Derivative Financial Instruments (Tables)
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3 Months Ended |
Mar. 31, 2019 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Schedule Of NYMEX Contracts And Butane Price Swap Purchase Agreements |
Our open futures contracts at March 31, 2019 were as follows: | | | | | | Type of Contract/Accounting Methodology | | Product Represented by the Contract and Associated Barrels | | Maturity Dates | Futures - Economic Hedges | | 3.3 million barrels of refined products and crude oil | | Between April 2019 and January 2020 | Futures - Economic Hedges | | 0.6 million barrels of butane and natural gasoline | | Between April 2019 and December 2019 |
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| Derivatives and Offset Amounts |
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, 2018 and March 31, 2019 (in thousands): | | | | | | | | | | | | | | | | | | | | | | Description | | Gross Amounts of Recognized Assets (Liabilities) | | Gross Amounts of Assets (Liabilities) Offset in the Consolidated Balance Sheets | | Net Amounts of Assets (Liabilities) Presented in the Consolidated Balance Sheets | | Margin Deposit Amounts Not Offset in the Consolidated Balance Sheets | | Net Asset Amount(1) | As of 12/31/2018 | | $ | 62,166 |
| | $ | (7,155 | ) | | $ | 55,011 |
| | $ | (37,328 | ) | | $ | 17,683 |
| As of 3/31/2019 | | $ | (13,869 | ) | | $ | 597 |
| | $ | (13,272 | ) | | $ | 23,820 |
| | $ | 10,548 |
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| | (1) | Amount represents the maximum loss we would incur if all of our counterparties failed to perform on their derivative contracts. |
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| Derivative Gains Included in Accumulated Other Comprehensive Loss (AOCL) |
The changes in derivative activity included in AOCL for the three months ended March 31, 2018 and 2019 were as follows (in thousands): | | | | | | | | | | | Three Months Ended | | | March 31, | | Derivative Losses Included in AOCL | 2018 | | 2019 | | Beginning balance | $ | (33,755 | ) | | $ | (26,480 | ) | | Net gain (loss) on cash flow hedges | 5,414 |
| | (4,376 | ) | | Reclassification of net loss on cash flow hedges to income | 740 |
| | 627 |
| | Ending balance | $ | (27,601 | ) | | $ | (30,229 | ) | |
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| Derivatives and Hedging-Cash Flow Hedges |
The following is a summary of the effect on our consolidated statements of income for the three months ended March 31, 2018 and 2019 of derivatives that were designated as cash flow hedges (in thousands): | | | | | | | | | | | | | | Interest Rate Contracts | | | Amount of Gain (Loss) Recognized in AOCL on Derivatives | | Location of Loss Reclassified from AOCL into Income | | Amount of Loss Reclassified from AOCL into Income | Three Months Ended March 31, 2018 | | $ | 5,414 |
| | Interest expense | | $ | (740 | ) |
| | | | | | | | | | | | Three Months Ended March 31, 2019 | | $ | (4,376 | ) | | Interest expense | | $ | (627 | ) |
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| Derivatives and Hedging-Overall-Subsequent Measurement |
The following table provides a summary of the effect on our consolidated statements of income for the three months ended March 31, 2018 and 2019 of derivatives accounted for as economic hedges (in thousands): | | | | | | | | | | | | | | | | | Amount of Gain (Loss) Recognized on Derivatives | | | | | | Three Months Ended | | | | Location of Gain (Loss) Recognized on Derivatives | | March 31, | | Derivative Instrument | | | 2018 | | 2019 | | Futures contracts | | Product sales revenue | | $ | (7,375 | ) | | $ | (54,511 | ) | | Futures contracts | | Cost of product sales | | (3,944 | ) | | 2,273 |
| | | | Total | | $ | (11,319 | ) | | $ | (52,238 | ) | |
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| Derivatives and Hedging-Designated |
The following tables provide a summary of the fair value of derivatives, which are presented on a net basis in our consolidated balance sheets, that were designated as hedging instruments as of December 31, 2018 and March 31, 2019 (in thousands): | | | | | | | | | | | | | | | | December 31, 2018 | | | Asset Derivatives | | Liability Derivatives | Derivative Instrument | | Balance Sheet Location | | Fair Value | | Balance Sheet Location | | Fair Value | Futures contracts | | Energy commodity derivatives contracts, net | | $ | 462 |
| | Energy commodity derivatives contracts, net | | $ | — |
| Interest rate contracts | | Other current assets | | 312 |
| | Other current liabilities | | 8,438 |
| | | Total | | $ | 774 |
| | Total | | $ | 8,438 |
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| | | | | | | | | | | | | | | | March 31, 2019 | | | Asset Derivatives | | Liability Derivatives | Derivative Instrument | | Balance Sheet Location | | Fair Value | | Balance Sheet Location | | Fair Value | Interest rate contracts | | Other current assets | | $ | — |
| | Other current liabilities | | $ | 4,474 |
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The following tables provide a summary of the fair value of derivatives, which are presented on a net basis in our consolidated balance sheets, that were not designated as hedging instruments as of December 31, 2018 and March 31, 2019 (in thousands): | | | | | | | | | | | | | | | | December 31, 2018 | | | Asset Derivatives | | Liability Derivatives | Derivative Instrument | | Balance Sheet Location | | Fair Value | | Balance Sheet Location | | Fair Value | Futures contracts | | Energy commodity derivatives contracts, net | | $ | 61,704 |
| | Energy commodity derivatives contracts, net | | $ | 7,155 |
| | | | | | | | | | | | March 31, 2019 | | | Asset Derivatives | | Liability Derivatives | Derivative Instrument | | Balance Sheet Location | | Fair Value | | Balance Sheet Location | | Fair Value | Futures contracts | | Energy commodity derivatives contracts, net | | $ | 597 |
| | Energy commodity derivatives contracts, net | | $ | 13,869 |
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