Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Schedule of financial assets and financial liabilities measured at fair value on a recurring basis

The following tables present, by level within the fair value hierarchy, the Partnership’s financial assets and liabilities that were measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014 (in thousands):

	Fair Value as of March 31, 2015
	Level 1		Level 2			Level 3			Cash Collateral Netting (2)			Total
Assets:
Forward derivative contracts (1)	$	—	$	50,375		$	7,095		$	—		$	57,470
Foreign currency derivatives	—		27			—			—			27
Interest rate cap	—		17			—			—			17
Exchange-traded/cleared derivative instruments (2)	78,249		—			—			(44,512		)	33,737
Pension plans	17,316		—			—			—			17,316
Total assets	$	95,565	$	50,419		$	7,095		$	(44,512	)	$	108,567

Liabilities:
Forward derivative contracts (1)	$	—	$	(25,583	)	$	(21,984	)	$	—		$	(47,567	)
Swap agreements and options	—		(705		)	—			—			(705		)
Interest rate swaps	—		(6,649		)	—			—			(6,649		)
Total liabilities	$	—	$	(32,937	)	$	(21,984	)	$	—		$	(54,921	)

	Fair Value as of December 31, 2014
	Level 1		Level 2			Level 3			Cash Collateral Netting (2)			Total
Assets:
Forward derivative contracts (1)	$	—	$	81,421		$	2,405		$	—		$	83,826
Foreign currency derivatives	—		9			—			—			9
Interest rate cap	—		17			—			—			17
Exchange-traded/cleared derivative instruments (2)	121,490		—			—			(104,292		)	17,198
Pension plans	18,023		—			—			—			18,023
Total assets	$	139,513	$	81,447		$	2,405		$	(104,292	)	$	119,073

Liabilities:
Forward derivative contracts (1)	$	—	$	(28,500	)	$	(27,928	)	$	—		$	(56,428	)
Swap agreements and options	—		(2,079		)	—			—			(2,079		)
Interest rate swaps	—		(6,696		)	—			—			(6,696		)
Total liabilities	$	—	$	(37,275	)	$	(27,928	)	$	—		$	(65,203	)

(1)

Forward derivative contracts include the Partnership’s petroleum and ethanol physical and financial forwards and OTC swaps.

(2)

Amount includes the effect of cash balances on deposit with clearing brokers.

Carrying value and fair value of the Partnership's senior notes

The carrying value and fair value of the Partnership’s 6.25% Notes, estimated by observing market trading prices of the 6.25% Notes, were as follows (in thousands):

	March 31, 2015				December 31, 2014
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value

6.25% Notes	$	375,000	$	365,411	$	375,000	$	358,594

Schedule of fair value measurement to changes in significant unobservable inputs

Significant Unobservable Input	Position	Change to Input	Impact on Fair Value Measurement
Location basis	Long	Increase (decrease)	Gain (loss)
Location basis	Short	Increase (decrease)	Loss (gain)
Transportation	Long	Increase (decrease)	Gain (loss)
Transportation	Short	Increase (decrease)	Loss (gain)
Throughput costs	Long	Increase (decrease)	Gain (loss)
Throughput costs	Short	Increase (decrease)	Loss (gain)

Summary of the changes in fair value of Level 3 financial assets and liabilities

The following table presents a reconciliation of changes in fair value of the Partnership’s derivative contracts classified as Level 3 in the fair value hierarchy at March 31, 2015 (in thousands):

Fair value at December 31, 2014	$	(25,523	)
Reclass of Level 2 inputs	—
Realized and unrealized gains (losses) recorded in cost of sales	10,634
Fair value at March 31, 2015	$	(14,889	)