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Derivatives (Tables)

6 Months Ended

Jun. 30, 2016

Derivatives

Schedule of fair value positions of derivative instruments

As of June 30, 2016, 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		2016		Commodity contracts for inventory hedging		2.0		BBL		$	60.961		$	(0.060)		$	(0.1)
		2017		Commodity contracts for inventory hedging		0.1		BBL			61.834			(2.907)			(0.3)
																$	(0.4)
Cash Flow Hedge		2016		Commodity contracts for inventory hedging		15.1		BBL			52.314			0.017			0.3
		2017		Commodity contracts for inventory hedging		1.5		BBL			52.606			(7.379)			(11.2)
																$	(10.9)
Non-Designated		2016		Commodity contracts (long)		42.7		BBL		$	34.112		$	(4.586)		$	(195.9)
		2016		Commodity contracts (short)		41.8		BBL			35.676			4.693			196.1
		2017		Commodity contracts (long)		14.5		BBL			26.233			2.733			39.6
		2017		Commodity contracts (short)		11.2		BBL			32.754			(2.899)			(32.4)
		2018		Commodity contracts (long)		3.2		BBL			16.756			2.339			7.4
		2018		Commodity contracts (short)		2.2		BBL			17.819			(1.807)			(3.9)
		2019		Commodity contracts (long)		0.1		BBL			20.777			0.757			0.1
		2019		Commodity contracts (short)		—		BBL			48.806			3.926			0.1
		2020		Commodity contracts (long)		0.1		BBL			21.457			(1.461)			(0.1)
		2020		Commodity contracts (short)		0.1		BBL			37.674			5.348			0.5
		2021		Commodity contracts (long)		—		BBL			20.730			0.138			—
		2016		Foreign currency contracts		19.3		AUD			0.748			0.003			0.1
		2016		Foreign currency contracts		7.3		BRL			3.442			0.010			0.1
		2016		Foreign currency contracts		174.9		CAD			1.294			(0.004)			(0.7)
		2016		Foreign currency contracts		0.9		CHF			0.970			0.007			—
		2016		Foreign currency contracts		7,621.0		CLP			678.600			(0.000)			(0.1)
		2016		Foreign currency contracts		75,725.7		COP			3,028.989			(0.000)			(0.3)
		2016		Foreign currency contracts		190.1		DKK			6.623			0.001			0.2
		2016		Foreign currency contracts		102.7		EUR			1.132			0.008			0.9
		2016		Foreign currency contracts		178.2		GBP			1.447			0.023			4.1
		2016		Foreign currency contracts		278.3		INR			67.998			—			—
		2016		Foreign currency contracts		600.8		JPY			106.540			(0.000)			(0.1)
		2016		Foreign currency contracts		2,234.5		MXN			18.290			(0.000)			(0.1)
		2016		Foreign currency contracts		125.8		NOK			8.365			(0.000)			—
		2016		Foreign currency contracts		13.8		PLN			3.911			0.002			—
		2016		Foreign currency contracts		20.2		RON			4.022			0.003			0.1
		2016		Foreign currency contracts		103.4		SEK			8.329			(0.002)			(0.2)
		2016		Foreign currency contracts		57.1		SGD			1.359			(0.001)			(0.1)
		2016		Foreign currency contracts		43.2		ZAR			15.358			(0.000)			—
		2017		Foreign currency contracts		25.2		SEK			8.301			(0.000)			—
		2017		Foreign currency contracts		7.3		EUR			1.145			(0.005)			—
		2017		Foreign currency contracts		17.5		GBP			1.492			0.156			2.7
		2018		Foreign currency contracts		16.9		SEK			8.149			0.003			—
		2018		Foreign currency contracts		1.7		EUR			1.105			(0.025)			—
		2018		Foreign currency contracts		0.5		GBP			1.428			0.095			—
		2019		Foreign currency contracts		0.3		GBP			1.457			0.115			—
																$	18.1

Schedule of derivative instruments measured at fair value and their locations on the consolidated balance sheets

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		June 30, 2016			December 31, 2015
Derivative assets:
Derivatives designated as hedging instruments
Commodity contracts		Short-term derivative assets, net		$	—		$	114.0
Commodity contracts		Identifiable intangible and other non-current assets			—			7.4
Commodity contracts		Accrued expenses and other current liabilities			122.0			6.3
					122.0			127.7
Derivatives not designated as hedging instruments
Commodity contracts		Short-term derivative assets, net			48.5			241.4
Commodity contracts		Identifiable intangible and other non-current assets			31.2			17.0
Commodity contracts		Accrued expenses and other current liabilities			133.9			120.4
Commodity contracts		Other long-term liabilities			2.1			4.0
Foreign currency contracts		Short-term derivative assets, net			14.5			10.9
Foreign currency contracts		Identifiable intangible and other non-current assets			1.7			0.7
Foreign currency contracts		Accrued expenses and other current liabilities			1.2			0.8
					233.1			395.2
				$	355.1		$	522.9
Derivative liabilities:
Derivatives designated as hedging instruments
Commodity contracts		Short-term derivative assets, net		$	—		$	95.3
Commodity contracts		Accrued expenses and other current liabilities			133.4			2.9
					133.4			98.2
Derivatives not designated as hedging instruments
Commodity contracts		Short-term derivative assets, net			7.2			26.6
Commodity contracts		Identifiable intangible and other non-current assets			18.1			4.8
Commodity contracts		Accrued expenses and other current liabilities			169.2			319.9
Commodity contracts		Other long-term liabilities			9.6			14.2
Foreign currency contracts		Short-term derivative assets, net			7.7			3.3
Foreign currency contracts		Identifiable intangible and other non-current assets			0.1			—
Foreign currency contracts		Accrued expenses and other current liabilities			3.0			1.7
					214.9			370.5
				$	348.3		$	468.7

Impact of derivatives designated as fair value hedges on the consolidated statements of income and comprehensive income

The following table presents the effect and financial statement location of our derivative instruments in a fair value hedging relationship and related hedged items on our consolidated statements of income and comprehensive income (in millions):

				Realized and Unrealized										Realized and Unrealized
Derivative Instruments		Location		Loss						Hedged Items		Location		Gain (Loss)
				2016			2015							2016			2015
Three months ended June 30,
Commodity contracts		Cost of revenue		$	(34.2)		$	(20.1)		Inventories		Cost of revenue		$	13.9		$	19.8
Six months ended June 30,
Commodity contracts		Cost of revenue		$	(30.8)		$	(16.1)		Inventories		Cost of revenue		$	10.7		$	19.3

Impact of derivatives designated as hedges on the accumulated other comprehensive income and consolidated statements of income and comprehensive income

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)      (Effective Portion)			Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Effective Portion)				Amount of Gain (Loss) Recognized in Income (Ineffective Portion)
Derivative Instruments			2016			2015					2016	2015			2016	2015
Three Months ended June 30,
Commodity contracts		$	(70.0)		$	—		Revenue		$	5.4	—		$	(15.0)	—
Commodity contracts			68.7			—		Cost of Revenue			1.1	—			9.9	—
Total		$	(1.3)		$	—				$	6.5	—		$	(5.1)	—
Six Months ended June 30,
Commodity contracts		$	(116.5)		$	—		Revenue		$	(48.4)	—		$	(15.1)	—
Commodity contracts			112.9			—		Cost of Revenue			55.5	—			12.8	—
		$	(3.6)		$	—				$	7.1	—		$	(2.3)	—

Impact of derivatives not designated as hedges on the consolidated statements of income and comprehensive income

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)
				2016			2015
Three months ended June 30,
Commodity contracts		Revenue		$	(5.5)		$	25.4
Commodity contracts		Cost of revenue			8.8			(16.4)
Foreign currency contracts		Revenue			4.5			(5.2)
Foreign currency contracts		Other (expense) income, net			(0.4)			(4.2)
				$	7.4		$	(0.4)
Six months ended June 30,
Commodity contracts		Revenue		$	33.4		$	46.0
Commodity contracts		Cost of revenue			(38.7)			(28.1)
Foreign currency contracts		Revenue			6.5			(1.3)
Foreign currency contracts		Other (expense) income, net			(5.6)			5.0
				$	(4.4)		$	21.6

Schedule of net liability and collateral position for derivative contracts

The following table presents the net liability position for such contracts, the collateral posted and amount of assets required to be posted and/or to settle the positions should a credit-risk contingent feature be triggered (in millions):

	Net Liability Position						Collateral			Contingent
	Subject to Collateral Requirements						Posted			Additional Collateral
As of June 30, 2016
Commodity contracts			$	16.0		$	(4.4)		$	11.6
As of December 31, 2015
Commodity contract			$	63.2		$	(28.1)		$	35.0

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