Schedule of Derivative Instruments Statements of Financial Performance and Financial Position |
The following summarizes the location and amounts of the fair values reported on the company’s consolidated balance sheets and gains or losses related to derivatives included in the company’s consolidated statements of income as of and for the years ended December 31 (in thousands): | | | | | | | | | | | | | | | | | | Asset Derivatives | | Liability Derivatives | | | | | Fair Value | | Fair Value | | | Balance sheet location | | December 31, 2022 | | December 31, 2021 | | December 31, 2022 | | December 31, 2021 | | Derivative instruments designated as hedges | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commodity futures | Other current assets | | $ | 2,169 | | $ | 1,278 | | $ | 2,119 | | $ | 7,430 | | | | | | | | | | | | | | | | | Derivative instruments not designated as hedges | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commodity futures | Other current assets | | | 2,102 | | | 4,319 | | | 5,269 | | | 6,171 | | Total derivative instruments | | | $ | 4,271 | | $ | 5,597 | | $ | 7,388 | | $ | 13,601 | |
Note 7. Derivative Financial Instruments (Continued) The fair value of the above derivative instruments along with required margin deposit amounts with the same counterparty under master netting agreements totaled $23.5 million and $24.9 million at December 31, 2022, and 2021, respectively, and are reflected in other current assets in the consolidated balance sheets. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Amount of | | | | | | | | | | Location of gain | | | gain (loss) | | | | Location of gain | | | Amount of gain | | | (loss) recognized | | | recognized in | | Hedged items in | | (loss) recognized | | | (loss) recognized in | | | in income on | | | income on | | fair value hedge | | in income on | | | income on related | | | derivatives | | | derivatives | | relationships | | related hedged items | | | hedged items | For the Year Ended | | | | | | | | | | | | | December 31, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | Derivatives in fair value | | | | | | | | | | | | | hedging relationships | | | | | | | | | | | | | Commodity futures | | Costs of goods sold | | $ | 2,284 | | Firm commitments | | Costs of goods sold | | $ | (2,290) | | | | | | | | Inventory | | Costs of goods sold | | | (708) | Derivatives not designated | | | | | | | | | | | $ | (2,998) | as hedging instruments | | | | | | | | | | | | | Commodity futures | | Costs of goods sold | | $ | 24,748 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | For the Year Ended | | | | | | | | | | | | | December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | Derivatives in fair value | | | | | | | | | | | | | hedging relationships | | | | | | | | | | | | | Commodity futures | | Costs of goods sold | | $ | (1,369) | | Firm commitments | | Costs of goods sold | | $ | 3,354 | | | | | | | | Inventory | | Costs of goods sold | | | 1,054 | Derivatives not designated | | | | | | | | | | | $ | 4,408 | as hedging instruments | | | | | | | | | | | | | Commodity futures | | Costs of goods sold | | $ | (33,517) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | For the Year Ended | | | | | | | | | | | | | December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | Derivatives in fair value | | | | | | | | | | | | | hedging relationships | | | | | | | | | | | | | Commodity futures | | Costs of goods sold | | $ | (2,004) | | Firm commitments | | Costs of goods sold | | $ | (79) | | | | | | | | Inventory | | Costs of goods sold | | | (482) | Derivatives not designated | | | | | | | | | | | $ | (561) | as hedging instruments | | | | | | | | | | | | | Commodity futures | | Costs of goods sold | | $ | (17,368) | | | | | | | |
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