Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule Of NYMEX Contracts And Butane Price Swap Purchase Agreements

ur open futures contracts at December 31, 2017 were as follows:

Type of Contract/Accounting Methodology	Product Represented by the Contract and Associated Barrels	Maturity Dates
Futures - Economic Hedges	4.4 million barrels of refined products and crude oil	Between January 2018 and April 2019
Futures - Economic Hedges	1.5 million barrels of butane and natural gasoline	Between January 2018 and April 2019

Derivatives and Offset Amounts

December 31, 2016 and 2017 (in thousands):

	Gross Amounts of Recognized Liabilities			Gross Amounts of Assets Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities Presented in the Consolidated Balance Sheets			Margin Deposit Amounts Not Offset in the Consolidated Balance Sheets		Net Asset Amount(1)
Year Ended December 31, 2016	$	(36,798	)	$	6,060	$	(30,738	)	$	49,899	$	19,161
Year Ended December 31, 2017	$	(38,936	)	$	12,851	$	(26,085	)	$	36,690	$	10,605

(1) This represents the maximum amount of loss we would incur if our counterparties failed to perform on their derivative contracts.

(2) Net amount includes energy commodity derivative contracts classified as current liabilities of $25,694 and noncurrent liabilities of $391.

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)

The changes in derivative activity included in AOCL for the years ended December 31, 2015, 2016 and 2017 were as follows (in thousands):

	Year Ended December 31,
Derivative Gains (Losses) Included in AOCL	2015			2016			2017
Beginning balance	$	(16,587	)	$	(30,126	)	$	(34,776	)
Net loss on interest rate contract cash flow hedges	(14,904		)	(6,699		)	(1,937		)
Reclassification of net loss (gain) on cash flow hedges to income	1,365			2,049			2,958
Ending balance	$	(30,126	)	$	(34,776	)	$	(33,755	)

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following is a summary of the effect on our consolidated statements of income for the years ended December 31, 2015, 2016 and 2017 of derivatives that were designated as cash flow hedges (in thousands):

	Interest Rate Contracts
	Amount of Loss Recognized in AOCL on  Derivative				Location of Loss Reclassified from AOCL into Income	Amount of Loss Reclassified from AOCL into Income
						Effective Portion				Ineffective Portion
Year Ended December 31, 2015		$	(14,904	)	Interest expense		$	(1,365	)		$	—
Year Ended December 31, 2016		$	(6,699	)	Interest expense		$	(2,049	)		$	—
Year Ended December 31, 2017		$	(1,937	)	Interest expense		$	(2,958	)		$	—

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The gains (losses) on these futures contracts and the underlying tank bottoms were as follows (in millions):

	Year Ended December 31,
	2015			2016			2017
Gain (loss) recognized in other income/expense on derivative (futures contracts)	$	15.6		$	(9.0	)	$	4.8
Gain (loss) recognized in other income/expense on hedged item (tank bottoms)	$	(15.6	)	$	9.0		$	(4.8	)

Schedule of Derivatives and Hedging-Overall-Subsequent Measurement

The following table provides a summary of the effect on our consolidated statements of income for the years ended December 31, 2015, 2016 and 2017 of derivatives accounted for as economic hedges (in thousands):

		Amount of Gain (Loss) Recognized on Derivative
		Year Ended December 31,
Derivative Instrument	Location of Gain (Loss) Recognized on Derivative	2015			2016			2017
Futures contracts	Product sales revenue	$	68,426		$	(38,584	)	$	(56,338	)
Futures contracts	Cost of product sales	(8,997		)	10,998			25,566
Futures contracts	Operating expenses	11,819			(5,000		)	3,002
	Total	$	71,248		$	(32,586	)	$	(27,770	)

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following tables provide a summary of the fair value of derivatives, which are presented on a net basis in our consolidated balance sheets, that were designated as hedging instruments as of December 31, 2016 and 2017 (in thousands):

	December 31, 2016
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Futures contracts	Energy commodity derivatives contracts, net	$	—	Energy commodity derivatives contracts, net	$	3,079
Interest rate contracts	Other noncurrent assets	14,114		Other noncurrent liabilities	—
	Total	$	14,114	Total	$	3,079
	December 31, 2017
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Futures contracts	Energy commodity derivatives contracts, net	$	—	Energy commodity derivatives contracts, net	$	173
Interest rate contracts	Other current assets	12,177		Other current liabilities	—
	Total	$	12,177	Total	$	173

The following tables provide a summary of the fair value of derivatives, which are presented on a net basis in our consolidated balance sheets, that were not designated as hedging instruments as of December 31, 2016 and 2017 (in thousands):

	December 31, 2016
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Futures contracts	Energy commodity derivatives contracts, net	$	6,060	Energy commodity derivatives contracts, net	$	33,719
	December 31, 2017
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Futures contracts	Energy commodity derivatives contracts, net	$	12,605	Energy commodity derivatives contracts, net	$	38,126
Futures contracts	Other noncurrent assets	246		Other noncurrent liabilities	637
	Total	$	12,851	Total	$	38,763