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Derivatives
 9 Months Ended
Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives  

We enter into financial derivative contracts to mitigate the risk of market price fluctuations in aviation, land and marine fuel, to offer our customers fuel pricing alternatives to meet their needs and to mitigate the risk of fluctuations in foreign currency exchange rates. If the derivative instrument is not designated in a hedge relationship, changes in the estimated fair market value are recognized as a component of revenue, cost of revenue, or other income (expense) in the consolidated statements of income and comprehensive income.

Derivatives which qualify for hedge accounting may be designated as either a fair value or cash flow hedge. For our fair value hedges, changes in the estimated fair market value of the hedging instrument and the hedged item are recognized in the same line item as the underlying transaction type in the consolidated statements of income and comprehensive income. The gains or losses on derivative instruments designated as cash flow hedges of forecasted transactions are initially reported as a component of accumulated other comprehensive income and subsequently reclassified into earnings once the future transactions affect earnings.
Cash flows for our hedging instruments are classified in the same category as the underlying hedged items. If for any reason hedge accounting is discontinued, then any cash flows subsequent to the date of discontinuance will be classified in a manner consistent with the nature of the instrument.

The following describes our derivative classifications:

Fair Value Hedges. Includes derivative contracts we hold to hedge the risk of changes in the price of our inventory.

Cash Flow Hedges. Includes certain derivative contracts we execute to mitigate the risk of price or foreign currency volatility in forecasted transactions.

Non-designated Derivatives. Includes derivatives we primarily transact to mitigate the risk of market price fluctuations in the form of swaps or futures contracts, certain forward fixed price purchase and sale contracts, and for portfolio optimization. In addition, non-designated derivatives are held to hedge the risk of currency rate fluctuations.

The following table presents the gross fair value of our derivative instruments and their locations on the consolidated balance sheets (in millions):
 
 
 
 
Gross Derivative Assets
 
Gross Derivative Liabilities
 
 
 
As of
 
As of
 
 
 
September 30,
 
December 31,
 
September 30,
 
December 31,
 
 
 
2018
 
2017
 
2018
 
2017
Derivative Instruments
Consolidated Balance Sheets location
 
 
 
 
 
 
 
 
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
   Commodity contracts
Short-term derivative assets, net
 
$
56.9

 
$
0.4

 
$
93.3

 
$
0.5

 
Accrued expenses and other current liabilities
 
—

 
2.3

 
—

 
43.1

 
 
 
$
56.9

 
$
2.7

 
$
93.3

 
$
43.6

 
 
 
 
 
 
 
 
 
 
   Foreign currency contracts
Short-term derivative assets, net
 
$
—

 
$
—

 
$
0.4

 
$
—

 
Accrued expenses and other current liabilities
 
0.1

 
—

 
—

 
—

 
 
 
$
0.1

 
$
—

 
$
0.4

 
$
—

Total derivatives designated as hedging instruments
 
$
56.9

 
$
2.7

 
$
93.7

 
$
43.6

 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
   Commodity contracts
Short-term derivative assets, net
 
$
322.8

 
$
191.4

 
$
225.8

 
$
123.3

 
Identifiable intangible and other non-current assets
 
76.1

 
18.2

 
49.9

 
5.2

 
Accrued expenses and other current liabilities
 
89.8

 
86.1

 
179.0

 
138.2

 
Other long-term liabilities
 
11.2

 
5.2

 
31.0

 
13.5

 
 
 
$
499.9

 
$
300.9

 
$
485.7

 
$
280.2

 
 
 
 
 
 
 
 
 
 
   Foreign currency contracts
Short-term derivative assets, net
 
$
1.8

 
$
4.5

 
$
0.3

 
$
2.8

 
Accrued expenses and other current liabilities
 
0.5

 
3.9

 
2.0

 
5.7

 
Other long-term liabilities
 
—

 
—

 
—

 
0.2

 
 
 
$
2.3

 
$
8.5

 
$
2.3

 
$
8.7

Total derivatives not designated as hedging instruments
 
$
502.2

 
$
309.4

 
$
488.0

 
$
288.9

 
 
 
 
 
 
 
 
 
 
Total derivatives
 
 
$
559.1

 
$
312.0

 
$
581.6

 
$
332.5


For information regarding our derivative instruments measured at fair value after netting and collateral see Note 6.

The following table summarizes the gross notional values of our commodity and foreign currency exchange derivative contracts used for risk management purposes that were outstanding as of September 30, 2018 (in millions):

 
 
As of September 30,
Derivative Instruments
 
Units
 
2018
Commodity contracts
 
 
 
 
Long
 
BBL
 
77.2

Short
 
BBL
 
(74.3
)
 
 
 
 
 
Foreign currency exchange contracts
 
 
 
 
Sell U.S. dollar, buy other currencies
 
USD
 
(96.9
)
Buy U.S. dollar, sell other currencies
 
USD
 
188.4



As of September 30, 2018, and December 31, 2017, the following amounts were recorded on the consolidated balance sheets related to cumulative basis adjustments for fair value hedges (in million):

Line item in the Consolidated Balance Sheets in which the hedged item is included
 
Carrying Amount of Hedged Asset/(Liabilities)
 
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset/(Liabilities)
 
 
As of
 
As of
 
 
September 30, 2018
 
December 31, 2017
 
September 30, 2018
 
December 31, 2017
Inventory
 
$
68.5

 
$
50.9

 
$
4.7

 
$
2.7




The following table presents the effect of fair value and cash flow hedges on income and expense line items in our Consolidated Statements of Income and Comprehensive Income (in millions):
 
 
 
Location and Amount of Gain and (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
 
 
 
For the Three Months Ended
 
 
 
September 30, 2018
 
September 30, 2017
 
 
Revenue
 
Cost of Revenue
 
Revenue
 
Cost of Revenue
Total amounts of income and expense line items in which the effects of fair value or cash flow hedged are recorded
 
$
10,429.5

 
$
10,162.8

 
$
8,543.0

 
$
8,303.1

Gains or Loss on fair value hedge relationships
 
 
 
 
 
 
 
 
   Commodity contracts
 
 
 
 
 
 
 
 
 
 
Hedged Item
 
—

 
8.7

 
—

 
0.8

 
Derivatives designated as hedging instruments
 
—

 
(7.1
)
 
—

 
(23.1
)
Gains or Loss on cash flow hedge relationships
 
 
 
 
 
 
 
 
   Commodity contracts
 
 
 
 
 
 
 
 
 
 
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
 
(6.6
)
 
12.7

 
(8.4
)
 
2.8

Total amount of income and expense line items excluding the impact of hedges
 
$
10,436.1

 
$
10,177.2

 
$
8,551.4

 
$
8,283.6

 
 
 
 
 
 
 
 
 
 
 
 
 
Location and Amount of Gain and (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
 
 
 
For the Nine Months Ended
 
 
 
September 30, 2018
 
September 30, 2017
 
 
Revenue
 
Cost of Revenue
 
Revenue
 
Cost of Revenue
Total amounts of income and expense line items in which the effects of fair value or cash flow hedged are recorded
 
$
29,761.7

 
$
29,005.4

 
$
24,823.4

 
$
24,121.1

Gains or Loss on fair value hedge relationships
 
 
 
 
 
 
 
 
   Commodity contracts
 
 
 
 
 
 
 
 
 
 
Hedged Item
 
—

 
25.4

 
—

 
(1.3
)
 
Derivatives designated as hedging instruments
 
—

 
(23.5
)
 
—

 
(16.4
)
Gains or Loss on cash flow hedge relationships
 
 
 
 
 
 
 
 
   Commodity contracts
 
 
 
 
 
 
 
 
 
 
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
 
(30.6
)
 
41.1

 
(2.6
)
 
(1.0
)
Total amount of income and expense line items excluding the impact of hedges
 
$
29,792.3

 
$
29,048.4

 
$
24,826.0

 
$
24,102.5


For the three and nine months ended September 30, 2018 and 2017, there were no gains or losses recognized in earnings related to our fair value or cash flow hedges that were excluded from the assessment of hedge effectiveness.

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, Consolidated Statements of Income and Comprehensive Income (in millions):
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income
For the Three Months Ended
 
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
For the Three Months Ended
September 30,
 
September 30,
Derivative Instruments
2018
 
2017
 
Location
2018
 
2017
 
 
 
 
 
 
 
 
 
Commodity contracts
$
(46.4
)
 
$
(83.0
)
 
Revenue
$
(6.6
)
 
$
(8.4
)
Commodity contracts
46.9

 
68.7

 
Cost of Revenue
12.7

 
2.8

Foreign Currency contracts
(0.1
)

—

 
Other Income (expense) net
(0.7
)
 
—

Total (Loss) Gain
$
0.3

 
$
(14.3
)
 
Total (Loss) Gain
$
5.5

 
$
(5.6
)
 
 
 
 
 
 
 
 
 
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income
For the Nine Months Ended
 
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
For the Nine Months Ended
September 30,
 
September 30,
Derivative Instruments
2018
 
2017
 
Location
2018
 
2017
 
 
 
 
 
 
 
 
 
Commodity contracts
$
(74.1
)
 
$
23.3

 
Revenue
$
(30.6
)
 
$
(2.6
)
Commodity contracts
77.0

 
(25.2
)
 
Cost of Revenue
41.1

 
(1.0
)
Foreign Currency contracts
(1.3
)

—

 
Other Income (expense) net
(0.7
)

—

Total Gain
$
1.6

 
$
(1.8
)
 
Total Gain
$
9.9

 
$
(3.6
)

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):
Amount of Realized and Unrealized Gain (Loss)
 
 
For the Three Months Ended
 
 
 
 
September 30,
Derivative Instruments - Non-designated
 
Location
 
2018
 
2017
Commodity contracts
 
 
 
 
 
 
 
 
Revenue
 
$
17.5

 
$
(31.2
)
 
 
Cost of revenue
 
(21.4
)
 
47.9

 
 
 
 
$
(3.9
)
 
$
16.7

Foreign currency contracts
 
 
 
 
 
 
 
 
Revenue
 
$
0.2

 
$
(1.0
)
 
 
Other (expense), net
 
(2.1
)
 
(2.5
)
 
 
 
 
$
(1.9
)
 
$
(3.5
)
Total (Loss) Gain
 
 
 
$
(5.8
)
 
$
13.2

 
 
 
 
 
 
 
Amount of Realized and Unrealized Gain (Loss)
 
 
 
For the Nine Months Ended
 
 
 
 
September 30,
Derivative Instruments - Non-designated
 
Location
 
2018
 
2017
Commodity contracts
 
 
 
 
 
 
 
 
Revenue
 
$
61.6

 
$
37.1

 
 
Cost of revenue
 
(65.2
)
 
11.7

 
 
 
 
$
(3.6
)
 
$
48.8

Foreign currency contracts
 
 
 
 
 
 
 
 
Revenue
 
$
1.1

 
$
(3.1
)
 
 
Other (expense), net
 
1.2

 
(8.9
)
 
 
 
 
$
2.3

 
$
(12.0
)
Total Gain
 
 
 
$
(1.3
)
 
$
36.8


Credit-Risk-Related Contingent Features
 
We enter into derivative instrument contracts which may require us to periodically provide collateral. Certain derivative contracts contain credit-risk-related contingent clauses which are triggered by credit events. These credit events may include the requirement to provide additional collateral or the immediate settlement of the derivative instruments upon the occurrence of a credit downgrade or if certain defined financial ratios fall below an established threshold. The following table presents the potential collateral requirements for derivative liabilities with credit-risk-contingent features (in millions):
 
 
Potential Collateral Requirements for
Derivative Liabilities with
Credit-Risk-Contingent Features
 
 
As of September 30, 2018
 
As of December 31, 2017
Net derivatives liability positions with credit contingent features
 
$
11.1

 
$
11.8

Maximum potential collateral requirements
 
$
11.1

 
$
11.8


At September 30, 2018 and December 31, 2017, there was no collateral held by our counterparties on these derivative contracts with credit-risk-contingent features.