Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule Of NYMEX Contracts And Butane Price Swap Purchase Agreements

Our open futures contracts at March 31, 2019 were as follows:

Type of Contract/Accounting Methodology	Product Represented by the Contract and Associated Barrels	Maturity Dates
Futures - Economic Hedges	3.3 million barrels of refined products and crude oil	Between April 2019 and January 2020
Futures - Economic Hedges	0.6 million barrels of butane and natural gasoline	Between April 2019 and December 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, 2018 and March 31, 2019 (in thousands):

Description	Gross Amounts of Recognized Assets (Liabilities)			Gross Amounts of Assets (Liabilities) Offset in the Consolidated Balance Sheets			Net Amounts of Assets (Liabilities) Presented in the Consolidated Balance Sheets			Margin Deposit Amounts Not Offset in the Consolidated Balance Sheets			Net Asset Amount(1)
As of 12/31/2018	$	62,166		$	(7,155	)	$	55,011		$	(37,328	)	$	17,683
As of 3/31/2019	$	(13,869	)	$	597		$	(13,272	)	$	23,820		$	10,548

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

Derivative Gains Included in Accumulated Other Comprehensive Loss (AOCL)

The changes in derivative activity included in AOCL for the three months ended March 31, 2018 and 2019 were as follows (in thousands):

	Three Months Ended
	March 31,
Derivative Losses Included in AOCL	2018			2019
Beginning balance	$	(33,755	)	$	(26,480	)
Net gain (loss) on cash flow hedges	5,414			(4,376		)
Reclassification of net loss on cash flow hedges to income	740			627
Ending balance	$	(27,601	)	$	(30,229	)

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, 2018 and 2019 of derivatives that were designated as cash flow hedges (in thousands):

	Interest Rate Contracts
	Amount of Gain (Loss) Recognized in AOCL on Derivatives		Location of Loss Reclassified from AOCL into  Income	Amount of Loss Reclassified from AOCL into Income
Three Months Ended March 31, 2018	$	5,414	Interest expense	$	(740	)

Three Months Ended March 31, 2019 $ (4,376 ) Interest expense $ (627 )

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, 2018 and 2019 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		2018			2019
Futures contracts	Product sales revenue	$	(7,375	)	$	(54,511	)
Futures contracts	Cost of product sales	(3,944		)	2,273
	Total	$	(11,319	)	$	(52,238	)

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, 2018 and March 31, 2019 (in thousands):

	December 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	$	462	Energy commodity derivatives contracts, net	$	—
Interest rate contracts	Other current assets	312		Other current liabilities	8,438
	Total	$	774	Total	$	8,438

	March 31, 2019
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Interest rate contracts	Other current assets	$	—	Other current liabilities	$	4,474

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, 2018 and March 31, 2019 (in thousands):

	December 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	$	61,704	Energy commodity derivatives contracts, net	$	7,155
	March 31, 2019
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Futures contracts	Energy commodity derivatives contracts, net	$	597	Energy commodity derivatives contracts, net	$	13,869