Derivative Instruments And Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following table presents the pre-tax effect on other comprehensive income (“OCI”) and earnings due to fair value adjustments and maturities of derivatives designated as hedging instruments under hedge accounting:

	Unrealized Gain (Loss) Recognized in OCI					Gain (Loss) Reclassified into Earnings
Derivatives Designated as Cash Flow Hedging Instruments	Three Months Ended March 31,					Income Statement Location	Three Months Ended March 31,
	2018			2017			2018			2017
	(In thousands)
Commodity contracts	$	(5,570	)	$	3,981	Sales and other revenues	$	1,647		$	3,950
						Cost of products sold	—			(299		)
						Operating expenses	(456		)	(4,295		)
Interest rate contracts (1)	—			63		Interest expense	—			13
Total	$	(5,570	)	$	4,044		$	1,191		$	(631	)

Schedule of Realized Gain (Loss)

The following table presents the pre-tax effect on income due to maturities and fair value adjustments of our economic hedges:

	Gain (Loss) Recognized in Earnings
Derivatives Not Designated as Hedging Instruments	Income Statement Location	Three Months Ended March 31,
		2018			2017
		(In thousands)
Commodity contracts	Cost of products sold	$	(4,867	)	$	7,052
	Operating expenses	—			(4,222		)
Foreign currency contracts	Gain (loss) on foreign currency transactions	16,197			—
	Gain on foreign currency swap contracts (1)	—			24,545
	Total	$	11,330		$	27,375

Schedule of Notional Amounts of Outstanding Derivatives Serving as Economic Hedges

(1) Relates to Canadian currency swap contracts that settled on February 1, 2017 and effectively fixed the conversion rate on our PCLI purchase price.

As of March 31, 2018, we have the following notional contract volumes related to outstanding derivative instruments:

			Notional Contract Volumes by Year of Maturity
	Total Outstanding Notional		2018		2019		2020	2021	Unit of Measure
Derivatives Designated as Hedging Instruments
Natural gas price swaps - long	6,750,000		1,350,000		1,800,000		1,800,000	1,800,000	MMBTU
Forward gasoline and diesel contracts - short	125,000		125,000		—		—	—	Barrels
Forward crude oil contracts - short	784,905		784,905		—		—	—	Barrels
Derivatives Not Designated as Hedging Instruments
NYMEX futures (WTI) - short	570,000		570,000		—		—	—	Barrels
Forward gasoline and diesel contracts - long	150,000		150,000		—		—	—	Barrels
Foreign currency forward contracts	$	454,326,572	$	340,605,264	$	113,721,308	—	—	U.S. Dollar

Schedule of Fair Value and Balance Sheet Location of Outstanding Derivatives

The following table presents the fair value and balance sheet locations of our outstanding derivative instruments. These amounts are presented on a gross basis with offsetting balances that reconcile to a net asset or liability position in our consolidated balance sheets. We present on a net basis to reflect the net settlement of these positions in accordance with provisions of our master netting arrangements.

	Derivatives in Net Asset Position						Derivatives in Net Liability Position
	Gross Assets		Gross Liabilities Offset in Balance Sheet		Net Assets Recognized in Balance Sheet		Gross Liabilities		Gross Assets Offset in Balance Sheet		Net Liabilities Recognized in Balance Sheet
			(In thousands)
March 31, 2018
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—	$	—	$	3,580	$	—	$	3,580
Commodity forward contracts	68		—		68		3,306		—		3,306
	$	68	$	—	$	68	$	6,886	$	—	$	6,886
Derivatives not designated as cash flow hedging instruments:
Foreign exchange forward contracts	$	16,197	$	—	$	16,197	$	—	$	—	$	—
NYMEX futures contracts	—		—		—		1,309		—		1,309
Commodity forward contracts	443		—		443		424		—		424
	$	16,640	$	—	$	16,640	$	1,733	$	—	$	1,733
Total net balance					$	16,708					$	8,619
Balance sheet classification:							Accrued liabilities				$	6,258
							Other long-term liabilities				2,361
	Prepayment and other				$	16,708					$	8,619

	Derivatives in Net Asset Position						Derivatives in Net Liability Position
	Gross Assets		Gross Liabilities Offset in Balance Sheet		Net Assets Recognized in Balance Sheet		Gross Liabilities		Gross Assets Offset in Balance Sheet		Net Liabilities Recognized in Balance Sheet
			(In thousands)
December 31, 2017
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—	$	—	$	2,424	$	—	$	2,424
Commodity forward contracts	3,067		—		3,067		418		—		418
	$	3,067	$	—	$	3,067	$	2,842	$	—	$	2,842
Derivatives not designated as cash flow hedging instruments:
NYMEX futures contracts	$	—	$	—	$	—	$	3,360	$	—	$	3,360
Commodity forward contracts	773		—		773		602		—		602
	$	773	$	—	$	773	$	3,962	$	—	$	3,962
Total net balance					$	3,840					$	6,804
Balance sheet classification:							Accrued liabilities				$	5,365
							Other long-term liabilities				1,439
	Prepayment and other				$	3,840					$	6,804