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