v3.10.0.1
DERIVATIVES AND RISK MANAGEMENT ACTIVITIES (Tables)
 6 Months Ended
Jun. 30, 2018
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
 
June 30,
2018
 
December 31,
2017
 
June 30,
2018
 
December 31,
2017
 
 
 
(Thousands of Dollars)
Derivatives Designated as
Hedging Instruments:
 
 
 
 
 
 
 
 
 
Interest rate swaps
Other long-term assets, net
 
$
4,491

 
$
—

 
$
—

 
$
—

Commodity contracts
Accrued liabilities
 
—

 
—

 
(70
)
 
(112
)
Interest rate swaps
Accrued liabilities
 
—

 
—

 
—

 
(5,394
)
Interest rate swaps
Other long-term liabilities
 
—

 
—

 
—

 
(4,594
)
Total
 
 
4,491

 
—

 
(70
)
 
(10,100
)
 
 
 
 
 
 
 
 
 
 
Derivatives Not Designated
as Hedging Instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
Accrued liabilities
 
1,278

 
742

 
(1,455
)
 
(1,508
)
 
 
 
 
 
 
 
 
 
 
Total Derivatives
 
 
$
5,769

 
$
742

 
$
(1,525
)
 
$
(11,608
)
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
 
June 30,
2018
 
December 31,
2017
 
 
(Thousands of Dollars)
Net amounts of assets presented in the consolidated balance sheets
 
$
—

 
$
—

Net amounts of liabilities presented in the consolidated balance sheets
 
$
(247
)
 
$
(878
)
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 condensed consolidated statements of comprehensive income, as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
 
(Thousands of Dollars)
Derivatives Designated as Fair Value Hedging Instruments:
 
 
 
 
 
 
 
(Loss) gain recognized in income on derivative
$
(1,007
)
 
$
364

 
$
(1,303
)
 
$
2,461

Gain (loss) recognized in income on hedged item
981

 
(313
)
 
1,218

 
(2,147
)
(Loss) gain recognized in income for ineffective portion
$
(26
)
 
$
51

 
$
(85
)
 
$
314

 
 
 
 
 
 
 
 
Derivatives Not Designated as Hedging Instruments:
 
 
 
 
 
 
 
(Loss) gain recognized in income on derivative
$
(90
)
 
$
52

 
$
(231
)
 
$
(86
)

Our interest rate swaps had the following impact on earnings:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
 
(Thousands of Dollars)
Derivatives Designated as Cash Flow Hedging Instruments:
 
 
 
 
 
 
 
Gain (loss) recognized in other comprehensive income on derivative (effective portion)
$
5,106

 
$
(7,980
)
 
$
22,527

 
$
(7,941
)
Loss reclassified from AOCI into interest expense, net (effective portion)
$
(1,162
)
 
$
(1,729
)
 
$
(2,552
)
 
$
(3,528
)