XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Derivatives | 3 Months Ended
--- | ---
Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | Derivatives We enter into financial derivative contracts in order to mitigate the risk of market price fluctuations in aviation, land and marine fuel, to offer our customers fuel pricing alternatives to meet their needs and to mitigate the risk of fluctuations in foreign currency exchange rates. If the derivative instrument is not designated in a hedge relationship, changes in the estimated fair market value are recognized as a component of revenue, cost of revenue or other income (expense), in the consolidated statements of income and comprehensive income. Derivatives which qualify for hedge accounting may be designated as either a fair value or cash flow hedge. For our fair value hedges, changes in the estimated fair market value of the hedging instrument and the hedged item are recognized in the same line item as the underlying transaction type in the consolidated statements of income and comprehensive income. 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 transactions affects earnings. Cash flows for our hedging instruments are classified in the same category as the underlying hedged items. If for any reason hedge accounting is discontinued, then any cash flows subsequent to the date of discontinuance will be classified in a manner consistent with the nature of the instrument. The following describes our derivative classifications: Cash Flow Hedges. Includes certain derivative contracts we execute to mitigate the risk of price or foreign currency 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 swaps or futures contracts, as well as certain forward fixed price purchase and sale contracts, and for portfolio optimization. In addition, non-designated derivatives are held to hedge the risk of currency rate fluctuations. 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 |  | As of
|  |  | March 31, |  | December 31, |  | March 31, |  | December 31,
|  |  | 2018 |  | 2017 |  | 2018 |  | 2017
Derivative Instruments | Consolidated Balance Sheets location |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments |  |  |  |  |  |  |  |
Commodity contracts | Short-term derivative assets, net |  | $ | — |  |  | $ | 0.4 |  |  | $ | — |  |  | $ | 0.5 |
| Accrued expenses and other current liabilities |  | 11.5 |  |  | 2.3 |  |  | 29.1 |  |  | 43.1 |
|  |  | $ | 11.5 |  |  | $ | 2.7 |  |  | $ | 29.1 |  |  | $ | 43.6 |
Foreign currency contracts | Short-term derivative assets, net |  | $ | — |  |  | $ | — |  |  | $ | 0.1 |  |  | $ | — |
| Accrued expenses and other current liabilities |  | 1.9 |  |  | — |  |  | 5.6 |  |  | — |
|  |  | $ | 1.9 |  |  | $ | — |  |  | $ | 5.7 |  |  | $ | — |
Total derivatives designated as hedging instruments |  | $ | 13.4 |  |  | $ | 2.7 |  |  | $ | 34.8 |  |  | $ | 43.6 |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |
Commodity contracts | Short-term derivative assets, net |  | $ | 60.1 |  |  | $ | 191.4 |  |  | $ | 8.2 |  |  | $ | 123.3 |
| Identifiable intangible and other non-current assets |  | 31.9 |  |  | 18.2 |  |  | 15.3 |  |  | 5.2 |
| Accrued expenses and other current liabilities |  | 192.1 |  |  | 86.1 |  |  | 231.2 |  |  | 138.2 |
| Other long-term liabilities |  | 12.4 |  |  | 5.2 |  |  | 23.1 |  |  | 13.5 |
|  |  | $ | 296.5 |  |  | $ | 300.9 |  |  | $ | 277.9 |  |  | $ | 280.2 |
Foreign currency contracts | Short-term derivative assets, net |  | $ | 1.9 |  |  | $ | 4.5 |  |  | $ | 0.6 |  |  | $ | 2.8 |
| Accrued expenses and other current liabilities |  | 3.7 |  |  | 3.9 |  |  | 6.7 |  |  | 5.7 |
| Other long-term liabilities |  | — |  |  | — |  |  | 0.1 |  |  | 0.2 |
|  |  | $ | 5.6 |  |  | $ | 8.5 |  |  | $ | 7.4 |  |  | $ | 8.7 |
Total derivatives not designated as hedging instruments |  | $ | 302.1 |  |  | $ | 309.4 |  |  | $ | 285.3 |  |  | $ | 288.9 |
Total derivatives |  |  | $ | 315.5 |  |  | $ | 312.0 |  |  | $ | 320.1 |  |  | $ | 332.5 |
For information regarding our derivative instruments measured at fair value after netting and collateral see Note 6. 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 March 31, 2018 (in millions):
|  | As of March 31,
Derivative Instruments |  | Units |  | 2018
Commodity contracts |  |  |  |
Buy / Long |  | BBL |  | 67.4 |
Sell / Short |  | BBL |  | (79.3 | )
Foreign currency exchange contracts |  |  |  |
Sell U.S. dollar, buy other currencies |  | USD |  | (266.4 | )
Buy U.S. dollar, sell other currencies |  | USD |  | 526.7 |
As of March 31, 2018, and 2017, the following amounts were recorded on the consolidated balance sheets related to cumulative basis adjustments for fair value hedges (in million):
Line item in the Consolidated Balance Sheets in which the hedged item is included |  | Carrying Amount of Hedged Asset/(Liabilities) |  | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset/(Liabilities)
|  | March 31, |  | March 31,
|  | 2018 |  | 2017 |  | 2018 |  | 2017
Inventory |  | $ | 68.9 |  |  | $ | 55.5 |  |  | $ | 2.6 |  |  | $ | (0.1 | )
The following table presents the effect of fair value and cash flow hedges on income and expense line items in our Consolidated Statements of Income and Comprehensive Income (in millions):
|  |  | Location and Amount of Gain and (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
|  |  | Three Months Ended
|  |  | March 31, 2018 |  | March 31, 2017
|  | Revenue |  | Cost of Revenue |  | Revenue |  | Cost of Revenue
Total amounts of income and expense line items in which the effects of fair value or cash flow hedged are recorded |  | $ | 9,181.3 |  |  | $ | 8,937.9 |  |  | $ | 8,194.3 |  |  | $ | 7,962.9 |
Gains or Loss on fair value hedge relationships |  |  |  |  |  |  |  |
Commodity contracts |  |  |  |  |  |  |  |  |
| Hedged Item |  | — |  |  | 5.5 |  |  | — |  |  | (3.6 | )
| Derivatives designated as hedging instruments |  | — |  |  | (5.6 | ) |  | — |  |  | 5.3 |
Gains or Loss on cash flow hedge relationships |  |  |  |  |  |  |  |
Commodity contracts |  |  |  |  |  |  |  |  |
| Amount of Gain (Loss) Reclassified from Accumulated OCI into Income |  | (3.6 | ) |  | 18.2 |  |  | (10.1 | ) |  | 6.8 |
Total amount of income of expense line items excluding the impact of hedges |  | $ | 9,184.9 |  |  | $ | 8,956.0 |  |  | $ | 8,184.2 |  |  | $ | 7,971.4 |
For the three months ended March 31, 2018 and 2017, there were no gains or losses recognized in earnings related to our fair value or cash flow hedges that were excluded from the assessment of hedge effectiveness. 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, Consolidated Statements of Income and Comprehensive Income (in millions):
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | Three Months Ended |  | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | Three Months Ended
March 31, |  | March 31,
Derivative Instruments | 2018 |  | 2017 |  | Location | 2018 |  | 2017
Commodity contracts | $ | (2.3 | ) |  | $ | 57.1 |  |  | Revenue | $ | (3.6 | ) |  | $ | (10.1 | )
Commodity contracts | 10.2 |  |  | (50.0 | ) |  | Cost of Revenue | 18.2 |  |  | 6.8 |
Foreign Currency contracts | (2.8 | ) |  | — |  |  | Other Income (expense) net | — |  |  | — |
Total (Loss) Gain | $ | 5.1 |  |  | $ | 7.1 |  |  | Total (Loss) Gain | $ | 14.6 |  |  | $ | (3.4 | )
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) |  |  |  | Three Months Ended
|  |  | March 31,
Derivative Instruments - Non-designated |  | Location |  | 2018 |  | 2017
Commodity contracts |  |  |  |  |  |
|  | Revenue |  | $ | 47.6 |  |  | $ | 49.2 |
|  | Cost of revenue |  | (37.0 | ) |  | (38.8 | )
|  |  |  | $ | 10.6 |  |  | $ | 10.4 |
Foreign currency contracts |  |  |  |  |  |
|  | Revenue |  | $ | (0.6 | ) |  | $ | (0.5 | )
|  | Other expense, net |  | (2.8 | ) |  | (1.6 | )
|  |  |  | $ | (3.4 | ) |  | $ | (2.0 | )
Total Gain |  |  |  | $ | 7.2 |  |  | $ | 8.3 |
Credit-Risk-Related Contingent Features We enter into derivative instrument contracts which may require us to periodically provide collateral. Certain derivative contracts contain credit-risk-related contingent clauses which are triggered by credit events. These credit events may include the requirement to provide 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. The following table presents the potential collateral requirements for derivative liabilities with credit-risk-contingent features (in millions):
|  | Potential Collateral Requirements for Derivative Liabilities with Credit-Risk-Contingent Features
|  | As of March 31, 2018 |  | As of December 31, 2017
Net derivatives liability positions with credit contingent features |  | $ | 10.8 |  |  | $ | 11.8 |
Maximum potential collateral requirements |  | $ | 10.8 |  |  | $ | 11.8 |
At March 31, 2018 and December 31, 2017, there was no collateral held by our counterparties on these derivative contracts with credit-risk-contingent features.

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 -URI http://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration