Derivative Instruments And Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2019

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:

	Net Unrealized Gain (Loss) Recognized in OCI					Gain (Loss) Reclassified into Earnings
Derivatives Designated as Cash Flow Hedging Instruments	Three Months Ended September 30,					Income Statement Location	Three Months Ended September 30,
	2019			2018			2019			2018
	(In thousands)
Commodity contracts	$	(7,562	)	$	5,792	Sales and other revenues	$	—		$	(1,422	)
						Cost of products sold	6,027			—
						Operating expenses	(454		)	(209		)
Total	$	(7,562	)	$	5,792		$	5,573		$	(1,631	)

	Net Unrealized Gain (Loss) Recognized in OCI				Gain (Loss) Reclassified into Earnings
Derivatives Designated as Cash Flow Hedging Instruments	Nine Months Ended September 30,				Income Statement Location	Nine Months Ended September 30,
	2019		2018			2019			2018
	(In thousands)
Commodity contracts	$	372	$	1,796	Sales and other revenues	$	(1,799	)	$	(5,093	)
					Cost of products sold	15,323			—
					Operating expenses	(987		)	(945		)
Total	$	372	$	1,796		$	12,537		$	(6,038	)

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 September 30,						Nine Months Ended September 30,
		2019			2018			2019			2018
		(In thousands)
Commodity contracts	Cost of products sold	$	8,640		$	(8,252	)	$	1,561		$	(20,580	)
	Interest expense	(1,720		)	—			(2,995		)	—
Foreign currency contracts	Gain on foreign currency transactions	5,713			(7,052		)	(8,983		)	18,504
	Total	$	12,633		$	(15,304	)	$	(10,417	)	$	(2,076	)

Schedule of Notional Amounts of Outstanding Derivatives Serving as Economic Hedges

As of September 30, 2019, we have the following notional contract volumes related to outstanding derivative instruments:

		Notional Contract Volumes by Year of Maturity
	Total Outstanding Notional	2019	2020	2021	Unit of Measure
Derivatives Designated as Hedging Instruments
Natural gas price swaps - long	4,050,000	450,000	1,800,000	1,800,000	MMBTU
Crude oil price swaps (basis spread) - long	5,954,000	1,196,000	4,758,000	—	Barrels
Forward crude oil contracts - short	423,739	423,739	—	—	Barrels
Derivatives Not Designated as Hedging Instruments
NYMEX futures (WTI) - short	1,825,000	1,713,000	112,000	—	Barrels
Crude oil price swaps (basis spread) - long	1,464,000	—	1,464,000	—	Barrels
WTI and gasoline crack spread swaps - short	200,000	200,000	—	—	Barrels
Forward gasoline and diesel contracts - long	538,500	538,500	—	—	Barrels
Forward crude oil contracts - long	140,849	140,849	—	—	Barrels
Physical contracts - long	350,000	350,000	—	—	Barrels
Physical contracts - short	350,000	350,000	—	—	Barrels
Foreign currency forward contracts	434,443,896	114,213,501	320,230,395	—	U.S. dollar
Forward commodity contracts (platinum)	41,147	41,147	—	—	Troy ounces

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)
September 30, 2019
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	13,182	$	(1,576	)	$	11,606	$	1,614	$	(500	)	$	1,114
Commodity forward contracts	—		—			—		258		—			258
	$	13,182	$	(1,576	)	$	11,606	$	1,872	$	(500	)	$	1,372
Derivatives not designated as cash flow hedging instruments:
Foreign currency forward contracts	$	2,511	$	—		$	2,511	$	17	$	—		$	17
NYMEX futures contracts	2,976		—			2,976		—		—			—
Commodity price swap contracts	6,401		—			6,401		—		(20		)	(20		)
Commodity forward contracts	1,453		—			1,453		1,109		—			1,109
	$	13,341	$	—		$	13,341	$	1,126	$	(20	)	$	1,106
Total net balance						$	24,947						$	2,478
Balance sheet classification:	Prepayment and other					$	23,295	Accrued liabilities					$	1,922
	Intangibles and other					1,652		Other long-term liabilities					556
						$	24,947						$	2,478

December 31, 2018
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	11,790	$	(973	)	$	10,817	$	1,755	$	(799	)	$	956
	$	11,790	$	(973	)	$	10,817	$	1,755	$	(799	)	$	956
Derivatives not designated as cash flow hedging instruments:
Foreign currency forward contracts	$	25,956	$	—		$	25,956	$	—	$	—		$	—
NYMEX futures contracts	2,473		—			2,473		—		—			—
Commodity forward contracts	1,034		—			1,034		1,137		—			1,137
	$	29,463	$	—		$	29,463	$	1,137	$	—		$	1,137
Total net balance						$	40,280						$	2,093
Balance sheet classification:	Prepayment and other					$	37,982	Accrued liabilities					$	1,137
	Intangibles and other					2,298		Other long-term liabilities					956
						$	40,280						$	2,093