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Derivative Instruments | 12 Months Ended
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Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | Derivative Instruments The following describes our derivative classifications: Cash Flow Hedges. Includes certain derivative contracts we execute to mitigate the risk of price volatility in forecasted transactions. Fair Value Hedges. Includes derivative contracts we hold to hedge the risk of changes in the price of our inventory. Non-designated Derivatives. Includes derivatives we primarily transact to mitigate the risk of market price fluctuations in the form of swap or futures contracts as well as certain forward fixed price purchase and sale contracts and proprietary trading. In addition, non-designated derivatives are held to hedge the risk of currency rate fluctuations. For additional information on our derivatives accounting policy, see Note 1. The following table presents the gross fair value of our derivative instruments and their locations on the consolidated balance sheets (in millions):
|  |  | Gross Derivative Assets |  |  | Gross Derivative Liabilities |
|  |  | As of December 31, |  |  | As of December 31, |
Derivative Instruments |  | Balance Sheet Location | 2016 |  | 2015 |  |  | 2016 |  | 2015 |
Derivatives designated as hedging instruments |  |  |  |  |  |  |  |  |
Commodity contracts |  | Short-term derivative assets, net | $ | 2.2 |  | $ | 120.6 |  |  | $ | 5.4 |  | $ | 95.0 |
|  | Identifiable intangible and other non-current assets |  | — |  |  | 7.4 |  |  |  | — |  |  | — |
|  | Accrued expenses and other current liabilities |  | 86.0 |  |  | 6.3 |  |  |  | 93.5 |  |  | 2.9 |
|  | Other long-term liabilities |  | 5.1 |  |  | — |  |  |  | 10.1 |  |  | — |
Total derivatives designated as hedging instruments | $ | 93.3 |  | $ | 134.3 |  |  | $ | 108.9 |  | $ | 97.9 |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |
Commodity contracts | Short-term derivative assets, net | $ | 160.3 |  | $ | 241.4 |  |  | $ | 86.7 |  |  | 26.6 |
|  | Identifiable intangible and other non-current assets |  | 17.1 |  |  | 17.0 |  |  |  | 6.2 |  |  | 4.8 |
|  | Accrued expenses and other current liabilities |  | 52.5 |  |  | 120.4 |  |  |  | 112.2 |  |  | 319.9 |
|  | Other long-term liabilities |  | 8.1 |  |  | 4.0 |  |  |  | 12.1 |  |  | 14.2 |
|  |  | $ | 238.0 |  | $ | 382.9 |  |  | $ | 217.2 |  | $ | 365.5 |
Foreign currency contracts | Short-term derivative assets, net | $ | 13.5 |  | $ | 10.8 |  |  | $ | 3.4 |  | $ | 3.3 |
|  | Identifiable intangible and other non-current assets |  | 0.9 |  |  | 0.7 |  |  |  | 0.1 |  |  | 0.1 |
|  | Accrued expenses and other current liabilities |  | 1.6 |  |  | 0.8 |  |  |  | 2.8 |  |  | 1.7 |
Total derivatives not designated as hedging instruments | $ | 16.0 |  | $ | 12.4 |  |  | $ | 6.4 |  | $ | 5.0 |
Total derivatives |  |  | $ | 347.2 |  | $ | 529.6 |  |  | $ | 332.5 |  | $ | 468.5 |
For information regarding our derivative instruments measured at fair value after netting and collateral see Note 11. The following table summarizes the gross notional values of our commodity and foreign currency exchange derivative contracts used for risk management purposes that were outstanding as of December 31, 2016 (in millions):
| As of December 31, |
Derivative Instruments |  | Units |  | 2016 |
Commodity contracts |  |  |  |
Long |  | BBL |  | 62.7 |
Short |  | BBL |  | (66.7 | )
Foreign currency exchange contracts |  |  |  |
Long |  | AUD |  | 0.2 |
Short |  | AUD |  | (5.2 | )
Long |  | CAD |  | 51.9 |
Short |  | CAD |  | (115.9 | )
Long |  | CHF |  | — |
Short |  | CHF |  | (0.6 | )
Long |  | CLP |  | 1,769.6 |
Short |  | CLP |  | (2,015.1 | )
Long |  | COP |  | 27,753.2 |
Short |  | COP |  | (48,454.9 | )
Long |  | DKK |  | 5.5 |
Short |  | DKK |  | (135.7 | )
Long |  | EUR |  | 5.0 |
Short |  | EUR |  | (38.7 | )
Long |  | GBP |  | 72.0 |
Short |  | GBP |  | (81.4 | )
Long |  | INR |  | 20.3 |
Short |  | INR |  | (92.7 | )
Long |  | JPY |  | 1,167.9 |
Short |  | JPY |  | (1,509.2 | )
Short |  | KRW |  | (11,735.9 | )
Long |  | MXN |  | 1,229.1 |
Short |  | MXN |  | (1,105.6 | )
Long |  | NOK |  | 9.6 |
Short |  | NOK |  | (43.8 | )
Short |  | NZD |  | (0.9 | )
Short |  | PHP |  | (8.0 | )
Long |  | PLN |  | — |
Short |  | PLN |  | (9.7 | )
Short |  | RON |  | (3.9 | )
Long |  | SEK |  | 36.7 |
Short |  | SEK |  | (6.4 | )
Long |  | SGD |  | 15.9 |
Short |  | SGD |  | (31.6 | )
Long |  | ZAR |  | 16.4 |
Short |  | ZAR |  | (15.4 | )
For additional information about our use of derivative instruments, see Item 7A. Quantitative and Qualitative Disclosures About Market Risk. 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 Gain (Loss) |  |  |  |  | Realized and Unrealized Gain (Loss) |
|  | for the Year ended December 31, |  |  |  |  | for the Year ended December 31, |
Derivative Instruments | Location of Gain (Loss) |  | 2016 |  |  | 2015 |  |  | 2014 |  |  | Hedged Items | Location of Gain (Loss) |  | 2016 |  |  | 2015 |  |  | 2014 |
Commodity contracts |  |  |  |  |  |  |  |  | Inventories |  |  |  |  |  |  |
| Revenue | $ | — |  | $ | 49.3 |  | $ | — |  |  |  | Revenue | $ | — |  | $ | — |  | $ | — |
| Cost of revenue |  | (25.3 | ) |  | 37.5 |  |  | 132.2 |  |  |  | Cost of revenue |  | 10.8 |  |  | (70.7 | ) |  | (150.9 | )
Total gain (loss) | $ | (25.3 | ) | $ | 86.8 |  | $ | 132.2 |  |  | Total gain (loss) | $ | 10.8 |  | $ | (70.7 | ) | $ | (150.9 | )
The net gains or losses recognized in income for the years ended December 31, 2016, 2015 and 2014 representing hedge ineffectiveness were -$14.5 million, $16.1 million, and -$18.7 million respectively. There were no gains or losses for the year ended December 31, 2016, 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) |  |  |  | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) |
Derivative | for the Year ended December 31, |  |  | Location of | for the Year ended December 31, |
Instruments |  | 2016 |  |  | 2015 |  |  | 2014 |  |  | Gain (Loss) |  | 2016 |  |  | 2015 |  |  | 2014 |
Commodity contracts | $ | (145.8 | ) | $ | 106.5 |  | $ | — |  |  | Revenue | $ | 18.1 |  | $ | 7.2 |  | $ | — |
Commodity contracts |  | 178.1 |  |  | (105.4 | ) |  | — |  |  | Cost of revenue |  | 20.8 |  |  | (5.3 | ) |  | — |
Total gain (loss) | $ | 32.3 |  | $ | 1.0 |  | $ | — |  |  | Total gain (loss) | $ | 38.8 |  | $ | 1.8 |  | $ | — |
| Amount of Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) |
| for the Year ended December 31, |
Location of Gain (Loss) |  | 2016 |  |  | 2015 |  |  | 2014 |
Revenue | $ | (13.7 | ) | $ | 28.6 |  | $ | — |
Cost of revenue |  | 9.4 |  |  | (17.8 | ) |  | — |
Total gain (loss) | $ | (4.4 | ) | $ | 10.8 |  | $ | — |
The effective portion of the gains or losses on derivative instruments designated as cash flow hedges of forecasted transactions are initially reported as a component of accumulated other comprehensive income and subsequently reclassified into earnings once the future transaction affects earnings. 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):
|  | Amount of Realized and Unrealized Gain (Loss) |
|  | for the Year ended December 31, |
Derivative Instruments - Non-designated | Location of Gain (Loss) |  | 2016 |  |  | 2015 |  |  | 2014 |
Commodity contracts |  |  |  |  |  |
| Revenue | $ | 29.7 |  | $ | 171.7 |  | $ | 64.5 |
| Cost of revenue |  | (31.6 | ) |  | (139.0 | ) |  | 2.2 |
|  | $ | (1.9 | ) | $ | 32.7 |  | $ | 66.7 |
Foreign currency contracts |  |  |  |  |  |
| Revenue | $ | 10.0 |  | $ | 4.1 |  | $ | 4.3 |
| Other (expense) income, net |  | (0.8 | ) |  | 9.5 |  |  | 12.6 |
|  | $ | 9.2 |  | $ | 13.6 |  | $ | 16.9 |
Total gain (loss) |  | $ | 7.3 |  | $ | 46.3 |  | $ | 83.6 |
Credit-Risk-Related Contingent Features We enter into derivative contracts which may require us to post collateral periodically. Certain of these derivative contracts contain credit-risk-related contingent clauses which are triggered by credit events. These credit events may include the requirement to post additional collateral or the immediate settlement of the derivative instruments upon the occurrence of a credit downgrade or if certain defined financial ratios fall below an established threshold. As of December 31, 2016, the net liability position for such contracts is $15.2 million, there was no collateral posted, and the maximum potential collateral requirements arising from the credit risk related contingent features to be posted should a credit-risk contingent feature be triggered is $15.2 million. 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 maximum potential collateral requirements arising from the credit risk related contingent features to be posted should a credit-risk contingent feature be triggered is $35.1 million.

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