XML 64 R32.htm IDEA: XBRL DOCUMENT v2.4.0.8
Derivative Instruments (Tables)
 6 Months Ended
Jun. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Outstanding Trading Contracts
As of June 30, 2013, we had the following outstanding trading contracts which we accounted for as derivatives:
 
At June 30, 2013
 
Quantity in
Gallons
 
Estimated Market
Prices
 
Weighted Average
Contract Prices
Forward Contracts
 
 
 
 
 
 
Sale
 
2,102,000


 $0.8225 - $0.9625

$
0.8752

Purchase
 
2,102,000


 $0.8275 - $1.3176

$
0.8734
Fair Values of Derivative Contracts Recorded in Condensed Consolidated Balance Sheet
Fair values of the derivative contracts recorded in the condensed consolidated balance sheet as of June 30, 2013 and December 31, 2012, are as follows:
 
 
 
Asset Derivatives
 
 
 
 
Fair Value
(in thousands)
 
Balance Sheet Location
 
June 30, 2013
 
December 31, 2012
Derivatives not designated as hedging instruments
 
 
 
 
 
 
Forward contracts
 
Mark-to-market energy assets
 
$
79

 
$
182

Call Option
 
Mark-to-market energy assets
 
64

 
$
—

Derivatives designated as fair value hedges
 
 
 
 
 
 
Call options (1)
 
Mark-to-market energy assets
 
—

 
28

        Put Options(2)
 
Mark-to-market energy assets
 
105

 
—

Total asset derivatives
 
 
 
$
248

 
$
210

 
 
 
Liability Derivatives
 
 
 
 
Fair Value
(in thousands)
 
Balance Sheet Location
 
June 30, 2013
 
December 31, 2012
Derivatives not designated as hedging instruments
 
 
 
 
 
 
Forward contracts
 
Mark-to-market energy liabilities
 
$
74

 
$
331

Total liability derivatives
 
 
 
$
74

 
$
331

 
(1) 
We purchased call options for the propane price cap program in May 2012. The call options expired in March 2013.
(2) 
As a fair value hedge with no ineffective portion, the unrealized gains and losses associated with these put options are recorded in cost of sales, offset by the corresponding change in the value of propane inventory (hedged item), which is also recorded in cost of sales. The amounts in cost of sales offset to zero and the unrealized gains and losses of this call option effectively changed the value of propane inventory.
Effects of Gains and Losses from Derivative Instruments on Condensed Consolidated Financial Statements
The effects of gains and losses from derivative instruments on the condensed consolidated financial statements are as follows:
 
  
 
 
 
Amount of Gain (Loss) on Derivatives:
 
 
Location of Gain
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in thousands)
 
(Loss) on Derivatives
 
2013
 
2012
 
2013
 
2012
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss) on forward contracts
 
Revenue
 
$
(60
)
 
(172
)
 
153

 
(232
)
Call Option
 
Inventory
 
(8
)
 
—

 
(8
)
 
—

Derivatives designated as fair value hedges:
 
 
 

 

 

 

Put/Call Option
 
Cost of sales
 
—

 
—

 
(28
)
 
27

Put/Call Options
 
Inventory
 
(14
)
 
(16
)
 
(14
)
 
(16
)
Total
 
 
 
$
(82
)
 
$
(188
)
 
$
103

 
$
(221
)
Effects of Trading Activities on Condensed Consolidated Statements of Income
The effects of trading activities on the condensed consolidated statements of income are the following:
 
 
 
Location in the
 
Three months ended June 30,
 
Six Months Ended June 30,
(in thousands)
 
Statements of Income
 
2013
 
2012
 
2013
 
2012
Realized gain on forward contracts and options
 
Revenue
 
$
110

 
$
807

 
$
185

 
$
1,321

Unrealized gain (loss) on forward contracts
 
Revenue
 
(60
)
 
(172
)
 
153

 
(232
)
Total
 
 
 
$
50

 
$
635

 
$
338

 
$
1,089