Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2018

Derivative Financial Instruments

Schedule of notional values of derivative instruments

	Units (1)		Unit of Measure
Exchange-Traded Derivatives
Long		42,019	Thousands of barrels
Short		(45,036)	Thousands of barrels
OTC Derivatives (Petroleum/Ethanol)
Long		8,589	Thousands of barrels
Short		(6,600)	Thousands of barrels

(1) Number of open positions and gross notional values do not measure the Partnership’s risk of loss, quantify risk or represent assets or liabilities of the Partnership, but rather indicate the relative size of the derivative instruments and are used in the calculation of the amounts to be exchanged between counterparties upon settlements.

Schedule of net gains and losses from derivatives recognized in consolidated statements of operations (in thousands)

	Statement of Gain (Loss)
	Recognized in Income on
	Derivatives	2018		2017		2016
Derivatives in fair value hedging relationship
Exchange-traded futures contracts and OTC derivative contracts for petroleum commodity products	Cost of sales	$	5,566	$	26,118	$	(34,461)
Hedged items in fair value hedge relationship
Physical inventory	Cost of sales	$	(9,686)	$	(23,247)	$	41,860

Summary of derivatives not designated as either fair value hedges or cash flow hedges and their respective fair values and location (in thousands)

	Statement of Gain (Loss)
Derivatives not designated as	Recognized in
hedging instruments	Income on Derivatives	2018		2017		2016
Commodity contracts	Cost of sales	$	3,783	$	9,502	$	3,118
Forward foreign currency contracts	Cost of sales		—		—		71
Total		$	3,783	$	9,502	$	3,189

Schedule of fair values of derivative instruments and location in consolidated balance sheets (in thousands)

		December 31, 2018
		Derivatives		Derivatives Not
		Designated as		Designated as
		Hedging		Hedging
	Balance Sheet Location	Instruments		Instruments		Total
Asset Derivatives:
Exchange-traded derivative contracts	Broker margin deposits	$	5,121	$	120,992	$	126,113
Forward derivative contracts (1)	Derivative assets		—		26,390		26,390
Total asset derivatives		$	5,121	$	147,382	$	152,503
Liability Derivatives:
Exchange-traded derivative contracts	Broker margin deposits	$	—	$	(42,496)	$	(42,496)
Forward derivative contracts (1)	Derivative liabilities		—		(4,494)		(4,494)
Total liability derivatives		$	—	$	(46,990)	$	(46,990)

		December 31, 2017
		Derivatives		Derivatives Not
		Designated as		Designated as
		Hedging		Hedging
	Balance Sheet Location	Instruments		Instruments		Total
Asset Derivatives:
Exchange-traded derivative contracts	Broker margin deposits	$	—	$	32,483	$	32,483
Forward derivative contracts (1)	Derivative assets		—		3,840		3,840
Total asset derivatives		$	—	$	36,323	$	36,323
Liability Derivatives:
Exchange-traded derivative contracts	Broker margin deposits	$	(7,214)	$	(63,869)	$	(71,083)
Forward derivative contracts (1)	Derivative liabilities		—		(13,708)		(13,708)
Interest rate swap contracts	Other long-term liabilities		—		(134)		(134)
Total liability derivatives		$	(7,214)	$	(77,711)	$	(84,925)

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