | CAD |  |  | 1.335 |  |  | 0.025 |  |  | 2.1
|  | 2016 |  | Foreign currency contracts |  | 0.3 |  | CHF |  |  | 0.964 |  |  | — |  |  | —
|  | 2016 |  | Foreign currency contracts |  | 4,199.0 |  | CLP |  |  | 702.379 |  |  | — |  |  | —
|  | 2016 |  | Foreign currency contracts |  | 52,263.5 |  | COP |  |  | 3,064.704 |  |  | — |  |  | 0.1
|  | 2016 |  | Foreign currency contracts |  | 73.8 |  | DKK |  |  | 6.854 |  |  | (0.003) |  |  | (0.2)
|  | 2016 |  | Foreign currency contracts |  | 45.7 |  | EUR |  |  | 1.099 |  |  | 0.033 |  |  | 1.5
|  | 2016 |  | Foreign currency contracts |  | 124.7 |  | GBP |  |  | 1.530 |  |  | 0.023 |  |  | 2.9
|  | 2016 |  | Foreign currency contracts |  | 111.4 |  | INR |  |  | 66.366 |  |  | — |  |  | —
|  | 2016 |  | Foreign currency contracts |  | 546.3 |  | JPY |  |  | 120.938 |  |  | — |  |  | —
|  | 2016 |  | Foreign currency contracts |  | 1,794.6 |  | MXN |  |  | 16.803 |  |  | — |  |  | (0.1)
|  | 2016 |  | Foreign currency contracts |  | 47.3 |  | NOK |  |  | 8.474 |  |  | 0.004 |  |  | 0.2
|  | 2016 |  | Foreign currency contracts |  | 12.6 |  | PLN |  |  | 3.892 |  |  | 0.008 |  |  | 0.1
|  | 2016 |  | Foreign currency contracts |  | 42.9 |  | RON |  |  | 4.083 |  |  | 0.014 |  |  | 0.6
|  | 2016 |  | Foreign currency contracts |  | 45.6 |  | SEK |  |  | 8.343 |  |  | (0.002) |  |  | (0.1)
|  | 2016 |  | Foreign currency contracts |  | 23.8 |  | SGD |  |  | 1.411 |  |  | (0.004) |  |  | (0.1)
|  | 2016 |  | Foreign currency contracts |  | 109.3 |  | ZAR |  |  | 14.245 |  |  | 0.001 |  |  | 0.1
|  | 2017 |  | Foreign currency contracts |  | 1.8 |  | EUR |  |  | 1.083 |  |  | — |  |  | —
|  | 2017 |  | Foreign currency contracts |  | 8.0 |  | GBP |  |  | 1.553 |  |  | 0.063 |  |  | 0.5
|  | 2017 |  | Foreign currency contracts |  | 1.7 |  | EUR |  |  | 1.105 |  |  | — |  |  | —
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 24.7
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 millions):
|  |  |  | As of December 31,
|  | Balance Sheet Location |  | 2015 |  | 2014
Derivative assets: |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments |  |  |  |  |  |
Commodity contracts |  | Short-term derivative assets, net |  | $ | 114.0 |  | $ | 18.8
Commodity contracts |  | Long-term derivative assets, net |  |  | 7.4 |  |  | —
Commodity contracts |  | Accrued expenses and other current liabilities |  |  | 6.3 |  |  | 4.7
|  |  |  |  | 127.7 |  |  | 23.5
Derivatives not designated as hedging instruments |  |  |  |  |  |
Commodity contracts |  | Short-term derivative assets, net |  |  | 241.4 |  |  | 399.0
Commodity contracts |  | Identifiable intangible and other non-current assets |  |  | 17.0 |  |  | 12.1
Commodity contracts |  | Accrued expenses and other current liabilities |  |  | 120.4 |  |  | 234.1
Commodity contracts |  | Other long-term liabilities |  |  | 4.0 |  |  | 4.8
Foreign currency contracts |  | Short-term derivative assets, net |  |  | 10.9 |  |  | 21.3
Foreign currency contracts |  | Identifiable intangible and other non-current assets |  |  | 0.7 |  |  | 0.5
Foreign currency contracts |  | Accrued expenses and other current liabilities |  |  | 0.8 |  |  | —
|  |  |  |  | 395.2 |  |  | 671.8
|  |  |  | $ | 522.9 |  | $ | 695.3
Derivative liabilities: |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments |  |  |  |  |  |
Commodity contracts |  | Short-term derivative assets, net |  | $ | 95.3 |  | $ | 1.0
Commodity contracts |  | Accrued expenses and other current liabilities |  |  | 2.9 |  |  | 0.7
|  |  |  |  | 98.2 |  |  | 1.7
Derivatives not designated as hedging instruments |  |  |  |  |  |
Commodity contracts |  | Short-term derivative assets, net |  |  | 26.6 |  |  | 76.0
Commodity contracts |  | Identifiable intangible and other non-current assets |  |  | 4.8 |  |  | 0.6
Commodity contracts |  | Accrued expenses and other current liabilities |  |  | 319.9 |  |  | 530.0
Commodity contracts |  | Other long-term liabilities |  |  | 14.2 |  |  | 29.3
Foreign currency contracts |  | Short-term derivative assets, net |  |  | 3.3 |  |  | 12.0
Foreign currency contracts |  | Accrued expenses and other current liabilities |  |  | 1.7 |  |  | —
|  |  |  |  | 370.5 |  |  | 647.9
|  |  |  | $ | 468.7 |  | $ | 649.6
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 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):
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,
|  |  |  | 2015 |  | 2014 |  | 2013 |  |  |  |  |  | 2015 |  | 2014 |  | 2013
Commodity contracts |  | Revenue |  | $ | 49.3 |  | $ | — |  | $ | — |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity contracts |  | Cost of revenue |  |  | 37.5 |  |  | 132.2 |  |  | 2.7 |  | Inventories |  | Cost of revenue |  | $ | (70.7) |  | $ | (150.9) |  | $ | 3.1
|  |  |  | $ | 86.8 |  | $ | 132.2 |  | $ | 2.7 |  |  |  |  |  | $ | (70.7) |  | $ | (150.9) |  | $ | 3.1
There were no gains or losses for the year ended December 31, 2015, 2014 and 2013 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
Commodity Contracts |  | $ | 106.2 |  | $ | — |  | Revenue |  | $ | 6.1 |  | $ | — |  | $ | 28.6 |  | $ | —
Commodity Contracts |  |  | (105.6) |  |  | — |  | Cost of revenue |  |  | (5.7) |  |  | — |  |  | (17.8) |  |  | —
Total |  | $ | 0.6 |  | $ | — |  |  |  | $ | 0.4 |  | $ | — |  | $ | 10.8 |  | $ | —
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 December 31, 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):
Derivatives |  | Location | Realized and Unrealized Gain (Loss)
|  |  |  | For the Year ended December 31,
|  |  |  | 2015 |  | 2014 |  | 2013
Commodity contracts |  | Revenue |  | $ | 171.7 |  | $ | 64.5 |  | $ | 25.4
Commodity contracts |  | Cost of revenue |  |  | (139.0) |  |  | 2.2 |  |  | (5.4)
Foreign currency contracts |  | Revenue |  |  | 4.1 |  |  | 4.3 |  |  | —
Foreign currency contracts |  | Other income (expense), net |  |  | 9.5 |  |  | 12.6 |  |  | (4.0)
|  |  |  | $ | 46.3 |  | $ | 83.6 |  | $ | 16.0
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, 2015, the net liability position for such contracts is $63.2 million, the collateral posted is $28.1 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 $35.1 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

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