v3.8.0.1
DERIVATIVES AND RISK MANAGEMENT ACTIVITIES (Tables)
 12 Months Ended
Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
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,
 
 
2017
 
2016
 
2017
 
2016
 
 
 
(Thousands of Dollars)
Derivatives Designated as
Hedging Instruments:
 
 
 
 
 
 
 
 
 
Interest rate swaps
Other long-term assets, net
 
$
—

 
$
1,314

 
$
—

 
$
—

Commodity contracts
Accrued liabilities
 
—

 
144

 
(112
)
 
(3,566
)
Interest rate swaps
Accrued liabilities
 
—

 
—

 
(5,394
)
 
—

Interest rate swaps
Other long-term liabilities
 
—

 
—

 
(4,594
)
 
(2,632
)
Total
 
 
—

 
1,458

 
(10,100
)
 
(6,198
)
 
 
 
 
 
 
 
 
 
 
Derivatives Not Designated
as Hedging Instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
Other current assets
 
—

 
265

 
—

 
(110
)
Commodity contracts
Accrued liabilities
 
742

 
9,128

 
(1,508
)
 
(10,758
)
Total
 
 
742

 
9,393

 
(1,508
)
 
(10,868
)
 
 
 
 
 
 
 
 
 
 
Total Derivatives
 
 
$
742

 
$
10,851

 
$
(11,608
)
 
$
(17,066
)
Offsetting Assets [Table Text Block]
The following are the net amounts presented on the consolidated balance sheets:
 
 
December 31,
Commodity Contracts
 
2017
 
2016
 
 
(Thousands of Dollars)
Net amounts of assets presented in the consolidated balance sheets
 
$
—

 
$
155

Net amounts of liabilities presented in the consolidated balance sheets
 
$
(878
)
 
$
(5,052
)
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Text Block]
We recognize the impact of our commodity contracts on earnings in “Cost of product sales” on the consolidated income statements, and that impact was as follows:
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
 
 
(Thousands of Dollars)
Derivatives Designated as Fair Value Hedging Instruments:
 
 
 
 
 
 
Gain (loss) recognized in income on derivative
 
$
806

 
$
(11,254
)
 
$
21,589

(Loss) gain recognized in income on hedged item
 
(656
)
 
15,295

 
(18,047
)
Gain recognized in income for ineffective portion
 
$
150

 
$
4,041

 
$
3,542

 
 
 
 
 
 
 
Derivatives Not Designated as Hedging Instruments:
 
 
 
 
 
 
(Loss) gain recognized in income on derivative
 
$
(668
)
 
$
225

 
$
2,208


Our interest rate swaps had the following impact on earnings:
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
 
 
(Thousands of Dollars)
Derivatives Designated as Cash Flow Hedging Instruments:
 
 
 
 
 
 
(Loss) gain recognized in other comprehensive (loss) income on
     derivative (effective portion)
 
$
(8,670
)
 
$
(2,621
)
 
$
1,303

Loss reclassified from AOCI into interest expense, net
    (effective portion)
 
(6,624
)
 
(8,331
)
 
(9,802
)