Derivative Instruments And Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2020

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 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,
	2020		2019			2020		2019
	(In thousands)
Commodity contracts	$	2,492	$	(7,562)	Sales and other revenues	$	(5,217)	$	—
					Cost of products sold	983		6,027
					Operating expenses	(352)		(454)
Total	$	2,492	$	(7,562)		$	(4,586)	$	5,573

	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,
	2020		2019			2020		2019
	(In thousands)
Commodity contracts	$	(3,918)	$	372	Sales and other revenues	$	(5,168)	$	(1,799)
					Cost of products sold	3,272		15,323
					Operating expenses	(1,515)		(987)
Total	$	(3,918)	$	372		$	(3,411)	$	12,537

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,
		2020		2019		2020		2019
		(In thousands)
Commodity contracts	Cost of products sold	$	2,880	$	8,640	$	20,789	$	1,561
	Interest expense	(2,170)		(1,720)		2,542		(2,995)
Foreign currency contracts	Gain (loss) on foreign currency transactions	(8,177)		5,713		10,983		(8,983)
	Total	$	(7,467)	$	12,633	$	34,314	$	(10,417)

Schedule of Notional Amounts of Outstanding Derivatives Serving as Economic Hedges

As of September 30, 2020, we have the following notional contract volumes related to outstanding derivative instruments:

		Notional Contract Volumes by Year of Maturity
	Total Outstanding Notional	2020	2021	Unit of Measure
Derivatives Designated as Hedging Instruments
Natural gas price swaps - long	2,250,000	450,000	1,800,000	MMBTU
Crude oil price swaps (basis spread) - long	1,196,000	1,196,000	—	Barrels
Derivatives Not Designated as Hedging Instruments
NYMEX futures (WTI) - short	1,045,000	830,000	215,000	Barrels
Crude oil price swaps (basis spread) - long	368,000	368,000	—	Barrels
WTI and gasoline crack spread swaps - short	100,000	100,000	—	Barrels
Forward gasoline and diesel contracts - long	200,000	200,000	—	Barrels
Foreign currency forward contracts	419,278,042	106,910,645	312,367,397	U.S. dollar
Forward commodity contracts (platinum)	40,867	—	40,867	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, 2020
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	915	$	(263)	$	652	$	58	$	—	$	58
	$	915	$	(263)	$	652	$	58	$	—	$	58
Derivatives not designated as cash flow hedging instruments:
NYMEX futures contracts	$	1,530	$	—	$	1,530	$	—	$	—	$	—
Commodity price swap contracts	2,168		—		2,168		76		—		76
Commodity forward contracts	71		—		71		58		—		58
Foreign currency forward contracts	—		—		—		5,397		(1,808)		3,589
	$	3,769	$	—	$	3,769	$	5,531	$	(1,808)	$	3,723
Total net balance					$	4,421					$	3,781
Balance sheet classification:	Prepayment and other				$	4,421	Accrued liabilities				$	3,723
							Other long-term liabilities				58
					$	4,421					$	3,781

	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, 2019
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	7,526	$	(1,784)	$	5,742	$	1,230	$	—	$	1,230
	$	7,526	$	(1,784)	$	5,742	$	1,230	$	—	$	1,230
Derivatives not designated as cash flow hedging instruments:
NYMEX futures contracts	$	—	$	—	$	—	$	2,578	$	—	$	2,578
Commodity price swap contracts	7,713		—		7,713		—		—		—
Commodity forward contracts	4,133		—		4,133		3,685		—		3,685
Foreign currency forward contracts	—		—		—		6,722		—		6,722
	$	11,846	$	—	$	11,846	$	12,985	$	—	$	12,985
Total net balance					$	17,588					$	14,215
Balance sheet classification:	Prepayment and other				$	17,588	Accrued liabilities				$	12,985
							Other long-term liabilities				1,230
					$	17,588					$	14,215