v2.4.0.6
DERIVATIVES AND RISK MANAGEMENT ACTIVITIES (Tables)
12 Months Ended
Dec. 31, 2011
DERIVATIVES AND RISK MANAGEMENT ACTIVITIES [Abstract]  
Schedule of Derivative Instruments [Table Text Block]
The following table summarizes information about our forward-starting swaps as of December 31, 2011:
Notional Amount
 
Period of Hedge
 
Weighted-Average
Fixed Rate
(Thousands of Dollars)
 
 
 
 
 
 
 
 
 
$125,000
 
03/13 – 03/23
 
3.5
%
150,000
 
06/13 – 06/23
 
3.5
%
225,000
 
02/12 – 02/22
 
3.1
%
$500,000
 
 
 
3.3
%
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Text Block]
The fair values of our derivative instruments included in our consolidated balance sheets were as follows:
 
 
 
Asset Derivatives
 
Liability Derivatives
 
Balance Sheet Location
 
December 31,
 
December 31,
 
 
2011
 
2010
 
2011
 
2010
 
 
 
(Thousands of Dollars)
Derivatives Designated as
Hedging Instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
Other current assets
 
$
36,116

 
$

 
$
(33,616
)
 
$

Commodity contracts
Other long-term assets, net
 
86,052

 

 
(66,175
)
 

Interest rate swaps
Other long-term assets, net
 
2,335

 
45,663

 

 

Commodity contracts
Accrued liabilities
 

 
2,176

 

 
(2,522
)
Interest rate swaps
Accrued liabilities
 

 

 
(22,009
)
 

Interest rate swaps
Other long-term liabilities
 

 

 
(27,190
)
 
(29,483
)
Total
 
 
124,503

 
47,839

 
(148,990
)
 
(32,005
)
 
 
 
 
 
 
 
 
 
 
Derivatives Not Designated
as Hedging Instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
Other current assets
 
15,568

 

 
(5,956
)
 

Commodity contracts
Other long-term assets, net
 
7,207

 

 

 

Commodity contracts
Accrued liabilities
 
519

 
46,632

 
(5,943
)
 
(61,027
)
Total
 
 
23,294

 
46,632

 
(11,899
)
 
(61,027
)
 
 
 
 
 
 
 
 
 
 
Total Derivatives
 
 
$
147,797

 
$
94,471

 
$
(160,889
)
 
$
(93,032
)
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Text Block]
The earnings impact of our derivative activity was as follows:
Derivatives Designated as Fair
Value Hedging Instruments
 
Income Statement
Location
 
Amount of Gain (Loss) Recognized
in Income on Derivative (Effective Portion)
 
Amount of Gain (Loss) Recognized in Income
on Hedged Item
 
Amount of Gain (Loss) Recognized in Income on Derivative
(Ineffective Portion)
 
 
 
 
(Thousands of Dollars)
Year ended December 31, 2011:
 
 
 
 
 
 
Interest rate swaps
 
Interest expense, net
 
$
(55,183
)
 
$
54,588

 
$
(595
)
Commodity contracts
 
Cost of product sales
 
(10,228
)
 
9,004

 
(1,224
)
Total
 
 
 
$
(65,411
)
 
$
63,592

 
$
(1,819
)
 
 
 
 
 
 
 
 
 
Year ended December 31, 2010:
 
 
 
 
 
 
Interest rate swaps
 
Interest expense, net
 
$
(27,443
)
 
$
27,443

 
$

Commodity contracts
 
Cost of product sales
 
(3,221
)
 
13,946

 
10,725

Total
 
 
 
$
(30,664
)
 
$
41,389

 
$
10,725

 
 
 
 
 
 
 
 
 
Year ended December 31, 2009:
 
 
 
 
 
 
Interest rate swaps
 
Interest expense, net
 
$
(6,661
)
 
$
6,661

 
$

Commodity contracts
 
Cost of product sales
 
(22,939
)
 
35,512

 
12,573

Total
 
 
 
$
(29,600
)
 
$
42,173

 
$
12,573

 
Derivatives Designated as Cash
Flow Hedging Instruments
 
Amount of Gain
(Loss) Recognized
in OCI on Derivative
(Effective Portion)
 
Income Statement
Location (a)
 
Amount of Gain
(Loss) Reclassified from
Accumulated OCI
into Income
(Effective Portion)
 
Amount of Gain (Loss) 
Recognized in Income on
Derivative
(Ineffective Portion)
 
 
(Thousands of Dollars)
 
 
 
(Thousands of Dollars)
Year ended December 31, 2011:
 
 
 
 
 
 
Interest rate swaps
 
$
(84,199
)
 
Interest expense, net
 
$

 
$

Commodity contracts
 
30,747

 
Cost of product sales
 
5,030

 
(4,010
)
Total
 
$
(53,452
)
 
 
 
$
5,030

 
$
(4,010
)
 
 
 
 
 
 
 
 
 
Year ended December 31, 2010:
 
 
 
 
 
 
Interest rate swaps
 
$
35,000

 
Interest expense, net
 
$

 
$

Commodity contracts
 
(1,440
)
 
Cost of product sales
 
(1,680
)
 

Total
 
$
33,560

 
 
 
$
(1,680
)
 
$

 
 
 
 
 
 
 
 
 
Year ended December 31, 2009:
 
 
 
 
 
 
Commodity contracts
 
$
(240
)
 
Cost of product sales
 
$

 
$

(a)
Amounts are included in specified location for both the gain (loss) reclassified from accumulated OCI into income (effective portion) and the gain (loss) recognized in income on derivative (ineffective portion).
 
Derivatives Not Designated as Hedging Instruments
 
Income Statement Location
 
Amount of Gain (Loss)
Recognized in Income
 
 
 
 
(Thousands of Dollars)
Year ended December 31, 2011:
 
 
 
 
Commodity contracts
 
Revenues
 
$
235

Commodity contracts
 
Cost of product sales
 
(4,454
)
Commodity contracts
 
Operating expenses
 
46

Total
 
 
 
$
(4,173
)
 
 
 
 
 
Year ended December 31, 2010:
 
 
 
 
Commodity contracts
 
Cost of product sales
 
$
(3,050
)
Commodity contracts
 
Operating expenses
 
(52
)
Total
 
 
 
$
(3,102
)
 
 
 
 
 
Year ended December 31, 2009:
 
 
 
 
Commodity contracts
 
Cost of product sales
 
$
(13,594
)
Commodity contracts
 
Operating expenses
 
(3,589
)
Total
 
 
 
$
(17,183
)