|
Derivative Financial Instruments (Tables)
|
9 Months Ended |
|
Sep. 30, 2014
|
| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
|
| Schedule Of Forward Purchase And Sales Contracts |
As of September 30, 2014, we had commitments under these forward purchase and sale contracts as follows (in millions): | | | | | | | | Notional Value | | Barrels | Forward purchase contracts | $ | 248.1 |
|
| 4.2 | Forward sale contracts | $ | 80.6 |
|
| 0.9 |
|
| Schedule Of NYMEX Contracts And Butane Price Swap Purchase Agreements |
As outlined in the table below, our open NYMEX contracts and CME butane futures agreements at September 30, 2014 were as follows: | | | | | | Type of Contract/Accounting Methodology | | Product Represented by the Contract and Associated Barrels | | Maturity Dates | NYMEX - Fair Value Hedges | | 0.7 million barrels of crude oil | | Between October 2014 and November 2016 | NYMEX - Economic Hedges(1) | | 4.0 million barrels of refined products and crude oil | | Between October 2014 and October 2015 | CME Butane Futures Agreements - Economic Hedges | | 0.9 million barrels of butane | | Between October 2014 and April 2015 |
| | (1) | Of the 4.0 million barrels of products we have economically hedged at September 30, 2014, we had open agreements which swap the pricing on 0.8 million of those barrels from New York harbor to Platts Group 3 or Platts Gulf Coast, which are the geographic locations where these barrels will be sold. |
|
| Derivatives and Offset Amounts [Table Text Block] |
A schedule of the derivative amounts we have offset and the deposit amounts we could offset under a master netting arrangement are provided below as of December 31, 2013 and September 30, 2014 (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | December 31, 2013 | Description | | Gross Amounts of Recognized Liabilities | | Gross Amounts of Assets Offset in the Consolidated Balance Sheet | | Net Amounts of Liabilities Presented in the Consolidated Balance Sheet(1) | | Margin Deposit Amounts Not Offset in the Consolidated Balance Sheet | | Net Asset Amount | Energy commodity derivatives | | $ | (7,167 | ) | | $ | 2,665 |
| | $ | (4,502 | ) | | $ | 14,782 |
| | $ | 10,280 |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | September 30, 2014 | Description | | Gross Amounts of Recognized Assets | | Gross Amounts of Liabilities Offset in the Consolidated Balance Sheet | | Net Amounts of Assets Presented in the Consolidated Balance Sheet(2) | | Margin Deposit Amounts Not Offset in the Consolidated Balance Sheet | | Net Asset Amount | Energy commodity derivatives | | $ | 31,909 |
| | $ | (4,222 | ) | | $ | 27,687 |
| | $ | 133 |
| | $ | 27,820 |
| | | | | | | | | | | |
(1) Net amount includes energy commodity derivative contracts classified as current liabilities, net, of $6,737 and noncurrent assets of $2,235. (2) Net amount includes energy commodity derivative contracts classified as current assets, net, of $27,757 and noncurrent liabilities of $70.
|
| Derivative Gains Included In Accumulated Other Comprehensive Loss (AOCL) |
The changes in derivative activity included in AOCL for the three and nine months ended September 30, 2013 and 2014 were as follows (in thousands): | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | Derivative Gains (Losses) Included in AOCL | 2013 | | 2014 | | 2013 | | 2014 | Beginning balance | $ | 13,892 |
| | $ | 9,835 |
| | $ | 14,126 |
| | $ | 13,627 |
| Net loss on cash flow hedges | (36 | ) | | (1,830 | ) | | (4,596 | ) | | (5,443 | ) | Reclassification of net loss (gain) on cash flow hedges to income | (41 | ) | | 119 |
| | 4,285 |
| | (60 | ) | Ending balance | $ | 13,815 |
| | $ | 8,124 |
| | $ | 13,815 |
| | $ | 8,124 |
|
|
| Derivatives And Hedging-Cash Flow Hedges |
The following tables provide a summary of the effect on our consolidated statements of income for the three and nine months ended September 30, 2013 and 2014 of derivatives accounted for under ASC 815-30, Derivatives and Hedging—Cash Flow Hedges, that were designated as hedging instruments (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2013 | | | Amount of Loss Recognized in AOCL on Derivative | | Location of Gain Reclassified from AOCL into Income | | Amount of Gain Reclassified from AOCL into Income | Derivative Instrument | | | | Effective Portion | | Ineffective Portion | Interest rate contracts | | | $ | (36 | ) | | | Interest expense | | | $ | 41 |
| | | | $ | — |
| |
| | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2014 | | | Amount of Loss Recognized in AOCL on Derivative | | Location of Loss Reclassified from AOCL into Income | | Amount of Loss Reclassified from AOCL into Income | Derivative Instrument | | | | Effective Portion | | Ineffective Portion | Interest rate contracts | | | $ | (1,830 | ) | | | Interest expense | | | $ | (119 | ) | | | | $ | — |
| |
| | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2013 | | | Amount of Loss Recognized in AOCL on Derivative | | Location of Gain (Loss) Reclassified from AOCL into Income | | Amount of Gain (Loss) Reclassified from AOCL into Income | Derivative Instrument | | | | Effective Portion | | Ineffective Portion | Interest rate contracts | | | $ | (36 | ) | | | Interest expense | | | $ | 123 |
| | | | $ | — |
| | NYMEX commodity contracts | | | (4,560 | ) | | | Product sales revenue | | | (4,408 | ) | | | | — |
| | Total cash flow hedges | | | $ | (4,596 | ) | | | Total | | | $ | (4,285 | ) | | | | $ | — |
| |
| | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2014 | | | Amount of Loss Recognized in AOCL on Derivative | | Location of Gain (Loss) Reclassified from AOCL into Income | | Amount of Gain (Loss) Reclassified from AOCL into Income | Derivative Instrument | | | | Effective Portion | | Ineffective Portion | Interest rate contracts | | | $ | (5,443 | ) | | | Interest expense | | | $ | (123 | ) | | | | $ | 183 |
| |
|
| Derivatives And Hedging-Overall-Subsequent Measurement |
The following table provides a summary of the effect on our consolidated statements of income for the three and nine months ended September 30, 2013 and 2014 of derivatives accounted for under ASC 815; Derivatives and Hedging—Overall, that were not designated as hedging instruments (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | Amount of Gain (Loss) Recognized on Derivative | | | | | Three Months Ended | | Nine Months Ended | | | Location of Gain (Loss) Recognized on Derivative | | September 30, | | September 30, | Derivative Instrument | | | 2013 | | 2014 | | 2013 | | 2014 | NYMEX commodity contracts | | Product sales revenue | | $ | (2,035 | ) | | $ | 47,545 |
| | $ | 8,546 |
| | $ | 33,715 |
| NYMEX commodity contracts | | Operating expenses | | (3,107 | ) | | 4,350 |
| | (1,645 | ) | | 447 |
| CME butane futures agreements | | Cost of product sales | | 2,878 |
| | (3,913 | ) | | 2,117 |
| | (3,137 | ) | | | Total | | $ | (2,264 | ) | | $ | 47,982 |
| | $ | 9,018 |
| | $ | 31,025 |
|
|
| Derivatives And Hedging-Designated |
The following tables provide a summary of the fair value of derivatives accounted for under ASC 815, Derivatives and Hedging, which are presented on a net basis in our consolidated balance sheets, that were designated as hedging instruments as of December 31, 2013 and September 30, 2014 (in thousands): | | | | | | | | | | | | | | | | December 31, 2013 | | | Asset Derivatives | | Liability Derivatives | Derivative Instrument | | Balance Sheet Location | | Fair Value | | Balance Sheet Location | | Fair Value | NYMEX commodity contracts | | Energy commodity derivatives contracts, net | | $ | — |
| | Energy commodity derivatives contracts, net | | $ | 146 |
| NYMEX commodity contracts | | Other noncurrent assets | | 2,235 |
| | Other noncurrent liabilities | | — |
| | | Total | | $ | 2,235 |
| | Total | | $ | 146 |
|
| | | | | | | | | | | | | | | | September 30, 2014 | | | Asset Derivatives | | Liability Derivatives | Derivative Instrument | | Balance Sheet Location | | Fair Value | | Balance Sheet Location | | Fair Value | NYMEX commodity contracts | | Energy commodity derivatives contracts, net | | $ | 30 |
| | Energy commodity derivatives contracts, net | | $ | — |
| NYMEX commodity contracts | | Other noncurrent assets | | — |
| | Other noncurrent liabilities | | 70 |
| Interest rate contracts | | Other current assets | | 713 |
| | Other current liabilities | | 2,543 |
| | | Total | | $ | 743 |
| | Total | | $ | 2,613 |
|
The following tables provide a summary of the fair value of derivatives accounted for under ASC 815, Derivatives and Hedging, which are presented on a net basis in our consolidated balance sheets, that were not designated as hedging instruments as of December 31, 2013 and September 30, 2014 (in thousands):
| | | | | | | | | | | | | | | | December 31, 2013 | | | Asset Derivatives | | Liability Derivatives | Derivative Instrument | | Balance Sheet Location | | Fair Value | | Balance Sheet Location | | Fair Value | NYMEX commodity contracts | | Energy commodity derivatives contracts, net | | $ | 48 |
| | Energy commodity derivatives contracts, net | | $ | 7,021 |
| CME butane futures agreements | | Energy commodity derivatives contracts, net | | 382 |
| | Energy commodity derivatives contracts, net | | — |
| | | Total | | $ | 430 |
| | Total | | $ | 7,021 |
| | | | | | | | | | | | September 30, 2014 | | | Asset Derivatives | | Liability Derivatives | Derivative Instrument | | Balance Sheet Location | | Fair Value | | Balance Sheet Location | | Fair Value | NYMEX commodity contracts | | Energy commodity derivatives contracts, net | | $ | 31,879 |
| | Energy commodity derivatives contracts, net | | $ | 897 |
| CME butane futures agreements | | Energy commodity derivatives contracts, net | | — |
| | Energy commodity derivatives contracts, net | | 3,255 |
| | | Total | | $ | 31,879 |
| | Total | | $ | 4,152 |
|
|