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Derivative Instruments
 3 Months Ended
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments
4. Derivative Instruments
We are exposed to a variety of risks, including, but not limited to, changes in the prices of commodities that we buy or sell, changes in foreign currency exchange rates, changes in interest rates, and the creditworthiness of each of our counterparties. While we attempt to mitigate these fluctuations through hedging, such hedges may not be fully effective.
Our risk management program includes the following types of derivative instruments:
Fair Value Hedges. Derivative contracts we hold to hedge the risk of changes in the price of our inventory.
Cash Flow Hedges. Derivative contracts we execute to mitigate the risk of price and interest rate volatility in forecasted transactions.
Non-designated Derivatives. Derivatives we primarily transact to mitigate the risk of market price fluctuations in swaps or futures contracts, as well as certain forward fixed price purchase and sale contracts to hedge the risk of currency rate fluctuations and for portfolio optimization.
The following table summarizes the gross notional values of our derivative contracts used for risk management purposes (in millions):
Unit
March 31, 2025
Commodity contracts
LongBBL77.4 
ShortBBL(79.0)
Foreign currency exchange contracts
Sell U.S. dollar, buy other currenciesUSD(540.4)
Buy U.S. dollar, sell other currenciesUSD661.5 
The majority of our foreign currency exchange contracts and the volume related to our commodities contracts are expected to settle within the next twelve months.
Assets and Liabilities
The following table presents the gross fair value of our derivative instruments and their locations on the Condensed Consolidated Balance Sheets (in millions):
Condensed Consolidated Balance Sheets LocationGross Derivative AssetsGross Derivative Liabilities
Derivative InstrumentsMarch 31, 2025December 31, 2024March 31, 2025December 31, 2024
Derivatives designated as hedging instruments
Commodity contractsShort-term derivative assets, net$— $4.0 $— $3.5 
Short-term derivative liabilities, net14.3 13.9 17.8 18.9 
Interest rate contractsShort-term derivative assets, net— 2.9 — — 
Total derivatives designated as hedging instruments14.3 20.8 17.8 22.4 
Derivatives not designated as hedging instruments
Commodity contractsShort-term derivative assets, net265.5 230.8 86.6 65.7 
Other non-current assets66.1 69.4 11.2 20.5 
Short-term derivative liabilities, net100.7 86.7 207.4 174.4 
Other long-term liabilities58.8 62.8 91.9 95.6 
Foreign currency contractsShort-term derivative assets, net3.0 23.3 2.1 15.1 
Other non-current assets— 0.7 — 0.3 
Short-term derivative liabilities, net10.3 5.1 18.7 6.9 
Other long-term liabilities0.2 0.1 0.4 0.6 
Total derivatives not designated as hedging instruments504.7 478.9 418.2 379.2 
Total derivatives$518.9 $499.6 $436.1 $401.6 
For information regarding our derivative instruments measured at fair value after netting and collateral, see Note 5. Fair Value Measurements.
The following amounts were recorded on our Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges (in millions):
Line item in the Condensed 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)
March 31, 2025December 31, 2024March 31, 2025December 31, 2024
Inventory$86.3 $95.2 $2.2 $3.8 
Earnings and Other Comprehensive Income (Loss)
Derivatives Designated as Hedging Instruments
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
March 31, 2025March 31, 2024
RevenueCost of revenueInterest expense and other financing costs, netRevenueCost of revenueInterest 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$9,452.5 $9,222.1 $22.9 $10,951.4 $10,697.3 $28.9 
Gains (losses) on fair value hedge relationships:
   Commodity contracts:
Hedged item— (1.6)— — 2.1 — 
Derivatives designated as hedging instruments— 0.8 — — (3.2)— 
Gains (losses) on cash flow hedge relationships:
   Commodity contracts:
Amount of gain (loss) reclassified from Accumulated other comprehensive income (loss) into net income0.3 (0.9)— — (0.5)— 
   Interest rate contracts:
Amount of gain (loss) reclassified from Accumulated other comprehensive income (loss) into net income— — 2.9 — — 3.7 
Total amount of income and expense line items excluding the impact of hedges$9,452.2 $9,220.5 $25.8 $10,951.4 $10,695.7 $32.6 
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
LocationFor the Three Months Ended March 31,
20252024
Commodity contractsRevenue$5.6 $0.4 
Commodity contractsCost of revenue$1.7 $(1.7)
For the three months ended March 31, 2025 and 2024, 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.
As of March 31, 2025, on a pre-tax basis, $2.1 million and $0.3 million is scheduled to be reclassified from Accumulated other comprehensive income (loss) over the next twelve months as a decrease to Revenue and an increase to Cost of revenue, respectively, related to designated commodity cash flow hedges that will mature within the next twelve months.
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) BenefitFor the Three Months Ended March 31,
20252024
Commodity contracts (Revenue)$0.6 $(0.1)
Commodity contracts (Cost of revenue)(1.5)(0.2)
Interest rate contracts (Interest expense and other financing costs, net)— 1.7 
Total gain (loss)$(0.8)$1.3 
Amount of Gain (Loss) Reclassified from Accumulated other comprehensive income (loss) into Net income (loss), Net of Income Tax (Expense) BenefitFor the Three Months Ended March 31,
Location20252024
Commodity contractsRevenue$0.2 $— 
Commodity contractsCost of revenue(0.6)(0.3)
Interest rate contracts
Interest expense and other financing costs, net2.1 2.7 
Total gain (loss)$1.8 $2.4 
Derivatives Not Designated as Hedging Instruments
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):
Derivative Instruments - Non-designatedFor the Three Months Ended March 31,
Location20252024
Commodity contractsRevenue$13.1 $(78.0)
Cost of revenue(7.6)6.0 
5.5 (72.0)
Foreign currency contractsRevenue(1.5)(0.5)
Other (expense), net(3.7)(2.1)
(5.2)(2.6)
Total gain (loss)$0.3 $(74.6)
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, such as a credit downgrade or if certain defined financial ratios fall below an established threshold. The occurrence of these credit events may require us to post additional collateral or immediately settle the derivative instrument.
The following table presents the potential collateral requirements for derivative liabilities with credit-risk-contingent features (in millions):
March 31, 2025December 31, 2024
Net derivative liability positions with credit contingent features$44.3 $40.9 
Collateral posted and held by our counterparties— — 
Maximum additional potential collateral requirements$44.3 $40.9