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Derivative Instruments
 12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
The following describes our derivative classifications:
Cash Flow Hedges. Includes certain derivative contracts we execute to mitigate the risk of price volatility in forecasted transactions.
Fair Value Hedges. Includes derivative contracts we hold to hedge the risk of changes in the price of our inventory.
Non-designated Derivatives. Includes derivatives we primarily transact to mitigate the risk of market price fluctuations in the form of swap or futures contracts as well as 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 December 31,
 
As of December 31,
Derivative Instruments
 
Balance Sheet Location
 
2019

 
2018

 
 
2019

 
2018

Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
 
Commodity contracts
 
Short-term derivative assets, net
 
$
—

 
$
168.5

 
 
$
—

 
$
122.5

 
 
Identifiable intangible and other non-current assets
 
—

 
19.7

 
 
—

 
9.6

 
 
Accrued expenses and other current liabilities
 
1.7

 
0.1

 
 
20.0

 
—

Total derivatives designated as hedging instruments
 
$
1.7

 
$
188.2

 
 
$
20.0

 
$
132.2

 
 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
Commodity contracts
Short-term derivative assets, net
 
$
65.7

 
$
537.6

 
 
$
7.2

 
$
429.0

 
 
Identifiable intangible and other non-current assets
 
23.0

 
71.7

 
 
4.8

 
40.0

 
 
Accrued expenses and other current liabilities
 
161.0

 
30.7

 
 
203.4

 
126.4

 
 
Other long-term liabilities
 
7.7

 
12.9

 
 
19.7

 
40.4

 
 
 
 
$
257.3

 
$
652.9

 
 
$
235.0

 
$
635.8

 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency contracts
Short-term derivative assets, net
 
$
1.2

 
$
4.4

 
 
$
0.2

 
$
0.8

 
 
Identifiable intangible and other non-current assets
 
—

 
0.1

 
 
—

 
—

 
 
Accrued expenses and other current liabilities
 
0.9

 
0.1

 
 
11.4

 
0.4

 
 
 
 
$
2.0

 
$
4.6

 
 
$
11.6

 
$
1.2

Total derivatives not designated as hedging instruments
 
$
259.4

 
$
657.5

 
 
$
246.6

 
$
637.0

 
 
 
 
 
 
 
 
 
 
 
 
Total derivatives
 
 
 
$
261.1

 
$
845.8

 
 
$
266.6

 
$
769.1


For information regarding our derivative instruments measured at fair value after netting and collateral see "Note 12. Fair Value Measurements."
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 December 31, 2019 (in millions):
 
As of December 31,
Derivative Instruments
 
Units
 
2019

Commodity contracts
 
 
 
 
Long
 
BBL
 
56.3

Short
 
BBL
 
(46.8
)
 
 
 
 
 
Foreign currency exchange contracts
 
 
 
 
Sell U.S. dollar, buy other currencies
 
USD
 
(56.2
)
Buy U.S. dollar, sell other currencies
 
USD
 
345.3


For additional information about our use of derivative instruments, see "Item 7A. Quantitative and Qualitative Disclosures About Market Risk."
As of December 31, 2019 and 2018, 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
 
 
December 31, 2019
 
December 31, 2018
 
December 31, 2019
 
December 31, 2018
Inventory
 
$
30.7

 
$
44.7

 
$
2.3

 
$
(6.6
)



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 Twelve Months Ended December 31,
 
 
 
2019
 
2018
 
2017
 
 
Revenue
 
Cost of Revenue
 
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
 
$
36,819.0

 
$
35,707.0

 
$
39,750.3

 
$
38,731.8

 
$
33,695.5

 
$
32,763.3

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

 
18.1

 
—

 
(1.6
)
 
—

 
13.0

 
Derivatives designated as hedging instruments
 
—

 
(16.1
)
 
—

 
0.5

 
—

 
(35.7
)
Gains or Loss on cash flow hedge relationships
 
 
 
 
 
 
 
 
 
 
 
 
   Commodity contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
 
(8.5
)
 
36.6

 
(23.5
)
 
45.5

 
(41.3
)
 
33.7

Total amount of income and expense line items excluding the impact of hedges
 
$
36,827.5

 
$
35,745.6

 
$
39,773.7

 
$
38,776.1

 
33,736.8

 
32,774.2


For the twelve months ended December 31, 2019, 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 (Effective Portion)
For the Year Ended
 
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Effective Portion)
For the Year Ended
 
December 31,
 
 
December 31,
Derivative Instruments
 
2019

 
2018

 
2017

 
Location
 
2019

 
2018

 
2017

Commodity contracts
 
$
(157.9
)
 
$
130.3

 
$
(7.8
)
 
Revenue
 
$
(8.5
)
 
$
(23.5
)
 
$
(41.3
)
Commodity contracts
 
160.6

 
(87.8
)
 
(0.1
)
 
Cost of revenue
 
36.6

 
45.5

 
33.7

Foreign Currency contracts
 
—

 
(1.1
)
 
—

 
Other Income (expense) net
 
—

 
(1.1
)
 
—

Total gain (loss)
 
$
2.7

 
$
41.5

 
$
(7.9
)
 
Total gain (loss)
 
$
28.1

 
$
20.9

 
$
(7.6
)


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 Year Ended
 
 
December 31,
Derivative Instruments - Non-designated
Location
 
2019
 
2018
 
2017
Commodity contracts
 
 
 
 
 
 
 
Revenue
 
$
269.5

 
$
147.6

 
$
(0.5
)
 
Cost of revenue
 
(221.8
)
 
(119.8
)
 
62.3

 
 
 
$
47.7

 
$
27.8

 
$
61.8

Foreign currency contracts
 
 
 
 
 
 
 
Revenue
 
$
(0.3
)
 
$
1.4

 
$
(3.2
)
 
Other (expense) income, net
 
(0.5
)
 
5.3

 
(7.8
)
 
 
 
$
(0.7
)
 
$
6.7

 
$
(11.0
)
Total gain
 
 
$
46.9

 
$
34.5

 
$
50.8


Credit-Risk-Related Contingent Features
We enter into derivative contracts which may require us to post collateral periodically. Certain of these derivative contracts contain credit-risk-related contingent clauses which are triggered by credit events. These credit events may include the requirement to post 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 December 31,
 
 
 
2019

 
 
2018

Net derivative liability positions with credit contingent features
 
 
$
45.6

 
 
$
7.2

Maximum potential collateral requirements
 
 
$
45.6

 
 
$
7.2


At December 31, 2019 and 2018, there was no collateral held by our counterparties on these derivative contracts with credit-risk-contingent features.