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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule Of NYMEX Contracts And Butane Price Swap Purchase Agreements
Our open futures contracts at September 30, 2018 were as follows:
Type of Contract/Accounting Methodology
 
Product Represented by the Contract and Associated Barrels
 
Maturity Dates
Futures - Economic Hedges
 
5.4 million barrels of refined products and crude oil
 
Between October 2018 and April 2019
Futures - Economic Hedges
 
1.7 million barrels of butane and natural gasoline
 
Between October 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 September 30, 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 September 30, 2018
 
$
(55,087
)
 
$
22,843

 
$
(32,244
)
 
$
47,354

 
$
15,110

 
 
 
 
 
 
 
 
 
 
 

(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 $32,244 at September 30, 2018.
Derivative Gains Included in Accumulated Other Comprehensive Loss (AOCL)
The changes in derivative activity included in AOCL for the three and nine months ended September 30, 2017 and 2018 were as follows (in thousands):
 
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
Derivative Losses Included in AOCL
2017
 
2018
 
2017
 
2018
Beginning balance
$
(34,804
)
 
$
(25,165
)
 
$
(34,776
)
 
$
(33,755
)
Net gain (loss) on cash flow hedges
(228
)
 
6,852

 
(1,735
)
 
13,963

Reclassification of net loss on cash flow hedges to income
740

 
740

 
2,219

 
2,219

Ending balance
$
(34,292
)
 
$
(17,573
)
 
$
(34,292
)
 
$
(17,573
)
Derivatives and Hedging-Cash Flow Hedges
The following is a summary of the effect on our consolidated statements of income for the three and nine months ended September 30, 2017 and 2018 of derivatives that were designated as cash flow hedges (in thousands):
 
 
Interest Rate Contracts
 
 
Amount of Gain (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 September 30, 2017
 
$
(228
)
 
Interest expense
 
$
(740
)
Three Months Ended September 30, 2018
 
$
6,852

 
Interest expense
 
$
(740
)

Nine Months Ended September 30, 2017
 
$
(1,735
)
 
Interest expense
 
$
(2,219
)
 
 
 
 
 
 
 
Nine Months Ended September 30, 2018
 
$
13,963

 
Interest expense
 
$
(2,219
)
 
 
 
 
 
 
 
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2017
 
2018
 
2017
 
2018
Gain (loss) recognized in other income/expense on derivatives (futures contracts)
 
$
(1,661
)
 
$
122

 
$
5,107

 
(427
)
Gain (loss) recognized in other income/expense on hedged item (crude oil)
 
$
1,661

 
$
(122
)
 
$
(5,107
)
 
427

 
 
 
 
 
 
 
 
 
Derivatives and Hedging-Overall-Subsequent Measurement
The following table provides a summary of the effect on our consolidated statements of income for the three and nine months ended September 30, 2017 and 2018 of derivatives accounted for as economic hedges (in thousands):
 
 
 
 
Amount of Gain (Loss) Recognized on Derivatives
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
Location of Gain (Loss)
Recognized on Derivatives
 
September 30,
 
September 30,
Derivative Instrument
 
 
2017
 
2018
 
2017
 
2018
Futures contracts
 
Product sales revenue
 
$
(47,336
)
 
$
(24,354
)
 
$
(4,442
)
 
$
(70,140
)
Futures contracts
 
Operating expenses
 
663

 
—

 
663

 
—

Futures contracts
 
Cost of product sales
 
19,660

 
11,665

 
19,713

 
16,058

 
 
Total
 
$
(27,013
)
 
$
(12,689
)
 
$
15,934

 
$
(54,082
)
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 September 30, 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

 
 
 
September 30, 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
 
$
189

Interest rate contracts
 
Other current assets
 
5,215

 
Other current liabilities
 
—

 
 
Total
 
$
5,215

 
Total
 
$
189


 
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 September 30, 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

 
 
 
 
 
 
 
 
 
 
 
September 30, 2018
 
 
Asset Derivatives
 
Liability Derivatives
Derivative Instrument
 
Balance Sheet Location
 
Fair Value
 
Balance Sheet Location
 
Fair Value
Futures contracts
 
Energy commodity derivatives contracts, net
 
$
22,843

 
Energy commodity derivatives contracts, net
 
$
54,898