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Derivatives
 9 Months Ended
Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives
Derivatives  
 
We enter into financial derivative contracts in order to mitigate the risk of market price fluctuations in aviation, marine and land fuel, to offer our customers fuel pricing alternatives to meet their needs and to mitigate the risk of fluctuations in foreign currency exchange rates.  We also enter into proprietary derivative transactions, primarily intended to capitalize on arbitrage opportunities in basis or time spreads related to fuel products we sell.  We have applied the normal purchase and normal sales exception (“NPNS”), as provided by accounting guidance for derivative instruments and hedging activities, to certain of our physical forward sales and purchase contracts.  While these contracts are considered derivative instruments under the guidance for derivative instruments and hedging activities, they are not recorded at fair value, but rather are recorded in our consolidated financial statements when physical settlement of the contracts occurs.  If it is determined that a transaction designated as NPNS no longer meets the scope of the exception, the fair value of the related contract is recorded as an asset or liability on the consolidated balance sheets and the difference between the fair value and the contract amount is immediately recognized through earnings.
 
The following describes our derivative classifications:
 
Cash Flow Hedges.  Includes certain commodity contracts we enter into to mitigate the risk of price volatility in forecasted purchases and sales.
 
Fair Value Hedges.  Includes derivatives we enter into in order to hedge price risk associated with our inventory and certain firm commitments relating to fixed price purchase and sale contracts.
 
Non-designated Derivatives.  Includes derivatives we primarily enter into in order to mitigate the risk of market price fluctuations in aviation, marine and land fuel in the form of swaps or futures as well as certain fixed price purchase and sale contracts and proprietary trading. In addition, non-designated derivatives are entered into to hedge the risk of currency rate fluctuations.

As of September 30, 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):
 
 
Settlement
 
 
 
 
 
 
 
Weighted
Average

 
Weighted
Average
Mark-to-
Market

 
Fair Value

Hedge Strategy
 
Period
 
Derivative Instrument
 
Notional

 
Unit
 
Fixed Price

 
Amount

 
Amount

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Hedge 
 
2016
 
Commodity contracts for inventory hedging
 
2.2

 
BBL
 
$
58.523

 
$
(3.491
)
 
$
(7.8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
(7.8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Hedge
 
2016
 
Commodity contracts for firm commitment hedging
 
0.3

 
BBL
 
$
57.448

 
$
7.489

 
$
1.9

 
 
2017
 
Commodity contracts for firm commitment hedging
 
0.5

 
BBL
 
59.095

 
7.346

 
3.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
5.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash Flow Hedge
 
2016
 
Commodity contracts for inventory hedging
 
6.7

 
BBL
 
$
52.523

 
$
(0.480
)
 
$
(3.2
)
 
 
2017
 
Commodity contracts for inventory hedging
 
1.6

 
BBL
 
59.604

 
(6.731
)
 
(11.0
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
(14.3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Designated
 
2016
 
Commodity contracts (long)
 
33.4

 
BBL
 
$
34.940

 
$
(3.061
)
 
$
(102.3
)
 
 
2016
 
Commodity contracts (short)
 
33.7

 
BBL
 
34.464

 
2.726

 
92.0

 
 
2017
 
Commodity contracts (long)
 
26.8

 
BBL
 
29.038

 
2.151

 
57.6

 
 
2017
 
Commodity contracts (short)
 
23.0

 
BBL
 
33.297

 
(2.109
)
 
(48.5
)
 
 
2018
 
Commodity contracts (long)
 
5.1

 
BBL
 
18.332

 
1.427

 
7.3

 
 
2018
 
Commodity contracts (short)
 
4.3

 
BBL
 
19.216

 
(0.806
)
 
(3.4
)
 
 
2019
 
Commodity contracts (long)
 
0.8

 
BBL
 
17.327

 
0.299

 
0.2

 
 
2019
 
Commodity contracts (short)
 
0.6

 
BBL
 
25.329

 
0.614

 
0.4

 
 
2020
 
Commodity contracts (long)
 
0.4

 
BBL
 
32.226

 
0.285

 
0.1

 
 
2020
 
Commodity contracts (short)
 
0.5

 
BBL
 
28.724

 
0.909

 
0.4

 
 
2021
 
Commodity contracts (long)
 
0.7

 
BBL
 
18.987

 
1.320

 
1.0

 
 
2021
 
Commodity contracts (short)
 
0.8

 
BBL
 
17.155

 
(1.129
)
 
(1.0
)
 
 
2022
 
Commodity contracts (long)
 
0.7

 
BBL
 
—

 
1.634

 
1.2

 
 
2022
 
Commodity contracts (short)
 
0.8

 
BBL
 
18.006

 
(1.404
)
 
(1.2
)
 
 
2023
 
Commodity contracts (long)
 
0.7

 
BBL
 
—

 
1.973

 
1.5

 
 
2023
 
Commodity contracts (short)
 
0.8

 
BBL
 
18.916

 
(1.701
)
 
(1.4
)
 
 
2016
 
Foreign currency contracts (long)
 
8.0

 
AED
 
3.676

 
—

 
—

 
 
2016
 
Foreign currency contracts (long)
 
8.3

 
AUD
 
0.752

 
(0.024
)
 
(0.2
)
 
 
2016
 
Foreign currency contracts (long)
 
0.3

 
BRL
 
3.308

 
(0.003
)
 
—

 
 
2016
 
Foreign currency contracts (long)
 
76.4

 
CAD
 
1.304

 
0.002

 
0.2

 
 
2016
 
Foreign currency contracts (long)
 
0.8

 
CHF
 
0.970

 
(0.009
)
 
—

 
 
2016
 
Foreign currency contracts (long)
 
3,098.0

 
CLP
 
665.565

 
—

 
(0.1
)
 
 
2016
 
Foreign currency contracts (long)
 
60,727.0

 
COP
 
2,979.994

 
—

 
(0.3
)
 
 
2016
 
Foreign currency contracts (long)
 
111.2

 
DKK
 
6.651

 
(0.001
)
 
(0.1
)
 
 
2016
 
Foreign currency contracts (long)
 
95.6

 
EUR
 
1.120

 
(0.006
)
 
(0.6
)
 
 
2016
 
Foreign currency contracts (long)
 
139.1

 
GBP
 
1.342

 
0.025

 
3.4

 
 
2016
 
Foreign currency contracts (long)
 
97.0

 
INR
 
68.091

 
(0.001
)
 
(0.1
)
 
 
2016
 
Foreign currency contracts (long)
 
402.7

 
JPY
 
102.369

 
—

 
—

 
 
2016
 
Foreign currency contracts (long)
 
6,050.0

 
KRW
 
1,099.520

 
—

 
—

 
 
2016
 
Foreign currency contracts (long)
 
2,975.6

 
MXN
 
18.876

 
—

 
(0.2
)
 
 
2016
 
Foreign currency contracts (long)
 
117.8

 
NOK
 
8.297

 
(0.003
)
 
(0.4
)
 
 
2016
 
Foreign currency contracts (long)
 
4.7

 
NZD
 
0.723

 
(0.010
)
 
—

 
 
2016
 
Foreign currency contracts (long)
 
24.8

 
PLN
 
3.875

 
(0.003
)
 
(0.1
)
 
 
2016
 
Foreign currency contracts (long)
 
13.7

 
RON
 
4.011

 
(0.004
)
 
(0.1
)
 
 
2016
 
Foreign currency contracts (long)
 
58.2

 
SEK
 
8.528

 
(0.001
)
 
—

 
 
2016
 
Foreign currency contracts (long)
 
40.7

 
SGD
 
1.353

 
(0.001
)
 
—

 
 
2016
 
Foreign currency contracts (long)
 
81.3

 
ZAR
 
14.720

 
0.002

 
0.2

 
 
2017
 
Foreign currency contracts (long)
 
4.7

 
EUR
 
1.148

 
(0.039
)
 
(0.2
)
 
 
2017
 
Foreign currency contracts (long)
 
23.4

 
GBP
 
1.425

 
0.143

 
3.3

 
 
2017
 
Foreign currency contracts (long)
 
25.2

 
SEK
 
8.301

 
0.007

 
0.2

 
 
2018
 
Foreign currency contracts (long)
 
1.7

 
EUR
 
1.105

 
(0.041
)
 
(0.1
)
 
 
2018
 
Foreign currency contracts (long)
 
1.4

 
GBP
 
1.361

 
0.060

 
0.1

 
 
2018
 
Foreign currency contracts (long)
 
16.9

 
SEK
 
8.149

 
0.010

 
0.2

 
 
2019
 
Foreign currency contracts (long)
 
0.6

 
GBP
 
1.401

 
0.086

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
9.0



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
 
September 30, 2016

 
December 31, 2015

Derivative assets:
 
 
 
 
 
 
Derivatives designated as hedging instruments
 
 
 
 
   Commodity contracts
 
Short-term derivative assets, net
 
$
8.9

 
$
114.0

   Commodity contracts
 
Identifiable intangible and other non-current assets
 
0.1

 
7.4

   Commodity contracts
 
Accrued expenses and other current liabilities
 
56.1

 
6.3

 
 
 
 
$
65.2

 
$
127.7

Derivatives not designated as hedging instruments
 
 

 
 

   Commodity contracts
 
Short-term derivative assets, net
 
34.4

 
241.4

   Commodity contracts
 
Identifiable intangible and other non-current assets
 
37.1

 
17.0

   Commodity contracts
 
Accrued expenses and other current liabilities
 
118.9

 
120.4

   Commodity contracts
 
Other long-term liabilities
 
1.6

 
4.0

   Foreign currency contracts
 
Short-term derivative assets, net
 
9.1

 
10.9

   Foreign currency contracts
 
Identifiable intangible and other non-current assets
 
1.4

 
0.7

   Foreign currency contracts
 
Accrued expenses and other current liabilities
 
1.1

 
0.8

 
 
 
 
203.6

 
395.2

 
 
 
 
$
268.8

 
$
522.9

 
 
 
 
 
 
 
Derivative liabilities:
 
 
 
 
 
 
Derivatives designated as hedging instruments
 
 
 
 
Commodity contracts
 
Short-term derivative assets, net
 
$
6.8

 
$
95.3

Commodity contracts
 
Accrued expenses and other current liabilities
 
74.8

 
2.9

 
 
 
 
$
81.7

 
$
98.2

Derivatives not designated as hedging instruments
 
 
 
 
Commodity contracts
 
Short-term derivative assets, net
 
$
7.6

 
$
26.6

Commodity contracts
 
Identifiable intangible and other non-current assets
 
21.8

 
4.8

Commodity contracts
 
Accrued expenses and other current liabilities
 
152.0

 
319.9

Commodity contracts
 
Other long-term liabilities
 
6.8

 
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
 
3.0

 
1.7

 
 
 
 
194.6

 
370.5

 
 
 
 
$
276.3

 
$
468.7


 
The following table presents the effect and financial statement location of our derivative instruments in a fair value hedging relationship and related hedged items on our consolidated statements of income and comprehensive income (in millions): 
Derivative Instruments
 
Location
 
Realized and Unrealized
 Gain (Loss)
 
 
Hedged Items
 
Location
 
Realized and Unrealized
Gain (Loss)
 
 
 
 
 
2016
 
2015
 
 
 
 
 
2016
 
2015
Three months ended September 30,
 
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
 
Cost of revenue
 
$
0.7

 
$
—

 
Firm commitments
 
Cost of revenue
 
$
(0.8
)
 
$
—

Commodity contracts
 
Cost of revenue
 
10.6

 
52.8

 
Inventories
 
Cost of revenue
 
(0.1
)
 
(48.5
)
 
 
 
 
$
11.3

 
$
52.8

 
 
 
 
 
$
(0.9
)
 
$
(48.5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30,
 
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
 
Cost of revenue
 
$
0.7

 
$
—

 
Firm commitments
 
Cost of revenue
 
$
(0.8
)
 
$
—

Commodity contracts
 
Cost of revenue
 
(20.2
)
 
36.7

 
Inventories
 
Cost of revenue
 
10.6

 
(29.2
)

 

 
$
(19.5
)
 
$
36.7

 
 
 

 
$
9.8

 
$
(29.2
)

 
There were no gains or losses for the three and nine months ended September 30, 2016 and 2015 that were excluded from the assessment of the effectiveness of our fair value hedges.

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 September 30,
 
 
 
 
 
 
 
 
 
 
 
 
Commodity Contracts
 
$
11.2

 
$
0.3

 
Revenue
 
$
16.6

 
—

 
$
2.9

 
$
(1.2
)
Commodity Contracts
 
17.4

 
(1.4
)
 
Cost of revenue
 
(53.0
)
 
—

 
(3.6
)
 
0.9

Total
 
$
28.7

 
$
(1.1
)
 
 
 
$
(36.4
)
 
—

 
$
(0.7
)
 
$
(0.3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30,
 
 
 
 
 
 
 
 
 
 
 
 
Commodity Contracts
 
$
(105.3
)
 
$
0.3

 
Revenue
 
$
(30.7
)
 
—

 
$
(12.2
)
 
$
(1.2
)
Commodity Contracts
 
130.4

 
(1.4
)
 
Cost of revenue
 
2.9

 
—

 
9.2

 
0.9

Total
 
$
25.1

 
$
(1.1
)
 
 
 
$
(27.9
)
 
—

 
$
(3.0
)
 
$
(0.3
)

During the three months and nine months ended September 30, 2016, we recorded a gain of $2.9 million and a loss of $12.2 million respectively in revenue and a loss of $3.6 million and a gain of $9.2 million respectively in cost of revenue, related to hedge ineffectiveness. In the event that forecasted sales and purchases are less than the hedged amounts, a portion of 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):
Derivatives
 
Location
 
Realized and Unrealized
Gain (Loss)
 
 
 
 
 
2016

 
2015

Three months ended September 30,
 
 
 
 
 
 
Commodity contracts
 
Revenue
 
$
18.3

 
$
43.2

Commodity contracts
 
Cost of revenue
 
(14.6
)
 
(39.9
)
Foreign currency contracts
 
Revenue
 
1.3

 
3.4

Foreign currency contracts
 
Other (expense) income, net
 
(0.5
)
 
1.9

 
 
 
 
$
4.5

 
$
8.6

 
 
 
 
 
 
 
Nine months ended September 30,
 
 
 
 
 
 
Commodity contracts
 
Revenue
 
$
51.7

 
$
89.2

Commodity contracts
 
Cost of revenue
 
(53.3
)
 
(68.0
)
Foreign currency contracts
 
Revenue
 
7.7

 
2.1

Foreign currency contracts
 
Other (expense) income, net
 
(6.1
)
 
6.9

 
 
 
 
$
—

 
$
30.2


 
We enter into derivative instrument contracts which may require us to periodically post collateral. Certain of these derivative contracts contain clauses that are similar to credit-risk-related contingent features, including material adverse change, general adequate assurance and internal credit review clauses that may require additional collateral to be posted and/or settlement of the instruments in the event an aforementioned clause is triggered.  The triggering events are not a quantifiable measure; rather they are based on good faith and reasonable determination by the counterparty that the triggers have occurred.
 
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
Subject to Collateral Requirements

 
Collateral
Posted

 
Contingent
Additional Collateral

As of September 30, 2016
 
 
 
 
 
 
Commodity contracts
 
$
14.0

 
$
(2.2
)
 
$
11.8

 
 
 
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
Commodity contract
 
$
63.2

 
$
(28.1
)
 
$
35.1