(3) Derivatives

The following table summarizes the fair values of derivative contracts recorded as “derivative contracts” assets and liabilities in the balance sheet at December 31, 2015 (in thousands):



	Assets
	Notional¹		Gross Fair Value		Netting Adjustments			Net Fair Value Before Cash Collateral		Cash Collateral			Fair Value Net of Cash Collateral
Customer risk management programs:
Interest rate contracts
To-be-announced residential mortgage-backed securities	$	14,583,052	$	43,270	$	(28,305	)	$	14,965	$	—		$	14,965
Interest rate swaps	1,332,044		31,744		—			31,744		(1,424		)	30,320
Energy contracts	470,613		83,045		(22,970		)	60,075		(18,606		)	41,469
Agricultural contracts	61,662		2,591		(1,158		)	1,433		—			1,433
Foreign exchange contracts	546,572		498,830		—			498,830		(4,140		)	494,690
Equity option contracts	137,278		3,780		—			3,780		(470		)	3,310
Total customer risk management programs	17,131,221		663,260		(52,433		)	610,827		(24,640		)	586,187
Interest rate risk management programs	22,000		83		—			83		—			83
Total derivative contracts	$	17,153,221	$	663,343	$	(52,433	)	$	610,910	$	(24,640	)	$	586,270

	Liabilities
	Notional¹		Gross Fair Value		Netting Adjustments			Net Fair Value Before Cash Collateral		Cash Collateral			Fair Value Net of Cash Collateral
Customer risk management programs:
Interest rate contracts
To-be-announced residential mortgage-backed securities	$	14,168,927	$	40,141	$	(28,305	)	$	11,836	$	(1,308	)	$	10,528
Interest rate swaps	1,332,044		31,928		—			31,928		(20,530		)	11,398
Energy contracts	463,703		81,869		(22,970		)	58,899		—			58,899
Agricultural contracts	61,657		2,579		(1,158		)	1,421		(1,248		)	173
Foreign exchange contracts	546,405		498,574		—			498,574		(1,951		)	496,623
Equity option contracts	137,278		3,780		—			3,780		—			3,780
Total customer risk management programs	16,710,014		658,871		(52,433		)	606,438		(25,037		)	581,401
Interest rate risk management programs	75,000		300		—			300		—			300
Total derivative contracts	$	16,785,014	$	659,171	$	(52,433	)	$	606,738	$	(25,037	)	$	581,701


¹	Notional amounts for commodity contracts are converted into dollar-equivalent amounts based on dollar prices at the inception of the contract.

When bilateral netting agreements exist between the Company and its counterparties that create a single legal claim or obligation to pay or receive the net amount in settlement of the individual derivative contracts, the Company reports derivative assets and liabilities on a net by counterparty basis. Contracts may also require the Company to provide or receive cash margin as collateral for derivative assets and liabilities. Derivative assets and liabilities are reported net of cash margin when certain conditions are met.

The following table summarizes the fair values of derivative contracts recorded as “derivative contracts” assets and liabilities in the balance sheet at December 31, 2014 (in thousands):



	Assets
	Notional¹		Gross Fair Value		Netting Adjustments			Net Fair Value Before Cash Collateral		Cash Collateral			Fair Value Net of Cash Collateral
Customer risk management programs:
Interest rate contracts
To-be-announced residential mortgage-backed securities	$	13,313,615	$	94,719	$	(39,359	)	$	55,360	$	—		$	55,360
Interest rate swaps	1,165,568		35,405		—			35,405		—			35,405
Energy contracts	579,801		141,166		(48,624		)	92,542		(71,310		)	21,232
Agricultural contracts	47,657		1,904		(1,256		)	648		—			648
Foreign exchange contracts	290,965		238,395		—			238,395		—			238,395
Equity option contracts	194,960		10,834		—			10,834		—			10,834
Total customer risk management programs	15,592,566		522,423		(89,239		)	433,184		(71,310		)	361,874
Interest rate risk management programs	—		—		—			—		—			—
Total derivative contracts	$	15,592,566	$	522,423	$	(89,239	)	$	433,184	$	(71,310	)	$	361,874

	Liabilities
	Notional¹		Gross Fair Value		Netting Adjustments			Net Fair Value Before Cash Collateral		Cash Collateral			Fair Value Net of Cash Collateral
Customer risk management programs:
Interest rate contracts
To-be-announced residential mortgage-backed securities	$	13,471,880	$	91,949	$	(39,359	)	$	52,590	$	(52,290	)	$	300
Interest rate swaps	1,165,568		35,599		—			35,599		(18,717		)	16,882
Energy contracts	579,801		142,839		(48,624		)	94,215		—			94,215
Agricultural contracts	47,418		1,908		(1,256		)	652		(596		)	56
Foreign exchange contracts	290,856		238,118		—			238,118		(6,703		)	231,415
Equity option contracts	194,960		10,834		—			10,834		—			10,834
Total customer risk management programs	15,750,483		521,247		(89,239		)	432,008		(78,306		)	353,702
Interest rate risk management programs	47,000		852		—			852		—			852
Total derivative contracts	$	15,797,483	$	522,099	$	(89,239	)	$	432,860	$	(78,306	)	$	354,554


¹	Notional amounts for commodity contracts are converted into dollar-equivalent amounts based on dollar prices at the inception of the contract.

The following summarizes the pre-tax net gains (losses) on derivative instruments and where they are recorded in the Consolidated Statement of Earnings (in thousands):



	Year Ended December 31,
	2015					2014				2013
	Brokerage and Trading Revenue			Gain (Loss) on Derivatives, Net		Brokerage and Trading Revenue		Gain (Loss) on Derivatives, Net		Brokerage and Trading Revenue		Gain (Loss) on Derivatives, Net
Customer risk management programs:
Interest rate contracts
To-be-announced residential mortgage-backed securities	$	33,877		$	—	$	27,007	$	—	$	29,614	$	—
Interest rate swaps	2,066			—		2,494		—		2,991		—
Energy contracts	4,060			—		6,572		—		8,303		—
Agricultural contracts	123			—		146		—		357		—
Foreign exchange contracts	797			—		1,581		—		687		—
Equity option contracts	—			—		—		—		—		—
Total customer risk management programs	40,923			—		37,800		—		41,952		—
Interest rate risk management programs	(209		)	430		—		2,776		—		(4,367		)
Total derivative contracts	$	40,714		$	430	$	37,800	$	2,776	$	41,952	$	(4,367	)

At December 31, 2015, BOK Financial had interest rate swaps with a notional value of $97 million used as part of the economic hedge of the change in the fair value of mortgage servicing rights.

As discussed in Note 7, certain derivative contracts not designated as hedging instruments related to mortgage loan commitments and forward sales contracts are included in Residential mortgage loans held for sale on the Consolidated Balance Sheets. See Note 7 for additional discussion of notional, fair value and impact on earnings of these contracts. Forward sales contracts are not considered swaps under the Commodity and Futures Trading Commission final rules.

None of these derivative contracts have been designated as hedging instruments.