Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Net Unrealized Gain (Loss) Recognized in OCI and Gain (Loss) Reclassified into Earnings

The following table presents the pre-tax effect on other comprehensive income (“OCI”) and earnings due to fair value adjustments and maturities of hedging instruments under hedge accounting:

	Net Unrealized Gain (Loss) Recognized in OCI				Gain (Loss) Reclassified into Earnings
Derivatives Designated as Cash Flow Hedging Instruments	Three Months Ended September 30,				Income Statement Location	Three Months Ended September 30,
	2021		2020			2021		2020
	(In thousands)
Commodity contracts	$	960	$	2,492	Sales and other revenues	$	(468)	$	(5,217)
					Cost of products sold	—		983
					Operating expenses	520		(352)
Total	$	960	$	2,492		$	52	$	(4,586)

Derivatives Designated as Cash Flow Hedging Instruments	Nine Months Ended September 30,				Income Statement Location	Nine Months Ended September 30,
	2021		2020			2021		2020
	(In thousands)
Commodity contracts	$	1,742	$	(3,918)	Sales and other revenues	$	(19,239)	$	(5,168)
					Cost of products sold	—		3,272
					Operating expenses	467		(1,515)
Total	$	1,742	$	(3,918)		$	(18,772)	$	(3,411)

Schedule of Gain (Loss) Recognized in Earnings

The following table presents the pre-tax effect on income due to maturities and fair value adjustments of our economic hedges:

	Gain (Loss) Recognized in Earnings
Derivatives Not Designated as Hedging Instruments	Income Statement Location	Three Months Ended September 30,				Nine Months Ended September 30,
		2021		2020		2021		2020
		(In thousands)
Commodity contracts	Cost of products sold	$	(7,035)	$	2,880	$	(19,114)	$	20,789
	Interest expense	4,411		(2,170)		11,917		2,542
Foreign currency contracts	Gain (loss) on foreign currency transactions	9,678		(8,177)		(3,151)		10,983
	Total	$	7,054	$	(7,467)	$	(10,348)	$	34,314

Schedule of Notional Amounts of Outstanding Derivatives Serving as Economic Hedges

As of September 30, 2021, we have the following notional contract volumes related to outstanding derivative instruments:

		Notional Contract Volumes by Year of Maturity
	Total Outstanding Notional	2021	2022	Unit of Measure
Derivatives Designated as Hedging Instruments
Natural gas price swaps - long	450,000	450,000	—	MMBTU
Derivatives Not Designated as Hedging Instruments
NYMEX futures (WTI) - short	1,880,000	1,440,000	440,000	Barrels
WTI and gasoline crack spread swaps - short	150,000	150,000	—	Barrels
Forward gasoline and diesel contracts - long	165,000	165,000	—	Barrels
Foreign currency forward contracts	443,112,746	105,825,135	337,287,611	U.S. dollar
Forward commodity contracts (platinum)	38,723	—	38,723	Troy ounces

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

The following table presents the fair value and balance sheet locations of our outstanding derivative instruments. These amounts are presented on a gross basis with offsetting balances that reconcile to a net asset or liability position in our consolidated balance sheets. We present on a net basis to reflect the net settlement of these positions in accordance with provisions of our master netting arrangements.

	Derivatives in Net Asset Position						Derivatives in Net Liability Position
	Gross Assets		Gross Liabilities Offset in Balance Sheet		Net Assets Recognized in Balance Sheet		Gross Liabilities		Gross Assets Offset in Balance Sheet		Net Liabilities Recognized in Balance Sheet
			(In thousands)
September 30, 2021
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	1,384	$	—	$	1,384	$	—	$	—	$	—
	$	1,384	$	—	$	1,384	$	—	$	—	$	—
Derivatives not designated as cash flow hedging instruments:
NYMEX futures contracts	$	—	$	—	$	—	$	8,781	$	—	$	8,781
Commodity price swap contracts	67		—		67		—		—		—
Commodity forward contracts	516		—		516		537		—		537
Foreign currency forward contracts	—		—		—		6,439		(5,326)		1,113
	$	583	$	—	$	583	$	15,757	$	(5,326)	$	10,431
Total net balance					$	1,967					$	10,431
Balance sheet classification:	Prepayment and other				$	1,967	Accrued liabilities				$	10,431

	Derivatives in Net Asset Position						Derivatives in Net Liability Position
	Gross Assets		Gross Liabilities Offset in Balance Sheet		Net Assets Recognized in Balance Sheet		Gross Liabilities		Gross Assets Offset in Balance Sheet		Net Liabilities Recognized in Balance Sheet
			(In thousands)
December 31, 2020
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—	$	—	$	359	$	—	$	359
	$	—	$	—	$	—	$	359	$	—	$	359
Derivatives not designated as cash flow hedging instruments:
NYMEX futures contracts	$	—	$	—	$	—	$	418	$	—	$	418
Commodity forward contracts	275		—		275		196		—		196
Foreign currency forward contracts	—		—		—		23,005		—		23,005
	$	275	$	—	$	275	$	23,619	$	—	$	23,619
Total net balance					$	275					$	23,978
Balance sheet classification:	Prepayment and other				$	275	Accrued liabilities				$	23,978