v3.4.0.3
DERIVATIVES AND RISK MANAGEMENT ACTIVITIES (Tables)
 3 Months Ended
Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table 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
 
March 31,
2016
 
December 31, 2015
 
March 31,
2016
 
December 31, 2015
 
 
 
(Thousands of Dollars)
Derivatives Designated as
Hedging Instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
Other current assets
 
$
—

 
$
1,937

 
$
—

 
$
(23
)
Interest rate swaps
Other long-term assets, net
 
—

 
2,755

 
—

 
—

Commodity contracts
Accrued liabilities
 
88

 
—

 
(358
)
 
—

Interest rate swaps
Other long-term liabilities
 
—

 
—

 
(28,675
)
 
(1,452
)
Total
 
 
88

 
4,692

 
(29,033
)
 
(1,475
)
 
 
 
 
 
 
 
 
 
 
Derivatives Not Designated
as Hedging Instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
Other current assets
 
2,773

 
34,016

 
(1,033
)
 
(24,528
)
Commodity contracts
Accrued liabilities
 
1,135

 
117

 
(1,749
)
 
(237
)
Total
 
 
3,908

 
34,133

 
(2,782
)
 
(24,765
)
 
 
 
 
 
 
 
 
 
 
Total Derivatives
 
 
$
3,996

 
$
38,825

 
$
(31,815
)
 
$
(26,240
)
Derivatives Assets And Liabilities Eligible for Offset Net [Table Text Block]
The following are the net amounts presented on the consolidated balance sheets:
Commodity Contracts
 
March 31,
2016
 
December 31, 2015
 
 
(Thousands of Dollars)
Net amounts of assets presented in the consolidated balance sheets
 
$
1,740

 
$
11,402

Net amounts of liabilities presented in the consolidated balance sheets
 
$
(884
)
 
$
(120
)
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Text Block]
The earnings impact of our commodity contracts, for which gains and/or losses are recognized in “Cost of product sales” on the condensed consolidated statements of comprehensive income, was as follows:
 
Three Months Ended March 31,
 
2016
 
2015
 
(Thousands of Dollars)
Derivatives Designated as Fair Value Hedging Instruments:
 
 
 
Gain (loss) recognized in income on derivative
$
(1,012
)
 
$
2,164

Gain (loss) recognized in income on hedged item
2,866

 
(1,676
)
Gain (loss) recognized in income for ineffective portion
1,854

 
488

 
 
 
 
Derivatives Not Designated as Hedging Instruments:
 
 
 
Gain (loss) recognized in income on derivative
$
720

 
$
330


The earnings impact of our interest rate swaps was as follows:
 
Three Months Ended March 31,
 
2016
 
2015
 
(Thousands of Dollars)
Derivatives Designated as Cash Flow Hedging Instruments:
 
 
 
Gain (loss) recognized in other comprehensive income on derivative (effective portion)
$
(29,978
)
 
$
(2,035
)
Gain (loss) reclassified from AOCI into interest expense, net (effective portion) (a)
$
(2,222
)
 
$
(2,538
)

(a)
As of March 31, 2016, we expect to reclassify a loss of $7.9 million to “Interest expense, net” within the next twelve months associated with unwound forward-starting interest rate swaps.