Derivatives (Tables)

3 Months Ended

Mar. 31, 2016

Derivatives

Schedule of fair value positions of derivative instruments

As of March 31, 2016, our derivative instruments, at their respective fair value positions were as follows (in millions, except weighted average fixed price and weighted average mark-to-market amount):

							Weighted
							Average
					Weighted		Mark-to-
	Settlement				Average		Market		Fair Value
Derivative Classification	Period	Derivative Instrument	Notional	Unit	Fixed Price		Amount		Amount
Fair Value Hedge	2016	Commodity contracts for inventory hedging	2.5	BBL	$	49.507	$	(0.135)	$	(0.3)
	2017	Commodity contracts for inventory hedging	0.1	BBL		51.789		4.716		0.2
									$	(0.1)
Cash Flow Hedge	2016	Commodity contracts for inventory hedging	24.0	BBL	$	47.404	$	0.241	$	5.8
	2017	Commodity contracts for inventory hedging	1.5	BBL		58.575		2.274		3.4
									$	9.2
Non-Designated	2016	Commodity contracts (long)	56.0	BBL	$	36.915	$	(9.793)	$	(548.5)
	2016	Commodity contracts (short)	53.3	BBL		38.926		10.374		552.5
	2017	Commodity contracts (long)	8.6	BBL		22.835		(0.239)		(2.1)
	2017	Commodity contracts (short)	5.9	BBL		29.761		0.870		5.2
	2018	Commodity contracts (long)	2.2	BBL		12.593		2.186		4.8
	2018	Commodity contracts (short)	1.5	BBL		12.253		(1.647)		(2.5)
	2019	Commodity contracts (long)	0.1	BBL		20.912		0.210		—
	2019	Commodity contracts (short)	0.1	BBL		49.907		10.084		0.1
	2020	Commodity contracts (long)	0.1	BBL		21.620		(1.970)		(0.1)
	2020	Commodity contracts (short)	0.1	BBL		37.674		7.626		0.8
	2021	Commodity contracts (long)	—	BBL		20.792		0.136		—
	2016	Foreign currency contracts	10.7	AUD		0.714		(0.044)		(0.5)
	2016	Foreign currency contracts	65.5	CAD		1.372		(0.046)		(3.0)
	2016	Foreign currency contracts	0.3	CHF		1.005		(0.046)		—
	2016	Foreign currency contracts	3,869.5	CLP		699.730		(0.000)		(0.1)
	2016	Foreign currency contracts	71,005.7	COP		3,293.082		(0.000)		—
	2016	Foreign currency contracts	44.2	DKK		6.804		(0.002)		(0.1)
	2016	Foreign currency contracts	42.4	EUR		1.097		(0.039)		(1.7)
	2016	Foreign currency contracts	102.1	GBP		1.464		0.033		3.3
	2016	Foreign currency contracts	94.7	INR		68.082		(0.000)		—
	2016	Foreign currency contracts	870.1	JPY		115.852		(0.000)		(0.1)
	2016	Foreign currency contracts	1,785.8	MXN		18.104		0.000		0.3
	2016	Foreign currency contracts	72.6	NOK		8.712		(0.005)		(0.4)
	2016	Foreign currency contracts	6.7	PLN		4.002		(0.005)		—
	2016	Foreign currency contracts	81.3	RON		4.128		(0.005)		(0.4)
	2016	Foreign currency contracts	35.5	SEK		8.569		0.007		0.2
	2016	Foreign currency contracts	28.3	SGD		1.407		(0.014)		(0.4)
	2016	Foreign currency contracts	26.6	ZAR		16.080		(0.004)		(0.1)
	2017	Foreign currency contracts	1.8	EUR		1.083		(0.070)		(0.1)
	2017	Foreign currency contracts	9.3	GBP		1.527		0.088		0.8
	2018	Foreign currency contracts	1.7	EUR		1.105		(0.057)		(0.1)
	2018	Foreign currency contracts	0.2	GBP		1.403		(0.034)		—
									$	7.8

Schedule of derivative instruments measured at fair value and their locations on the consolidated balance sheets

The following table presents information about our derivative instruments measured at fair value and their locations on the consolidated balance sheets (in millions):

		As of
	Balance Sheet Location	March 31, 2016		December 31, 2015
Derivative assets:
Derivatives designated as hedging instruments
Commodity contracts	Short-term derivative assets, net	$	84.2	$	114.0
Commodity contracts	Identifiable intangible and other non-current assets		—		7.4
Commodity contracts	Accrued expenses and other current liabilities		0.9		6.3
			85.2		127.7
Derivatives not designated as hedging instruments
Commodity contracts	Short-term derivative assets, net		167.6		241.4
Commodity contracts	Identifiable intangible and other non-current assets		16.8		17.0
Commodity contracts	Accrued expenses and other current liabilities		136.2		120.4
Commodity contracts	Other long-term liabilities		12.0		4.0
Foreign currency contracts	Short-term derivative assets, net		4.5		10.9
Foreign currency contracts	Identifiable intangible and other non-current assets		0.4		0.7
Foreign currency contracts	Accrued expenses and other current liabilities		4.9		0.8
Foreign currency contracts	Other long-term liabilities		0.2		—
			342.7		395.2
		$	427.8	$	522.9
Derivative liabilities:
Derivatives designated as hedging instruments
Commodity contracts	Short-term derivative assets, net	$	74.7	$	95.3
Commodity contracts	Accrued expenses and other current liabilities		1.4		2.9
			76.1		98.2
Derivatives not designated as hedging instruments
Commodity contracts	Short-term derivative assets, net		31.5		26.6
Commodity contracts	Identifiable intangible and other non-current assets		4.2		4.8
Commodity contracts	Accrued expenses and other current liabilities		268.2		319.9
Commodity contracts	Other long-term liabilities		18.5		14.2
Foreign currency contracts	Short-term derivative assets, net		3.4		3.3
Foreign currency contracts	Identifiable intangible and other non-current assets		0.1		—
Foreign currency contracts	Accrued expenses and other current liabilities		8.8		1.7
Foreign currency contracts	Other long-term liabilities		0.1		—
			334.8		370.5
		$	410.9	$	468.7

Impact of derivatives designated as fair value hedges on the consolidated statements of income and comprehensive income

The following table presents the effect and financial statement location of our derivative instruments and related hedged items in hedging relationships on our consolidated statements of income and comprehensive income (in millions):

		RealizedandUnrealized						RealizedandUnrealized
DerivativeInstruments	Location	Gain				HedgedItems	Location	Loss
		2016		2015				2016		2015
Three months ended March 31,
Commodity contracts	Revenue	$	88.0	$	—
Commodity contracts	Cost of revenue		(81.9)		4.0	Inventories	Cost of revenue	$	(3.2)	$	(0.5)
		$	6.1	$	4.0			$	(3.2)	$	(0.5)

Impact of derivatives designated as hedges on the accumulated other comprehensive income and consolidated statements of income and comprehensive income

The following table presents the effect and financial statement location of our derivative instruments in cash flow hedging relationships on our accumulated other comprehensive income and consolidated statements of income and comprehensive income (in millions):

		Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income  (Effective Portion)			Location of Realized Gain (Loss)                                       (Effective Portion)		Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Effective Portion)				Amount of Gain (Loss) Recognized in Income (Ineffective Portion)
Derivative Instruments		2016		2015			2016		2015		2016		2015
Three Months ended March 31,
Commodity contracts	$	(46.5)	$	—	Revenue	$	(53.8)	$	—	$	(0.1)	$	—
Commodity contracts		44.2		—	Cost of Revenue		54.3		—		2.9		—
Total	$	(2.2)	$	—		$	0.5	$	—	$	2.8	$	—

Impact of derivatives not designated as hedges on the consolidated statements of income and comprehensive income

During the three months ended March 31, 2016, we recorded a loss of $0.1 million in revenue and income of $2.9 million in cost of revenue, related to hedge ineffectiveness.  In the event forecasted sales and purchases are less than the hedged amounts, a portion or all of the gain or losses recorded in accumulated other comprehensive income are reclassified to the consolidated statements of income and comprehensive income. The following table presents the effect and financial statement location of our derivative instruments not designated as hedging instruments on our consolidated statements of income and comprehensive income (in millions):

		RealizedandUnrealized
Derivatives	Location	Gain (Loss)
		2016		2015
Three months ended March 31,
Commodity contracts	Revenue	$	38.9	$	20.6
Commodity contracts	Cost of revenue		(47.5)		(11.7)
Foreign currency contracts	Revenue		1.9		3.9
Foreign currency contracts	Other income, net		(5.2)		9.2
		$	(11.9)	$	22.0

Schedule of net liability and collateral position for derivative contracts

The following table presents the net liability position for such contracts, the collateral posted and amount of assets required to be posted and/or to settle the positions should a credit-risk contingent feature be triggered (in millions):

	Net Liability Position				Collateral		Contingent
	Subject to Collateral Requirements				Posted		Additional Collateral
As of March 31, 2016
Commodity contracts		$	50.0	$	(11.3)	$	38.7
As of December 31, 2015
Commodity contracts		$	63.2	$	(28.1)	$	35.0