Fair Value of Financial Instruments (Tables)

3 Months Ended

Jun. 30, 2015

Fair Value of Financial Instruments

Schedule of estimated fair value measurements of assets and liabilities

The following table summarizes the estimated fair values of our commodity derivative assets and liabilities reported in our condensed consolidated balance sheet at June 30, 2015:

	Derivative			Derivative
	Assets			Liabilities
	(in thousands)
Level 1 measurements	$	2,879		$	(9,070	)
Level 2 measurements	40,011			(29,585		)
	42,890			(38,655		)
Netting of counterparty contracts (1)	(2,791		)	2,791
Net cash collateral provided	—			8,543
Commodity derivatives in condensed consolidated balance sheet	$	40,099		$	(27,321	)

(1) Relates to commodity derivative assets and liabilities that are expected to be net settled on an exchange or through a netting arrangement with the counterparty.

The following table summarizes the estimated fair values of our commodity derivative assets and liabilities reported in our condensed consolidated balance sheet at March 31, 2015:

	Derivative			Derivative
	Assets			Liabilities
	(in thousands)
Level 1 measurements	$	83,779		$	(3,969	)
Level 2 measurements	34,963			(28,764		)
	118,742			(32,733		)
Netting of counterparty contracts (1)	(1,804		)	1,804
Net cash collateral provided (held)	(56,660		)	2,979
Commodity derivatives in condensed consolidated balance sheet	$	60,278		$	(27,950	)

(1) Relates to commodity derivative assets and liabilities that are expected to be net settled on an exchange or through a netting arrangement with the counterparty.

Schedule of location of commodity derivative assets and liabilities reported on the condensed consolidated balance sheets

	June 30,			March 31,
	2015			2015
	(in thousands)
Prepaid expenses and other current assets	$	40,099		$	60,278
Accrued expenses and other payables	(27,321		)	(27,950		)
Net commodity derivative asset	$	12,778		$	32,328

Summary of open commodity derivative contract positions

		Net Long (Short)		Fair Value
		Notional		of
		Units		Net Assets
Contracts	Settlement Period	(Barrels)		(Liabilities)
		(in thousands)
At June 30, 2015—
Cross-commodity (1)	July 2015–March 2016	99		$	(1,320	)
Crude oil fixed-price (2)	July 2015–December 2015	(1,209	)	102
Crude oil index-price (3)	July 2015–July 2015	198		624
Propane fixed-price (4)	July 2015–November 2017	485		(3,973		)
Refined products fixed-price (4)	July 2015–December 2015	(2,667	)	5,391
Other	July 2015–April 2016			3,411
				4,235
Net cash collateral provided				8,543
Net commodity derivatives in condensed consolidated balance sheet				$	12,778
At March 31, 2015—
Cross-commodity (1)	April 2015–March 2016	98		$	(105	)
Crude oil fixed-price (2)	April 2015–June 2015	(1,113	)	(171		)
Crude oil index-price (3)	April 2015–July 2015	751		1,835
Propane fixed-price (4)	April 2015–December 2016	193		(2,842		)
Refined products fixed-price (4)	April 2015–December 2015	(3,005	)	84,996
Other	April 2015–December 2015			2,296
				86,009
Net cash collateral held				(53,681		)
Net commodity derivatives in condensed consolidated balance sheet				$	32,328

(1) Cross-commodity—We may purchase or sell a physical commodity where the underlying contract pricing mechanisms are tied to different commodity price indices. The contracts listed in this table as “Cross-commodity” represent derivatives we have entered into as an economic hedge against the risk of one commodity price moving relative to another commodity price.

(2) Crude oil fixed-price—Our crude oil logistics segment routinely purchases crude oil inventory to enable us to fulfill future orders expected to be placed by our customers. The contracts listed in this table as “Crude oil fixed-price” represent derivatives we have entered into as an economic hedge against the risk that crude oil prices will decline while we are holding the inventory.

(3) Crude oil index-price—Our crude oil logistics segment may purchase or sell crude oil where the underlying contract pricing mechanisms are tied to different crude oil indices. These indices may vary in the type or location of crude oil, or in the timing of delivery within a given month. The contracts listed in this table as “Crude oil index-price” represent derivatives we have entered into as an economic hedge against the risk of one crude oil index moving relative to another crude oil index.

(4) Commodity fixed-price—We may have fixed price physical purchases, including inventory, offset by floating price physical sales or floating price physical purchases offset by fixed price physical sales. The contracts listed in this table as “fixed-price” represent derivatives we have entered into as an economic hedge against the risk of mismatches between fixed and floating price physical obligations.

Schedule of net gains (losses) from entity's commodity derivatives to cost of sales

We recorded the following net losses from our commodity derivatives to cost of sales (in thousands):

Three Months Ended June 30,
2015	$	(41,243	)
2014	(17,485		)

Schedule of fair value estimates of fixed-rate notes

The following table provides fair value estimates of our fixed-rate notes at June 30, 2015 (in thousands):

5.125% Notes due 2019	$	396,000
6.875% Notes due 2021	467,438
6.650% Notes due 2022	270,794