Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule Of NYMEX Contracts And Butane Price Swap Purchase Agreements

open futures contracts at March 31, 2018 were as follows:

Type of Contract/Accounting Methodology	Product Represented by the Contract and Associated Barrels	Maturity Dates
Futures - Economic Hedges	4.1 million barrels of refined products and crude oil	Between April 2018 and April 2019
Futures - Economic Hedges	1.0 million barrels of butane and natural gasoline	Between April 2018 and April 2019

Derivatives and Offset Amounts

A schedule of the derivative amounts we have offset and the deposit amounts we could offset under a master netting arrangement are provided below as of December 31, 2017 and March 31, 2018 (in thousands):

Description	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(2)			Margin Deposit Amounts Not Offset in the Consolidated Balance Sheets		Net Asset Amount(1)
As of December 31, 2017	$	(38,936	)	$	12,851	$	(26,085	)	$	36,690	$	10,605
As of March 31, 2018	$	(17,477	)	$	872	$	(16,605	)	$	26,593	$	9,988

(1) Amount represents the maximum loss we would incur if all of 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 at December 31, 2017. Net amount includes energy commodity derivative contracts classified as current liabilities of $16,289 and noncurrent liabilities of $316 at March 31, 2018.

Derivative Gains Included in Accumulated Other Comprehensive Loss (AOCL)

The changes in derivative activity included in accumulated other comprehensive loss (“AOCL”) for the three months ended March 31, 2017 and 2018 were as follows (in thousands):

	Three Months Ended
	March 31,
Derivative Losses Included in AOCL	2017			2018
Beginning balance	$	(34,776	)	$	(33,755	)
Net gain on cash flow hedges	1,295			5,414
Reclassification of net loss on cash flow hedges to income	740			740
Ending balance	$	(32,741	)	$	(27,601	)

Derivatives and Hedging-Cash Flow Hedges

The following is a summary of the effect on our consolidated statements of income for the three months ended March 31, 2017 and 2018 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
Three Months Ended March 31, 2017	$	1,295	Interest expense	$	(740	)

Three Months Ended March 31, 2018 $ 5,414 Interest expense $ (740 )

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

	Three Months Ended March 31,
	2017			2018
Gain (loss) recognized in other income/expense on derivatives (futures contracts)	$	3,398		(181	)
Gain (loss) recognized in other income/expense on hedged item (crude oil)	$	(3,398	)	181

Derivatives and Hedging-Overall-Subsequent Measurement

The following table provides a summary of the effect on our consolidated statements of income for the three months ended March 31, 2017 and 2018 of derivatives accounted for as economic hedges (in thousands):

		Amount of Gain (Loss) Recognized on Derivatives
		Three Months Ended
	Location of Gain (Loss) Recognized on Derivatives	March 31,
Derivative Instrument		2017		2018
Futures contracts	Product sales revenue	$	28,680	$	(7,375	)
Futures contracts	Cost of product sales	1,237		(3,944		)
	Total	$	29,917	$	(11,319	)

Derivatives and Hedging-Designated

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, 2017 and March 31, 2018 (in thousands):

	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

	March 31, 2018
	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	$	354
Interest rate contracts	Other current assets	17,591		Other current liabilities	—
	Total	$	17,591	Total	$	354

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, 2017 and March 31, 2018 (in thousands):

	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
	March 31, 2018
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Futures contracts	Energy commodity derivatives contracts, net	$	872	Energy commodity derivatives contracts, net	$	16,807
Futures contracts	Other noncurrent assets	—		Other noncurrent liabilities	316
	Total	$	872	Total	$	17,123