Product Sales Revenue

12 Months Ended

Dec. 31, 2015

The amounts reported as product sales revenue on our consolidated statements of income include revenue from the physical sale of petroleum products and from mark-to-market adjustments from NYMEX contracts. See Note 13 – Derivative Financial Instruments for a discussion of our commodity hedging strategies and how our NYMEX contracts impact product sales revenue. All of the petroleum products inventory we physically sell associated with our butane blending and fractionation activities, as well as the barrels from product gains we obtain from our independent and marine terminals, are reported as product sales revenue on our consolidated statements of income. The physical sale of the petroleum products inventory from product gains obtained from our pipeline operations and related activities from terminals physically connected to our pipeline system are reported as adjustments to operating expense.

For the years ended December 31, 2013, 2014 and 2015, product sales revenue included the following (in thousands):



	Year Ended December 31,
	2013			2014		2015
Physical sale of refined products	$	755,266		$	733,654	$	561,410
Change in value of NYMEX contracts	(10,597		)	145,320		68,426
Total product sales revenue	$	744,669		$	878,974	$	629,836