Derivatives (Tables)
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3 Months Ended |
Mar. 31, 2018 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| 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 | | | | As of | | As of | | | | March 31, | | December 31, | | March 31, | | December 31, | | | | 2018 | | 2017 | | 2018 | | 2017 | Derivative Instruments | Consolidated Balance Sheets location | | | | | | | | | Derivatives designated as hedging instruments | | | | | | | | | Commodity contracts | Short-term derivative assets, net | | $ | — |
| | $ | 0.4 |
| | $ | — |
| | $ | 0.5 |
| | Accrued expenses and other current liabilities | | 11.5 |
| | 2.3 |
| | 29.1 |
| | 43.1 |
| | | | $ | 11.5 |
| | $ | 2.7 |
| | $ | 29.1 |
| | $ | 43.6 |
| | | | | | | | | | | Foreign currency contracts | Short-term derivative assets, net | | $ | — |
| | $ | — |
| | $ | 0.1 |
| | $ | — |
| | Accrued expenses and other current liabilities | | 1.9 |
| | — |
| | 5.6 |
| | — |
| | | | $ | 1.9 |
| | $ | — |
| | $ | 5.7 |
| | $ | — |
| Total derivatives designated as hedging instruments | | $ | 13.4 |
| | $ | 2.7 |
| | $ | 34.8 |
| | $ | 43.6 |
| | | | | | | | | | | Derivatives not designated as hedging instruments | | | | | | | | | Commodity contracts | Short-term derivative assets, net | | $ | 60.1 |
| | $ | 191.4 |
| | $ | 8.2 |
| | $ | 123.3 |
| | Identifiable intangible and other non-current assets | | 31.9 |
| | 18.2 |
| | 15.3 |
| | 5.2 |
| | Accrued expenses and other current liabilities | | 192.1 |
| | 86.1 |
| | 231.2 |
| | 138.2 |
| | Other long-term liabilities | | 12.4 |
| | 5.2 |
| | 23.1 |
| | 13.5 |
| | | | $ | 296.5 |
| | $ | 300.9 |
| | $ | 277.9 |
| | $ | 280.2 |
| | | | | | | | | | | Foreign currency contracts | Short-term derivative assets, net | | $ | 1.9 |
| | $ | 4.5 |
| | $ | 0.6 |
| | $ | 2.8 |
| | Accrued expenses and other current liabilities | | 3.7 |
| | 3.9 |
| | 6.7 |
| | 5.7 |
| | Other long-term liabilities | | — |
| | — |
| | 0.1 |
| | 0.2 |
| | | | $ | 5.6 |
| | $ | 8.5 |
| | $ | 7.4 |
| | $ | 8.7 |
| Total derivatives not designated as hedging instruments | | $ | 302.1 |
| | $ | 309.4 |
| | $ | 285.3 |
| | $ | 288.9 |
| | | | | | | | | | | Total derivatives | | | $ | 315.5 |
| | $ | 312.0 |
| | $ | 320.1 |
| | $ | 332.5 |
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| Schedule of fair value positions of derivative instruments |
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 March 31, 2018 (in millions):
| | | | | | | | | As of March 31, | Derivative Instruments | | Units | | 2018 | Commodity contracts | | | | | Buy / Long | | BBL | | 67.4 |
| Sell / Short | | BBL | | (79.3 | ) | | | | | | Foreign currency exchange contracts | | | | | Sell U.S. dollar, buy other currencies | | USD | | (266.4 | ) | Buy U.S. dollar, sell other currencies | | USD | | 526.7 |
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| Impact of derivatives designated as fair value hedges on the consolidated statements of income and comprehensive income |
As of March 31, 2018, and 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) | | | March 31, | | March 31, | | | 2018 | | 2017 | | 2018 | | 2017 | Inventory | | $ | 68.9 |
| | $ | 55.5 |
| | $ | 2.6 |
| | $ | (0.1 | ) |
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| Effect of fair value and cash flow hedges on income and expense |
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 | | | | Three Months Ended | | | | March 31, 2018 | | March 31, 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 | | $ | 9,181.3 |
| | $ | 8,937.9 |
| | $ | 8,194.3 |
| | $ | 7,962.9 |
| Gains or Loss on fair value hedge relationships | | | | | | | | | Commodity contracts | | | | | | | | | | | Hedged Item | | — |
| | 5.5 |
| | — |
| | (3.6 | ) | | Derivatives designated as hedging instruments | | — |
| | (5.6 | ) | | — |
| | 5.3 |
| Gains or Loss on cash flow hedge relationships | | | | | | | | | Commodity contracts | | | | | | | | | | | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | | (3.6 | ) | | 18.2 |
| | (10.1 | ) | | 6.8 |
| Total amount of income of expense line items excluding the impact of hedges | | $ | 9,184.9 |
| | $ | 8,956.0 |
| | $ | 8,184.2 |
| | $ | 7,971.4 |
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| Impact of derivatives designated as hedges on the accumulated other comprehensive income and consolidated statements of income and comprehensive income |
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 | Three Months Ended | | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | Three Months Ended | March 31, | | March 31, | Derivative Instruments | 2018 | | 2017 | | Location | 2018 | | 2017 | | | | | | | | | | Commodity contracts | $ | (2.3 | ) | | $ | 57.1 |
| | Revenue | $ | (3.6 | ) | | $ | (10.1 | ) | Commodity contracts | 10.2 |
| | (50.0 | ) | | Cost of Revenue | 18.2 |
| | 6.8 |
| Foreign Currency contracts | (2.8 | ) |
| — |
| | Other Income (expense) net | — |
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| — |
| Total (Loss) Gain | $ | 5.1 |
| | $ | 7.1 |
| | Total (Loss) Gain | $ | 14.6 |
| | $ | (3.4 | ) |
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| Impact of derivatives not designated as hedges on the consolidated statements of income and comprehensive income |
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) | | | | Three Months Ended | | | | March 31, | Derivative Instruments - Non-designated | | Location | | 2018 | | 2017 | Commodity contracts | | | | | | | | | Revenue | | $ | 47.6 |
| | $ | 49.2 |
| | | Cost of revenue | | (37.0 | ) | | (38.8 | ) | | | | | $ | 10.6 |
| | $ | 10.4 |
| Foreign currency contracts | | | | | | | | | Revenue | | $ | (0.6 | ) | | $ | (0.5 | ) | | | Other expense, net | | (2.8 | ) | | (1.6 | ) | | | | | $ | (3.4 | ) | | $ | (2.0 | ) | Total Gain | | | | $ | 7.2 |
| | $ | 8.3 |
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| 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): | | | | | | | | | | | | Potential Collateral Requirements for Derivative Liabilities with Credit-Risk-Contingent Features | | | As of March 31, 2018 | | As of December 31, 2017 | Net derivatives liability positions with credit contingent features | | $ | 10.8 |
| | $ | 11.8 |
| Maximum potential collateral requirements | | $ | 10.8 |
| | $ | 11.8 |
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