Derivatives

9 Months Ended

Sep. 30, 2011

Derivatives [Abstract]

Derivatives

12. Derivatives

Commodity Derivatives

At September 30, 2011, we had the following outstanding derivative commodity futures, forwards and options contracts that were entered into to hedge inventory or fixed price purchase commitments. We had no outstanding derivative contracts that were designated as hedges under accounting rules.

	Sell (Short) Contracts		Buy (Long) Contracts
Not qualifying or not designated as hedges under accounting rules:
Crude oil futures:
Contract volumes (1,000 bbls)		369		342
Weighted average contract price per bbl	$	85.51	$	86.34
Heating oil futures:
Contract volumes (1,000 bbls)		135		30
Weighted average contract price per gal	$	2.86	$	2.98
RBOB gasoline futures:
Contract volumes (1,000 bbls)		13		—
Weighted average contract price per gal	$	2.53	$	—
#6 Fuel oil futures:
Contract volumes (1,000 bbls)		705		45
Weighted average contract price per bbl	$	97.18	$	96.71
Crude oil written options:
Contract volumes (1,000 bbls)		120		—
Weighted average premium received	$	2.31	$	—
Heating oil written options:
Contract volumes (1,000 bbls)		10		—
Weighted average premium received	$	7.69	$	—

Financial Statement Impacts

The following tables reflect the estimated fair value gain (loss) position of our derivatives and related inventory impact for qualifying hedges at September 30, 2011 and December 31, 2010:

Fair Value of Derivative Assets and Liabilities

	Asset Derivatives
	Unaudited Condensed Consolidated Balance Sheets	Fair Value
	Location	September 30, 2011			December 31, 2010
Commodity derivatives—futures and call options:
Hedges designated under accounting guidance as fair value hedges	Other Current Assets	$	—		$	14
Undesignated hedges	Other Current Assets		5,966			493
Total asset derivatives		$	5,966		$	507
	Liability Derivatives
	Unaudited Condensed Consolidated Balance Sheets	Fair Value
	Location	September 30, 2011			December 31, 2010
Commodity derivatives—forwards futures and call options:
Hedges designated under accounting guidance as fair value hedges	Other Current Assets	$	—		$	(191	)(1)
Undesignated hedges	Other Current Assets		(3,108	)(1)		(2,283	)(1)
Total liability derivatives			(3,108	)		(2,474	)

(1) These derivative liabilities have been funded with margin deposits recorded in our Unaudited Condensed Consolidated Balance Sheets in Other Current Assets.

	Effect on Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income
	Amount of Gain (Loss) Recognized in Income
	Supply & Logistics Product Costs						Interest Expense Reclassified from AOCL					Other Comprehensive Loss Effective  Portion
	Three Months Ended September  30,						Three Months Ended September  30,					Three Months Ended September  30,
	2011			2010			2011		2010			2011		2010
Commodity derivatives—forwards futures and call options:
Contracts designated as hedges under accounting guidance	$	—	(1)	$	(354	)(1)	$	—	$	—		$	—	$	—
Contracts not considered hedges under accounting guidance		2,587			(138	)		—		—			—		—
Total commodity derivatives		2,587			(492	)		—		—			—		—
Interest rate swaps designated as cash flow hedges under accounting guidance		—			—			—		(1,553	)		—		(224	)
Total derivatives	$	2,587		$	(492	)	$	—	$	(1,553	)	$	—	$	(224	)

	Effect on Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income
	Amount of Gain (Loss) Recognized in Income
	Supply & Logistics Product Costs						Interest Expense Reclassified from AOCL					Other Comprehensive Loss Effective Portion
	Nine Months Ended September 30,						Nine Months Ended September 30,					Nine Months Ended September 30,
	2011			2010			2011		2010			2011		2010
Commodity derivatives—forwards futures and call options:
Contracts designated as hedges under accounting guidance	$	(173	)(1)	$	952	(1)	$	—	$	—		$	—	$	—
Contracts not considered hedges under accounting guidance		(11,050	)		4,287			—		—			—		—
Total commodity derivatives		(11,223	)		5,239			—		—			—		—
Interest rate swaps designated as cash flow hedges under accounting guidance		—			—			—		(2,112	)		—		(424	)
Total derivatives	$	(11,223	)	$	5,239		$	—	$	(2,112	)	$	—	$	(424	)

(1) Represents the amount of loss recognized in income for derivatives related to the fair value hedge of inventory. The amount excludes the gain on the hedged inventory under the fair value hedge of $0.8 million for the nine months ended September 30, 2011 and excludes the gain recorded on the hedged inventory of $0.8 million and $0.5 million for the three and nine months ended September 30, 2010.