15. STOCKHOLDERS’ EQUITY

Treasury Stock

The company holds 5.5 million shares of its common stock at a cost of $58.2 million. Treasury stock is recorded at cost and reduces stockholders’ equity in the consolidated balance sheets. When shares are reissued, the company will use the weighted average cost method for determining the cost basis. The difference between the cost and the issuance price is added or deducted from additional paid-in capital.

Share Repurchase Program

In August 2014, the company announced a share repurchase program of up to $100 million of its common stock. Under the program, the company may repurchase shares in open market transactions, privately negotiated transactions, accelerated share buyback programs, tender offers or by other means. The timing and amount of repurchase transactions are determined by its management based on market conditions, share price, legal requirements and other factors. The program may be suspended, modified or discontinued at any time without prior notice. The company repurchased 209,682 shares of common stock for approximately $3.0 million during 2018. Since inception, the company has repurchased 1,119,349 shares of common stock for approximately $19.7 million under the program.

Dividends

The company has paid a quarterly cash dividend since August 2013 and anticipates declaring a cash dividend in future quarters on a regular basis. Future declarations of dividends, however, are subject to board approval and may be adjusted as the company’s liquidity, business needs or market conditions change. On February 6, 2019, the company’s board of directors declared a quarterly cash dividend of $0.12 per share. The dividend is payable on March 15, 2019, to shareholders of record at the close of business on February 22, 2019.

For each calendar quarter commencing with the quarter ended September 30, 2015, the partnership agreement requires the partnership to distribute all available cash, as defined, to its partners within 45 days after the end of each calendar quarter. Available cash generally means all cash and cash equivalents on hand at the end of that quarter less cash reserves established by the general partner of the partnership plus all or any portion of the cash on hand resulting from working capital borrowings made subsequent to the end of that quarter. On January 17, 2019, the board of directors of the general partner of the partnership declared a cash distribution of $0.475 per unit on outstanding common units. The distribution is payable on February 8, 2019, to unitholders of record at the close of business on February 1, 2019.

Accumulated Other Comprehensive Income

Changes in accumulated other comprehensive income are associated primarily with gains and losses on derivative financial instruments. Amounts reclassified from accumulated other comprehensive income are as follows (in thousands):


	Year Ended December 31,						Statements of Income
	2018		2017		2016		Classification
Gains (losses) on cash flow hedges:
Commodity derivatives	$	(10,808)	$	18,167	$	(8,094)	Revenues
Commodity derivatives		1,252		(11,936)		(16,508)	Cost of goods sold
Total		(9,556)		6,231		(24,602)	Income (loss) before income taxes
Income tax expense (benefit)		(2,887)		2,306		(8,830)	Income tax expense (benefit)
Amounts reclassified from accumulated other comprehensive income (loss)	$	(6,669)	$	3,925	$	(15,772)

At December 31, 2018 and 2017, the company’s consolidated balance sheets reflected unrealized losses of $16.0 million and $13.1 million, net of tax, in accumulated other comprehensive loss, respectively.

Hereford and Hopewell Drop-Down

Effective January 1, 2016, the partnership acquired the storage and transportation assets of the Hereford and Hopewell production facilities in a transfer between entities under common control for approximately $62.3 million.