Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value Positions of Derivative Instruments

With the exception of the interest rate swap agreement, which matures in March 2025, the majority of our derivative contracts are expected to settle within the next year. The following table summarizes the gross notional values of our derivative contracts used for risk management purposes (in millions):

	Unit	September 30, 2021
Commodity contracts
Long	BBL	54.8
Short	BBL	(48.9)
Foreign currency exchange contracts
Sell U.S. dollar, buy other currencies	USD	(171.9)
Buy U.S. dollar, sell other currencies	USD	254.1
Interest rate contracts
Interest rate swap	USD	300.0

Schedule of Derivative Instruments Measured at Fair Value and their Locations on the Consolidated Balance Sheets

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
		September 30,		December 31,		September 30,		December 31,
Derivative Instruments	Consolidated Balance Sheets location	2021		2020		2021		2020
Derivatives designated as hedging instruments
Commodity contracts	Short-term derivative assets, net	$	38.0	$	124.9	$	90.5	$	120.7
	Short-term derivative liabilities, net	0.5		1.0		1.8		2.3
	Other long-term liabilities	—		0.1		—		0.5
Interest rate contracts	Identifiable intangible and other non-current assets	2.4		—		—		—
	Short-term derivative liabilities, net	—		—		1.3		1.3
	Other long-term liabilities	—		—		—		2.4
Total derivatives designated as hedging instruments		40.9		126.0		93.6		127.2
Derivatives not designated as hedging instruments
Commodity contracts	Short-term derivative assets, net	506.7		164.9		280.4		102.7
	Identifiable intangible and other non-current assets	120.3		32.1		32.5		7.9
	Short-term derivative liabilities, net	75.9		30.5		287.5		68.4
	Other long-term liabilities	17.1		17.5		85.1		23.5
Foreign currency contracts	Short-term derivative assets, net	2.0		—		1.2		—
	Identifiable intangible and other non-current assets	0.2		—		0.1		—
	Short-term derivative liabilities, net	2.3		7.5		2.7		19.6
	Other long-term liabilities	—		—		—		0.2
Total derivatives not designated as hedging instruments		724.4		252.5		689.5		222.3
Total derivatives		$	765.3	$	378.5	$	783.1	$	349.5

Impact of Derivatives Designated as Fair Value Hedges on the Consolidated Statements of Income and Comprehensive Income

The following amounts were recorded on our Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges (in millions):

Line item in the Consolidated Balance Sheets in which the hedged item is included	Carrying Amount of Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset/(Liabilities)
	September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
Inventory	$	60.1	$	44.5	$	8.7	$	4.9

Location and Amount of Gains (Losses) on Fair Value and Cash Flow Hedges Recognized in Income

The following table presents, on a pre-tax basis, the location and amount of gains (losses) on fair value and cash flow hedges recognized in income in our Condensed Consolidated Statements of Income and Comprehensive Income (in millions):

	For the Three Months Ended
	September 30, 2021						September 30, 2020
	Revenue		Cost of revenue		Interest expense and other financing costs, net		Revenue		Cost of revenue		Interest expense and other financing costs, net
Total amounts of income and expense line items in which the effects of fair value or cash flow hedged are recorded	$	8,350.9	$	8,153.4	$	10.4	$	4,482.7	$	4,268.7	$	9.4
Gains (losses) on fair value hedge relationships:
Commodity contracts:
Hedged item	—		3.1		—		—		(1.2)		—
Derivatives designated as hedging instruments	—		(4.8)		—		—		1.5		—
Gains (losses) on cash flow hedge relationships:
Commodity contracts:
Amount of gain (loss) reclassified from Accumulated other comprehensive income (loss) into net income	(20.2)		128.2		—		(2.8)		(65.0)		—
Interest rate contracts:
Amount of gain (loss) reclassified from Accumulated other comprehensive income (loss) into net income	—		—		(0.3)		—		—		(0.2)
Total amount of income and expense line items excluding the impact of hedges	$	8,371.0	$	8,279.8	$	10.1	$	4,485.5	$	4,204.1	$	9.2
	For the Nine Months Ended
	September 30, 2021						September 30, 2020
	Revenue		Cost of revenue		Interest expense and other financing costs, net		Revenue		Cost of revenue		Interest expense and other financing costs, net
Total amounts of income and expense line items in which the effects of fair value or cash flow hedged are recorded	$	21,394.2	$	20,821.3	$	29.2	$	15,656.2	$	14,969.6	$	36.3
Gains (losses) on fair value hedge relationships:
Commodity contracts:
Hedged item	—		29.7		—		—		(15.4)		—
Derivatives designated as hedging instruments	—		(24.5)		—		—		15.3		—
Gains (losses) on cash flow hedge relationships:
Commodity contracts:
Amount of gain (loss) reclassified from Accumulated other comprehensive income (loss) into net income	(39.3)		246.8		—		38.2		(122.3)		—
Interest rate contracts:
Amount of gain (loss) reclassified from Accumulated other comprehensive income (loss) into net income	—		—		(1.0)		—		—		(0.2)
Total amount of income and expense line items excluding the impact of hedges	$	21,433.5	$	21,073.2	$	28.2	$	15,618.0	$	14,847.2	$	36.1

The following table presents, on a pre-tax basis, the amounts not recorded in Accumulated other comprehensive income (loss) due to intra-period settlement but recognized in Revenue and Cost of revenue in our Condensed Consolidated Statements of Income and Comprehensive Income (in millions):

Gain (loss) not recorded in Accumulated other comprehensive income (loss) due to intra-period settlement		Three Months Ended September 30,				Nine Months Ended September 30,
	Location	2021		2020		2021		2020
Commodity contracts	Revenue	$	(143.0)	$	97.8	$	(334.1)	$	401.1
Commodity contracts	Cost of revenue	$	22.0	$	(2.5)	$	37.2	$	(176.0)

Impact of Derivatives Designated as Hedges on the Accumulated Other Comprehensive Income and Consolidated Statements of Income and Comprehensive Income

The following tables present the effect and financial statement location of our derivative instruments in cash flow hedging relationships on Accumulated other comprehensive income (loss) and in our Condensed Consolidated Statements of Income and Comprehensive Income (in millions):

Amount of gain (loss) recognized in Accumulated other comprehensive income (loss), net of income tax (expense) benefit	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Commodity contracts (Revenue)	$	53.7	$	(22.0)	$	(22.3)	$	163.6
Commodity contracts (Cost of revenue)	17.8		(39.8)		172.1		(237.2)
Interest rate contracts	(0.2)		(0.1)		2.8		(3.8)
Total gain (loss)	$	71.4	$	(61.9)	$	152.6	$	(77.4)

Amount of gain (loss) reclassified from Accumulated other comprehensive income (loss) into net income, net of income tax (expense) benefit		Three Months Ended September 30,				Nine Months Ended September 30,
	Location	2021		2020		2021		2020
Commodity contracts	Revenue	$	(15.5)	$	(2.8)	$	(30.1)	$	38.2
Commodity contracts	Cost of revenue	95.5		(65.0)		183.9		(122.3)
Interest rate contracts	Interest expense and other financing costs, net	(0.3)		(0.2)		(0.7)		(0.2)
Total gain (loss)		$	79.7	$	(68.1)	$	153.1	$	(84.4)

Impact of Derivatives not Designated as Hedges on the Consolidated Statements of Income and Comprehensive Income

The following table presents the amount and financial statement location in our Condensed Consolidated Statements of Income and Comprehensive Income of realized and unrealized gains (losses) recognized on derivative instruments not designated as hedging instruments (in millions):

		Three Months Ended September 30,				Nine Months Ended September 30,
Derivative Instruments - Non-designated	Location	2021		2020		2021		2020
Commodity contracts
	Revenue	$	3.3	$	44.3	$	(287.6)	$	157.6
	Cost of revenue	15.0		(27.7)		321.8		(38.0)
		18.3		16.7		34.2		119.6
Foreign currency contracts
	Revenue	0.9		(1.7)		1.1		(1.8)
	Other (expense), net	1.5		(11.7)		3.4		(1.0)
		2.4		(13.4)		4.4		(2.8)
Total gain (loss)		$	20.8	$	3.2	$	38.7	$	116.8

Schedule of Potential Collateral Requirements for Derivative Liabilities

The following table presents the potential collateral requirements for derivative liabilities with credit-risk-contingent features (in millions):

	September 30, 2021		December 31, 2020
Net derivative liability positions with credit contingent features	$	3.5	$	20.0
Collateral posted and held by our counterparties	—		—
Maximum additional potential collateral requirements	$	3.5	$	20.0