Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 02, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Calumet Specialty Products Partners, L.P. | ||
Entity Central Index Key | 1340122 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $1,633.60 | ||
Entity Common Stock, Shares Outstanding | 69,760,218 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $8.50 | $121.10 |
Accounts receivable: | ||
Trade, less allowance for doubtful accounts of $1.6 million and $1.2 million, respectively | 326 | 250.3 |
Other | 23.8 | 13 |
Total accounts receivable | 349.8 | 263.3 |
Inventories | 513.5 | 567.4 |
Derivative assets | 23.2 | 0 |
Prepaid expenses and other current assets | 7.5 | 18.9 |
Deposits | 1.7 | 3.7 |
Deferred income taxes | 2.3 | 0 |
Total current assets | 906.5 | 974.4 |
Property, plant and equipment, net | 1,464.40 | 1,160.40 |
Investment in unconsolidated affiliates | 137.3 | 33.4 |
Goodwill | 245.8 | 207 |
Other intangible assets, net | 257.5 | 212.9 |
Other noncurrent assets, net | 108.3 | 100 |
Total assets | 3,119.80 | 2,688.10 |
Current liabilities: | ||
Accounts payable | 419.9 | 355.8 |
Accrued interest payable | 37.6 | 22.5 |
Accrued salaries, wages and benefits | 21.9 | 14 |
Other taxes payable | 17.9 | 16.7 |
Other current liabilities | 40 | 36.2 |
Current portion of long-term debt | 0.6 | 0.4 |
Derivative liabilities | 5.6 | 54.8 |
Total current liabilities | 543.5 | 500.4 |
Deferred income taxes | 32.3 | 1.7 |
Pension and postretirement benefit obligations | 20 | 11.7 |
Other long-term liabilities | 0.9 | 1.1 |
Long-term debt, less current portion | 1,712.90 | 1,110.40 |
Total liabilities | 2,309.60 | 1,625.30 |
Commitments and contingencies | ||
Partners’ capital: | ||
Limited partners’ interest (69,452,233 units and 69,317,278 units, issued and outstanding at December 31, 2014 and 2013, respectively) | 765.9 | 1,079.60 |
General partner’s interest | 30.6 | 36.6 |
Accumulated other comprehensive income (loss) | 13.7 | -53.4 |
Total partners’ capital | 810.2 | 1,062.80 |
Total liabilities and partners’ capital | $3,119.80 | $2,688.10 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $1.60 | $1.20 |
Limited Partners | ||
Limited Partners' Capital Account, Units Issued | 69,452,233 | 69,317,278 |
Limited Partners' Capital Account, Units Outstanding | 69,452,233 | 69,317,278 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Income Statement [Abstract] | |||||
Sales | $5,791.10 | $5,421.40 | $4,657.30 | ||
Cost of sales | 5,261.40 | 5,011.40 | 4,144.10 | ||
Gross profit | 529.7 | 410 | 513.2 | ||
Operating costs and expenses: | |||||
Selling | 149.6 | 62.6 | 41.6 | ||
General and administrative | 98.3 | 82.1 | 60.9 | ||
Transportation | 171.4 | 142.7 | 107.9 | ||
Taxes other than income taxes | 13.4 | 14.2 | 9.1 | ||
Asset impairment | 36 | 10.5 | 1.6 | ||
Other | 14.2 | 6.3 | 6.2 | ||
Operating income | 46.8 | 91.6 | 285.9 | ||
Other income (expense): | |||||
Interest expense | -110.8 | -96.8 | -85.6 | ||
Debt extinguishment costs | -89.9 | -14.6 | 0 | ||
Realized gain (loss) on derivative instruments | 43.8 | -4.7 | 9.5 | ||
Unrealized gain (loss) on derivative instruments | -0.6 | 25.7 | -3.8 | ||
Other | -2.3 | 2.7 | 0.5 | ||
Total other expense | -159.8 | -87.7 | -79.4 | ||
Net income (loss) before income taxes | -113 | 3.9 | 206.5 | ||
Income tax expense (benefit) | -0.8 | 0.4 | 0.8 | ||
Allocation of net income (loss): | |||||
Net income (loss) | -112.2 | 3.5 | 205.7 | ||
Less: | |||||
General partner’s interest in net income (loss) | -2.2 | 0.1 | 4.1 | ||
General partner's incentive distribution rights | 15.4 | 14.7 | 5.5 | ||
Non-vested share based payments | 0 | 0.2 | 1.1 | ||
Net income (loss) available to limited partners | ($125.40) | ($11.50) | $195 | ||
Weighted average limited partner units outstanding: | |||||
Basic | 69,671,827 | 67,938,784 | 55,559,183 | ||
Diluted | 69,671,827 | [1] | 67,938,784 | [1] | 55,676,741 |
Limited partners’ interest basic net income (loss) per unit | ($1.80) | ($0.17) | $3.51 | ||
Limited partners’ interest diluted net income (loss) per unit | ($1.80) | ($0.17) | $3.50 | ||
Cash distributions declared per limited partner unit | $2.74 | $2.70 | $2.30 | ||
[1] | (1) Total diluted weighted average limited partner units outstanding excludes 0.2 million and 0.2 million potentially dilutive phantom units for the years ended December 31, 2014 and 2013. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | ($112.20) | $3.50 | $205.70 |
Cash flow hedges: | |||
Cash flow hedge (gain) loss reclassified to net income (loss) | -37 | -0.5 | 154.1 |
Change in fair value of cash flow hedges | 114.2 | -36.9 | -215.1 |
Defined benefit pension and retiree health benefit plans | -9.6 | 9.6 | -3 |
Foreign currency translation adjustment | -0.5 | -0.1 | 0 |
Total other comprehensive income (loss) | 67.1 | -27.9 | -64 |
Comprehensive income (loss) attributable to partners’ capital | ($45.10) | ($24.40) | $141.70 |
Consolidated_Statements_of_Par
Consolidated Statements of Partners' Capital (USD $) | Total | Accumulated Other Comprehensive Income (Loss) | General Partner | Limited Partners |
In Millions, unless otherwise specified | ||||
Beginning balance at Dec. 31, 2011 | $728.90 | $38.50 | $23.90 | $666.50 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Other comprehensive income (loss) | 64 | 64 | 0 | 0 |
Net income (loss) | -205.7 | 0 | -9.6 | 196.1 |
Common units repurchased for phantom unit grants | -2.1 | 0 | 0 | -2.1 |
Issuance of phantom units, net of taxes withheld | 1.7 | 0 | 0 | 1.7 |
Cash settlement of unit based compensation | 0 | |||
Amortization of vested phantom units | 2.3 | 0 | 0 | 2.3 |
Proceeds from public offerings of common units, net | 146.6 | 0 | 0 | 146.6 |
Contributions from Calumet GP, LLC | 3.1 | 0 | 3.1 | 0 |
Distributions to partners | -132.4 | 0 | -6.1 | -126.3 |
Ending balance at Dec. 31, 2012 | 889.8 | -25.5 | 30.5 | 884.8 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Other comprehensive income (loss) | 27.9 | 27.9 | 0 | 0 |
Net income (loss) | -3.5 | 0 | -14.8 | 11.3 |
Common units repurchased for phantom unit grants | -5 | 0 | 0 | -5 |
Issuance of phantom units, net of taxes withheld | -0.3 | 0 | 0 | -0.3 |
Cash settlement of unit based compensation | 0 | |||
Amortization of vested phantom units | 3.2 | 0 | 0 | 3.2 |
Proceeds from public offerings of common units, net | 392.5 | 0 | 0 | 392.5 |
Contributions from Calumet GP, LLC | 8.4 | 0 | 8.4 | 0 |
Distributions to partners | -201.4 | 0 | -17.1 | -184.3 |
Ending balance at Dec. 31, 2013 | 1,062.80 | -53.4 | 36.6 | 1,079.60 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Other comprehensive income (loss) | -67.1 | -67.1 | 0 | 0 |
Net income (loss) | 112.2 | 0 | -13.2 | 125.4 |
Common units repurchased for phantom unit grants | -2.2 | 0 | -2.2 | |
Issuance of phantom units, net of taxes withheld | -1.2 | 0 | 0 | -1.2 |
Cash settlement of unit based compensation | -0.9 | 0 | 0 | -0.9 |
Amortization of vested phantom units | 3 | 0 | 0 | 3 |
Proceeds from public offerings of common units, net | 3.6 | 0 | 0 | 3.6 |
Contributions from Calumet GP, LLC | 0.1 | 0 | 0.1 | 0 |
Distributions to partners | -209.9 | 0 | -19.3 | -190.6 |
Ending balance at Dec. 31, 2014 | $810.20 | $13.70 | $30.60 | $765.90 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net income (loss) | ($112.20) | $3.50 | $205.70 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 138.6 | 117.8 | 91.6 |
Amortization of turnaround costs | 24.5 | 15.9 | 13.4 |
Non-cash interest expense | 6.4 | 7 | 6.1 |
Non-cash debt extinguishment costs | 19 | 3.4 | 0 |
Provision for doubtful accounts | 0.5 | 0.1 | 0 |
Unrealized (gain) loss on derivative instruments | 0.6 | -25.7 | 3.8 |
Asset impairment | -36 | -10.5 | -1.6 |
Loss on disposal of fixed assets | 4.8 | 15.2 | 2.5 |
Non-cash equity based compensation | 6.5 | 4.8 | 6.5 |
Deferred income tax benefit | -1.2 | 0 | 0 |
Lower of cost or market adjustments | 74.1 | -2.1 | 6.1 |
Earnings in unconsolidated affiliates | 3.4 | 0.3 | 0 |
Other non-cash activities | 0.7 | -10.2 | -0.5 |
Changes in assets and liabilities: | |||
Accounts receivable | -0.4 | -32.3 | 34.6 |
Inventories | 43.9 | 16.4 | 11.8 |
Prepaid expenses and other current assets | 1.3 | 2.6 | 21.7 |
Derivative activity | 6.7 | -1.8 | -5 |
Turnaround costs | -27.6 | -68.6 | -14.9 |
Deposits | 2.6 | 4.2 | -5.9 |
Other assets | 0 | -0.1 | -4 |
Accounts payable | -13.1 | 6.8 | 11.1 |
Accrued interest payable | 15.1 | -1 | 13 |
Accrued salaries, wages and benefits | -14.7 | -7.1 | 1 |
Accrued income taxes payable | 0 | -27.6 | -16.1 |
Other taxes payable | -1.1 | 3 | 0.9 |
Other liabilities | 13.7 | 6.8 | 2.7 |
Pension and postretirement benefit obligations | -1.3 | -2.7 | -7.6 |
Net cash provided by operating activities | 226.8 | 39.1 | 380.1 |
Investing activities | |||
Additions to property, plant and equipment | -289.9 | -160.8 | -57 |
Investment in unconsolidated affiliates | -105.4 | -31.8 | 0 |
Cash paid for acquisitions, net of cash acquired | -263.6 | -177.7 | -569.2 |
Proceeds from sale of property, plant and equipment | 0.1 | 0 | 2 |
Net cash used in investing activities | -658.8 | -370.3 | -624.2 |
Financing activities | |||
Proceeds from borrowings — revolving credit facility | 1,625.10 | 865.6 | 1,558.30 |
Repayments of borrowings — revolving credit facility | -1,474.30 | -865.6 | -1,558.30 |
Repayments of borrowings — senior notes | -500 | -100 | 0 |
Repayments of borrowings — acquisition debt assumed | 0 | -11.9 | 0 |
Payments on capital lease obligations | -1.9 | -1.1 | -1.5 |
Proceeds from other financing obligations | 0 | 3.5 | 0 |
Proceeds from public offerings of common units, net | 3.6 | 392.5 | 146.6 |
Proceeds from senior notes offerings | 900 | 344.7 | 270.2 |
Debt issuance costs | -19.9 | -7.3 | -7.7 |
Contributions from Calumet GP, LLC | 0.1 | 8.4 | 3.1 |
Common units repurchased and taxes paid for phantom unit grants | -2.2 | -7.1 | -2.1 |
Cash settlement of unit based compensation | -0.9 | 0 | 0 |
Distributions to partners | -210.2 | -201.6 | -132.4 |
Net cash provided by financing activities | 319.4 | 420.1 | 276.2 |
Net increase (decrease) in cash and cash equivalents | -112.6 | 88.9 | 32.1 |
Cash and cash equivalents at beginning of year | 121.1 | 32.2 | 0.1 |
Cash and cash equivalents at end of year | 8.5 | 121.1 | 32.2 |
Supplemental disclosure of cash flow information | |||
Interest paid, net of capitalized interest | 107.8 | 91.4 | 66.2 |
Income taxes paid | 0.5 | 29.8 | 0.7 |
Non-cash property, plant and equipment additions | 39.9 | 13.1 | 5.8 |
Non-cash capital lease | $39.40 | $0 | $0 |
Description_of_the_Business
Description of the Business | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business |
Calumet Specialty Products Partners, L.P. (the “Company”) is a publicly traded Delaware limited partnership listed on the NASDAQ Global Select Market (“NASDAQ”) under the ticker symbol “CLMT.” The general partner of the Company is Calumet GP, LLC, a Delaware limited liability company. As of December 31, 2014, the Company had 69,452,233 limited partner common units and 1,417,392 general partner equivalent units outstanding. The general partner owns 2% of the Company and all of the incentive distribution rights (as defined in the Company’s partnership agreement), while the remaining 98% is owned by limited partners. The general partner employs all of the Company’s employees and the Company reimburses the general partner for certain of its expenses. | |
The Company is engaged in the production and marketing of crude oil-based specialty products including lubricating oils, white mineral oils, solvents, petrolatums, waxes, drilling fluids and fuel and fuel related products including gasoline, diesel, jet fuel, asphalt and heavy fuel oils in addition to oilfield services and products. The Company is also engaged in the resale of purchased crude oil to third party customers. The Company is based in Indianapolis, Indiana and owns specialty and fuel products facilities primarily located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New Jersey, eastern Missouri and North Dakota. We own and lease oilfield services locations in Texas, Oklahoma, Louisiana, Arkansas, Colorado, Utah, Wyoming, Montana, New Mexico, New York, North Dakota, Pennsylvania and Ohio. We own and lease additional facilities, primarily related to the production and distribution of specialty, fuel and oilfield services products, throughout the United States (“U.S.”). |
Summary_of_Significant_Account
Summary of Significant Accounting Policies (Notes) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | |||||||||||
Consolidation | ||||||||||||
The consolidated financial statements reflect the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All intercompany profits, transactions and balances have been eliminated. | ||||||||||||
Reclassifications | ||||||||||||
Certain amounts in the prior years’ consolidated financial statements have been reclassified to conform to the current year presentation. | ||||||||||||
Use of Estimates | ||||||||||||
The Company’s consolidated financial statements are prepared in conformity with U.S. generally accepted accounting (“U.S. GAAP”) principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
Cash and cash equivalents includes all highly liquid investments with a maturity of three months or less at the time of purchase. | ||||||||||||
Accounts Receivable | ||||||||||||
The Company performs periodic credit evaluations of customers’ financial condition and generally does not require collateral. Accounts receivable are carried at their face amounts and are generally due within 30 days to 45 days from date of invoice for the specialty products and oilfield services segments and 10 days from date of invoice for the fuel products segment. The Company maintains an allowance for doubtful accounts for estimated losses in the collection of accounts receivable. The Company makes estimates regarding the future ability of its customers to make required payments based on historical experience, the age of the accounts receivable balances, credit quality of the Company’s customers, current economic conditions, expected future trends and other factors that may affect customers’ ability to pay. Individual accounts are written off against the allowance for doubtful accounts after all reasonable collection efforts have been exhausted. | ||||||||||||
The activity in the allowance for doubtful accounts was as follows (in millions): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Beginning balance | $ | 1.2 | $ | 1.2 | $ | 0.9 | ||||||
Provision | 0.5 | 0.1 | — | |||||||||
Recoveries | — | — | 0.4 | |||||||||
Write-offs, net | (0.1 | ) | (0.1 | ) | (0.1 | ) | ||||||
Ending balance | $ | 1.6 | $ | 1.2 | $ | 1.2 | ||||||
Inventories | ||||||||||||
The cost of inventory is recorded using the last-in, first-out (“LIFO”) method. Costs include crude oil and other feedstocks, labor, processing costs and refining overhead costs. Inventories are valued at the lower of cost or market value. The replacement cost of these inventories, based on current market values, would have been $18.9 million lower and $32.2 million higher as of December 31, 2014 and 2013, respectively. At December 31, 2014 and 2013, the Company had $8.2 million and $2.6 million, respectively, of consigned inventory. | ||||||||||||
Inventories consist of the following (in millions): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Raw materials | $ | 77.8 | $ | 122.7 | ||||||||
Work in process | 75.4 | 102.6 | ||||||||||
Finished goods | 360.3 | 342.1 | ||||||||||
$ | 513.5 | $ | 567.4 | |||||||||
Under the LIFO method, the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs. For each of the years ended December 31, 2014, 2013 and 2012, the Company recorded gains and (losses) of $(31.8) million, $4.2 million and $(4.2) million, respectively, in cost of sales in the consolidated statements of operations due to the liquidation of inventory layers. | ||||||||||||
In addition, the use of the LIFO inventory method may result in increases or decreases to cost of sales in years that inventory volumes decline as the result of charging cost of sales with LIFO inventory costs generated in prior periods. In periods of rapidly declining prices, LIFO inventories may have to be written down to market value due to the higher costs assigned to LIFO layers in prior periods. During the years ended December 31, 2014 and 2012 the Company recorded $74.1 million and $6.1 million, respectively, of losses in cost of sales in the consolidated statements of operations due to the lower of cost or market valuation. During the year ended December 31, 2013, the Company recorded $2.1 million of gains in cost of sales in the consolidated statements of operations due to the lower of cost or market valuation. | ||||||||||||
Derivatives | ||||||||||||
The Company is exposed to fluctuations in the price of numerous commodities, such as crude oil (its principal raw material) and natural gas, as well as the sales prices of gasoline, diesel and jet fuel. Given the historical volatility of commodity prices, these fluctuations can significantly impact sales, gross profit and net income. Therefore, the Company utilizes derivative instruments primarily to minimize its price risk and volatility of cash flows associated with the purchase of crude oil and natural gas and the sale of fuel products. The Company employs various hedging strategies and does not hold or issue derivative instruments for trading purposes. For further information, please refer to Note 8. | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Property, plant and equipment are stated on the basis of cost. Depreciation is calculated generally on composite groups, using the straight-line method over the estimated useful lives of the respective groups. Assets under capital leases are amortized over the lesser of the useful life of the asset or the term of the lease. | ||||||||||||
Property, plant and equipment, including depreciable lives, consisted of the following (in millions): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Land | $ | 18.3 | $ | 17.6 | ||||||||
Buildings and improvements (10 to 40 years) | 66.8 | 39.1 | ||||||||||
Machinery and equipment (10 to 20 years) | 1,419.10 | 1,327.40 | ||||||||||
Furniture and fixtures (5 to 10 years) | 21.8 | 21.7 | ||||||||||
Assets under capital leases (10 to 28 years) | 50.5 | 11.1 | ||||||||||
Construction-in-progress | 354 | 121.5 | ||||||||||
1,930.50 | 1,538.40 | |||||||||||
Less accumulated depreciation | (466.1 | ) | (378.0 | ) | ||||||||
$ | 1,464.40 | $ | 1,160.40 | |||||||||
Under the composite depreciation method, the cost of partial retirements of a group is charged to accumulated depreciation. However, when there are dispositions of complete groups or significant portions of groups, the cost and related accumulated depreciation are retired, and any gain or loss is reflected in earnings. | ||||||||||||
During 2014, 2013 and 2012, the Company incurred $122.8 million, $101.2 million and $86.3 million, respectively, of interest expense of which $12.0 million, $4.4 million and $0.7 million, respectively, was capitalized as a component of property, plant and equipment. | ||||||||||||
The Company has not recorded an asset retirement obligation as of December 31, 2014 or 2013 because such potential obligations cannot be measured since it is not possible to estimate the settlement dates. | ||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company recorded $98.3 million, $92.0 million and $74.3 million, respectively, of depreciation expense on its property, plant and equipment. Depreciation expense included $0.8 million, $0.7 million and $1.0 million for the years ended 2014, 2013 and 2012, respectively, related to the Company’s capital lease assets. | ||||||||||||
The Company capitalizes the cost of computer software developed or obtained for internal use. Capitalized software is amortized using the straight-line method over five years. As of December 31, 2014 and 2013, the Company has $17.4 million and $17.3 million, respectively, of unamortized capitalized software costs. During the years ended December 31, 2014, 2013 and 2012, the Company recorded $3.4 million, $3.3 million, and $1.0 million, respectively, of amortization expense on capitalized computer software. | ||||||||||||
Investment in Unconsolidated Affiliates | ||||||||||||
The Company accounts for its ownership in its Dakota Prairie Refining, LLC and Juniper GTL LLC joint ventures in accordance with ASC 323, Investments — Equity Method and Joint Ventures. The equity method of accounting is applied when the investor has an ownership interest of less than 50% and/or has significant influence over the operating or financial decisions of the investee. Under the equity method, the Company’s proportionate share of net income (loss) is reflected as a single-line item in the consolidated statements of operations and increases or decreases, as applicable, in the carrying value of the Company’s investment in the consolidated balance sheets. In addition, the proportionate share of net income (loss) is reflected as a non-cash activity in operating activities in the consolidated statements of cash flows. Contributions increase the carrying value of the investment and are reflected as an investing activity in the consolidated statements of cash flows. | ||||||||||||
Equity method investments are assessed for other-than-temporary impairment when the investment generates net losses. No impairment was recognized in 2014 or 2013. For further information on investment in unconsolidated affiliates, refer to Note 4. | ||||||||||||
Goodwill and Indefinite Lived Intangible Assets | ||||||||||||
Goodwill represents the excess of purchase price over fair value of the net assets acquired in various acquisitions. See Note 3 for more information. The Company reviews goodwill for impairment annually on October 1 and whenever events or changes in circumstances indicate its carrying value may not be recoverable in accordance with ASC 350, Intangibles — Goodwill and Other (Topic 350): Testing Goodwill for Impairment (“ASU 2011-08”). Under ASU 2011-08, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. | ||||||||||||
In assessing the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company assesses relevant events and circumstances that may impact the fair value and the carrying amount of the reporting unit. The identification of relevant events and circumstances and how these may impact a reporting unit’s fair value or carrying amount involve significant judgment and assumptions. The judgment and assumptions include the identification of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance and Company specific events and making the assessment on whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact. | ||||||||||||
If the Company’s qualitative assessment concludes that it is probable that an impairment exists or the Company skips the qualitative assessment then the Company needs to perform a quantitative assessment. In the first step of the quantitative assessment, the Company’s assets and liabilities, including existing goodwill and other intangible assets, are assigned to the identified reporting units to determine the carrying value of the reporting units. If the carrying value of a reporting unit is in excess of its fair value, an impairment may exist, and the Company must perform an impairment analysis, in which the implied fair value of the goodwill is compared to its carrying value to determine the impairment charge, if any. | ||||||||||||
When performing the quantitative assessment, the fair value of the reporting units is determined using the income approach. The income approach focuses on the income-producing capability of an asset, measuring the current value of the asset by calculating the present value of its future economic benefits such as cash earnings, cost savings, corporate tax structure and product offerings. Value indications are developed by discounting expected cash flows to their present value at a rate of return that incorporates the risk-free rate for the use of funds, the expected rate of inflation, and risks associated with the reporting unit. | ||||||||||||
Intangible assets with an indefinite life are not amortized but are subject to review each reporting period to determine whether events and circumstances continue to support an indefinite useful life as well as an annual impairment test. | ||||||||||||
Due to falling crude oil prices in the fourth quarter of 2014, the Company updated its goodwill impairment analysis as of December 31, 2014, resulting in the fair value of one reporting unit to be less than its carrying value. An impairment charge of $36.0 million was recorded on goodwill as a result of this step 2 analysis. | ||||||||||||
No impairment was recognized on indefinite lived intangible assets in 2014 nor for goodwill and indefinite lived intangible assets in 2013 or 2012 based upon the quantitative and qualitative assessments, respectively. | ||||||||||||
Definite Lived Intangible Assets | ||||||||||||
Definite lived intangible assets consist of intangible assets associated with customer relationships, supplier agreements, tradenames, trade secrets, patents, non-competition agreements, distributor agreements and royalty agreements that were acquired in various acquisitions. The majority of these assets are being amortized using discounted estimated future cash flows over the term of the related agreements. Intangible assets associated with customer relationships are being amortized using the discounted estimated future cash flows method based upon assumed rates of annual customer attrition. For more information, refer to Note 5. | ||||||||||||
Other Noncurrent Assets | ||||||||||||
Other noncurrent assets include deferred debt issuance costs and turnaround costs. Deferred debt issuance costs were $34.7 million and $29.7 million as of December 31, 2014 and 2013, respectively, and are being amortized by the effective interest rate method over the lives of the related debt instruments. These amounts are net of accumulated amortization of $4.3 million and $13.6 million at December 31, 2014 and 2013, respectively. | ||||||||||||
Turnaround costs represent capitalized costs associated with the Company’s periodic major maintenance and repairs and were $70.1 million and $67.0 million as of December 31, 2014 and 2013, respectively. The Company capitalizes these costs and amortizes the costs on a straight-line basis over the lives of the turnaround assets. These amounts are net of accumulated amortization of $46.2 million and $25.7 million at December 31, 2014 and 2013, respectively. | ||||||||||||
Impairment of Long-Lived Assets | ||||||||||||
The Company periodically evaluates the carrying value of long-lived assets to be held and used, including definite-lived intangible assets, when events or circumstances warrant such a review. The carrying value of a long-lived asset to be held and used is considered impaired when the anticipated separately identifiable undiscounted cash flows from such an asset are less than the carrying value of the asset. In such an event, a write-down of the asset would be recorded through a charge to operations, based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using anticipated cash flows assumed by a market participant discounted at a rate commensurate with the risk involved. Long-lived assets to be disposed of other than by sale are considered held and used until disposal. | ||||||||||||
During 2013, the Company recorded write-downs related to idle fixed assets within its specialty products segment. The non-cash charges of $10.5 million, were recorded in asset impairment on the consolidated statements of operations and loss on disposal of fixed assets in the consolidated statements of cash flows for the year ended December 31, 2013. | ||||||||||||
Business Combinations and Related Business Acquisition Costs | ||||||||||||
Assets and liabilities associated with business acquisitions are recorded at fair value, using the acquisition method of accounting. The Company allocates the purchase price of acquisitions based upon the fair value of each component, which may be derived from various observable or unobservable inputs and assumptions. The Company may utilize third-party valuation specialists to assist the Company in this allocation. Initial purchase price allocations are preliminary and subject to revision within the measurement period, not to exceed one year from the date of acquisition. The fair value of the property, plant and equipment and intangible assets are based upon the discounted cash flow method that involves inputs that are not observable in the market (Level 3). Goodwill assigned represents the amount of consideration transferred in excess of the fair value assigned to identifiable assets acquired and liabilities assumed. | ||||||||||||
Business acquisition costs are expensed as incurred, and are reported as general and administrative expenses in the consolidated statements of operations. The Company defines these costs to include finder’s fees, advisory, legal, accounting, valuation, and other professional or consulting fees, as well as travel associated with the evaluation and effort to acquire specific businesses. For further information, refer to Note 3. | ||||||||||||
Revenue Recognition | ||||||||||||
The Company recognizes revenue on orders received from its customers when there is persuasive evidence of an arrangement with the customer that is supportive of revenue recognition, the customer has made a fixed commitment to purchase the product for a fixed or determinable sales price, collection is reasonably assured under the Company’s normal billing and credit terms, all of the Company’s obligations related to the product have been fulfilled and ownership and all risks of loss have been transferred to the buyer, which is primarily upon shipment to the customer or, in certain cases, upon receipt by the customer in accordance with contractual terms. The Company recognizes revenue on certain drilling fluids, completion fluids and production chemicals when consumed at the customer site during the drilling process. | ||||||||||||
Concentrations of Credit Risk | ||||||||||||
The Company performs periodic credit evaluations of its customers’ financial condition and in some instances requires cash in advance or letters of credit prior to shipment for domestic orders. For international orders, letters of credit are generally required and the Company maintains insurance policies which cover certain export orders. The Company maintains an allowance for doubtful customer accounts for estimated losses resulting from the inability of its customers to make required payments. The allowance for doubtful accounts is developed based on several factors including historical experience, the age of the accounts receivable balances, credit quality of the Company’s customers, current economic conditions, expected future trends and other factors that may affect customers’ ability to pay, which exist as of the balance sheet dates. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. In addition, from time to time the Company has significant derivative assets with a limited number of counterparties. The evaluation of these counterparties is performed quarterly in connection with the Company’s ASC 820-10, Fair Value Measurements and Disclosures, valuations to determine the impact of the counterparty credit risk on the valuation of its derivative instruments. | ||||||||||||
Income Taxes | ||||||||||||
The Company, as a partnership, is generally not liable for federal and state income taxes on the earnings of Calumet Specialty Products Partners, L.P. and its wholly-owned subsidiaries. However, the Company conducts certain activities through wholly-owned subsidiaries that are corporations, including ADF Holdings, Inc. and Anchor Drilling Fluids USA, Inc. (collectively “Anchor”), which are subject to federal, state and local income taxes. Additionally, the Company is subject to franchise taxes in certain states. Income taxes on the earnings of the Company, with the exception of the above mentioned taxes, are the responsibility of its partners, with earnings of the Company included in partners’ earnings. | ||||||||||||
In the event that the Company’s taxable income does not meet certain qualification requirements, the Company would be taxed as a corporation. Interest and penalties related to income taxes, if any, would be recorded in income tax expense. Generally, tax returns remain subject to examination by taxing authorities for three years. The Company had no unrecognized tax benefits as of December 31, 2014 and 2013. | ||||||||||||
The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in earnings in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts more likely than not to be realized. | ||||||||||||
The determination of the provision for income taxes requires significant judgment, use of estimates, and the interpretation and application of complex tax laws. Significant judgment is required in assessing the timing and amounts of deductible and taxable items and the probability of sustaining uncertain tax positions. The benefits of uncertain tax positions are recorded in the Company’s financial statements only after determining a more-likely-than-not probability that the uncertain tax positions will withstand challenge, if any, from taxing authorities. When facts and circumstances change, the Company reassesses these probabilities and records any changes through the provision for income taxes. | ||||||||||||
Excise and Sales Taxes | ||||||||||||
The Company assesses, collects and remits excise taxes associated with the sale of certain of its fuel products. Furthermore, the Company collects and remits sales taxes associated with certain sales of its products to non-exempt customers. Excise taxes and sales taxes assessed and collected from customers are recorded on a net basis within sales in the Company’s consolidated statements of operations. | ||||||||||||
Earnings per Unit | ||||||||||||
The Company calculates earnings per unit under ASC 260-10, Earnings per Share. The Company treats incentive distribution rights (“IDRs”) as participating securities for the purposes of computing earnings per unit in the period that the general partner becomes contractually obligated to receive IDRs. Also, the undistributed earnings are allocated to the partnership interests based on the allocation of earnings to the Company’s partners’ capital accounts as specified in the Company’s partnership agreement. When distributions exceed earnings, net income is reduced by the actual distributions with the resulting net loss being allocated to capital accounts as specified in the Company’s partnership agreement. | ||||||||||||
Unit Based Compensation | ||||||||||||
For unit based compensation awards granted, compensation expense is recognized in the Company’s consolidated financial statements on a straight line basis over the awards’ vesting periods based on their fair values on the dates of grant. The unit based compensation awards vest over a period not exceeding four years. The amount of compensation expense recognized at any date is at least equal to the portion of the grant date value of the award that is vested at that date. | ||||||||||||
Unit based compensation liability awards are awards that are expected to be settled in cash on their vesting dates, rather than in equity units (“Liability Awards”). Liability Awards are recorded in accrued salaries, wages and benefits based on the vested portion of the fair value of the awards on the balance sheet date. The fair values of Liability Awards are updated at each balance sheet date and changes in the fair values of the vested portions of the awards are recorded as increases or decreases to compensation expense. See Note 11 for more information on Liability Awards. | ||||||||||||
Shipping and Handling Costs | ||||||||||||
The Company complies with ASC 605-45, Revenue Recognition — Principal Agent Considerations. ASC 605-45 requires the classification of shipping and handling costs billed to customers in sales and the classification of shipping and handling costs incurred in cost of sales, or to be disclosed if classified elsewhere. The Company has reflected $171.4 million, $142.7 million and $107.9 million, respectively, for the years ended December 31, 2014, 2013, and 2012, in transportation expense in the consolidated statements of operations, the majority of which is billed to customers. | ||||||||||||
Advertising Expenses | ||||||||||||
The Company expenses advertising costs as incurred which totaled $20.5 million, $14.6 million and $8.2 million in 2014, 2013 and 2012, respectively. Advertising expenses are reported as selling expenses in the consolidated statements of operations. | ||||||||||||
Renewable Identification Numbers Obligation | ||||||||||||
The Company’s Renewable Identification Numbers obligation (“RINs Obligation”) represents a liability for the purchase of RINs to satisfy the U.S. Environmental Protection Agency (“EPA”) requirement to blend biofuels into the fuel products it produces pursuant to the EPA’s Renewable Fuel Standard (“RFS”). RINs are assigned to biofuels produced in the U.S. as required by the EPA. The EPA sets annual quotas for the percentage of biofuels that must be blended into transportation fuels consumed in the U.S., and as a producer of motor fuels from petroleum, the Company is required to blend biofuels into the fuel products it produces at a rate that will meet the EPA’s annual quota. To the extent the Company is unable to blend biofuels at that rate, it must purchase RINs in the open market to satisfy the annual requirement. The Company’s RINs Obligation is based on the amount of RINs it must purchase and the price of those RINs as of the balance sheet date. The Company uses the inventory model to account for RINs, measuring acquired RINs at weighted-average cost. The cost of RINs used each period is charged to cost of sales with cash inflows and outflows recorded in the operating cash flow section of the consolidated statements of cash flows. Excess RINs are classified as inventory in the consolidated balance sheets. The Company recognizes a liability at the end of each reporting period in which the Company does not have sufficient RINs to cover the RINs Obligation. The liability is calculated by multiplying the RINs shortage (based on actual results) by the period end RIN spot price. | ||||||||||||
From time to time, the Company holds varying amounts of RINs for resale. RINs obtained from third parties are initially recorded at their cost at the time the Company acquires them and are subsequently revalued at the lower of cost or market as of the last day of each accounting period and the resulting adjustments are reflected in costs of goods sold for the period. The value of RINs obtained from third parties would be reflected in prepaid expenses and other assets on the consolidated balance sheets. | ||||||||||||
Foreign Currency Translation and Transactions | ||||||||||||
Certain of the Company’s subsidiaries use a local currency as their functional currency. Assets and liabilities of subsidiaries with a local currency as their functional currency are translated at period-end rates of exchange, and revenues and expenses are translated at average exchange rates prevailing for each month. The resulting translation adjustments are made directly to a separate component of other comprehensive income (loss), which is reflected in partners’ capital in the Company’s consolidated balance sheets. | ||||||||||||
Certain of the Company’s subsidiaries also enter into transactions and have monetary assets and liabilities that are denominated in a currency other than such entity’s respective functional currency. Gains and losses from the revaluation of foreign currency transactions and monetary assets and liabilities are included in other income (expense) in the consolidated statements of operations. | ||||||||||||
New Accounting Pronouncements | ||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2013-04, Liabilities (Topic 405) — Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (“ASU 2013-04”). ASU 2013-04 provides guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements from which the total amount of the obligation within the scope of this guidance is fixed at the reporting date. ASU 2013-04 was effective for fiscal periods (including interim periods) beginning after December 15, 2013 and should be applied retrospectively. The adoption of ASU 2013-04 did not have an impact on the Company’s consolidated financial statements. | ||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 will be effective beginning in fiscal year 2017 and early adoption is not permitted. ASU 2014-09 allows for either a full retrospective or a modified retrospective transition method. The Company is currently evaluating the impact of this standard on its consolidated financial statements. | ||||||||||||
In June 2014, the FASB issued ASU No. 2014-12, Compensation-Stock Compensation (Topic 718) - Accounting for Share-Based Payments When the Terms of an Award provide that a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). ASU 2014-12 provides guidance for the recognition, measurement and disclosure of obligations resulting from unit-based payments after the requisite service period has ended when the eligible employee has ceased rendering service and is still eligible to vest in the award if the performance target is achieved. ASU 2014-12 is effective for fiscal periods (including interim periods) beginning after December 15, 2015 and early adoption is permitted. Provisions of ASU 2014-12 may be applied either prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all or modified awards thereafter. The adoption of ASU 2014-12 is not expected to have an impact on the Company’s consolidated financial statements as its unit-based compensation plans do not currently provide for achieving performance targets subsequent to the end of requisite service periods. | ||||||||||||
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40) - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The adoption of ASU 2014-15 is not expected to have an impact on the Company’s consolidated financial statements. | ||||||||||||
In November 2014, the FASB issued ASU No. 2014-17, Business Combinations (Topic 805): Pushdown Accounting (“ASU 2014-17”). ASU 2014-17 provides guidance that allows all acquired entities to choose to apply pushdown accounting in their separate financial statements when an acquirer obtains control of them. ASU 2014-17 was effective on November 18, 2014. The adoption of ASU 2014-17 did not have an impact on the Company’s consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions | |||||||||||||||||||||||||||||||||||||||
On August 1, 2014, the Company completed the acquisition of substantially all of the assets of privately-held Specialty Oilfield Solutions, Ltd. (“SOS”) for aggregate consideration of approximately $29.6 million, net of cash acquired and subject to certain purchase price adjustments (“SOS Acquisition”). SOS is a full-service drilling fluids and solids control company with operations in the Eagle Ford, Marcellus and Utica shale formations. The SOS Acquisition was financed with borrowings under the Company’s revolving credit facility. The Company believes the SOS Acquisition increases its sales into the oilfield services market, expands its geographic reach and increases its asset diversity. | ||||||||||||||||||||||||||||||||||||||||
On March 31, 2014, the Company completed the acquisition of 100% of the membership interests of ADF Holdings, Inc., the parent company of Anchor, an independent provider and marketer of drilling fluids, completion fluids and production chemicals to the oil and gas exploration industry (“Anchor Acquisition”). Total consideration was approximately $223.6 million, net of cash acquired and subject to certain other adjustments. In connection with the Anchor Acquisition, the Company is required to pay 50% by which the amount of taxes paid in a post-closing tax period are reduced (or a refund is actually received or credited) as a result of the utilization of post-closing transaction tax deductions in the 2014 taxable year (but, for the avoidance of doubt, no other taxable year) to the sellers, which is estimated to be $1.0 million as of December 31, 2014. Anchor designs, manufactures and packages drilling fluid products at its locations in Texas, Oklahoma, Louisiana, Arkansas, Colorado, Utah, Wyoming, Montana, New Mexico, New York, North Dakota, Pennsylvania and Ohio. The Anchor Acquisition was financed by using a portion of the net proceeds of approximately $884.0 million from the Company’s March 2014 private placement of 6.50% senior notes due April 15, 2021. The Company believes the Anchor Acquisition further expands its specialty products offering, increases its sales into the oilfield services market, expands its geographic reach and increases its asset diversity. | ||||||||||||||||||||||||||||||||||||||||
On February 28, 2014, the Company completed the acquisition of substantially all of the assets of United Petroleum, LLC (“United Petroleum”), a marketer and distributor of high performance lubricants, for aggregate consideration of approximately $10.4 million, (“United Petroleum Acquisition”). The United Petroleum Acquisition was financed with cash on hand. The Company believes the United Petroleum Acquisition increases its position in the specialty lubricants market. | ||||||||||||||||||||||||||||||||||||||||
On December 10, 2013, the Company completed the acquisition of 100% of the membership interests of Bel-Ray Company, LLC (“Bel-Ray”), a manufacturer and global distributor of high-performance lubricants and greases, for aggregate consideration of approximately $53.6 million, net of cash acquired and excluding debt assumed (“Bel-Ray Acquisition”). Bel-Ray distributes, both domestically and internationally, a wide array of high-end specialty synthetic lubricants and greases which are used in the aerospace, automotive, energy, food, marine, military, mining, motorcycle, powersports, steel and textiles industries. The Bel-Ray Acquisition was financed by using a portion of the net proceeds of $337.4 million from the Company’s November 2013 private placement of 7.625% senior notes due January 15, 2022. The Company believes the Bel-Ray Acquisition increases its position in the specialty lubricants market, expands its geographic reach and increases its asset diversity. At closing, the Company repaid the $11.9 million of debt assumed in connection with the Bel-Ray Acquisition. | ||||||||||||||||||||||||||||||||||||||||
On August 9, 2013, the Company completed the acquisition of seven crude oil loading facilities and related assets in North Dakota and Montana from Murphy Oil USA, Inc. (“Murphy”) for aggregate consideration of approximately $6.2 million (“Crude Oil Logistics Acquisition”). The Crude Oil Logistics Acquisition was funded with cash on hand. As part of this acquisition, the Company assumed pipeline space on the Enbridge Pipeline System (“Enbridge Pipeline”) previously held by Murphy. The Company has the ability to transport crude oil directly from the point of lease, into the Company’s acquired crude oil loading facilities and then onto the Enbridge Pipeline where it can be routed to the Company’s refineries and/or third party customers. As part of this transaction, the Company and Murphy jointly consented to terminate an existing crude oil purchase agreement wherein Murphy supplied the Company’s Superior refinery with up to 10,000 barrels per day of crude oil. The Company believes this acquisition expands its growing portfolio of crude oil logistics assets, while positioning the Company to purchase increased volumes of price-advantaged feedstock directly from the producers that operate in the major shale oil plays encompassing certain of the Company’s refineries. | ||||||||||||||||||||||||||||||||||||||||
On January 2, 2013, the Company completed the acquisition of NuStar Energy L.P.’s (“NuStar”) San Antonio, Texas refinery, together with related assets and the assumption of certain liabilities and obligations (“San Antonio Acquisition”). Total consideration for the San Antonio Acquisition was approximately $117.9 million, net of cash acquired. The refinery has total crude oil throughput capacity of 17,500 bpd and primarily produces diesel, jet fuel, gasoline and other fuel products. The San Antonio Acquisition was funded with borrowings under the Company’s revolving credit facility with the balance through cash on hand. The Company believes the San Antonio Acquisition further diversifies the Company’s crude oil feedstock slate, operating asset base and geographic presence. | ||||||||||||||||||||||||||||||||||||||||
On October 1, 2012, the Company completed the acquisition from Connacher Oil and Gas Limited (“Connacher”) of all the shares of common stock of Montana Refining Company, Inc. (“Montana Refining”) and an insignificant affiliated company for aggregate consideration of approximately $191.6 million, net of cash acquired (“Montana Acquisition”). Montana Refining produces gasoline, diesel, jet fuel and asphalt, which are marketed primarily into local markets in Washington, Montana, Idaho and Alberta, Canada. The Montana Acquisition was funded primarily with cash on hand with the balance through borrowings under the Company’s revolving credit facility. The Company believes the Montana Acquisition further diversifies its crude oil feedstock slate, operating asset base and geographic presence. Immediately after closing the Montana Acquisition, the Company converted Montana Refining into a Delaware limited liability company, Calumet Montana Refining, LLC. This conversion resulted in the recognition of a current income tax liability of approximately $27.6 million, which was paid during the year ended December 31, 2013 and was offset by the derecognition of a deferred tax liability for a comparable amount assumed in connection with the acquisition. | ||||||||||||||||||||||||||||||||||||||||
On July 3, 2012, the Company completed the acquisition of Royal Purple, Inc. (“Royal Purple”), a Texas corporation which was converted into a Delaware limited liability company at closing, for aggregate consideration of approximately $331.2 million, net of cash acquired (“Royal Purple Acquisition”). Royal Purple is a leading independent formulator and marketer of premium industrial and consumer lubricants to a diverse customer base across several large markets including oil and gas, chemicals and refining, power generation, manufacturing and transportation, food and drug manufacturing and automotive aftermarket. The Royal Purple Acquisition was financed with net proceeds of $262.5 million from the Company’s June 2012 private placement of 9.625% senior notes due August 1, 2020 and cash on hand. The Company believes the Royal Purple Acquisition increases its position in the specialty lubricants market, expands its geographic reach, increases its asset diversity and enhances its specialty products segment. | ||||||||||||||||||||||||||||||||||||||||
On January 6, 2012, the Company completed the acquisition of all of the outstanding membership interests of TruSouth Oil, LLC, renamed Calumet Packaging, LLC in 2013 (“Calumet Packaging”), a specialty petroleum packaging and distribution company located in Shreveport, Louisiana for aggregate consideration of approximately $26.9 million, net of cash acquired (“Calumet Packaging Acquisition”). The Calumet Packaging Acquisition was financed with borrowings under the Company’s revolving credit facility. Immediately prior to its acquisition by the Company, Calumet Packaging was owned in part by affiliates of the Company’s general partner. The Company believes the Calumet Packaging Acquisition provides greater diversity to its specialty products segment. | ||||||||||||||||||||||||||||||||||||||||
On January 3, 2012, the Company completed the acquisition of the aviation and refrigerant lubricants business (a polyolester based synthetic lubricants business) of Hercules Incorporated, a subsidiary of Ashland, Inc., including a manufacturing facility located in Louisiana, Missouri for aggregate consideration of approximately $19.6 million (“Missouri Acquisition”). The Missouri Acquisition was financed with borrowings under the Company’s revolving credit facility and cash on hand. The Company believes the Missouri Acquisition provides greater diversity to its specialty products segment. | ||||||||||||||||||||||||||||||||||||||||
Purchase Price Allocation | ||||||||||||||||||||||||||||||||||||||||
The assets and results of the operations from such assets acquired as a result of the Montana, San Antonio and Crude Oil Logistics Acquisitions have been included in the fuel products segments since their dates of acquisition, October 1, 2012, January 2, 2013 and August 9, 2013, respectively. The assets and results of operations from such assets acquired as a result of the Missouri, Calumet Packaging, Royal Purple, Bel-Ray and United Petroleum Acquisitions have been included in the specialty products segment since their dates of acquisition, January 3, 2012, January 6, 2012, July 3, 2012, December 10, 2013 and February 28, 2014, respectively. The assets and results of operations from such assets acquired as a result of the Anchor and SOS Acquisitions have been included in the oilfield services segment since their dates of acquisition, March 31, 2014 and August 1, 2014, respectively. | ||||||||||||||||||||||||||||||||||||||||
The allocations of the aggregate purchase prices to assets acquired and liabilities assumed for acquisitions are as follows (in millions): | ||||||||||||||||||||||||||||||||||||||||
2014 Acquisitions | 2013 Acquisitions | 2012 Acquisitions | ||||||||||||||||||||||||||||||||||||||
SOS | Anchor | United Petroleum | Bel-Ray | Crude Oil Logistics | San Antonio | Montana | Royal Purple | Calumet Packaging | Missouri | |||||||||||||||||||||||||||||||
Accounts receivable | $ | 11.6 | $ | 75 | $ | — | $ | 4.3 | $ | — | $ | — | $ | 29 | $ | 15.2 | $ | 5.2 | $ | — | ||||||||||||||||||||
Inventories | 2.7 | 61.2 | 0.2 | 11.1 | — | 17 | 43.7 | 19.3 | 8 | 2.7 | ||||||||||||||||||||||||||||||
Prepaid expenses and other current assets | 0.1 | 0.4 | — | 0.6 | 0.1 | — | 23.1 | 0.2 | 0.3 | — | ||||||||||||||||||||||||||||||
Deposits | — | 0.6 | — | — | — | — | 0.3 | — | — | — | ||||||||||||||||||||||||||||||
Deferred tax asset | — | 0.9 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Property, plant and equipment, net | 15.1 | 35.9 | — | 6.5 | 0.9 | 100.7 | 125.4 | 10.6 | 17.7 | 10 | ||||||||||||||||||||||||||||||
Investment in unconsolidated affiliates | — | 1.9 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Goodwill | 0.8 | 69 | 5 | 9.1 | 5.2 | 5.7 | 27.6 | 109.2 | 0.4 | 1.5 | ||||||||||||||||||||||||||||||
Other intangible assets, net | 5.7 | 74 | 5.2 | 41.4 | — | — | — | 183.4 | 2.6 | 5.4 | ||||||||||||||||||||||||||||||
Other noncurrent assets, net | — | — | — | 0.3 | — | — | 0.3 | — | — | — | ||||||||||||||||||||||||||||||
Accounts payable | (6.2 | ) | (44.2 | ) | — | (3.9 | ) | — | — | (8.4 | ) | (3.8 | ) | (2.7 | ) | — | ||||||||||||||||||||||||
Accrued salaries, wages and benefits | — | (18.2 | ) | — | (1.3 | ) | — | (0.1 | ) | (1.4 | ) | (1.7 | ) | (0.2 | ) | — | ||||||||||||||||||||||||
Accrued income taxes payable | — | — | — | — | — | — | (15.6 | ) | — | — | — | |||||||||||||||||||||||||||||
Other taxes payable | (0.2 | ) | (1.8 | ) | — | (1.7 | ) | — | — | (3.0 | ) | (0.2 | ) | — | — | |||||||||||||||||||||||||
Other current liabilities | — | (0.4 | ) | — | (0.8 | ) | — | (5.4 | ) | (0.1 | ) | (1.0 | ) | (0.9 | ) | — | ||||||||||||||||||||||||
Current portion of long-term debt | — | — | — | (11.9 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Long-term debt | — | — | — | — | — | — | — | — | (3.5 | ) | — | |||||||||||||||||||||||||||||
Deferred income tax liability | — | (30.7 | ) | — | — | — | — | (27.6 | ) | — | — | — | ||||||||||||||||||||||||||||
Other long-term liabilities | — | — | — | (0.1 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Pension and postretirement benefit obligations | — | — | — | — | — | — | (1.7 | ) | — | — | — | |||||||||||||||||||||||||||||
Total purchase price, net of cash acquired | $ | 29.6 | $ | 223.6 | $ | 10.4 | $ | 53.6 | $ | 6.2 | $ | 117.9 | $ | 191.6 | $ | 331.2 | $ | 26.9 | $ | 19.6 | ||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||||||||||||||||||
The components of intangible assets listed in the table above were as follows (in millions): | ||||||||||||||||||||||||||||||||||||||||
SOS | Anchor | United Petroleum | Bel-Ray | |||||||||||||||||||||||||||||||||||||
1-Aug-14 | 31-Mar-14 | 28-Feb-14 | 10-Dec-13 | |||||||||||||||||||||||||||||||||||||
Amount | Life (Years) | Amount | Life (Years) | Amount | Life (Years) | Amount | Life (Years) | |||||||||||||||||||||||||||||||||
Customer relationships | $ | 4.3 | 15 | $ | 52.7 | 20 | $ | 3.8 | 20 | $ | 28.6 | 30 | ||||||||||||||||||||||||||||
Tradenames | 1.4 | 20 | 18.4 | 21 | 1.4 | 20 | 4.2 | 18 | ||||||||||||||||||||||||||||||||
Trade secrets | — | — | — | — | — | — | 8.5 | 18 | ||||||||||||||||||||||||||||||||
Non-competition agreements | — | — | 2.9 | 2 | — | — | 0.1 | 3 | ||||||||||||||||||||||||||||||||
Totals | $ | 5.7 | $ | 74 | $ | 5.2 | $ | 41.4 | ||||||||||||||||||||||||||||||||
Weighted average amortization period | 16 | 20 | 20 | 26 | ||||||||||||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||||||||||||||||
The Company recorded the following goodwill (in millions): | ||||||||||||||||||||||||||||||||||||||||
Amount | Business Segment | |||||||||||||||||||||||||||||||||||||||
SOS Acquisition (1) | $ | 0.8 | Oilfield Services | |||||||||||||||||||||||||||||||||||||
Anchor Acquisition (1) (3) | $ | 69 | Oilfield Services | |||||||||||||||||||||||||||||||||||||
United Petroleum Acquisition (1) | $ | 5 | Specialty Products | |||||||||||||||||||||||||||||||||||||
Bel-Ray Acquisition (1) | $ | 9.1 | Specialty Products | |||||||||||||||||||||||||||||||||||||
Crude Oil Logistics Acquisition (2) | $ | 5.2 | Fuel Products | |||||||||||||||||||||||||||||||||||||
San Antonio Acquisition (1) | $ | 5.7 | Fuel Products | |||||||||||||||||||||||||||||||||||||
(1) | Goodwill recognized relates primarily to enhancing the Company’s strategic platform for expansion in the respective business segment noted above. | |||||||||||||||||||||||||||||||||||||||
(2) | Goodwill recognized relates primarily to enhancing the Company’s crude oil gathering operations to support the Superior refinery and sales to third party customers. | |||||||||||||||||||||||||||||||||||||||
(3) | Approximately $9.7 million of goodwill associated with the Anchor Acquisition is tax deductible due to Anchor’s tax status as a corporation. | |||||||||||||||||||||||||||||||||||||||
Acquisition Expenses | ||||||||||||||||||||||||||||||||||||||||
In connection with the respective acquisitions, the Company incurred the following expenses, which are reflected in general and administrative expenses in the consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012 (in millions): | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
SOS Acquisition | $ | 0.1 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Anchor Acquisition | $ | 0.6 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
United Petroleum Acquisition | $ | 0.1 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Bel-Ray Acquisition | $ | 0.3 | $ | 0.4 | $ | — | ||||||||||||||||||||||||||||||||||
Crude Oil Logistics Acquisition | $ | — | $ | 0.2 | $ | — | ||||||||||||||||||||||||||||||||||
San Antonio Acquisition | $ | — | $ | 0.5 | $ | — | ||||||||||||||||||||||||||||||||||
Montana Acquisition | $ | — | $ | 0.1 | $ | 3.3 | ||||||||||||||||||||||||||||||||||
Royal Purple Acquisition | $ | — | $ | — | $ | 0.4 | ||||||||||||||||||||||||||||||||||
Calumet Packaging Acquisition | $ | — | $ | — | $ | 0.2 | ||||||||||||||||||||||||||||||||||
Missouri Acquisition | $ | — | $ | — | $ | 0.5 | ||||||||||||||||||||||||||||||||||
Results of Sales and Earnings | ||||||||||||||||||||||||||||||||||||||||
The following financial information reflects sales and operating income (loss) of the United Petroleum, Anchor and SOS Acquisitions in 2014, the San Antonio and Bel-Ray Acquisitions in 2013 and the Missouri, Calumet Packaging, Royal Purple and Montana Acquisitions in 2012 that are included in the consolidated statements of operations (in millions): | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
Sales | $ | 382.9 | $ | 480.1 | $ | 266.1 | ||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | (11.2 | ) | $ | (22.5 | ) | $ | 18.6 | ||||||||||||||||||||||||||||||||
Unaudited Pro Forma Financial Information | ||||||||||||||||||||||||||||||||||||||||
The following unaudited pro forma financial information reflects the unaudited consolidated results of operations of the Company as if the Anchor Acquisition had taken place on January 1, 2013 (in millions, except for per unit data): | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Sales | $ | 5,873.60 | $ | 5,730.80 | ||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (124.6 | ) | $ | 21.9 | |||||||||||||||||||||||||||||||||||
Limited partners’ interest net income (loss) per unit — basic | $ | (1.97 | ) | $ | 0.1 | |||||||||||||||||||||||||||||||||||
Limited partners’ interest net income (loss) per unit — diluted | $ | (1.97 | ) | $ | 0.1 | |||||||||||||||||||||||||||||||||||
The Company’s historical financial information was adjusted to give effect to the pro forma events that were directly attributable to the Anchor Acquisition. This unaudited pro forma financial information has been presented for illustrative purposes only and is not necessarily indicative of results of operations that would have been achieved had the pro forma events taken place on the dates indicated, or the future consolidated results of operations of the combined company. |
Investment_in_Unconsolidated_A
Investment in Unconsolidated Affiliate | 12 Months Ended |
Dec. 31, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Affiliate | Investment in Unconsolidated Affiliates |
Dakota Prairie Refining, LLC | |
On February 7, 2013, the Company entered into a joint venture agreement with MDU Resources Group, Inc. (“MDU”) to develop, build and operate a diesel refinery in southwestern North Dakota. The joint venture is named Dakota Prairie Refining, LLC (“Dakota Prairie”). The capitalization of the joint venture is expected to be funded through contributions of $217.5 million from MDU and a total of $217.5 million from the Company comprised of $142.5 million through cash contributions and proceeds of $75.0 million from an unsecured syndicated term loan facility with the joint venture as the borrower which is expected to be repaid by the Company through its allocation of profits from the joint venture. The term loan facility was funded in April 2013. The majority of the direct funding by the Company occurred in 2014. The joint venture will allocate profits on a 50%/50% basis to the Company and MDU. The joint venture is governed by a board of managers comprised of representatives from both the Company and MDU. MDU will provide a portion of the crude oil supply to the refinery, as well as natural gas and electricity utility services. The Company is providing refinery operations, crude oil procurement and refined product marketing expertise to the joint venture. | |
The Company accounts for its ownership in the Dakota Prairie joint venture under the equity method of accounting. As of December 31, 2014 and 2013, the Company had an investment of $117.2 million and $33.4 million, respectively, in Dakota Prairie primarily related to the development of the refinery. The Company is committed to fund approximately $23.0 million in 2015. | |
Juniper GTL LLC | |
On June 9, 2014, the Company entered into a joint venture agreement with Clean Fuels North America, LLC, which is owned by SGC Energia and Great Northern Project Development, to develop, build and operate a gas-to-liquids (“GTL”) plant in Lake Charles, Louisiana, which is expected to be operational by late 2015. The joint venture is named New Source Fuels, LLC, and it owns 100% of Juniper GTL LLC (“Juniper”). The capitalization of the joint venture is expected to be funded through $100.0 million of equity contributions and $35.0 million in senior secured debt with the joint venture as the borrower. The Company intends to invest $25.0 million in total in exchange for an equity interest of approximately 23% in the joint venture. Funding of the project will occur over the course of the construction period. The joint venture is governed by a board of managers comprised of representatives from all of the members that own at least 10% of the equity in Juniper. | |
The Company accounts for its ownership in the Juniper joint venture under the equity method of accounting. As of December 31, 2014, the Company had an investment of $18.5 million in Juniper primarily related to the development of the plant. The Company is committed to fund approximately $6.5 million in 2015. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | |||||||||||||||||||||||||||||||
In the fourth quarter of 2014, the Company determined that the expected operating results for one of its reporting units was projected to be substantially lower than previous forecasts due to the falling crude oil prices. Given this information, the Company updated its impairment test and determined that impairment existed for this reporting unit. An impairment charge of $36.0 million for goodwill related to the oilfield services segment has been recorded in the consolidated statements of operations within asset impairment. The impairment charge was primarily driven by the reduced outlook on revenues and profitability as a result of falling crude oil prices driving declines in U.S. land based rig counts. | ||||||||||||||||||||||||||||||||
To derive the fair value of the reporting units, as required in step one of the impairment test, the Company used the income approach, specifically the discounted cash flow method, to determine the fair value of each reporting unit and the associated amount of the impairment charge. The income approach focuses on the income-producing capability of an asset, measuring the current value of the asset by calculating the present value of its future economic benefits such as cash earnings, cost savings, corporate tax structure and product offerings. Value indications are developed by discounting expected cash flows to their present value at a rate of return that incorporates the risk-free rate for the use of funds, the expected rate of inflation, and risks associated with the reporting unit. | ||||||||||||||||||||||||||||||||
Inputs used to fair value the Company’s reporting units are considered Level 3 inputs of the fair value hierarchy and include the following: | ||||||||||||||||||||||||||||||||
• | The Company’s financial projections for its reporting units are based on our analysis of various supply and demand factors, which include, among other things, industry-wide capacity, our planned utilization rate, end-user demand, crack spreads, capital expenditures and economic conditions. Such estimates are consistent with those used in the Company’s planning and capital investment reviews and include recent historical prices and published forward prices. Revenue growth rates assumed for the Company’s reporting unit where impairment was recognized was approximately -7% for 2015 and 3% to 15% for 2016 and beyond. | |||||||||||||||||||||||||||||||
• | The discount rate used to measure the present value of the projected future cash flows is based on a variety of factors, including market and economic conditions, operational risk, regulatory risk and political risk. This discount rate is also compared to recent observable market transactions, if possible. Discount rates used for the Company’s reporting unit where impairment was recognized was approximately 13.5%. | |||||||||||||||||||||||||||||||
For Level 3 measurements, significant increases or decreases in long-term growth rates or discount rates in isolation or in combination could result in a significantly lower or higher fair value measurement. | ||||||||||||||||||||||||||||||||
Changes in goodwill balances are as follows (in millions): | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Specialty | Fuel | Oilfield | Specialty | Fuel | Oilfield | |||||||||||||||||||||||||||
Products | Products | Services | Total | Products | Products | Services | Total | |||||||||||||||||||||||||
Beginning balance: | $ | 168.5 | $ | 38.5 | $ | — | $ | 207 | $ | 159.4 | $ | 27.6 | $ | — | $ | 187 | ||||||||||||||||
Acquisitions | 5 | — | 69.8 | 74.8 | 9.1 | 10.9 | — | 20 | ||||||||||||||||||||||||
Accumulated impairment losses | — | — | (36.0 | ) | (36.0 | ) | — | — | — | — | ||||||||||||||||||||||
Ending balance: | $ | 173.5 | $ | 38.5 | $ | 33.8 | $ | 245.8 | $ | 168.5 | $ | 38.5 | $ | — | $ | 207 | ||||||||||||||||
Other intangible assets consist of the following (in millions): | ||||||||||||||||||||||||||||||||
Weighted Average Life (Years) | 31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||
Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||||||||||||||||||||
Customer relationships | 21 | $ | 243.7 | $ | (68.4 | ) | $ | 182.9 | $ | (40.3 | ) | |||||||||||||||||||||
Supplier agreements | 4 | 21.5 | (21.5 | ) | 21.5 | (21.5 | ) | |||||||||||||||||||||||||
Tradenames | Indefinite | 14.8 | — | 14.8 | — | |||||||||||||||||||||||||||
Tradenames | 18 | 31.8 | (4.9 | ) | 10.6 | (1.6 | ) | |||||||||||||||||||||||||
Trade secrets | 13 | 52.7 | (16.7 | ) | 52.7 | (9.6 | ) | |||||||||||||||||||||||||
Patents | 12 | 1.6 | (1.3 | ) | 1.6 | (1.2 | ) | |||||||||||||||||||||||||
Non-competition agreements | 4 | 8.8 | (7.3 | ) | 5.9 | (5.8 | ) | |||||||||||||||||||||||||
Distributor agreements | 3 | 2 | (2.0 | ) | 2 | (2.0 | ) | |||||||||||||||||||||||||
Royalty agreements | 19 | 4.5 | (1.8 | ) | 4.5 | (1.6 | ) | |||||||||||||||||||||||||
18 | $ | 381.4 | $ | (123.9 | ) | $ | 296.5 | $ | (83.6 | ) | ||||||||||||||||||||||
Supplier agreements, tradenames (other than indefinite lived), trade secrets, patents, non-competition agreements, distributor agreements and royalty agreements are being amortized to properly match expenses with the discounted estimated future cash flows over the terms of the related agreements or the period expected to be benefited. Agreements with terms allowing for the potential extension of such agreements are being amortized based on the initial term only. Customer relationships are being amortized using discounted estimated future cash flows based upon assumed rates of annual customer attrition. For the years ended December 31, 2014, 2013 and 2012, the Company recorded amortization expense of intangible assets of $40.3 million, $25.6 million and $16.9 million, respectively. | ||||||||||||||||||||||||||||||||
As of December 31, 2014, the Company estimates that amortization of intangible assets for the next five years will be as follows (in millions): | ||||||||||||||||||||||||||||||||
Year | Amortization Amount | |||||||||||||||||||||||||||||||
2015 | $ | 41.4 | ||||||||||||||||||||||||||||||
2016 | $ | 35.3 | ||||||||||||||||||||||||||||||
2017 | $ | 30.5 | ||||||||||||||||||||||||||||||
2018 | $ | 25.7 | ||||||||||||||||||||||||||||||
2019 | $ | 21.3 | ||||||||||||||||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | Commitments and Contingencies | ||||
Operating Leases | |||||
The Company has various operating leases primarily for the use of land, storage tanks, railcars, equipment, precious metals and office facilities that extend through April 2027. Renewal options are available on certain of these leases in which the Company is the lessee. Rent expense for the years ended December 31, 2014, 2013 and 2012 was $59.9 million, $35.3 million and $26.9 million, respectively. | |||||
As of December 31, 2014, the Company had estimated minimum commitments for the payment of rentals under leases which, at inception, had a noncancelable term of more than one year, as follows (in millions): | |||||
Year | Operating | ||||
Leases | |||||
2015 | $ | 39.3 | |||
2016 | 33.1 | ||||
2017 | 29.5 | ||||
2018 | 26.4 | ||||
2019 | 16.9 | ||||
Thereafter | 36.2 | ||||
Total | $ | 181.4 | |||
Crude Oil Supply, Other Feedstocks and Finished Products | |||||
The Company is currently purchasing a majority of its crude oil under month-to-month evergreen contracts or on a spot basis. | |||||
On October 5, 2011, the Company entered into a Crude Oil Purchase Agreement (the “BP Purchase Agreement”) with BP Products North America Inc. (“BP”), pursuant to which BP supplies the Superior refinery with a portion of its daily crude oil requirements, utilizing a market-based pricing mechanism, plus transportation and handling costs. Total crude oil requirements for the Superior refinery are estimated to be between 35,000 and 45,000 bpd. In April 2012, the Company amended and restated the BP Purchase Agreement, which had an initial term of one year ending April 1, 2014, and automatically renews for successive one-year terms unless terminated by either party upon 90 days’ notice prior to the end of any renewal term. To secure a portion of the Company’s payment obligations under the BP Purchase Agreement, the Company and its affiliates have granted a limited interest, capped at $100.0 million, for physical forwards in the collateral pledged as security under the Collateral Trust Agreement to BP as a “Forward Purchase Secured Hedge Counterparty” under its Collateral Trust Agreement, as such term is defined therein. | |||||
Certain other feedstocks are purchased under long-term supply contracts. The Company also purchases finished products from Houston Refining. The Company is required to purchase at least a minimum volume of 3,100 bpd of naphthenic lubricating oils produced at Houston Refining’s refinery in Houston, Texas, and has a right of first refusal to purchase any additional naphthenic lubricating oils produced at the refinery. In addition, Houston Refining is required to process a minimum of approximately 600 bpd of white mineral oil for the Company at Houston Refining’s Houston, Texas refinery. The annual purchase commitment under these agreements is approximately $113.2 million. | |||||
As of December 31, 2014, the estimated minimum purchase commitments under the Company’s crude oil, other feedstock supply and finished product agreements were as follows (in millions): | |||||
Year | Commitment | ||||
2015 | $ | 563.6 | |||
2016 | 115.8 | ||||
2017 | 113.5 | ||||
2018 | 113.2 | ||||
2019 | 103.7 | ||||
Thereafter | — | ||||
Total | $ | 1,009.80 | |||
In connection with the closing of the acquisition of Penreco on January 3, 2008, the Company entered into a feedstock purchase agreement with Phillips 66 related to the LVT unit at its Lake Charles, Louisiana refinery (the “LVT Feedstock Agreement”). Pursuant to the LVT Feedstock Agreement, Phillips 66 is obligated to supply a minimum quantity (the “Base Volume”) of feedstock for the LVT unit for a term of ten years. Based upon this minimum supply quantity, the Company expects to purchase approximately $41.5 million of feedstock for the LVT unit in each fiscal year of the term of the contract expiring January 1, 2018, based on pricing estimates as of December 31, 2014. This amount is not included in the table above. | |||||
Investments In Unconsolidated Affiliates Commitments | |||||
As of December 31, 2014, the Company is committed to fund approximately $23.0 million and $6.5 million for the Dakota Prairie and Juniper joint ventures, respectively, in 2015. | |||||
Capital Expenditures Commitments | |||||
As of December 31, 2014, the Company is committed to fund approximately $1.1 million related to capital growth projects at the San Antonio and Montana refineries in 2015. | |||||
Contingencies | |||||
From time to time, the Company is a party to certain claims and litigation incidental to its business, including claims made by various taxation and regulatory authorities, such as the EPA, various state environmental regulatory bodies, the Internal Revenue Service, various state and local departments of revenue and the federal Occupational Safety and Health Administration (“OSHA”), as the result of audits or reviews of the Company’s business. In addition, the Company has property, business interruption, general liability and various other insurance policies that may result in certain losses or expenditures being reimbursed to the Company. | |||||
Environmental | |||||
The Company operates crude oil and specialty hydrocarbon refining, blending and terminal operations, which are subject to stringent federal, state, regional and local laws and regulations governing worker health and safety, the discharge of materials into the environment and environmental protection. These laws and regulations impose obligations that are applicable to the Company’s operations, such as requiring the acquisition of permits to conduct regulated activities, restricting the manner in which the Company may release materials into the environment, requiring remedial activities or capital expenditures to mitigate pollution from former or current operations, requiring the application of specific health and safety criteria addressing worker protection and imposing substantial liabilities for pollution resulting from its operations. Certain of these laws impose joint and several, strict liability for costs required to remediate and restore sites where petroleum hydrocarbons, wastes or other materials have been released or disposed. | |||||
In addition, new laws and regulations, new interpretations of existing laws and regulations, increased governmental enforcement or other developments could require the Company to make additional unforeseen expenditures. Many of these laws and regulations are becoming increasingly stringent, and the cost of compliance with these requirements can be expected to increase over time. For example, on January 14, 2015, the Obama Administration announced that the EPA is expected to propose in the summer of 2015, and finalize in 2016, new regulations that will set methane emission standards for new and modified oil and gas production and natural gas processing and transmission facilities as part of the Administration’s efforts to reduce methane emissions from the oil and gas sector by up to 45% from 2012 levels by 2025. In a second example, in December 2014, the EPA published a proposed rulemaking that it expects to finalize by October 1, 2015, which rulemaking proposes to revise the National Ambient Air Quality Standard for ozone to between 65 to 70 parts per billion for both the 8-hour primary and secondary standards. | |||||
Voluntary remediation of subsurface contamination is in process at certain of the Company’s refinery sites. The remedial projects are being overseen by the appropriate state agencies. Based on current investigative and remedial activities, the Company believes that the groundwater contamination at these refineries can be controlled or remedied without having a material adverse effect on the Company’s financial condition. However, such costs are often unpredictable and, therefore, there can be no assurance that the future costs will not become material. | |||||
San Antonio Refinery | |||||
In connection with the San Antonio Acquisition (see Note 3), the Company agreed to indemnify NuStar for an unlimited term and without consideration of a monetary deductible or cap from any environmental liabilities associated with the San Antonio refinery, except for any governmental penalties or fines that may result from NuStar’s actions or inactions during NuStar’s 20-month period of ownership of the San Antonio refinery. Anadarko Petroleum Corporation (“Anadarko”) and Age Refining, Inc. (“Age Refining”), a third party that has since entered bankruptcy, are subject to a 1995 Agreed Order from the Texas Natural Resource Conservation Commission, now known as the Texas Commission on Environmental Quality (“TCEQ”), pursuant to which Anadarko and Age Refining are obligated to assess and remediate certain contamination at the San Antonio refinery that predates the Company’s acquisition of the facility. The Company does not expect this pre-existing contamination at the San Antonio refinery to have a material adverse effect on its financial position or results of operations. | |||||
Montana Refinery | |||||
In connection with the acquisition of the Montana refinery from Connacher Oil and Gas Limited (“Connacher”), the Company became a party to an existing 2002 Refinery Initiative Consent Decree (“Montana Consent Decree”) with the EPA and the Montana Department of Environmental Quality (“MDEQ”). The material obligations imposed by the Montana Consent Decree have been completed. Periodic well monitoring and reporting of the results is the primary current obligation under the Montana Consent Decree. On September 27, 2012, Montana Refining Company, Inc. received a final Corrective Action Order on Consent, replacing the refinery’s previously held hazardous waste permit. This Corrective Action Order on Consent governs the investigation and remediation of contamination at the Montana refinery. The Company believes the majority of damages related to such contamination at the Montana refinery are covered by a contractual indemnity provided by Holly Frontier Corporation (“Holly”), the owner and operator of the Montana refinery prior to its acquisition by Connacher, under an asset purchase agreement between Holly and Connacher, pursuant to which Connacher acquired the Montana refinery. Under this asset purchase agreement, Holly agreed to indemnify Connacher and Montana Refining Company, Inc., subject to timely notification, certain conditions and certain monetary baskets and cap, for environmental conditions arising under Holly’s ownership and operation of the Montana refinery and existing as of the date of sale to Connacher. Holly has provided the Company a notice challenging the Company’s position that Holly is obligated to indemnify the Company’s remediation expenses for environmental conditions to the extent arising under Holly’s ownership and operation of the refinery and existing as of the date of sale to Connacher, which expenses totaled approximately $16.5 million as of December 31, 2014, of which $14.1 million was capitalized into the cost of the Company’s expansion project and $2.4 million was expensed. The Company continues to believe that Holly is responsible to indemnify the Company for these remediation expenses disputed by Holly, and the Company has invoked the dispute resolution procedure under the asset purchase agreement to resolve this issue. In the event the Company is unsuccessful, the Company will be responsible for those remediation expenses. The Company expects that it may incur some expenses to remediate other environmental conditions at the Montana refinery in connection with the current capacity expansion of the refinery; however, the Company believes at this time that these other costs it may incur will not be material to its financial position or results of operations. | |||||
Superior Refinery | |||||
In connection with the acquisition of the Superior refinery, the Company became a party to an existing Refinery Initiative Consent Decree (“Superior Consent Decree”) with the EPA and the Wisconsin Department of Natural Resources (“WDNR”) that applies, in part, to its Superior refinery. Under the Superior Consent Decree, the Company must complete certain reductions in air emissions at the Superior refinery as well as report upon certain emissions from the refinery to the EPA and the WDNR. The Company currently estimates costs of up to $1.0 million to make known equipment upgrades and conduct other discrete tasks in compliance with the Superior Consent Decree. Failure to perform these required tasks under the Superior Consent Decree could result in the imposition of stipulated penalties, which could be material. The Company is currently assessing certain past actions at the refinery for compliance with the terms of the decree, which actions may be subject to stipulated penalties under the decree but, in any event, the Company does not currently believe that the imposition of such penalties for those actions, should they be imposed, would be material. In addition, the Company is pursuing certain additional environmental and safety-related projects at the Superior refinery. Completion of these additional projects will result in the Company incurring additional costs, which could be substantial. During 2014 and 2013, the Company incurred approximately $0.7 million and $1.9 million, respectively, related to installing process equipment at the Superior refinery pursuant to the EPA fuel content regulations. | |||||
On June 29, 2012, the EPA issued a Finding of Violation/Notice of Violation to the Superior refinery, which included a proposed penalty amount of $0.1 million. This finding is in response to information provided to the EPA by the Company in response to an information request. The EPA alleges that the efficiency of the flares at the Superior refinery is lower than regulatory requirements. The Company is contesting the allegations and attended an informal conference with the EPA held September 12, 2012. The Company does not believe that the resolution of these allegations will have a material adverse effect on the Company’s financial results or operations. | |||||
The Company is contractually indemnified by Murphy Oil Corporation (“Murphy Oil”) under an asset purchase agreement between the Company and Murphy Oil for specified environmental liabilities arising from the operation of the Superior refinery including: (i) certain obligations arising out of the Superior Consent Decree (including payment of a civil penalty required under the Superior Consent Decree), (ii) certain liabilities arising in connection with Murphy Oil’s transport of certain wastes and other materials to specified offsite real properties for disposal or recycling prior to the Superior Acquisition and (iii) certain liabilities for certain third party actions, suits or proceedings alleging exposure, prior to the Superior Acquisition, of an individual to wastes or other materials at the specified on-site real property, which wastes or other materials were spilled, released, emitted or otherwise discharged by Murphy Oil. The Company believes contractual indemnity by Murphy Oil for such specified environmental liabilities is unlimited in duration and not subject to any monetary deductibles or maximums. The amount of any damages payable by Murphy Oil pursuant to the contractual indemnities under the asset purchase agreement are net of any amount recoverable under an environmental insurance policy that the Company obtained in connection with the Superior Acquisition, which named the Company and Murphy Oil as insureds and covers environmental conditions existing at the Superior refinery prior to the Superior Acquisition. | |||||
Shreveport, Cotton Valley and Princeton Refineries | |||||
On December 23, 2010, the Company entered into a settlement agreement with the Louisiana Department of Environmental Quality (“LDEQ”) under LDEQ’s “Small Refinery and Single Site Refinery Initiative,” covering the Shreveport, Princeton and Cotton Valley refineries. This settlement agreement became effective on January 31, 2012. The settlement agreement, termed the “Global Settlement,” resolved alleged violations of the federal Clean Air Act and federal Clean Water Act regulations that arose prior to December 31, 2010. Among other things, the Company agreed to complete beneficial environmental programs and implement emissions reduction projects at the Company’s Shreveport, Cotton Valley and Princeton refineries on an agreed-upon schedule. During 2014 and 2013, the Company incurred approximately $0.6 million and $4.9 million, respectively, of such expenditures and estimates additional expenditures of approximately $10.0 million to $12.0 million of capital expenditures and expenditures related to additional personnel and environmental studies over the next two years as a result of the implementation of these requirements. These capital investment requirements will be incorporated into the Company’s annual capital expenditures budget and the Company does not expect any additional capital expenditures as a result of the required audits or required operational changes included in the Global Settlement to have a material adverse effect on the Company’s financial results or operations. | |||||
The Company is contractually indemnified by Shell Oil Company (“Shell”), as successor to Pennzoil-Quaker State Company, and Atlas Processing Company, under an asset purchase agreement between the Company and Shell, for specified environmental liabilities arising from the operations of the Shreveport refinery prior to the Company’s acquisition of the facility. The Company believes the contractual indemnity is unlimited in amount and duration, but required the Company to contribute up to $1.0 million of the first $5.0 million of indemnified costs for certain of the specified environmental liabilities. | |||||
Bel-Ray Facility | |||||
Bel-Ray executed an Administrative Consent Order (“ACO”) with the New Jersey Department of Environmental Protection, effective January 4, 1994, which required investigation and remediation of contamination at or emanating from the Bel-Ray facility. In 2000, Bel-Ray entered into a fixed price remediation contract with Weston Solutions (“Weston”), a large remediation contractor, whereby Weston agreed to be fully liable for the remediation of the soil and groundwater issues at the facility, including an offsite groundwater plume pursuant to the ACO (“Weston Agreement”). The Weston Agreement set up a trust fund to reimburse Weston, administered by Bel-Ray’s environmental counsel. As of December 31, 2014, the trust fund contained approximately $0.8 million. In addition, Weston has remediation cost containment insurance, should Weston be unable to complete the work required under the Weston Agreement. In connection with the Bel-Ray Acquisition, the Company became a party to the Weston Agreement. | |||||
Weston has been addressing the environmental issues at the Bel-Ray facility over time, and the next phase will address the groundwater issues, which extend offsite. | |||||
Occupational Health and Safety | |||||
The Company is subject to various laws and regulations relating to occupational health and safety, including OSHA and comparable state laws. These laws and regulations strictly govern the protection of the health and safety of employees. In addition, OSHA’s hazard communication standard requires that information be maintained about hazardous materials used or produced in the Company’s operations and that this information be provided to employees, contractors, state and local government authorities and customers. The Company maintains safety and training programs as part of its ongoing efforts to ensure compliance with applicable laws and regulations. The Company conducts periodic audits of Process Safety Management (“PSM”) systems at each of its locations subject to the PSM standard. The Company’s compliance with applicable health and safety laws and regulations has required, and continues to require, substantial expenditures. Changes in occupational safety and health laws and regulations or a finding of non-compliance with current laws and regulations could result in additional capital expenditures or operating expenses, as well as civil penalties and, in the event of a serious injury or fatality, criminal charges. | |||||
The Company has completed studies to assess the adequacy of its PSM practices at its Shreveport refinery with respect to certain consensus codes and standards. During the years ended December 31, 2014 and 2013, the Company incurred approximately $1.1 million and $3.2 million, respectively, of related capital expenditures and expects to incur up to $1.6 million of capital expenditures during 2015 to address OSHA compliance issues identified in these studies. The Company expects these capital expenditures will enhance its equipment such that the equipment maintains compliance with applicable consensus codes and standards. | |||||
In the first quarter of 2011, OSHA conducted an inspection of the Cotton Valley refinery’s PSM program under this OSHA initiative. On March 14, 2011, OSHA issued a Citation and Notification of Penalty (the “Cotton Valley Citation”) to the Company as a result of the Cotton Valley inspection, which included a proposed penalty amount of $0.2 million. The Company has contested the Cotton Valley Citation and have reached a tentative settlement with OSHA on the matter, which the Company does not believe will have a material adverse effect on its results of operations or financial condition. | |||||
Labor Matters | |||||
The Company has approximately 590 employees covered by various collective bargaining agreements, or approximately 26.8% of its total workforce of approximately 2,200 employees. These agreements have expiration dates of April 30, 2015, March 31, 2016, April 30, 2016, June 30, 2017 and October 31, 2017. The Karns City and Montana collective bargaining agreements expired on January 31, 2015 and are currently on a 24-hour rolling contract until a new agreement is agreed upon. The Company has approximately 200 employees, or approximately 9.1% of its total workforce, covered by collective bargaining agreements that expire in less than one year and does not expect any work stoppages. | |||||
Standby Letters of Credit | |||||
The Company has agreements with various financial institutions for standby letters of credit which have been issued primarily to vendors. As of December 31, 2014 and 2013, the Company had outstanding standby letters of credit of $114.3 million and $95.2 million, respectively, under its senior secured revolving credit facility, which was amended and restated on July 14, 2014 (the “revolving credit facility”). Refer to Note 7 for additional information regarding the Company’s revolving credit facility. At December 31, 2014, the maximum amount of letters of credit the Company could issue under its revolving credit facility was subject to borrowing base limitations, with a maximum letter of credit sublimit equal to $600.0 million, which amount may be increased to 90% of revolver commitments in effect ($1,000.0 million at December 31, 2014) with the consent of the Agent (as defined in the revolving credit facility agreement). At December 31, 2013, the maximum amount of letters of credit the Company could issue under its revolving credit facility was subject to borrowing base limitations, with a maximum letter of credit sublimit equal to $680.0 million, which is the greater of (i) $400.0 million and (ii) 80% of revolver commitments in effect ($850.0 million at December 31, 2013). | |||||
As of December 31, 2014 and 2013, the Company had availability to issue letters of credit of $310.8 million and $472.4 million, respectively, under its revolving credit facility. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-Term Debt | Long-Term Debt | |||||||
Long-term debt consisted of the following (in millions): | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Borrowings under amended and restated senior secured revolving credit agreement with third-party lenders, interest payments quarterly, borrowings due July 2019, weighted average interest rate of 2.6% at December 31, 2014 | $ | 150.8 | $ | — | ||||
Borrowings under 2019 Notes, interest at a fixed rate of 9.375%, interest payments semiannually, borrowings due May 2019 | — | 500 | ||||||
Borrowings under 2020 Notes, interest at a fixed rate of 9.625%, interest payments semiannually, borrowings due August 2020, effective interest rate of 10.1% for the year ended December 31, 2014 and 10.0% for the year ended December 31, 2013 | 275 | 275 | ||||||
Borrowings under 2021 Notes, interest at a fixed rate of 6.50%, interest payments semiannually, borrowings due April 2021, effective interest rate of 6.7% for the year ended December 31, 2014 | 900 | — | ||||||
Borrowings under 2022 Notes, interest at a fixed rate of 7.625%, interest payments semiannually, borrowings due January 2022, effective interest rate of 8.0% for the year ended December 31, 2014 and 7.9% for the year ended December 31, 2013 (1) | 352.5 | 350 | ||||||
Capital lease obligations, at various interest rates, interest and principal payments monthly through October 2034 | 43.6 | 4.8 | ||||||
Less unamortized discounts | (8.4 | ) | (19.0 | ) | ||||
Total long-term debt | 1,713.50 | 1,110.80 | ||||||
Less current portion of long-term debt | 0.6 | 0.4 | ||||||
$ | 1,712.90 | $ | 1,110.40 | |||||
(1) | The balance includes a fair value interest rate hedge adjustment, which increased the debt balance by $2.5 million and $0.0 million as of December 31, 2014 and 2013, respectively (refer to Note 8 for additional information on the interest rate swap designated as a fair value hedge). | |||||||
Senior Notes | ||||||||
6.50% Senior Notes (the “2021 Notes”) | ||||||||
On March 31, 2014, the Company issued and sold $900.0 million in aggregate principal amount of 6.50% senior notes due April 15, 2021 in a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), to eligible purchasers at par. The Company received net proceeds of approximately $884.0 million, net of initial purchasers’ fees and expenses, which the Company used to fund the purchase price of the Anchor Acquisition (refer to Note 3 for additional information), the redemption of $500.0 million in aggregate principal amount outstanding of 2019 Notes (defined below) and for general partnership purposes, including planned capital expenditures at the Company’s facilities. Interest on the 2021 Notes is paid semiannually in arrears on April 15 and October 15 of each year, beginning on October 15, 2014. | ||||||||
At any time prior to April 15, 2017, the Company may on any one or more occasions redeem up to 35% of the aggregate principal amount of the 2021 Notes with the net proceeds of a public or private equity offering at a redemption price of 106.5% of the principal amount, plus any accrued and unpaid interest to the date of redemption, provided that: (1) at least 65% of the aggregate principal amount of 2021 Notes issued remains outstanding immediately after the occurrence of such redemption and (2) the redemption occurs within 180 days of the date of the closing of such public or private equity offering. | ||||||||
On and after April 15, 2017, the Company may on any one or more occasions redeem all or a part of the 2021 Notes at the redemption prices (expressed as percentages of principal amount) set forth below, plus any accrued and unpaid interest to the applicable redemption date on such 2021 Notes, if redeemed during the twelve-month period beginning on April 15 of the years indicated below: | ||||||||
Year | Percentage | |||||||
2017 | 103.25 | % | ||||||
2018 | 101.625 | % | ||||||
2019 and thereafter | 100 | % | ||||||
Prior to April 15, 2017, the Company may on any one or more occasions redeem all or part of the 2021 Notes at a redemption price equal to the sum of: (1) the principal amount thereof, plus (2) a make-whole premium (as set forth in the indenture governing the 2021 Notes) at the redemption date, plus any accrued and unpaid interest to the applicable redemption date. | ||||||||
7.625% Senior Notes (the “2022 Notes”) | ||||||||
On November 26, 2013, the Company issued and sold $350.0 million in aggregate principal amount of 7.625% senior notes due January 15, 2022 in a private placement pursuant to Section 4(a)(2) of the Securities Act, to eligible purchasers at a discounted price of 98.494 percent of par. The 2022 Notes were resold to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to persons outside the U.S. pursuant to Regulation S under the Securities Act. The Company received net proceeds of $337.4 million, net of discount, initial purchasers’ fees and expenses, which the Company used for general partnership purposes, to fund previously announced organic growth projects, to fund the purchase price of the Bel-Ray Acquisition and the redemption of $100.0 million in aggregate principal amount outstanding of 2019 Notes (defined below). Refer to Note 3 for additional information regarding the Bel-Ray Acquisition. Interest on the 2022 Notes is paid semiannually in arrears on January 15 and July 15 of each year, beginning on July 15, 2014. | ||||||||
At any time prior to January 15, 2017, the Company may on any one or more occasions redeem up to 35% of the aggregate principal amount of the 2022 Notes with the net proceeds of a public or private equity offering at a redemption price of 107.625% of the principal amount, plus any accrued and unpaid interest to the date of redemption, provided that: (1) at least 65% of the aggregate principal amount of 2022 Notes issued remains outstanding immediately after the occurrence of such redemption and (2) the redemption occurs within 180 days of the date of the closing of such public or private equity offering. | ||||||||
On and after January 15, 2018, the Company may on any one or more occasions redeem all or a part of the 2022 Notes at the redemption prices (expressed as percentages of principal amount) set forth below, plus any accrued and unpaid interest to the applicable redemption date on such 2022 Notes, if redeemed during the twelve-month period beginning on January 15 of the years indicated below: | ||||||||
Year | Percentage | |||||||
2018 | 103.813 | % | ||||||
2019 | 101.906 | % | ||||||
2020 and thereafter | 100 | % | ||||||
Prior to January 15, 2018, the Company may on any one or more occasions redeem all or part of the 2022 Notes at a redemption price equal to the sum of: (1) the principal amount thereof, plus (2) a make-whole premium (as set forth in the indenture governing the 2022 Notes) at the redemption date, plus any accrued and unpaid interest to the applicable redemption date. | ||||||||
On November 26, 2013, in connection with the issuance and sale of the 2022 Notes, the Company entered into a registration rights agreement with the initial purchasers of the 2022 Notes obligating the Company to use reasonable best efforts to file an exchange offer registration statement with the Securities and Exchange Commission (“SEC”), so that holders of the 2022 Notes can offer to exchange the 2022 Notes for registered notes having substantially the same terms as the 2022 Notes and evidencing the same indebtedness as the 2022 Notes. On November 27, 2013, the Company filed an exchange offer registration statement for the 2022 Notes with the SEC, which was declared effective on December 10, 2013. The exchange offer was completed on January 13, 2014, thereby fulfilling all of the requirements of the 2022 Notes registration rights agreement. | ||||||||
9.625% Senior Notes (the “2020 Notes”) | ||||||||
On June 29, 2012, in connection with the acquisition of Royal Purple, the Company issued and sold $275.0 million in aggregate principal amount of 9.625% senior notes due August 1, 2020 in a private placement pursuant to Section 4(a)(2) of the Securities Act, to eligible purchasers at a discounted price of 98.25 percent of par. The 2020 Notes were resold to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to persons outside the U.S. pursuant to Regulation S under the Securities Act. The Company received net proceeds of $262.5 million, net of discount, initial purchasers’ fees and expenses, which the Company used to fund a portion of the purchase price of the Royal Purple Acquisition. Refer to Note 3 for additional information regarding the Royal Purple Acquisition. Interest on the 2020 Notes is paid semiannually in arrears on February 1 and August 1 of each year, beginning on February 1, 2013. | ||||||||
At any time prior to August 1, 2015, the Company may on any one or more occasions redeem up to 35% of the aggregate principal amount of the 2020 Notes with the net proceeds of a public or private equity offering at a redemption price of 109.625% of the principal amount, plus any accrued and unpaid interest to the date of redemption, provided that: (1) at least 65% of the aggregate principal amount of 2020 Notes issued remains outstanding immediately after the occurrence of such redemption and (2) the redemption occurs within 120 days of the date of the closing of such public or private equity offering. | ||||||||
On and after August 1, 2016, the Company may on any one or more occasions redeem all or a part of the 2020 Notes at the redemption prices (expressed as percentages of principal amount) set forth below, plus any accrued and unpaid interest to the applicable redemption date on such 2020 Notes, if redeemed during the twelve-month period beginning on August 1 of the years indicated below: | ||||||||
Year | Percentage | |||||||
2016 | 104.813 | % | ||||||
2017 | 102.406 | % | ||||||
2018 and thereafter | 100 | % | ||||||
Prior to August 1, 2016 the Company may on any one or more occasions redeem all or part of the 2020 Notes at a redemption price equal to the sum of: (1) the principal amount thereof, plus (2) a make-whole premium (as set forth in the indenture governing the 2020 Notes) at the redemption date, plus any accrued and unpaid interest to the applicable redemption date. | ||||||||
In connection with the issuance and sale of the 2020 Notes, the Company entered into a registration rights agreement with the initial purchasers of the 2020 Notes obligating the Company to use reasonable best efforts to file an exchange offer registration statement with the SEC so that holders of the 2020 Notes could offer to exchange the 2020 Notes for registered notes having substantially the same terms as the 2020 Notes and evidencing the same indebtedness as the 2020 Notes. On December 4, 2012, the Company filed initially an exchange offer registration statement for the 2020 Notes with the SEC, which was declared effective on June 27, 2013. The exchange offer was completed on July 26, 2013, thereby fulfilling all of the requirements of the 2020 Notes registration rights agreement. | ||||||||
9.375% Senior Notes (the “2019 Notes”) | ||||||||
On April 21, 2011, in connection with the restructuring of the majority of its outstanding long-term debt, the Company issued and sold $400.0 million in aggregate principal amount of 9.375% of senior notes due May 1, 2019 (the “2019 Notes issued in April 2011”) in a private placement pursuant to Section 4(a)(2) of the Securities Act, to eligible purchasers at par. The 2019 Notes issued in April 2011 were resold to qualified institutional buyers pursuant to Rule 144A of the Securities Act and to persons outside the U.S. pursuant to Regulation S under the Securities Act. The Company received proceeds of $389.0 million, net of underwriters’ fees and expenses, which the Company used to repay in full borrowings outstanding under its prior term loan, as well as all accrued interest and fees, and for general partnership purposes. | ||||||||
On September 19, 2011, in connection with the acquisition of the Superior Refinery, the Company issued and sold $200.0 million in aggregate principal amount of 9.375% of senior notes due May 1, 2019 (the “2019 Notes issued in September 2011”) in a private placement pursuant to Section 4(a)(2) of the Securities Act, to eligible purchasers at a discounted price of 93.0 percent of par. The 2019 Notes issued in September 2011 were resold to qualified institutional buyers pursuant to Rule 144A of the Securities Act and to persons outside the U.S. pursuant to Regulation S under the Securities Act. The Company received proceeds of $180.3 million, net of discount, underwriters’ fees and expenses, which the Company used to fund a portion of the purchase price of the Superior Acquisition. Because the terms of the 2019 Notes issued in September 2011 are substantially identical to the terms of the 2019 Notes issued in April 2011, in this Annual Report, the Company collectively refers to the 2019 Notes issued in April 2011 and the 2019 Notes issued in September 2011 as the “2019 Notes.” | ||||||||
On November 26, 2013, the Company redeemed approximately $74.0 million and $26.0 million in aggregate principal amount outstanding of the 2019 issued in April 2011 and 2019 Notes issued in September 2011, respectively, with the net proceeds from the issuance of the 2022 Notes at a redemption price of $111.2 million. In conjunction with the early redemption, the Company recognized a loss of $14.6 million recorded in debt extinguishment costs on the consolidated statements of operations for the year ended December 31, 2013. Interest on the 2019 Notes is paid semiannually in arrears on May 1 and November 1 of each year, beginning on November 1, 2011. The 2019 Notes will mature on May 1, 2019, unless redeemed prior to maturity. | ||||||||
On March 31, 2014, the Company redeemed approximately $326.0 million and $174.0 million in aggregate principal amount outstanding of the remaining 2019 Notes issued in April 2011 and 2019 Notes issued in September 2011, respectively, with the net proceeds from the issuance of the 2021 Notes at a redemption price of $570.9 million. In conjunction with the early redemption, the Company recognized a loss of $89.6 million recorded in debt extinguishment costs in the consolidated statements of operations for the year ended December 31, 2014. | ||||||||
In connection with the issuances and sales of the 2019 Notes, the Company entered into registration rights agreements with the initial purchasers of the 2019 Notes obligating the Company to use reasonable best efforts to file an exchange offer registration statement with the SEC so that holders of the 2019 Notes could offer to exchange the 2019 Notes for registered notes having substantially the same terms as the 2019 Notes and evidencing the same indebtedness as the 2019 Notes. On December 16, 2011, the Company filed exchange offer registration statements for the 2019 Notes with the SEC, which were declared effective on January 3, 2012. The exchange offers were completed on February 2, 2012, thereby fulfilling all of the requirements of the 2019 Notes registration rights agreements by the specified dates. | ||||||||
2020 Notes, 2021 Notes and 2022 Notes | ||||||||
In accordance with SEC Rule 3-10 of Regulation S-X, consolidated financial statements of non-guarantors are not required. The Company has no assets or operations independent of its subsidiaries. Obligations under its 2020, 2021 and 2022 Notes are fully and unconditionally and jointly and severally guaranteed on a senior unsecured basis by the Company’s current 100%-owned operating subsidiaries and certain of the Company’s future operating subsidiaries, with the exception of the Company’s “minor” subsidiaries (as defined by Rule 3-10 of Regulation S-X), including Calumet Finance Corp. (100%-owned Delaware corporation that was organized for the sole purpose of being a co-issuer of certain of the Company’s indebtedness, including the 2020, 2021 and 2022 Notes). There are no significant restrictions on the ability of the Company or subsidiary guarantors for the Company to obtain funds from its subsidiary guarantors by dividend or loan. None of the subsidiary guarantors’ assets represent restricted assets pursuant to SEC Rule 4-08(e)(3) of Regulation S-X. | ||||||||
The 2020, 2021 and 2022 Notes are subject to certain automatic customary releases, including the sale, disposition, or transfer of capital stock or substantially all of the assets of a subsidiary guarantor, designation of a subsidiary guarantor as unrestricted in accordance with the applicable indenture, exercise of legal defeasance option or covenant defeasance option, liquidation or dissolution of the subsidiary guarantor and a subsidiary guarantor ceases to both guarantee other Company debt and to be an obligor under the revolving credit facility. The Company’s operating subsidiaries may not sell or otherwise dispose of all or substantially all of their properties or assets to, or consolidate with or merge into, another company if such a sale would cause a default under the indentures governing the 2020, 2021 and 2022 Notes. | ||||||||
The indentures governing the 2020, 2021 and 2022 Notes contain covenants that, among other things, restrict the Company’s ability and the ability of certain of the Company’s subsidiaries to: (i) sell assets; (ii) pay distributions on, redeem or repurchase the Company’s common units or redeem or repurchase its subordinated debt; (iii) make investments; (iv) incur or guarantee additional indebtedness or issue preferred units; (v) create or incur certain liens; (vi) enter into agreements that restrict distributions or other payments from the Company’s restricted subsidiaries to the Company; (vii) consolidate, merge or transfer all or substantially all of the Company’s assets; (viii) engage in transactions with affiliates and (ix) create unrestricted subsidiaries. These covenants are subject to important exceptions and qualifications. At any time when the 2020, 2021 and 2022 Notes are rated investment grade by either Moody’s Investors Service, Inc. (“Moody’s”) or Standard & Poor’s Ratings Services (“S&P”) and no Default or Event of Default, each as defined in the indentures governing the 2020, 2021 and 2022 Notes, has occurred and is continuing, many of these covenants will be suspended, except in the case of the 2020 Notes, an investment grade rating is required from both Moody’s and S&P. As of December 31, 2014, the Company’s Fixed Charge Coverage Ratio (as defined in the indentures governing the 2020, 2021 and 2022 Notes) was 2.5 to 1.0. | ||||||||
Second Amended and Restated Senior Secured Revolving Credit Facility | ||||||||
On July 14, 2014, the Company entered into a second amended and restated senior secured revolving credit facility, which increased the maximum availability of credit under the revolving credit facility from $850.0 million to $1.0 billion, subject to borrowing base limitations, and includes a $500.0 million incremental uncommitted expansion feature. The revolving credit facility, which is the Company’s primary source of liquidity for cash needs in excess of cash generated from operations, matures in July 2019 and bears interest at a rate equal to prime plus a basis points margin or London Interbank Offered Rate (“LIBOR”) plus a basis points margin, at the Company’s option. As of December 31, 2014, the margin was 75 basis points for prime and 175 basis points for LIBOR; however, the margin can fluctuate quarterly based on the Company’s average availability for additional borrowings under the revolving credit facility in the preceding calendar quarter as follows: | ||||||||
Quarterly Average Availability Percentage | Margin on Base Rate | Margin on LIBOR | ||||||
Revolving Loans | Revolving Loans | |||||||
≥ 66% | 0.50% | 1.50% | ||||||
≥ 33% and < 66% | 0.75% | 1.75% | ||||||
< 33% | 1.00% | 2.00% | ||||||
In addition to paying interest quarterly on outstanding borrowings under the revolving credit facility, the Company is required to pay a commitment fee to the lenders under the revolving credit facility with respect to the unutilized commitments thereunder at a rate equal to 0.250% or 0.375% per annum depending on the average daily available unused borrowing capacity for the preceding month. The Company also pays a customary letter of credit fee, including a fronting fee of 0.125% per annum of the stated amount of each outstanding letter of credit, and customary agency fees. | ||||||||
The borrowing capacity at December 31, 2014 under the revolving credit facility was $575.9 million. As of December 31, 2014, the Company had $150.8 million in outstanding borrowings under the revolving credit facility and outstanding standby letters of credit of $114.3 million, leaving $310.8 million available for additional borrowings based on specified availability limitations. Lenders under the revolving credit facility have a first priority lien on the Company’s accounts receivable, inventory and substantially all of its cash. | ||||||||
The revolving credit facility contains various covenants that limit, among other things, the Company’s ability to: incur indebtedness; grant liens; dispose of certain assets; make certain acquisitions and investments; redeem or prepay other debt or make other restricted payments such as distributions to unitholders; enter into transactions with affiliates and enter into a merger, consolidation or sale of assets. Further, the revolving credit facility contains one springing financial covenant which provides that only if the Company’s availability under the revolving credit facility falls below the greater of (a) 12.5% of the Borrowing Base (as defined in the revolving credit agreement) then in effect and (b) $45.0 million, then the Company will be required to maintain as of the end of each fiscal quarter a Fixed Charge Coverage Ratio (as defined in the revolving credit agreement) of at least 1.0 to 1.0. | ||||||||
As of December 31, 2014, the Company was in compliance with all covenants under the revolving credit facility. | ||||||||
Master Derivative Contracts | ||||||||
The Company’s payment obligations under all of the Company’s master derivatives contracts for commodity hedging generally are secured by a first priority lien on the Company’s real property, plant and equipment, fixtures, intellectual property, certain financial assets, certain investment property, commercial tort claims, chattel paper, documents, instruments and proceeds of the foregoing (including proceeds of hedge arrangements). The Company had no additional letters of credit or cash margin posted with any hedging counterparty as of December 31, 2014. The Company’s master derivatives contracts and Collateral Trust Agreement (as defined below) continue to impose a number of covenant limitations on the Company’s operating and financing activities, including limitations on liens on collateral, limitations on dispositions of collateral and collateral maintenance and insurance requirements. | ||||||||
Collateral Trust Agreement | ||||||||
The Company has a collateral sharing agreement (the “Collateral Trust Agreement”) with each of its secured hedging counterparties and an administrative agent for the benefit of the secured hedging counterparties, which governs how the secured hedging counterparties will share collateral pledged as security for the payment obligations owed by the Company to the secured hedging counterparties under their respective master derivatives contracts. The Collateral Trust Agreement limits to $100.0 million the extent to which forward purchase contracts for physical commodities would be covered by, and secured under, the Collateral Trust Agreement. There is no such limit on financially settled derivative instruments used for commodity hedging. Subject to certain conditions set forth in the Collateral Trust Agreement, the Company has the ability to add secured hedging counterparties from time to time. | ||||||||
Capital Leases | ||||||||
Assets recorded under these capital lease obligations are included in property, plant and equipment and total $50.5 million and $11.1 million as of December 31, 2014 and 2013, respectively. As of December 31, 2014 and 2013, the Company had recorded $5.7 million and $5.0 million, respectively, in accumulated depreciation for these capital lease assets. | ||||||||
On July 7, 2014, the Company entered into a capital lease agreement with TexStar Midstream Logistics, L.P. (“TexStar”) under which TexStar constructed, owns and operates a 30,000 bpd crude oil pipeline system supplying significant volumes of Eagle Ford crude oil to the Company’s San Antonio refinery for a term of 20 years. Thereafter, the agreement will continue on a month-to-month basis unless terminated by either party. Under the terms of the agreement, TexStar installed and operates the Karnes North Pipeline System (“KNPS”), a pipeline that transports crude oil from Karnes City, Texas to the San Antonio refinery’s Elmendorf, Texas terminal, a key supply hub for the San Antonio refinery. The Company expects to receive deliveries of at least 12,000 bpd of crude oil through the KNPS-Elmendorf terminal supply route. The pipeline became fully operational on November 1, 2014. The total obligation and asset under the capital lease agreement as of December 31, 2014 was $39.3 million. Total depreciation expense for this lease during the year ended December 31, 2014 was $0.3 million. | ||||||||
As of December 31, 2014, the Company had estimated minimum commitments for the payment of total rentals under capital leases as follows (in millions): | ||||||||
Year | Capital | |||||||
Leases | ||||||||
2015 | $ | 7 | ||||||
2016 | 7 | |||||||
2017 | 7 | |||||||
2018 | 7 | |||||||
2019 | 6.9 | |||||||
Thereafter | 102.9 | |||||||
Total minimum lease payments | 137.8 | |||||||
Less amount representing interest | 94.2 | |||||||
Capital lease obligations | 43.6 | |||||||
Less obligations due within one year | 0.6 | |||||||
Long-term capital lease obligations | $ | 43 | ||||||
Maturities of Long-Term Debt | ||||||||
As of December 31, 2014, principal payments of debt obligations and future minimum rentals on capital lease obligations are as follows (in millions): | ||||||||
Year | Maturity | |||||||
2015 | $ | 0.6 | ||||||
2016 | 0.7 | |||||||
2017 | 0.7 | |||||||
2018 | 0.8 | |||||||
2019 | 151.5 | |||||||
Thereafter | 1,565.10 | |||||||
Total | $ | 1,719.40 | ||||||
Derivatives
Derivatives | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||
Derivatives | Derivatives | |||||||||||||||||||||||||||
The Company is exposed to price risks due to fluctuations in the price of crude oil, refined products (primarily in the Company’s fuel products segment), natural gas and precious metals. The Company uses various strategies to reduce its exposure to commodity price risk. The strategies to reduce the Company’s risk utilize both physical forward contracts and financially settled derivative instruments, such as swaps, collars and options, to attempt to reduce the Company’s exposure with respect to: | ||||||||||||||||||||||||||||
• | crude oil purchases and sales; | |||||||||||||||||||||||||||
• | fuel product sales and purchases; | |||||||||||||||||||||||||||
• | natural gas purchases; | |||||||||||||||||||||||||||
• | precious metals purchases: and | |||||||||||||||||||||||||||
•fluctuations in the value of crude oil between geographic regions and between the different types of crude oil such as NYMEX West Texas Intermediate (“NYMEX WTI”), Light Louisiana Sweet (“LLS”), Western Canadian Select (“WCS”), Mixed Sweet Blend (“MSW”) and ICE Brent (“Brent”). | ||||||||||||||||||||||||||||
The Company manages its exposure to commodity markets, credit, volumetric and liquidity risks to manage its costs and volatility of cash flows as conditions warrant or opportunities become available. These risks may be managed in a variety of ways that may include the use of derivative instruments. Derivative instruments may be used for the purpose of mitigating risks associated with an asset, liability, and anticipated future transactions and the changes in fair value of the Company’s derivative instruments will affect its earnings and cash flows; however, such changes should be offset by price or rate changes related to the underlying commodity or financial transaction that is part of the risk management strategy. The Company does not speculate with derivative instruments or other contractual arrangements that are not associated with its business objectives. Speculation is defined as increasing the Company’s natural position above the maximum position of its physical assets or trading in commodities, currencies or other risk bearing assets that are not associated with the Company’s business activities and objectives. The Company’s positions are monitored routinely by a risk management committee to ensure compliance with its stated risk management policy and documented risk management strategies. All strategies are reviewed on an ongoing basis by the Company’s risk management committee, which will add, remove or revise strategies in anticipation of changes in market conditions and/or in risk profiles. These changes in strategies are to position the Company in relation to its risk exposures in an attempt to capture market opportunities as they arise. | ||||||||||||||||||||||||||||
The Company recognizes all derivative instruments at their fair values (see Note 9) as either current assets or current liabilities in the consolidated balance sheets. Fair value includes any premiums paid or received and unrealized gains and losses. Fair value does not include any amounts receivable from or payable to counterparties, or collateral provided to counterparties. Derivative asset and liability amounts with the same counterparty are netted against each other for financial reporting purposes. The Company’s financial results are subject to the possibility that changes in a derivative’s fair value could result in significant ineffectiveness and potentially no longer qualify portions or all of our derivative instruments for hedge accounting. | ||||||||||||||||||||||||||||
During the fourth quarter 2014, the risk management committee approved the early settlement of select second quarter 2015 through calendar year 2016 crude oil, gasoline, diesel and jet fuel swaps derivative. As a result of the settlement of these derivative assets, the Company received approximately $44.8 million. | ||||||||||||||||||||||||||||
The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative assets in the Company’s consolidated balance sheets as of December 31, 2014 and 2013 (in millions): | ||||||||||||||||||||||||||||
31-Dec-14 | December 31, 2013 | |||||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Assets Presented in the Consolidated Balance Sheets | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Assets Presented in the Consolidated Balance Sheets | |||||||||||||||||||||||
Derivative instruments designated as hedges: | ||||||||||||||||||||||||||||
Fuel products segment: | ||||||||||||||||||||||||||||
Crude oil swaps | $ | — | $ | (10.0 | ) | $ | (10.0 | ) | $ | 45.4 | $ | (45.4 | ) | $ | — | |||||||||||||
Gasoline swaps | 15.9 | (4.4 | ) | 11.5 | 1 | (1.0 | ) | — | ||||||||||||||||||||
Diesel swaps | — | — | — | 3.5 | (3.5 | ) | — | |||||||||||||||||||||
Jet fuel swaps | — | — | — | 0.1 | (0.1 | ) | — | |||||||||||||||||||||
Swaps not allocated to a specific segment: | ||||||||||||||||||||||||||||
Interest rate swaps | 2.5 | — | 2.5 | — | — | — | ||||||||||||||||||||||
Total derivative instruments designated as hedges | 18.4 | (14.4 | ) | 4 | 50 | (50.0 | ) | — | ||||||||||||||||||||
Derivative instruments not designated as hedges: | ||||||||||||||||||||||||||||
Fuel products segment: | ||||||||||||||||||||||||||||
Crude oil swaps | 31.4 | (111.2 | ) | (79.8 | ) | 6.3 | (6.3 | ) | — | |||||||||||||||||||
Crude oil basis swaps | 0.8 | — | 0.8 | 1 | (1.0 | ) | — | |||||||||||||||||||||
Crude oil percent basis swaps | — | (0.2 | ) | (0.2 | ) | — | — | — | ||||||||||||||||||||
Gasoline swaps | 2.4 | (0.4 | ) | 2 | — | — | — | |||||||||||||||||||||
Diesel swaps | 116.1 | (19.1 | ) | 97 | 0.7 | (0.7 | ) | — | ||||||||||||||||||||
Jet fuel swaps | 7.9 | (5.2 | ) | 2.7 | 0.9 | (0.9 | ) | — | ||||||||||||||||||||
Diesel crack spread swaps | 4.5 | — | 4.5 | — | — | — | ||||||||||||||||||||||
Diesel crack spread collars | — | — | — | 0.3 | (0.3 | ) | — | |||||||||||||||||||||
Platinum swaps | — | (0.1 | ) | (0.1 | ) | — | — | — | ||||||||||||||||||||
Specialty products segment: | ||||||||||||||||||||||||||||
Natural gas swaps | — | (7.2 | ) | (7.2 | ) | 0.4 | (0.4 | ) | — | |||||||||||||||||||
Natural gas collars | 0.1 | (0.6 | ) | (0.5 | ) | — | — | — | ||||||||||||||||||||
Total derivative instruments not designated as hedges | 163.2 | (144.0 | ) | 19.2 | 9.6 | (9.6 | ) | — | ||||||||||||||||||||
Total derivative instruments | $ | 181.6 | $ | (158.4 | ) | $ | 23.2 | $ | 59.6 | $ | (59.6 | ) | $ | — | ||||||||||||||
The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative liabilities in the Company’s consolidated balance sheets as of December 31, 2014 and 2013 (in millions): | ||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | |||||||||||||||||||||||
Derivative instruments designated as hedges: | ||||||||||||||||||||||||||||
Fuel products segment: | ||||||||||||||||||||||||||||
Crude oil swaps | $ | (13.8 | ) | $ | 10 | $ | (3.8 | ) | $ | (13.0 | ) | $ | 45.4 | $ | 32.4 | |||||||||||||
Gasoline swaps | — | 4.4 | 4.4 | (19.7 | ) | 1 | (18.7 | ) | ||||||||||||||||||||
Diesel swaps | — | — | — | (51.3 | ) | 3.5 | (47.8 | ) | ||||||||||||||||||||
Jet fuel swaps | — | — | — | (13.4 | ) | 0.1 | (13.3 | ) | ||||||||||||||||||||
Total derivative instruments designated as hedges | (13.8 | ) | 14.4 | 0.6 | (97.4 | ) | 50 | (47.4 | ) | |||||||||||||||||||
Derivative instruments not designated as hedges: | ||||||||||||||||||||||||||||
Fuel products segment: | ||||||||||||||||||||||||||||
Crude oil swaps | (102.4 | ) | 111.2 | 8.8 | (1.7 | ) | 6.3 | 4.6 | ||||||||||||||||||||
Crude oil basis swaps | — | — | — | (0.6 | ) | 1 | 0.4 | |||||||||||||||||||||
Crude oil percent basis swaps | (0.2 | ) | 0.2 | — | — | — | — | |||||||||||||||||||||
Gasoline swaps | (1.0 | ) | 0.4 | (0.6 | ) | (9.4 | ) | — | (9.4 | ) | ||||||||||||||||||
Diesel swaps | (28.1 | ) | 19.1 | (9.0 | ) | (3.5 | ) | 0.7 | (2.8 | ) | ||||||||||||||||||
Jet fuel swaps | (5.2 | ) | 5.2 | — | — | 0.9 | 0.9 | |||||||||||||||||||||
Diesel crack spread collars | — | — | — | (0.2 | ) | 0.3 | 0.1 | |||||||||||||||||||||
Platinum swaps | (0.1 | ) | 0.1 | — | — | — | — | |||||||||||||||||||||
Specialty products segment: | ||||||||||||||||||||||||||||
Natural gas swaps | (12.1 | ) | 7.2 | (4.9 | ) | (1.6 | ) | 0.4 | (1.2 | ) | ||||||||||||||||||
Natural gas collars | (1.1 | ) | 0.6 | (0.5 | ) | — | — | — | ||||||||||||||||||||
Total derivative instruments not designated as hedges | (150.2 | ) | 144 | (6.2 | ) | (17.0 | ) | 9.6 | (7.4 | ) | ||||||||||||||||||
Total derivative instruments | $ | (164.0 | ) | $ | 158.4 | $ | (5.6 | ) | $ | (114.4 | ) | $ | 59.6 | $ | (54.8 | ) | ||||||||||||
The Company is exposed to credit risk in the event of nonperformance by its counterparties on these derivative transactions. The Company does not expect nonperformance on any derivative instruments, however, no assurances can be provided. The Company’s credit exposure related to these derivative instruments is represented by the fair value of contracts reported as derivative assets. As of December 31, 2014, the Company had five counterparties in which derivatives held were net assets, totaling $23.2 million. As of December 31, 2013, the Company had no counterparties, in which the derivatives held were net assets. To manage credit risk, the Company selects and periodically reviews counterparties based on credit ratings. The Company primarily executes its derivative instruments with large financial institutions that have ratings of at least Baa2 and A- by Moody’s and S&P, respectively. In the event of default, the Company would potentially be subject to losses on derivative instruments with mark-to-market gains. The Company requires collateral from its counterparties when the fair value of the derivatives exceeds agreed upon thresholds in its master derivative contracts with these counterparties. No such collateral was held by the Company as of December 31, 2014 or December 31, 2013. The Company’s contracts with these counterparties allow for netting of derivative instruments executed under each contract. Collateral received from counterparties is reported in other current liabilities, and collateral held by counterparties is reported in deposits, on the Company’s consolidated balance sheets and is not netted against derivative assets or liabilities. Any outstanding collateral is released to the Company upon settlement of the related derivative instrument liability. As of December 31, 2014 and 2013, the Company had provided its counterparties with no collateral. | ||||||||||||||||||||||||||||
Certain of the Company’s outstanding derivative instruments are subject to credit support agreements with the applicable counterparties which contain provisions setting certain credit thresholds above which the Company may be required to post agreed-upon collateral, such as cash or letters of credit, with the counterparty to the extent that the Company’s mark-to-market net liability, if any, on all outstanding derivatives exceeds the credit threshold amount per such credit support agreement. The majority of the credit support agreements covering the Company’s outstanding derivative instruments also contain a general provision stating that if the Company experiences a material adverse change in its business, in the reasonable discretion of the counterparty, the Company’s credit threshold could be lowered by such counterparty. The Company does not expect that it will experience a material adverse change in its business. | ||||||||||||||||||||||||||||
The cash flow impact of the Company’s derivative activities is classified primarily as a change in derivative activity in the operating activities section in the consolidated statements of cash flows. | ||||||||||||||||||||||||||||
Derivative Instruments Designated as Cash Flow Hedges | ||||||||||||||||||||||||||||
The Company accounts for certain derivatives hedging purchases of crude oil and sales of gasoline, diesel and jet fuel swaps as cash flow hedges. The derivative instruments designated as cash flow hedges that are hedging sales and purchases are recorded to sales and cost of sales, respectively, in the consolidated statements of operations upon recording the related hedged transaction in sales or cost of sales. The Company assesses, both at inception of the cash flow hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. Periodically, the Company may enter into crude oil and fuel product basis swaps to more effectively hedge its crude oil purchases, crude oil sales and fuel products sales. These derivatives can be combined with a swap contract in order to create a more effective cash flow hedge. | ||||||||||||||||||||||||||||
To the extent a derivative instrument designated as a cash flow hedge is determined to be effective as a cash flow hedge of an exposure to changes in the fair value of a future transaction, the change in fair value of the derivative is deferred in accumulated other comprehensive income (loss), a component of partners’ capital in the consolidated balance sheets, until the underlying transaction hedged is recognized in the consolidated statements of operations. | ||||||||||||||||||||||||||||
Ineffectiveness is inherent in the hedging of crude oil and fuel products. Due to the volatility in the markets for crude oil and fuel products, the Company is unable to predict the amount of ineffectiveness each period, determined on a derivative by derivative basis or in the aggregate for a specific commodity, and has the potential for the future loss of cash flow hedge accounting. Ineffectiveness has resulted, and the loss of cash flow hedge accounting has resulted, in increased volatility in the Company’s financial results. However, even though certain derivative instruments may not qualify for cash flow hedge accounting, the Company intends to continue to utilize such instruments as management believes such derivative instruments continue to provide the Company with the opportunity to more effectively stabilize cash flows. | ||||||||||||||||||||||||||||
Cash flow hedge accounting is discontinued when it is determined that a derivative no longer qualifies as an effective hedge or when it is no longer probable that the hedged forecasted transaction will occur. When cash flow hedge accounting is discontinued because the derivative instrument no longer qualifies as an effective cash flow hedge, the derivative instrument is subject to the mark-to-market method of accounting prospectively. Changes in the mark-to-market fair value of the derivative instrument are recorded to unrealized gain (loss) on derivative instruments in the consolidated statements of operations. Unrealized gains and losses related to discontinued cash flow hedges that were previously deferred in accumulated other comprehensive income (loss) will remain in accumulated other comprehensive income (loss) until the underlying transaction is reflected in earnings, unless it is probable that the hedged forecasted transaction will not occur, at which time, associated deferred amounts in accumulated other comprehensive income (loss) are immediately recognized in unrealized gain (loss) on derivative instruments. | ||||||||||||||||||||||||||||
The Company recorded the following amounts in its consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive income (loss) and consolidated statements of partners’ capital as of, and for the years ended December 31, 2014 and 2013 related to its derivative instruments that were designated as cash flow hedges (in millions): | ||||||||||||||||||||||||||||
Amount of Gain (Loss) | Amount of Gain (Loss) | Amount of Gain (Loss) Recognized in Net | ||||||||||||||||||||||||||
Recognized in | Reclassified from | Income (Loss) on Derivatives | ||||||||||||||||||||||||||
Accumulated Other | Accumulated Other | (Ineffective Portion) | ||||||||||||||||||||||||||
Comprehensive | Comprehensive Income (Loss) into | |||||||||||||||||||||||||||
Income (Loss) on Derivatives | Net Income (Loss) (Effective Portion) | |||||||||||||||||||||||||||
(Effective Portion) | ||||||||||||||||||||||||||||
Year Ended December 31, | Location of | Year Ended December 31, | Location of | Year Ended December 31, | ||||||||||||||||||||||||
Type of Derivative | 2014 | 2013 | (Gain) Loss | 2014 | 2013 | Gain (Loss) | 2014 | 2013 | ||||||||||||||||||||
Fuel products segment: | ||||||||||||||||||||||||||||
Crude oil swaps | $ | (185.8 | ) | $ | 18.7 | Cost of sales | $ | 44.2 | $ | 3.1 | Unrealized/Realized | $ | 4.8 | $ | (3.0 | ) | ||||||||||||
Gasoline swaps | 56.3 | (19.5 | ) | Sales | (1.4 | ) | (0.4 | ) | Unrealized/Realized | (7.6 | ) | (1.7 | ) | |||||||||||||||
Diesel swaps | 220 | (28.8 | ) | Sales | (6.7 | ) | (4.4 | ) | Unrealized/Realized | — | (5.3 | ) | ||||||||||||||||
Jet fuel swaps | 23.7 | (7.3 | ) | Sales | (0.9 | ) | 1.7 | Unrealized/Realized | 0.6 | 5.1 | ||||||||||||||||||
Specialty products segment: | ||||||||||||||||||||||||||||
Crude oil swaps | — | — | Cost of sales | 1.8 | 0.5 | Unrealized/Realized | — | — | ||||||||||||||||||||
Total | $ | 114.2 | $ | (36.9 | ) | $ | 37 | $ | 0.5 | $ | (2.2 | ) | $ | (4.9 | ) | |||||||||||||
The effective portion of the cash flow hedges classified in accumulated other comprehensive income (loss) was a gain of $25.8 million and a loss of $51.4 million as of December 31, 2014 and 2013, respectively. Absent a change in the fair market value of the underlying transactions, except for any underlying transactions pertaining to the payment of interest on existing financial instruments, the following other comprehensive income at December 31, 2014 will be reclassified to earnings by December 31, 2016 with balances being recognized as follows (in millions): | ||||||||||||||||||||||||||||
Year | Accumulated Other Comprehensive Income | |||||||||||||||||||||||||||
2015 | $ | 15 | ||||||||||||||||||||||||||
2016 | 10.8 | |||||||||||||||||||||||||||
Total | $ | 25.8 | ||||||||||||||||||||||||||
Based on fair values as of December 31, 2014, the Company expects to reclassify $15.0 million of net gains on derivative instruments from accumulated other comprehensive income (loss) to earnings during the next twelve months due to actual crude oil purchases, diesel, gasoline and jet fuel sales. However, the amounts actually realized will be dependent on the fair values as of the dates of settlements. | ||||||||||||||||||||||||||||
Derivative Instruments Designated as Fair Value Hedges | ||||||||||||||||||||||||||||
For derivative instruments that are designated and qualify as a fair value hedge, the effective gain or loss on the derivative instrument, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized as interest expense in the consolidated statements of operations. No hedge ineffectiveness was recognized as the interest rate swap qualifies for the “shortcut” method and, as a result, changes in the fair value of the derivative instrument offset the changes in the fair value of the underlying hedged debt. In addition, the differential to be paid or received on the interest rate swap arrangement is accrued and recognized as an adjustment to interest expense in the consolidated statements of operations. The Company assesses at the inception of the fair value hedge whether the derivatives that are used in the hedging transactions are highly effective in offsetting changes in fair values of hedged items. | ||||||||||||||||||||||||||||
Fair value hedge accounting is discontinued when it is determined that a derivative no longer qualifies as an effective hedge or when it is no longer probable that the hedged forecasted transaction will occur. When fair value hedge accounting is discontinued because the derivative instrument no longer qualifies as effective fair value hedge, the derivative instrument is still subject to mark-to-market method of accounting, however the Company will cease to adjust the hedged asset or liability for changes in fair value. | ||||||||||||||||||||||||||||
In 2014, the Company entered into an interest rate swap agreement which converts a portion of the Company’s fixed rate debt to a floating rate. This agreement involves the receipt of fixed rate amounts in exchange for floating rate interest payments over the life of the agreement without an exchange of the underlying principal amount. Also, in connection with the interest rate swap agreement, the Company entered into an option that permits the counterparty to cancel the interest rate swap for a specified premium. The Company designated this interest rate swap and option as a fair value hedge. As of December 31, 2014, the total notional amount of the Company’s receive-fixed/pay-variable interest rate swap was $200.0 million with a maturity date of January 15, 2022. | ||||||||||||||||||||||||||||
The Company recorded the following gains (losses) in its consolidated statements of operations for the years ended December 31, 2014 and 2013 related to its derivative instrument designated as a fair value hedge (in millions): | ||||||||||||||||||||||||||||
Location of Gain (Loss) of Derivative | Amount of Gain Recognized in Net Income (Loss) | Hedged Item | Location of Gain (Loss) on Hedged Item | Amount of Loss Recognized in Net Income (Loss) | ||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Swaps not allocated to a specific segment: | ||||||||||||||||||||||||||||
Interest rate swap | Interest expense | $ | 2.5 | $ | — | 2022 Notes | Interest expense | $ | (2.5 | ) | $ | — | ||||||||||||||||
Total | $ | 2.5 | $ | — | $ | (2.5 | ) | $ | — | |||||||||||||||||||
Derivative Instruments Not Designated as Hedges | ||||||||||||||||||||||||||||
For derivative instruments not designated as hedges, the change in fair value of the asset or liability for the period is recorded to unrealized gain (loss) on derivative instruments in the consolidated statements of operations. Upon the settlement of a derivative not designated as a hedge, the gain or loss at settlement is recorded to realized gain (loss) on derivative instruments in the consolidated statements of operations. The Company has entered into crude oil basis swaps that do not qualify as cash flow hedges for accounting purposes as they were not entered into simultaneously with a corresponding NYMEX WTI derivative contract. Additionally, the Company has entered into diesel crack spread collars, gasoline crack spread collars, natural gas collars, and certain other crude oil swaps, diesel swaps, gasoline swaps, natural gas swaps and platinum swaps that do not qualify as cash flow hedges for accounting purposes as they are determined not to be highly effective in offsetting changes in the cash flows associated with crude oil purchases and gasoline and diesel sales at the Company’s Superior refinery. | ||||||||||||||||||||||||||||
The Company recorded the following gains (losses) in its consolidated statements of operations for the years ended December 31, 2014 and 2013 related to its derivative instruments not designated as hedges (in millions): | ||||||||||||||||||||||||||||
Amount of Gain (Loss) | Amount of Gain (Loss) | |||||||||||||||||||||||||||
Recognized in Realized Gain | Recognized in Unrealized Gain | |||||||||||||||||||||||||||
(Loss) on Derivative Instruments | (Loss) on Derivative Instruments | |||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||
Type of Derivative | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Fuel products segment: | ||||||||||||||||||||||||||||
Crude oil swaps | $ | (48.5 | ) | $ | (6.3 | ) | $ | (61.9 | ) | $ | 46.3 | |||||||||||||||||
Crude oil basis swaps | 5.7 | (7.7 | ) | 0.1 | 3.8 | |||||||||||||||||||||||
Gasoline swaps | (2.2 | ) | 3.2 | 10.1 | (9.9 | ) | ||||||||||||||||||||||
Diesel swaps | 76.3 | 8.1 | 71.5 | (11.7 | ) | |||||||||||||||||||||||
Jet fuel swaps | 3.2 | 0.7 | 0.7 | 0.9 | ||||||||||||||||||||||||
Jet fuel crack spread swaps | (0.1 | ) | — | — | — | |||||||||||||||||||||||
Diesel crack spread swaps | (3.6 | ) | — | 4.5 | — | |||||||||||||||||||||||
Diesel crack spread collars | 1 | — | (0.1 | ) | 0.1 | |||||||||||||||||||||||
Gasoline crack spread collars | (0.4 | ) | — | — | — | |||||||||||||||||||||||
Platinum swaps | — | — | (0.1 | ) | — | |||||||||||||||||||||||
Specialty products segment: | ||||||||||||||||||||||||||||
Crude oil swaps | — | 1.8 | — | (1.6 | ) | |||||||||||||||||||||||
Natural gas swaps | 1.1 | (0.6 | ) | (11.9 | ) | (1.2 | ) | |||||||||||||||||||||
Total | $ | 32.5 | $ | (0.8 | ) | $ | 12.9 | $ | 26.7 | |||||||||||||||||||
Derivative Positions - Specialty Products Segment | ||||||||||||||||||||||||||||
Natural Gas Swap Contracts | ||||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to natural gas purchases in its specialty products segment, none of which are designated as hedges: | ||||||||||||||||||||||||||||
Natural Gas Swap Contracts by Expiration Dates | MMBtu | $/MMBtu | ||||||||||||||||||||||||||
First Quarter 2015 | 1,770,000 | $ | 4.09 | |||||||||||||||||||||||||
Second Quarter 2015 | 1,500,000 | $ | 4.11 | |||||||||||||||||||||||||
Third Quarter 2015 | 1,500,000 | $ | 4.11 | |||||||||||||||||||||||||
Fourth Quarter 2015 | 1,900,000 | $ | 4.12 | |||||||||||||||||||||||||
Calendar Year 2016 | 5,880,000 | $ | 4.22 | |||||||||||||||||||||||||
Calendar Year 2017 | 1,830,000 | $ | 4.28 | |||||||||||||||||||||||||
Total | 14,380,000 | |||||||||||||||||||||||||||
Average price | $ | 4.18 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to natural gas purchases in its specialty products segment, none of which are designated as hedges: | ||||||||||||||||||||||||||||
Natural Gas Swap Contracts by Expiration Dates | MMBtu | $/MMBtu | ||||||||||||||||||||||||||
First Quarter 2014 | 750,000 | $ | 4.14 | |||||||||||||||||||||||||
Second Quarter 2014 | 750,000 | $ | 4.14 | |||||||||||||||||||||||||
Third Quarter 2014 | 750,000 | $ | 4.14 | |||||||||||||||||||||||||
Fourth Quarter 2014 | 850,000 | $ | 4.21 | |||||||||||||||||||||||||
Calendar Year 2015 | 3,500,000 | $ | 4.27 | |||||||||||||||||||||||||
Calendar Year 2016 | 2,700,000 | $ | 4.42 | |||||||||||||||||||||||||
Calendar Year 2017 | 1,000,000 | $ | 4.29 | |||||||||||||||||||||||||
Total | 10,300,000 | |||||||||||||||||||||||||||
Average price | $ | 4.28 | ||||||||||||||||||||||||||
Natural Gas Collars | ||||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to natural gas purchases in its specialty products segment, none of which are designated as hedges: | ||||||||||||||||||||||||||||
Natural Gas Collars by Expiration Dates | MMBtu | Average Bought Call ($/MMBtu) | Average Sold Put ($/MMBtu) | |||||||||||||||||||||||||
First Quarter 2015 | 240,000 | $ | 4.25 | $ | 3.79 | |||||||||||||||||||||||
Second Quarter 2015 | 240,000 | $ | 4.25 | $ | 3.79 | |||||||||||||||||||||||
Third Quarter 2015 | 240,000 | $ | 4.25 | $ | 3.79 | |||||||||||||||||||||||
Fourth Quarter 2015 | 200,000 | $ | 4.25 | $ | 3.85 | |||||||||||||||||||||||
Calendar Year 2016 | 600,000 | $ | 4.25 | $ | 3.89 | |||||||||||||||||||||||
Total | 1,520,000 | |||||||||||||||||||||||||||
Average price | $ | 4.25 | $ | 3.84 | ||||||||||||||||||||||||
Derivative Positions - Fuel Products Segment | ||||||||||||||||||||||||||||
Crude Oil Swap Contracts | ||||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to crude oil purchases in its fuel products segment, all of which are designated as cash flow hedges. | ||||||||||||||||||||||||||||
Crude Oil Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 315,000 | 3,500 | $ | 97.71 | ||||||||||||||||||||||||
Total | 315,000 | |||||||||||||||||||||||||||
Average price | $ | 97.71 | ||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to crude oil purchases in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Crude Oil Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 1,674,000 | 18,600 | $ | 89.55 | ||||||||||||||||||||||||
Second Quarter 2015 | 91,000 | 1,000 | $ | 89.89 | ||||||||||||||||||||||||
Third Quarter 2015 | 386,400 | 4,200 | $ | 69.2 | ||||||||||||||||||||||||
Fourth Quarter 2015 | 386,400 | 4,200 | $ | 69.2 | ||||||||||||||||||||||||
Calendar Year 2016 | 972,828 | 2,658 | $ | 78.02 | ||||||||||||||||||||||||
Total | 3,510,628 | |||||||||||||||||||||||||||
Average price | $ | 81.89 | ||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to crude oil sales in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Crude Oil Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 1,674,000 | 18,600 | $ | 84.21 | ||||||||||||||||||||||||
Total | 1,674,000 | |||||||||||||||||||||||||||
Average price | $ | 84.21 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to crude oil purchases in its fuel products segment, all of which are designated as cash flow hedges. | ||||||||||||||||||||||||||||
Crude Oil Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2014 | 2,520,000 | 28,000 | $ | 92.06 | ||||||||||||||||||||||||
Second Quarter 2014 | 2,411,500 | 26,500 | $ | 91.97 | ||||||||||||||||||||||||
Third Quarter 2014 | 2,530,000 | 27,500 | $ | 91.23 | ||||||||||||||||||||||||
Fourth Quarter 2014 | 2,024,000 | 22,000 | $ | 90.61 | ||||||||||||||||||||||||
Calendar Year 2015 | 5,556,500 | 15,223 | $ | 89.08 | ||||||||||||||||||||||||
Calendar Year 2016 | 1,830,000 | 5,000 | $ | 84.73 | ||||||||||||||||||||||||
Total | 16,872,000 | |||||||||||||||||||||||||||
Average price | $ | 89.97 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to crude oil purchases in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Crude Oil Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2014 | 810,000 | 9,000 | $ | 94.56 | ||||||||||||||||||||||||
Second Quarter 2014 | 591,500 | 6,500 | $ | 94.37 | ||||||||||||||||||||||||
Third Quarter 2014 | 874,000 | 9,500 | $ | 92.92 | ||||||||||||||||||||||||
Fourth Quarter 2014 | 184,000 | 2,000 | $ | 94.62 | ||||||||||||||||||||||||
Calendar Year 2015 | 1,004,000 | 2,751 | $ | 89.28 | ||||||||||||||||||||||||
Total | 3,463,500 | |||||||||||||||||||||||||||
Average price | $ | 92.59 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to crude oil sales in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Crude Oil Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2014 | 45,000 | 500 | $ | 96.9 | ||||||||||||||||||||||||
Second Quarter 2014 | 45,500 | 500 | $ | 96.9 | ||||||||||||||||||||||||
Third Quarter 2014 | 46,000 | 500 | $ | 96.9 | ||||||||||||||||||||||||
Fourth Quarter 2014 | 46,000 | 500 | $ | 96.9 | ||||||||||||||||||||||||
Total | 182,500 | |||||||||||||||||||||||||||
Average price | $ | 96.9 | ||||||||||||||||||||||||||
Crude Oil Basis Swap Contracts | ||||||||||||||||||||||||||||
The Company has entered into crude oil basis swaps to mitigate the risk of future changes in pricing differentials between Canadian heavy crude oil and NYMEX WTI crude oil, pricing differentials between LLS and NYMEX WTI and pricing differentials between MSW and NYMEX WTI. At December 31, 2014, the Company had the following derivatives related to crude oil basis swaps in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Crude Oil Basis Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Differential to NYMEX WTI | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 118,000 | 2,000 | $ | (22.40 | ) | |||||||||||||||||||||||
Total | 118,000 | |||||||||||||||||||||||||||
Average differential | $ | (22.40 | ) | |||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to crude oil basis swaps in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Crude Oil Basis Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Differential to NYMEX WTI | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2014 | 118,000 | 1,311 | $ | (28.50 | ) | |||||||||||||||||||||||
Third Quarter 2014 | 184,000 | 2,000 | $ | (21.75 | ) | |||||||||||||||||||||||
Fourth Quarter 2014 | 184,000 | 2,000 | $ | (21.50 | ) | |||||||||||||||||||||||
Total | 486,000 | |||||||||||||||||||||||||||
Average differential | $ | (23.29 | ) | |||||||||||||||||||||||||
As of December 31, 2013, the Company had approximately 248,000 barrels of crude oil basis swaps related to future crude oil purchases and sales to mitigate the risk of future changes in pricing differentials between Brent and NYMEX WTI on the Company’s reselling of crude oil. The net impact of these derivative instruments, none of which are designated as hedges, was a net loss of $0.6 million that was recorded to realized gain (loss) on derivative instruments in the consolidated statements of operations for the year ended December 31, 2013. | ||||||||||||||||||||||||||||
Crude Oil Percent Basis Swap Contracts | ||||||||||||||||||||||||||||
During the fourth quarter of 2014, the Company entered into derivative instruments to secure a percentage differential on WCS crude oil to NYMEX WTI. At December 31, 2014, the Company had the following derivatives related to crude oil percent basis swaps in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Crude Oil Percent Basis Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | |||||||||||||||||||||||||
Third Quarter 2015 | 184,000 | 2,000 | 73 | % | ||||||||||||||||||||||||
Fourth Quarter 2015 | 184,000 | 2,000 | 73 | % | ||||||||||||||||||||||||
Total | 368,000 | |||||||||||||||||||||||||||
Average percentage | 73 | % | ||||||||||||||||||||||||||
Diesel Swap Contracts | ||||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to diesel sales in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Diesel Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 1,449,000 | 16,100 | $ | 116.27 | ||||||||||||||||||||||||
Second Quarter 2015 | 91,000 | 1,000 | $ | 117.92 | ||||||||||||||||||||||||
Third Quarter 2015 | 322,000 | 3,500 | $ | 95.04 | ||||||||||||||||||||||||
Fourth Quarter 2015 | 322,000 | 3,500 | $ | 95.04 | ||||||||||||||||||||||||
Calendar Year 2016 | 915,000 | 2,500 | $ | 104.32 | ||||||||||||||||||||||||
Total | 3,099,000 | |||||||||||||||||||||||||||
Average price | $ | 108.38 | ||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to diesel purchases in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Diesel Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 1,449,000 | 16,100 | $ | 105.78 | ||||||||||||||||||||||||
Total | 1,449,000 | |||||||||||||||||||||||||||
Average price | $ | 105.78 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to diesel sales in its fuel products segment, all of which are designated as cash flow hedges. | ||||||||||||||||||||||||||||
Diesel Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2014 | 1,125,000 | 12,500 | $ | 117.54 | ||||||||||||||||||||||||
Second Quarter 2014 | 1,183,000 | 13,000 | $ | 116.78 | ||||||||||||||||||||||||
Third Quarter 2014 | 1,288,000 | 14,000 | $ | 116.82 | ||||||||||||||||||||||||
Fourth Quarter 2014 | 1,288,000 | 14,000 | $ | 116.96 | ||||||||||||||||||||||||
Calendar Year 2015 | 4,781,500 | 13,100 | $ | 115.81 | ||||||||||||||||||||||||
Calendar Year 2016 | 1,830,000 | 5,000 | $ | 112 | ||||||||||||||||||||||||
Total | 11,495,500 | |||||||||||||||||||||||||||
Average price | $ | 115.72 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to diesel sales in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Diesel Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2014 | 270,000 | 3,000 | $ | 121.72 | ||||||||||||||||||||||||
Second Quarter 2014 | 182,000 | 2,000 | $ | 123.22 | ||||||||||||||||||||||||
Third Quarter 2014 | 230,000 | 2,500 | $ | 121.74 | ||||||||||||||||||||||||
Fourth Quarter 2014 | 184,000 | 2,000 | $ | 123.02 | ||||||||||||||||||||||||
Calendar Year 2015 | 1,004,000 | 2,751 | $ | 117.15 | ||||||||||||||||||||||||
Total | 1,870,000 | |||||||||||||||||||||||||||
Average price | $ | 119.54 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to diesel purchases in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Diesel Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2014 | 45,000 | 500 | $ | 121.8 | ||||||||||||||||||||||||
Second Quarter 2014 | 45,500 | 500 | $ | 121.8 | ||||||||||||||||||||||||
Third Quarter 2014 | 46,000 | 500 | $ | 121.8 | ||||||||||||||||||||||||
Fourth Quarter 2014 | 46,000 | 500 | $ | 121.8 | ||||||||||||||||||||||||
Total | 182,500 | |||||||||||||||||||||||||||
Average price | $ | 121.8 | ||||||||||||||||||||||||||
Diesel Percent Basis Crack Spread Swap Contracts | ||||||||||||||||||||||||||||
During the fourth quarter of 2014, the Company entered into derivative instruments to secure a fixed percentage of gross profit on diesel in excess of the floating value of NYMEX WTI crude oil. At December 31, 2014, the Company had the following diesel percent basis crack spread swap contracts in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Diesel Crack Spread Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average % of WTI/Bbl | |||||||||||||||||||||||||
Third Quarter 2015 | 414,000 | 4,500 | 33.2 | % | ||||||||||||||||||||||||
Fourth Quarter 2015 | 414,000 | 4,500 | 33.2 | % | ||||||||||||||||||||||||
Calendar Year 2016 | 1,647,000 | 4,500 | 31.7 | % | ||||||||||||||||||||||||
Total | 2,475,000 | |||||||||||||||||||||||||||
Average percentage | 32.2 | % | ||||||||||||||||||||||||||
Diesel Crack Spread Collars | ||||||||||||||||||||||||||||
At December 31, 2013, the Company had the following diesel crack spread collars related to diesel sales and crude oil purchases in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Diesel Crack Spread Collars by Expiration Dates | Barrels Purchased and Sold | BPD | Average Bought | Average Sold | ||||||||||||||||||||||||
Put ($/Bbl) | Call ($/Bbl) | |||||||||||||||||||||||||||
First Quarter 2014 | 90,000 | 1,000 | $ | 26 | $ | 35 | ||||||||||||||||||||||
Second Quarter 2014 | 91,000 | 1,000 | $ | 26 | $ | 35 | ||||||||||||||||||||||
Third Quarter 2014 | 92,000 | 1,000 | $ | 26 | $ | 35 | ||||||||||||||||||||||
Fourth Quarter 2014 | 92,000 | 1,000 | $ | 26 | $ | 35 | ||||||||||||||||||||||
Total | 365,000 | |||||||||||||||||||||||||||
Average price | $ | 26 | $ | 35 | ||||||||||||||||||||||||
Jet Fuel Swap Contracts | ||||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to jet fuel sales in its fuel products segment, none of which are designated as cash flow hedges. | ||||||||||||||||||||||||||||
Jet Fuel Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 180,000 | 2,000 | $ | 115.65 | ||||||||||||||||||||||||
Total | 180,000 | |||||||||||||||||||||||||||
Average price | $ | 115.65 | ||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives to purchase jet fuel in its fuel products segment, none of which are designated as cash flow hedges. | ||||||||||||||||||||||||||||
Jet Fuel Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 180,000 | 2,000 | $ | 100.91 | ||||||||||||||||||||||||
Total | 180,000 | |||||||||||||||||||||||||||
Average price | $ | 100.91 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to jet fuel sales in its fuel products segment, all of which are designated as cash flow hedges. | ||||||||||||||||||||||||||||
Jet Fuel Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2014 | 450,000 | 5,000 | $ | 117.5 | ||||||||||||||||||||||||
Second Quarter 2014 | 273,000 | 3,000 | $ | 116.68 | ||||||||||||||||||||||||
Third Quarter 2014 | 276,000 | 3,000 | $ | 116.18 | ||||||||||||||||||||||||
Fourth Quarter 2014 | 276,000 | 3,000 | $ | 115.65 | ||||||||||||||||||||||||
Calendar Year 2015 | 775,000 | 2,123 | $ | 114.05 | ||||||||||||||||||||||||
Total | 2,050,000 | |||||||||||||||||||||||||||
Average price | $ | 115.66 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives to purchase jet fuel in its fuel products segment, none of which are designated as cash flow hedges: | ||||||||||||||||||||||||||||
Jet Fuel Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap ($/Bbl) | |||||||||||||||||||||||||
First Quarter 2014 | 90,000 | 1,000 | $ | 116.71 | ||||||||||||||||||||||||
Total | 90,000 | |||||||||||||||||||||||||||
Average price | $ | 116.71 | ||||||||||||||||||||||||||
Gasoline Swap Contracts | ||||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to gasoline sales in its fuel products segment, all of which are designated as cash flow hedges: | ||||||||||||||||||||||||||||
Gasoline Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 315,000 | 3,500 | $ | 109.68 | ||||||||||||||||||||||||
Total | 315,000 | |||||||||||||||||||||||||||
Average price | $ | 109.68 | ||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to gasoline sales in its fuel products segment, none of which are designated as hedges: | ||||||||||||||||||||||||||||
Gasoline Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 45,000 | 500 | $ | 111.72 | ||||||||||||||||||||||||
Total | 45,000 | |||||||||||||||||||||||||||
Average price | $ | 111.72 | ||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to gasoline purchases in its fuel products segment, none of which are designated as hedges: | ||||||||||||||||||||||||||||
Gasoline Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 45,000 | 500 | $ | 78.12 | ||||||||||||||||||||||||
Total | 45,000 | |||||||||||||||||||||||||||
Average price | $ | 78.12 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to gasoline sales in its fuel products segment, all of which are designated as cash flow hedges: | ||||||||||||||||||||||||||||
Gasoline Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2014 | 945,000 | 10,500 | $ | 104.39 | ||||||||||||||||||||||||
Second Quarter 2014 | 955,500 | 10,500 | $ | 109.68 | ||||||||||||||||||||||||
Third Quarter 2014 | 966,000 | 10,500 | $ | 106.6 | ||||||||||||||||||||||||
Fourth Quarter 2014 | 460,000 | 5,000 | $ | 104.85 | ||||||||||||||||||||||||
Total | 3,326,500 | |||||||||||||||||||||||||||
Average price | $ | 106.61 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to gasoline sales in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Gasoline Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2014 | 630,000 | 7,000 | $ | 105.67 | ||||||||||||||||||||||||
Second Quarter 2014 | 409,500 | 4,500 | $ | 110.48 | ||||||||||||||||||||||||
Third Quarter 2014 | 644,000 | 7,000 | $ | 108.24 | ||||||||||||||||||||||||
Total | 1,683,500 | |||||||||||||||||||||||||||
Average price | $ | 107.82 | ||||||||||||||||||||||||||
Platinum Swap Contracts | ||||||||||||||||||||||||||||
At December 31, 2014, the Company had approximately 1,900 troy ounces of platinum swap contracts through 2015 in its fuel products segment, none of which are designated as hedges. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||||||||||||||||||
The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. Observable inputs are from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. These tiers include the following: | ||||||||||||||||||||||||||||||||
• | Level 1—inputs include observable unadjusted quoted prices in active markets for identical assets or liabilities | |||||||||||||||||||||||||||||||
• | Level 2—inputs include other than quoted prices in active markets that are either directly or indirectly observable | |||||||||||||||||||||||||||||||
• | Level 3—inputs include unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions | |||||||||||||||||||||||||||||||
In determining fair value, the Company uses various valuation techniques and prioritizes the use of observable inputs. The availability of observable inputs varies from instrument to instrument and depends on a variety of factors including the type of instrument, whether the instrument is actively traded and other characteristics particular to the instrument. For many financial instruments, pricing inputs are readily observable in the market, the valuation methodology used is widely accepted by market participants and the valuation does not require significant management judgment. For other financial instruments, pricing inputs are less observable in the marketplace and may require management judgment. | ||||||||||||||||||||||||||||||||
Recurring Fair Value Measurements | ||||||||||||||||||||||||||||||||
Derivative Assets and Liabilities | ||||||||||||||||||||||||||||||||
Derivative instruments are reported in the accompanying consolidated financial statements at fair value. The Company’s derivative instruments consist of over-the-counter (“OTC”) contracts, which are not traded on a public exchange. Substantially all of the Company’s derivative instruments are with counterparties that have long-term credit ratings of at least Baa2 and A- by Moody’s and S&P, respectively. | ||||||||||||||||||||||||||||||||
To estimate the fair values of the Company’s commodity derivative instruments, the Company uses the forward rate, the strike price, contractual notional amounts, the risk free rate of return and contract maturity. To estimate the fair value of the Company’s fixed-to-floating interest rate swap derivative instrument, the Company uses discounted cash flows, which use observable inputs such as maturity and market interest rates. Various analytical tests are performed to validate the counterparty data. The fair values of the Company’s derivative instruments are adjusted for nonperformance risk and creditworthiness of the hedging entities through the Company’s credit valuation adjustment (“CVA”). The CVA is calculated at the counterparty level utilizing the fair value exposure at each payment date and applying a weighted probability of the appropriate survival and marginal default percentages. The Company uses the counterparty’s marginal default rate and the Company’s survival rate when the Company is in a net asset position at the payment date and uses the Company’s marginal default rate and the counterparty’s survival rate when the Company is in a net liability position at the payment date. As a result of applying the applicable CVA at December 31, 2014, the Company’s net asset was increased by approximately $2.0 million and net liability was reduced by approximately $0.1 million. As a result of applying the CVA at December 31, 2013, the Company’s net liability was reduced by approximately $1.9 million. | ||||||||||||||||||||||||||||||||
Observable inputs utilized to estimate the fair values of the Company’s derivative instruments were primarily based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Based on the use of various unobservable inputs, principally non-performance risk, creditworthiness of the hedging entities and unobservable inputs in the forward rate, the Company has categorized these derivative instruments as Level 3. Significant increases (decreases) in any of those unobservable inputs in isolation would result in a significantly lower (higher) fair value measurement. The Company believes it has obtained the most accurate information available for the types of derivative instruments it holds. See Note 8 for further information on derivative instruments. | ||||||||||||||||||||||||||||||||
Pension Assets | ||||||||||||||||||||||||||||||||
Pension assets are reported at fair value in the accompanying consolidated financial statements. At December 31, 2014, the Company’s investments associated with its pension plan (as such term is hereinafter defined) primarily consisted of mutual funds. The mutual funds are categorized as Level 2 because inputs used in their valuation are not quoted prices in active markets that are indirectly observable and are valued at the NAV of shares in each fund held by the pension plan at quarter end as provided by the third party administrator. See Note 12 for further information on pension assets. | ||||||||||||||||||||||||||||||||
Liability Awards | ||||||||||||||||||||||||||||||||
Unit based compensation liability awards are awards that are expected to be settled in cash on their vesting dates, rather than in equity units (“Liability Awards”). The Liability Awards are categorized as Level 1 because the fair value of the Liability Awards is based on the Company’s quoted closing unit price as of each balance sheet date. | ||||||||||||||||||||||||||||||||
Renewable Identification Numbers Obligation | ||||||||||||||||||||||||||||||||
The Company’s RINs Obligation represents a liability for the purchase of RINs to satisfy the EPA requirement to blend biofuels into the fuel products it produces pursuant to the EPA’s Renewable Fuel Standard. RINs are assigned to biofuels produced in the U.S. as required by the EPA. The EPA sets annual quotas for the percentage of biofuels that must be blended into transportation fuels consumed in the U.S., and as a producer of motor fuels from petroleum, the Company is required to blend biofuels into the fuel products it produces at a rate that will meet the EPA’s annual quota. To the extent the Company is unable to blend biofuels at that rate, it must purchase RINs in the open market to satisfy the annual requirement. The Company’s RINs Obligation is based on the amount of RINs it must purchase net of amounts internally generated and the price of those RINs as of the balance sheet date. The RINs Obligation is categorized as Level 2 and is measured at fair value using the market approach based on quoted prices from an independent pricing service. | ||||||||||||||||||||||||||||||||
In October 2014, the EPA granted the Company’s Shreveport and San Antonio refineries a “small refinery exemption” under the RFS for the full year 2013, as provided for under the Clean Air Act. The EPA determined that for the full year 2013, compliance with the RFS would represent a “disproportionate economic hardship” for these two refineries. As a result of the exemption, the Company sold all excess RINs related to these refineries for a gain of $18.2 million, net of cost to generate, recorded in cost of sales for the year ended December 31, 2014 in the consolidated statement of operations. | ||||||||||||||||||||||||||||||||
Hierarchy of Recurring Fair Value Measurements | ||||||||||||||||||||||||||||||||
The Company’s recurring assets and liabilities measured at fair value at December 31, 2014 and 2013 were as follows (in millions): | ||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||
Crude oil swaps | $ | — | $ | — | $ | (89.8 | ) | $ | (89.8 | ) | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Crude oil basis swaps | — | — | 0.8 | 0.8 | — | — | — | — | ||||||||||||||||||||||||
Crude oil percent basis swaps | — | — | (0.2 | ) | (0.2 | ) | — | — | — | — | ||||||||||||||||||||||
Gasoline swaps | — | — | 13.5 | 13.5 | — | — | — | — | ||||||||||||||||||||||||
Diesel swaps | — | — | 97 | 97 | — | — | — | — | ||||||||||||||||||||||||
Diesel crack spread swaps | — | — | 4.5 | 4.5 | — | — | — | — | ||||||||||||||||||||||||
Jet fuel swaps | — | — | 2.7 | 2.7 | — | — | — | — | ||||||||||||||||||||||||
Natural gas swaps | — | — | (7.2 | ) | (7.2 | ) | — | — | — | — | ||||||||||||||||||||||
Natural gas collars | — | — | (0.5 | ) | (0.5 | ) | — | — | — | — | ||||||||||||||||||||||
Platinum swaps | — | — | (0.1 | ) | (0.1 | ) | — | — | — | — | ||||||||||||||||||||||
Interest rate swaps | — | — | 2.5 | 2.5 | — | — | — | — | ||||||||||||||||||||||||
Total derivative assets | — | — | 23.2 | 23.2 | — | — | — | — | ||||||||||||||||||||||||
Pension plan investments | 0.2 | 49.4 | — | 49.6 | — | 45.8 | — | 45.8 | ||||||||||||||||||||||||
Total recurring assets at fair value | $ | 0.2 | $ | 49.4 | $ | 23.2 | $ | 72.8 | $ | — | $ | 45.8 | $ | — | $ | 45.8 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||||||
Crude oil swaps | $ | — | $ | — | $ | 5 | $ | 5 | $ | — | $ | — | $ | 37 | $ | 37 | ||||||||||||||||
Crude oil basis swaps | — | — | — | — | — | — | 0.4 | 0.4 | ||||||||||||||||||||||||
Gasoline swaps | — | — | 3.8 | 3.8 | — | — | (28.1 | ) | (28.1 | ) | ||||||||||||||||||||||
Diesel swaps | — | — | (9.0 | ) | (9.0 | ) | — | — | (50.6 | ) | (50.6 | ) | ||||||||||||||||||||
Jet fuel swaps | — | — | — | — | — | — | (12.4 | ) | (12.4 | ) | ||||||||||||||||||||||
Diesel crack spread collars | — | — | — | — | — | — | 0.1 | 0.1 | ||||||||||||||||||||||||
Natural gas swaps | — | — | (4.9 | ) | (4.9 | ) | — | — | (1.2 | ) | (1.2 | ) | ||||||||||||||||||||
Natural gas collars | — | — | (0.5 | ) | (0.5 | ) | — | — | — | — | ||||||||||||||||||||||
Total derivative liabilities | — | — | (5.6 | ) | (5.6 | ) | — | — | (54.8 | ) | (54.8 | ) | ||||||||||||||||||||
RINs Obligation | — | (16.3 | ) | — | (16.3 | ) | — | (5.3 | ) | — | (5.3 | ) | ||||||||||||||||||||
Liability Awards | (4.7 | ) | — | — | (4.7 | ) | (3.7 | ) | — | — | (3.7 | ) | ||||||||||||||||||||
Total recurring liabilities at fair value | $ | (4.7 | ) | $ | (16.3 | ) | $ | (5.6 | ) | $ | (26.6 | ) | $ | (3.7 | ) | $ | (5.3 | ) | $ | (54.8 | ) | $ | (63.8 | ) | ||||||||
The table below sets forth a summary of net changes in fair value of the Company’s Level 3 financial assets and liabilities for the years ended December 31, 2014 and 2013 (in millions): | ||||||||||||||||||||||||||||||||
Derivative Instruments, Net | ||||||||||||||||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Fair value at January 1, | $ | (54.8 | ) | $ | (44.9 | ) | ||||||||||||||||||||||||||
Realized (gain) loss on derivative instruments | (43.8 | ) | 4.7 | |||||||||||||||||||||||||||||
Unrealized gain (loss) on derivative instruments | (0.6 | ) | 25.7 | |||||||||||||||||||||||||||||
Interest income, net | (0.8 | ) | — | |||||||||||||||||||||||||||||
Change in fair value of cash flow hedges | 114.2 | (36.9 | ) | |||||||||||||||||||||||||||||
Settlements | 3.4 | (3.4 | ) | |||||||||||||||||||||||||||||
Transfers in (out) of Level 3 | — | — | ||||||||||||||||||||||||||||||
Fair value at December 31, | $ | 17.6 | $ | (54.8 | ) | |||||||||||||||||||||||||||
Total gain (loss) included in net income (loss) attributable to changes in unrealized gain (loss) relating to financial assets and liabilities held as of December 31, | $ | (0.6 | ) | $ | 25.7 | |||||||||||||||||||||||||||
All settlements from derivative instruments designated as cash flow hedges and deemed “effective” are included in sales for gasoline, diesel and jet fuel derivatives, and cost of sales for crude oil in the consolidated statements of operations in the period that the hedged cash flow occurs. Any “ineffectiveness” associated with these settlements from derivative instruments designated as cash flow hedges are recorded in earnings in realized gain (loss) on derivative instruments in the consolidated statements of operations. All settlements from derivative instruments designated as fair value hedges are accrued and recorded as an adjustment to interest expense in the consolidated statements of operations. All settlements from derivative instruments not designated as hedges are recorded in realized gain (loss) on derivative instruments in the consolidated statements of operations. See Note 8 for further information on derivative instruments. | ||||||||||||||||||||||||||||||||
Nonrecurring Fair Value Measurements | ||||||||||||||||||||||||||||||||
Certain nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. Assets and liabilities acquired in business combinations are recorded at their fair value as of the date of acquisition. Refer to Note 3 for the fair values of assets acquired and liabilities assumed in connection with the Company’s acquisitions. | ||||||||||||||||||||||||||||||||
The Company reviews for goodwill impairment annually on October 1 and whenever events or changes in circumstances indicate its carrying value may not be recoverable. The fair value of the reporting units is determined using the income approach. The income approach focuses on the income-producing capability of an asset, measuring the current value of the asset by calculating the present value of its future economic benefits such as cash earnings, cost savings, corporate tax structure and product offerings. Value indications are developed by discounting expected cash flows to their present value at a rate of return that incorporates the risk-free rate for the use of funds, the expected rate of inflation and risks associated with the reporting unit. These assets would generally be classified within Level 3, in the event that the Company were required to measure and record such assets at fair value within its consolidated financial statements, as discussed in Note 5. | ||||||||||||||||||||||||||||||||
The Company periodically evaluates the carrying value of long-lived assets to be held and used, including indefinite-lived intangible assets and property plant and equipment, when events or circumstances warrant such a review. Fair value is determined primarily using anticipated cash flows assumed by a market participant discounted at a rate commensurate with the risk involved and these assets would generally be classified within Level 3, in the event that the Company was required to measure and record such assets at fair value within its consolidated financial statements. | ||||||||||||||||||||||||||||||||
Estimated Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||
Cash | ||||||||||||||||||||||||||||||||
The carrying value of cash is considered to be representative of its fair value. | ||||||||||||||||||||||||||||||||
Debt | ||||||||||||||||||||||||||||||||
The estimated fair value of long-term debt at December 31, 2014 and 2013 consists primarily of the senior notes. The estimated aggregate fair value of the Company’s senior notes defined as Level 1 was based upon quoted market prices in an active market. The estimated aggregate fair value of the Company’s senior notes classified as Level 2 was based upon directly observable inputs. The carrying value of borrowings, if any, under the Company’s revolving credit facility and capital lease obligations approximate their fair values as determined by discounted cash flows and are classified as Level 3. See Note 7 for further information on long-term debt. | ||||||||||||||||||||||||||||||||
The Company’s carrying and estimated fair value of the Company’s financial instruments, carried at adjusted historical cost, at December 31, 2014 and 2013 were as follows (in millions): | ||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Level | Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||||||||||||||||
Financial Instrument: | ||||||||||||||||||||||||||||||||
Senior notes | 1 | $ | 630 | $ | 619.1 | $ | 863.6 | $ | 761.2 | |||||||||||||||||||||||
Senior notes | 2 | $ | 803.3 | $ | 900 | $ | 353.9 | $ | 344.8 | |||||||||||||||||||||||
Revolving credit facility | 3 | $ | 150.8 | $ | 150.8 | $ | — | $ | — | |||||||||||||||||||||||
Capital lease and other obligations | 3 | $ | 43.6 | $ | 43.6 | $ | 4.8 | $ | 4.8 | |||||||||||||||||||||||
Partners_Capital
Partners' Capital | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||
Partners' Capital | Partners’ Capital | |||||||||||||||||||||
Units Outstanding | ||||||||||||||||||||||
Of the 69,452,233 common units outstanding at December 31, 2014, 51,823,027 common units were held by the public, with the remaining 17,629,206 common units held by the Company’s affiliates. | ||||||||||||||||||||||
Significant information regarding rights of the limited partners includes the following: | ||||||||||||||||||||||
• | Rights to receive distributions of available cash within 45 days after the end of each quarter, to the extent the Company has sufficient cash from operations after the establishment of cash reserves. | |||||||||||||||||||||
• | Limited partners have limited voting rights on matters affecting the Company’s business. The general partner may consider only the interests and factors that it desires and has no duty or obligation to give any consideration of any interests of the Company’s limited partners. Limited partners have no right to elect the board of directors of the Company’s general partner. | |||||||||||||||||||||
• | The vote of the holders of at least 66 2/3% of all outstanding units voting together as a single class is required to remove the general partner. Any holder, other than the general partner or the general partner’s affiliates, that owns 20% or more of any class of units outstanding cannot vote on any matter. | |||||||||||||||||||||
• | The Company may issue an unlimited number of limited partner interests without the approval of the limited partners. | |||||||||||||||||||||
• | Limited partners may be required to sell their units to the general partner if at any time the general partner owns more than 80% of the issued and outstanding common units. | |||||||||||||||||||||
Distributions and Incentive Distribution Rights | ||||||||||||||||||||||
The Company’s general partner is entitled to incentive distributions if the amount it distributes to unitholders with respect to any quarter exceeds specified target levels shown below: | ||||||||||||||||||||||
Total Quarterly | Marginal Percentage | |||||||||||||||||||||
Distribution Per Common Unit | Interest in Distributions | |||||||||||||||||||||
Target Amount | Unitholders | General Partner | ||||||||||||||||||||
Minimum Quarterly Distribution | $0.45 | 98 | % | 2 | % | |||||||||||||||||
First Target Distribution | up to $0.495 | 98 | % | 2 | % | |||||||||||||||||
Second Target Distribution | above $0.495 up to $0.563 | 85 | % | 15 | % | |||||||||||||||||
Third Target Distribution | above $0.563 up to $0.675 | 75 | % | 25 | % | |||||||||||||||||
Thereafter | above $0.675 | 50 | % | 50 | % | |||||||||||||||||
The Company’s ability to make distributions is limited by its debt instruments. The revolving credit facility generally permits the Company to make cash distributions to unitholders as long as immediately after giving effect to such a cash distribution the Company has availability under the revolving credit facility at least the greater of (i) 15% of the Borrowing Base (as defined in the credit agreement) then in effect and (ii) $70.0 million. Further, the revolving credit facility contains one springing financial covenant which provides that only if the Company’s availability under the revolving credit facility falls below the greater of (a) 12.5% of the Borrowing Base (as defined in the credit agreement) then in effect and (b) $45.0 million, the Company will be required to maintain as of the end of each fiscal quarter a Fixed Charge Coverage Ratio (as defined in the credit agreement) of at least 1.0 to 1.0. The indentures governing the 2020 Notes, 2021 Notes and 2022 Notes provide that if the Company’s fixed charge coverage ratio (as defined in the indentures) for the most recently ended four full fiscal quarters is not less than 1.75 to 1.0, the Company will be permitted to pay distributions to its unitholders in an amount equal to available cash from operating surplus (each as defined in the Company’s partnership agreement) with respect to its preceding fiscal quarter, subject to certain customary adjustments described in the indentures. If the Company’s fixed charge coverage ratio is less than 1.75 to 1.0, the Company will be able to pay distributions to its unitholders up to an amount equal to (i) a $120.0 million basket for the 2020 Notes, (ii) a $225.0 million basket for the 2021 Notes and (iii) a $210.0 million basket for the 2022 Notes, subject to certain customary adjustments described in the indentures. | ||||||||||||||||||||||
The Company’s distribution policy is as defined in its partnership agreement. For the years ended December 31, 2014, 2013 and 2012, the Company made distributions of $210.2 million, $201.6 million and $132.4 million, respectively, to its partners. For the years ended December 31, 2014, 2013 and 2012, the general partner was allocated $15.4 million, $14.7 million and $5.5 million, respectively, in incentive distribution rights. | ||||||||||||||||||||||
Public Offerings of Common Units | ||||||||||||||||||||||
During 2014, 2013 and 2012, the Company completed the following marketed public offerings of its common units (in millions except unit and per unit data): | ||||||||||||||||||||||
Closing Date | Number of Common Units Offered | Price per Unit | Net Proceeds (1) | General Partner Contribution (2) | Underwriting Discount | Use of Proceeds | ||||||||||||||||
May 8, 2012 | 6,000,000 | $ | 25.5 | $ | 146.6 | $ | 3.1 | $ | 6.2 | Net proceeds were used to repay borrowings under the revolving credit facility. | ||||||||||||
January 8, 2013 | 5,750,000 | (3) | $ | 31.81 | $ | 175.2 | $ | 3.8 | $ | 7.4 | Net proceeds were used to repay borrowings under the revolving credit facility and for general partnership purposes. | |||||||||||
April 1, 2013 | 6,037,500 | (4) | $ | 37.5 | $ | 217.3 | $ | 4.6 | $ | 9.1 | Net proceeds were used for general partnership purposes. | |||||||||||
(1) | Proceeds are net of underwriting discounts, commissions and expenses but before its general partner’s capital contribution. | |||||||||||||||||||||
(2) | The Company’s general partner contributions were made to retain its 2% general partner interest. | |||||||||||||||||||||
(3) | Includes the full exercise of the overallotment option of 750,000 common units which closed concurrently with the 5,000,000 firm units on January 8, 2013. | |||||||||||||||||||||
(4) | Includes the full exercise of the overallotment option of 787,500 common units which closed on April 4, 2013. | |||||||||||||||||||||
On March 10, 2014, the Company entered into an Equity Placement Agreement with various sales agents under which the Company may issue and sell, from time to time, common units representing limited partner interests, having an aggregate offering price of up to $300.0 million through one or more sales agents. The Equity Placement Agreement provides the Company the right, but not the obligation, to sell common units in the future, at prices the Company deems appropriate. These sales, if any, will be made pursuant to the terms of the Equity Placement Agreement between the Company and the sales agents. The net proceeds from any sales under this agreement will be used for general partnership purposes, which may include, among other things, repayment of indebtedness, working capital, capital expenditures and acquisitions. The Company’s general partner contributed its proportionate capital contribution to retain its 2% general partner interest. For the year ended December 31, 2014, the Company sold 134,955 common units under the Equity Placement Agreement for net proceeds of $3.6 million. Underwriting discounts totaled $0.1 million and the Company’s general partner contributed $0.1 million to maintain its general partner interest. |
UnitBased_Compensation
Unit-Based Compensation | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||
Unit-Based Compensation | Unit-Based Compensation | ||||||
The Company’s general partner originally adopted a Long-Term Incentive Plan on January 24, 2006, which was amended and restated effective January 22, 2009, for its employees, consultants and directors and its affiliates who perform services for the Company. The Long-Term Incentive Plan provides for the grant of restricted units, phantom units, unit options and substitute awards and, with respect to unit options and phantom units, the grant of distribution equivalent rights (“DERs”). Subject to adjustment for certain events, an aggregate of 783,960 common units may be delivered pursuant to awards under the Long-Term Incentive Plan. Units withheld to satisfy the Company’s general partner’s tax withholding obligations are available for delivery pursuant to other awards. The Long-Term Incentive Plan is administered by the compensation committee of the Company’s general partner’s board of directors. | |||||||
Non-employee directors of the Company’s general partner have been granted phantom units under the terms of the Long-Term Incentive Plan as part of their director compensation package related to fiscal years 2012, 2013 and 2014. These phantom units have a four year service period with one-quarter of the phantom units vesting annually on each December 31st of the vesting period. Although ownership of common units related to the vesting of such phantom units does not transfer to the recipients until the phantom units vest, the recipients have DERs on these phantom units from the date of grant. | |||||||
For the years ended December 31, 2014 and 2012, named executive officers and certain employees were awarded phantom units under the terms of the Long-Term Incentive Plan, as part of the Company’s achievement of specified levels of financial performance in the fiscal year. These phantom units are subject to time-vesting requirements whereby 25% of the units vest during the performance period, and the remainder will vest ratably over the next three years on each December 31st. Although ownership of common units related to the vesting of such phantom units does not transfer to the recipients until the phantom units vest, the recipients have DERs on these phantom units from the date of grant. | |||||||
The Company uses the market price of its common units on the grant date to calculate the fair value and related compensation cost of the phantom units. The Company amortizes this compensation cost to partners’ capital and general and administrative expense in the consolidated statements of operations using the straight-line method over the service period, as it expects these units to fully vest. | |||||||
Liability Awards are awards that are expected to be settled in cash on their vesting dates, rather than in equity units. Phantom unit Liability Awards are recorded in accrued salaries, wages and benefits in the consolidated balance sheets based on the vested portion of the fair value of the awards on the balance sheet date. The fair value of Liability Awards are updated at each balance sheet date and changes in the fair values of the vested portions of the awards are recorded as increases or decreases to compensation expense within general and administrative expense in the consolidated statements of operations. | |||||||
A summary of the Company’s nonvested phantom units as of December 31, 2014, and the changes during the years ended December 31, 2014, 2013 and 2012, are presented below: | |||||||
Number of | Weighted-Average | ||||||
Phantom Units | Grant Date | ||||||
Fair Value | |||||||
Non-vested at January 1, 2012 | 562,696 | $ | 19.77 | ||||
Granted | 616,997 | 26.69 | |||||
Vested | (286,976 | ) | 21.16 | ||||
Forfeited | (56,790 | ) | 20 | ||||
Non-vested at December 31, 2012 | 835,927 | $ | 27.57 | ||||
Granted | 483,044 | 27.73 | |||||
Vested | (276,115 | ) | 24.22 | ||||
Forfeited | (354,600 | ) | 30.6 | ||||
Non-vested at December 31, 2013 | 688,256 | $ | 23.7 | ||||
Granted | 477,527 | 25.97 | |||||
Vested | (280,263 | ) | 23.72 | ||||
Forfeited | (383,400 | ) | 25.59 | ||||
Non-vested at December 31, 2014 | 502,120 | $ | 26.48 | ||||
For the years ended December 31, 2014, 2013 and 2012, compensation expense of $5.5 million, $4.8 million and $4.6 million, respectively, was recognized in the consolidated statements of operations related to vested phantom unit grants, including $2.5 million and $1.6 million, attributable to Liability Awards for the years ended December 31, 2014 and 2013, respectively. As of December 31, 2014 and 2013, there was a total of $12.2 million and $16.3 million, respectively of unrecognized compensation costs related to nonvested phantom unit grants, including $10.5 million and $12.4 million, attributable to Liability Awards for the years ended December 31, 2014 and 2013, respectively. These costs are expected to be recognized over a weighted-average period of approximately 3 years. The total fair value of phantom units vested during the years ended December 31, 2014 and 2013, was $6.7 million and $6.7 million, respectively. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans | |||||||||||||||||||||||
Defined Contribution Plan | ||||||||||||||||||||||||
The Company has a domestic defined contribution plan administered by its general partner for (i) all full-time employees that are eligible to participate in the plan (“401(k) Plan”). Participants in the 401(k) Plan are allowed to contribute 1% to 70% of their pre-tax earnings to the plan, subject to government imposed limitations. The Company matches 100% of each 1% of eligible compensation contributed by the participant up to 4% and 50% of each additional 1% of eligible compensation contributed up to 6%, for a maximum contribution by the Company of 5% of eligible compensation contributed per participant. The plan also includes a profit-sharing component for eligible employees. Contributions under the profit-sharing component are determined by the board of directors of the Company’s general partner and are discretionary. The funding policy is consistent with funding requirements of applicable laws and regulations. | ||||||||||||||||||||||||
The Company recorded the following 401(k) Plan matching contribution and profit sharing expenses in the consolidated statement of operations for the years ended December 31, 2014, 2013 and 2012 (in millions): | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
401(k) Plan matching contribution expense | $ | 5.4 | $ | 4.1 | $ | 3.2 | ||||||||||||||||||
Profit sharing expense | $ | 1.2 | $ | 0.9 | $ | 2.5 | ||||||||||||||||||
Defined Pension Plan | ||||||||||||||||||||||||
The Company has domestic noncontributory defined benefit plans for those salaried employees as well as those employees represented by either the United Steelworkers (“USW”) or the International Union of Operating Engineers (“IUOE”); who (i) were formerly employees of Penreco and became employees of the Company as a result of the acquisition of Penreco on January 3, 2008 (“Penreco Pension Plan”), (ii) were formerly employees of Murphy Oil Corporation (“Murphy Oil”) represented by the IUOE and who became employees of the Company as a result of the acquisition of the Superior refinery on September 30, 2011 (the “Superior Pension Plan”) or (iii) were formerly employees of Montana Refining and who became employees of the Company as a result of the Montana Acquisition on October 1, 2012 (the “Montana Pension Plan” and together with the Penreco Pension Plan and the Superior Pension Plan, the “Pension Plan”). During 2014, the Company made contributions of $1.5 million to its Pension Plan and expects to make contributions in 2015 of approximately $1.6 million to its Pension Plan. | ||||||||||||||||||||||||
Under the Penreco Pension Plan, benefits are based primarily on years of service for USW and IUOE represented employees and the employee’s final 60 months’ average compensation for salaried employees. In 2009, the Company amended the Penreco Pension Plan, which curtailed Penreco employees from accumulating additional benefits subsequent to December 31, 2009. | ||||||||||||||||||||||||
Under the Superior Pension Plan, benefits are based primarily on years of service for IUOE represented employees and the employee’s three highest consecutive calendar years of compensation within the last 10 years of service. Effective July 1, 2012, the Company amended the Superior Pension Plan, which curtailed Superior employees from accumulating additional benefits subsequent to December 31, 2012. For the year ended December 31, 2012, the Company recorded a $0.2 million curtailment gain. | ||||||||||||||||||||||||
Under the Montana Pension Plan, benefits are based primarily on years of service and the employees’ 36 months’ highest average compensation for salaried employees. Effective October 1, 2012, the date of the Montana Acquisition, the Company amended the Montana Pension Plan, which curtailed only the Montana salaried employees from accumulating additional benefits subsequent to October 31, 2012. | ||||||||||||||||||||||||
Defined Benefit Other Plans | ||||||||||||||||||||||||
The Company also has domestic contributory defined benefit post retirement medical plans and contributory life insurance plans for (i) those salaried employees, as well as those employees represented by either the International Brotherhood of Teamsters (“IBT”), USW or IUOE, who were formerly employees of Penreco and who became employees of the Company as a result of the acquisition of Penreco on January 3, 2008 (“Penreco Other Plan”) or (ii) employees represented by the IUOE, who were formerly employees of Murphy Oil and who became employees of the Company as a result of the acquisition of the Superior refinery on September 30, 2011 (“Superior Other Plan” and together with the Penreco Other Plan, the “Other Plan”). The funding policy is consistent with funding requirements of applicable laws and regulations. | ||||||||||||||||||||||||
Effective 2009, the Company amended the Penreco Other Plan, which curtailed employees from accumulating additional benefits subsequent to February 28, 2009. Effective July 1, 2012, the Company amended the Superior Other Plan, which curtailed Superior employees from accumulating additional benefits subsequent to December 31, 2012. For the year ended December 31, 2012, the Company recorded a $7.0 million curtailment gain. | ||||||||||||||||||||||||
All information presented below has been adjusted for these curtailments for the Pension Plan and Other Plan. The change in the benefit obligations, change in the plan assets, funded status and amounts recognized in the consolidated balance sheets were as follows (in millions): | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Pension | Other Plan | Pension | Other Plan | |||||||||||||||||||||
Plan | Plan | |||||||||||||||||||||||
Change in projected benefit obligation: | ||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 57.2 | $ | 0.3 | $ | 65.3 | $ | 0.3 | ||||||||||||||||
Service cost | 0.4 | — | 0.4 | — | ||||||||||||||||||||
Interest cost | 2.6 | — | 2.4 | — | ||||||||||||||||||||
Benefits paid | (2.5 | ) | (0.1 | ) | (2.3 | ) | — | |||||||||||||||||
Actuarial (gain) loss | 11.7 | — | (8.5 | ) | — | |||||||||||||||||||
Administrative expense | (0.1 | ) | — | (0.1 | ) | — | ||||||||||||||||||
Benefit obligation at end of year | $ | 69.3 | $ | 0.2 | $ | 57.2 | $ | 0.3 | ||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 45.8 | $ | — | $ | 41.6 | $ | — | ||||||||||||||||
Benefit payments | (2.5 | ) | (0.1 | ) | (2.3 | ) | — | |||||||||||||||||
Actual return on assets | 4.9 | — | 3.2 | — | ||||||||||||||||||||
Administrative expense | (0.1 | ) | — | (0.1 | ) | — | ||||||||||||||||||
Employer contribution | 1.5 | — | 3.4 | — | ||||||||||||||||||||
Fair value of plan assets at end of year | $ | 49.6 | $ | (0.1 | ) | $ | 45.8 | $ | — | |||||||||||||||
Funded status — benefit obligation in excess of plan assets | $ | (19.7 | ) | $ | (0.3 | ) | $ | (11.4 | ) | $ | (0.3 | ) | ||||||||||||
Reconciliation of amounts recognized in the consolidated balance sheets: | ||||||||||||||||||||||||
Accrued benefit obligation, long-term | $ | (19.7 | ) | $ | (0.3 | ) | $ | (11.4 | ) | $ | (0.3 | ) | ||||||||||||
Prior service credit | — | (0.2 | ) | — | (0.2 | ) | ||||||||||||||||||
Unrecognized net actuarial (gain) loss | 11.9 | (0.2 | ) | 2.3 | (0.2 | ) | ||||||||||||||||||
Accumulated other comprehensive (income) loss | 11.9 | (0.4 | ) | 2.3 | (0.4 | ) | ||||||||||||||||||
Net amount recognized at end of year | $ | (7.8 | ) | $ | (0.7 | ) | $ | (9.1 | ) | $ | (0.7 | ) | ||||||||||||
The accumulated benefit obligation for the Pension Plan was $68.4 million and $56.7 million as of December 31, 2014 and 2013, respectively. Selected information for the Company’s pension plans with an accumulated benefit obligation in excess of plan assets were as follows (in millions): | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Accumulated benefit obligation | $ | 68.4 | $ | 52.9 | ||||||||||||||||||||
Fair value of plan assets | $ | 49.6 | $ | 41.8 | ||||||||||||||||||||
Selected information for the Company’s Pension Plan with projected benefit obligation in excess of plan assets were as follows (in millions): | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Projected benefit obligation | $ | 69.3 | $ | 57.2 | ||||||||||||||||||||
Fair value of plan assets | $ | 49.6 | $ | 45.8 | ||||||||||||||||||||
The components of net periodic pension cost and other post retirement benefits income for 2014, 2013 and 2012 were as follows (in millions): | ||||||||||||||||||||||||
Pension Plan | Other Plan | |||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 0.4 | $ | 0.4 | $ | 1.1 | $ | — | $ | — | $ | 0.3 | ||||||||||||
Interest cost | 2.6 | 2.4 | 2.4 | — | — | 0.2 | ||||||||||||||||||
Expected return on assets | (3.1 | ) | (2.9 | ) | (1.7 | ) | — | — | — | |||||||||||||||
Amortization of net loss | 0.3 | 0.8 | 0.6 | — | — | — | ||||||||||||||||||
Curtailment gain recognized | — | — | (0.2 | ) | — | — | (7.0 | ) | ||||||||||||||||
Settlement gain recognized | — | — | — | — | — | (0.2 | ) | |||||||||||||||||
Net periodic benefit cost (income) | $ | 0.2 | $ | 0.7 | $ | 2.2 | $ | — | $ | — | $ | (6.7 | ) | |||||||||||
The components of changes recognized in other comprehensive (income) loss for the Pension Plan and Other Plan for 2014, 2013 and 2012 were as follows (in millions): | ||||||||||||||||||||||||
Pension Plan | Other Plan | |||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss: | ||||||||||||||||||||||||
Net (gain) loss | $ | 9.9 | $ | (8.8 | ) | $ | 4.3 | $ | — | $ | — | $ | 0.1 | |||||||||||
Net prior service cost | — | — | — | — | — | (0.1 | ) | |||||||||||||||||
Amounts recognized as a component of net periodic benefit cost: | ||||||||||||||||||||||||
Amortization or settlement recognition of net loss | (0.3 | ) | (0.8 | ) | (0.6 | ) | — | — | (0.8 | ) | ||||||||||||||
Amortization or curtailment recognition of prior service credit | — | — | — | — | — | 0.1 | ||||||||||||||||||
Total recognized in other comprehensive (income) loss | $ | 9.6 | $ | (9.6 | ) | $ | 3.7 | $ | — | $ | — | $ | (0.7 | ) | ||||||||||
The portion relating to the Pension Plan and Other Plan classified in accumulated other comprehensive income (loss) is $11.5 million and $1.9 million as of December 31, 2014 and 2013, respectively. In 2015, the estimated amount that will be amortized from accumulated other comprehensive income includes a net loss of $0.8 million for the Pension Plan. | ||||||||||||||||||||||||
For the Pension Plan, the Company uses a corridor approach to amortize actuarial gains and losses. Under this approach, net actuarial gains or losses in excess of ten percent of the larger of the projected benefit obligation or the fair value of plan assets are amortized on a straight-line basis. The period of amortization is the average remaining service of active participants who are expected to receive benefits under the plans. | ||||||||||||||||||||||||
For the Other Plan, the Company uses corridor approach to amortize actuarial gains and losses. Under this approach, net actuarial gains or losses in excess of ten percent of the larger of the accumulated projected benefit obligation or the fair value of plan assets are amortized on a straight-line basis. The period of amortization is the average life expectancy of participants who are expected to receive benefits under the plans. | ||||||||||||||||||||||||
All pension and other post retirement plans have a December 31 measurement date. The significant weighted average assumptions used to determine the benefit obligations for the years ended December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
Benefit Obligations | ||||||||||||||||||||||||
Assumptions | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Pension Plan: | ||||||||||||||||||||||||
Discount rate for Penreco Pension Plan | 3.92 | % | 4.78 | % | ||||||||||||||||||||
Discount rate for Superior Pension Plan | 3.86 | % | 4.66 | % | ||||||||||||||||||||
Discount rate for Montana Pension Plan | 4.13 | % | 4.97 | % | ||||||||||||||||||||
Rate of compensation increase for Montana Pension Plan | 3 | % | 3 | % | ||||||||||||||||||||
Other Plan: | ||||||||||||||||||||||||
Discount rate for Penreco Other Plan | 3.7 | % | 4.29 | % | ||||||||||||||||||||
Immediate trend rate for Penreco Other Plan (1) | 7.3 | % | 7.5 | % | ||||||||||||||||||||
Ultimate trend rate for Penreco Other Plan (1) | 4.5 | % | 4.5 | % | ||||||||||||||||||||
Year that the rate reaches ultimate trend rate for Penreco Other Plan (1) | 2029 | 2029 | ||||||||||||||||||||||
(1) | For measurement purposes, an annual rate of increase in the per capita cost of covered health care benefits was assumed for 2014. The rate was assumed to decrease by 0.20% per year for an ultimate rate of 4.50% in 2029 for the Penreco Other Plan and remain at that level thereafter. | |||||||||||||||||||||||
The significant weighted average assumptions used to determine the net periodic benefit cost (income) for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
Net Periodic Benefit Cost (Income) | ||||||||||||||||||||||||
Assumptions | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Pension Plan: | ||||||||||||||||||||||||
Discount rate for Penreco Pension Plan | 4.78 | % | 3.86 | % | 4.63 | % | ||||||||||||||||||
Discount rate for Superior Pension Plan | 4.66 | % | 3.75 | % | 4.55 | % | ||||||||||||||||||
Discount rate for Montana Pension Plan | 4.97 | % | 4.03 | % | 3.89 | % | ||||||||||||||||||
Expected return on plan assets for Penreco Pension Plan (1) | 6.75 | % | 6.75 | % | 6 | % | ||||||||||||||||||
Expected return on plan assets for Superior Pension Plan (1) | 6.75 | % | 6.75 | % | 3 | % | ||||||||||||||||||
Expected return on plan assets for Montana Pension Plan (1) | 6.75 | % | 6.75 | % | 6 | % | ||||||||||||||||||
Rate of compensation increase for Superior Pension Plan | N/A | N/A | 3.75 | % | ||||||||||||||||||||
Rate of compensation increase for Montana Pension Plan | 3 | % | 3 | % | 3 | % | ||||||||||||||||||
Other Plan: | ||||||||||||||||||||||||
Discount rate for Penreco Other Plan | 4.29 | % | 3.33 | % | 4.04 | % | ||||||||||||||||||
Discount rate for Superior Other Plan | N/A | N/A | 4.65 | % | ||||||||||||||||||||
Immediate trend rate (2) | 7.5 | % | 7.7 | % | 8 | % | ||||||||||||||||||
Ultimate trend rate for Penreco Other Plan (2) | 4.5 | % | 4.5 | % | 4.5 | % | ||||||||||||||||||
Ultimate trend rate for Superior Other Plan (2) | N/A | N/A | 4.5 | % | ||||||||||||||||||||
Year that the rate reaches ultimate trend rate for Penreco Other Plan (2) | 2029 | 2029 | 2029 | |||||||||||||||||||||
Year that the rate reaches ultimate trend rate for Superior Other Plan (2) | N/A | N/A | 2029 | |||||||||||||||||||||
(1) | The Company considered the historical returns, the future expectation for returns for each asset class and fair value of the plan assets, as well as the target asset allocation of the Pension Plan portfolio which was developed in accordance with the Company’s Statement of Investment Policy, to develop the expected long-term rate of return on plan assets. | |||||||||||||||||||||||
(2) | For measurement purposes, an annual rate of increase in the per capita cost of covered health care benefits was assumed for 2014. The rate was assumed to decrease by 0.20% per year for an ultimate rate of 4.50% for 2029 for the Penreco Other Plan and remain at that level thereafter. | |||||||||||||||||||||||
An increase or decrease by one percentage point in the assumed healthcare cost trend rates would have less than $0.1 million effect on the post retirement benefit obligation and service and interest cost components of benefit costs for the Other Plan as of December 31, 2014. | ||||||||||||||||||||||||
Investment Policy | ||||||||||||||||||||||||
The Defined Benefit Plan Investment Committee (the “Investment Committee”) is responsible for the overall management of the Pension Plan assets, and its responsibilities encompass establishing the investment strategies and policies, monitoring the management of plan assets, reviewing the asset allocation mix on a regular basis, monitoring the performance of the Pension Plan assets to determine whether the investments objectives are met and guidelines followed and taking the appropriate action if objectives are not followed. The Company uses different investment managers with various asset management objectives to eliminate any significant concentration of risk. The Investment Committee believes there are no significant concentrations of risks associated with the investment assets. The Company’s investment manager will assist in the continual assessment of assets and the potential reallocation of certain investments and will evaluate the selection of investment managers for the Pension Plan assets based on such factors as organizational stability, depth of resources, experience, investment strategy and process, performance expectations and fees. | ||||||||||||||||||||||||
Long-term strategic investment objectives utilize a diversified mix of equity and fixed income securities to preserve the funded status of the trusts, and balance risk and return in relationship to the respective liabilities. The primary investment strategy currently employed is a dynamic de-risking strategy that periodically rebalances among various investment categories depending on the current funded position and maximizes the effectiveness of the Pension Plan asset allocation strategy. This program is designed to actively move from return-seeking investments (such as equities) toward liability-hedging investments (such as fixed income) as funding levels improve. | ||||||||||||||||||||||||
Effective June 2013, all of the Pension Plan assets were invested in a Master Trust. Trust assets in the Pension Plan are invested subject to the policy restriction that the average quality of the fixed income portfolio must be rated at least investment grade by both Moody’s and S&P. These assets are invested in accordance with prudent expert standards as mandated by the Employee Retirement Income Security Act (“ERISA”). The Pension Plan’s target asset allocation is currently comprised of the following: | ||||||||||||||||||||||||
Asset Class | Range of | Target | ||||||||||||||||||||||
Asset Allocation | Allocation | |||||||||||||||||||||||
Domestic equities | 0 — 50% | 25 | % | |||||||||||||||||||||
Foreign equities | 0 — 50% | 25 | % | |||||||||||||||||||||
Fixed income | 50 — 100% | 50 | % | |||||||||||||||||||||
Investment Fund Strategies | ||||||||||||||||||||||||
Domestic equity funds include funds that invest in U.S. common and preferred stocks. Foreign equity funds invest in securities issued by companies listed on international stock exchanges. Certain funds have value and growth objectives and managers may attempt to profit from security mispricing in equity markets to meet these objectives. Short term investments (including commercial paper, certificates of deposits and government repurchase agreements) and derivatives may be used for hedging purposes to limit exposure to various risk factors. | ||||||||||||||||||||||||
Fixed income funds invest in U.S. dollar-denominated, investment grade bonds, including U.S. Treasury and government agency securities, corporate bonds and mortgage and asset-backed securities. These funds may also invest in any combination of non-investment grade bonds, non-U.S. dollar-denominated bonds and bonds issued by issuers in emerging capital markets. Short term investments (including commercial paper, certificates of deposits and government repurchase agreements) and derivatives may be used for hedging purposes to limit exposure to various risk factors. | ||||||||||||||||||||||||
The Company’s Pension Plan asset allocations, as of December 31, 2014 and 2013 by asset category, are as follows: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Domestic equities | 20 | % | 23 | % | ||||||||||||||||||||
Foreign equities | 19 | % | 23 | % | ||||||||||||||||||||
Fixed income | 61 | % | 54 | % | ||||||||||||||||||||
100 | % | 100 | % | |||||||||||||||||||||
At December 31, 2014, the Company’s investments associated with its Pension Plan (as such term is hereinafter defined) primarily consisted of (i) cash and cash equivalents and (ii) mutual funds. The mutual funds are categorized as Level 2 because inputs used in their valuation are not quoted prices in active markets that are indirectly observable and are valued at the net asset value (“NAV”) of shares in each fund held by the Pension Plan at quarter end as provided by the third party administrator. See Note 9 for the definition of Levels 1, 2 and 3. The Company’s Pension Plan assets measured at fair value at December 31, 2014 and 2013 were as follows (in millions): | ||||||||||||||||||||||||
Fair Value of Pension Assets at December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 1 | Level 2 | |||||||||||||||||||||
Cash and cash equivalents | $ | 0.2 | $ | — | $ | — | $ | — | ||||||||||||||||
Domestic equities | — | 10 | — | 10.6 | ||||||||||||||||||||
Foreign equities | — | 9.4 | — | 10.6 | ||||||||||||||||||||
Fixed income | — | 30 | — | 24.6 | ||||||||||||||||||||
$ | 0.2 | $ | 49.4 | $ | — | $ | 45.8 | |||||||||||||||||
The following benefit payments for the Pension Plan, which reflect expected future service, as appropriate, are expected to be paid in the years indicated as of December 31, 2014 (in millions): | ||||||||||||||||||||||||
Pension | ||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||
2015 | $ | 2.6 | ||||||||||||||||||||||
2016 | 2.7 | |||||||||||||||||||||||
2017 | 2.8 | |||||||||||||||||||||||
2018 | 3 | |||||||||||||||||||||||
2019 | 3.2 | |||||||||||||||||||||||
2020 to 2024 | 18 | |||||||||||||||||||||||
Total | $ | 32.3 | ||||||||||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||
Comprehensive Income (Loss) Note | Accumulated Other Comprehensive Loss | |||||||||||||||
The table below sets forth a summary of changes in accumulated other comprehensive loss by component for the year ended December 31, 2014 (in millions): | ||||||||||||||||
Derivatives | Defined Benefit Pension And Retiree Health Benefit Plans | Foreign Currency Translation Adjustment | Total | |||||||||||||
Accumulated other comprehensive loss at December 31, 2013 | $ | (51.4 | ) | $ | (1.9 | ) | $ | (0.1 | ) | $ | (53.4 | ) | ||||
Other comprehensive income (loss) before reclassifications | 114.2 | (9.9 | ) | (0.5 | ) | 103.8 | ||||||||||
Amounts reclassified from accumulated other comprehensive income | (37.0 | ) | 0.3 | — | (36.7 | ) | ||||||||||
Net current period other comprehensive income (loss) | 77.2 | (9.6 | ) | (0.5 | ) | 67.1 | ||||||||||
Accumulated other comprehensive income (loss) at December 31, 2014 | $ | 25.8 | $ | (11.5 | ) | $ | (0.6 | ) | $ | 13.7 | ||||||
The table below sets forth a summary of reclassification adjustments out of accumulated other comprehensive loss in the Company’s consolidated statements of operations for the year ended December 31, 2014 (in millions): | ||||||||||||||||
Components of Accumulated Other Comprehensive Loss | Amount Reclassified From Accumulated Other Comprehensive Loss | Location of Gain (Loss) | ||||||||||||||
Derivative gains (losses) reflected in gross profit | ||||||||||||||||
$ | (9.0 | ) | Sales | |||||||||||||
46 | Cost of sales | |||||||||||||||
$ | 37 | Total | ||||||||||||||
Amortization of defined benefit pension benefit plans: | ||||||||||||||||
Amortization of net loss | $ | (0.3 | ) | (1) | ||||||||||||
$ | (0.3 | ) | Total | |||||||||||||
________________________ | ||||||||||||||||
(1) | This accumulated other comprehensive loss component is included in the computation of net periodic pension cost. See Note 12 for additional information. |
Income_Taxes_Income_Taxes
Income Taxes Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Tax Disclosure [Text Block] | Income Taxes | |||||||||||
The Company conducts certain activities through wholly-owned subsidiaries that are corporations which are subject to federal, state and local income taxes. As of December 31, 2014, 2013 and 2012, the components of federal and state income tax expense are summarized as follows (in millions): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current expense: | ||||||||||||
Federal | $ | 0.2 | $ | — | $ | — | ||||||
State | 0.2 | 0.4 | 0.8 | |||||||||
Total | $ | 0.4 | $ | 0.4 | $ | 0.8 | ||||||
Deferred expense (benefit): | ||||||||||||
Federal | $ | (1.5 | ) | $ | — | $ | — | |||||
State | 0.3 | — | — | |||||||||
Total | $ | (1.2 | ) | $ | — | $ | — | |||||
Total income tax expense (benefit) | $ | (0.8 | ) | $ | 0.4 | $ | 0.8 | |||||
A reconciliation of effective tax rate to the U.S. statutory rate attributable to operations for December 31, 2014, 2013 and 2012 is as follows: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
Partnership earnings not subject to tax | (22.4 | )% | (35.0 | )% | (35.0 | )% | ||||||
State income taxes, net of federal income tax effect | (0.4 | )% | 11.4 | % | 0.4 | % | ||||||
Impact of non-deductible goodwill | (11.5 | )% | — | % | — | % | ||||||
Other items, net | — | % | (1.1 | )% | — | % | ||||||
Effective tax rate | 0.7 | % | 10.3 | % | 0.4 | % | ||||||
Deferred Taxes | ||||||||||||
Deferred taxes result from the temporary differences between financial reporting carrying amounts and the tax basis of existing assets and liabilities. The table below summarizes the principal components of the deferred tax assets (liabilities) as follows as of December 31, 2014 and 2013 (in millions): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred income tax assets: | ||||||||||||
Inventory | $ | 2.3 | $ | — | ||||||||
Net operating loss carryforwards | 3.7 | — | ||||||||||
Total deferred income tax assets | $ | 6 | $ | — | ||||||||
Deferred income tax liabilities: | ||||||||||||
Intangible assets | $ | (22.0 | ) | $ | — | |||||||
Property, plant and equipment | (14.0 | ) | (1.7 | ) | ||||||||
Total deferred income tax liabilities | $ | (36.0 | ) | $ | (1.7 | ) | ||||||
Net deferred income tax liability | $ | (30.0 | ) | $ | (1.7 | ) | ||||||
As a result of the Company’s analysis, management has determined that the Company does not have any uncertain tax positions. As of December 31, 2014, the Company had tax loss carryforwards of approximately $14.3 million, which are expected to be utilized prior to expiration in 2034. As of December 31, 2014, the Company had $3.7 million deferred tax assets arising from net operating loss carryforwards. |
Earnings_Per_Unit
Earnings Per Unit | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Unit [Abstract] | ||||||||||||
Earnings Per Share [Text Block] | Earnings per Unit | |||||||||||
The following table sets forth the computation of basic and diluted earnings per limited partner unit for the years ended December 31, 2014, 2013 and 2012 (in millions, except unit and per unit data): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Numerator for basic and diluted earnings per limited partner unit: | ||||||||||||
Net income (loss) | $ | (112.2 | ) | $ | 3.5 | $ | 205.7 | |||||
Less: | ||||||||||||
General partner’s interest in net income (loss) | (2.2 | ) | 0.1 | 4.1 | ||||||||
General partner’s incentive distribution rights | 15.4 | 14.7 | 5.5 | |||||||||
Non-vested share based payments | — | 0.2 | 1.1 | |||||||||
Net income (loss) available to limited partners | $ | (125.4 | ) | $ | (11.5 | ) | $ | 195 | ||||
Denominator for basic and diluted earnings per limited partner unit: | ||||||||||||
Basic weighted average limited partner units outstanding | 69,671,827 | 67,938,784 | 55,559,183 | |||||||||
Effect of dilutive securities: | ||||||||||||
Participating securities — phantom units | — | — | 117,558 | |||||||||
Diluted weighted average limited partner units outstanding (1) | 69,671,827 | 67,938,784 | 55,676,741 | |||||||||
Limited partners’ interest basic net income (loss) per unit | $ | (1.80 | ) | $ | (0.17 | ) | $ | 3.51 | ||||
Limited partners’ interest diluted net income (loss) per unit | $ | (1.80 | ) | $ | (0.17 | ) | $ | 3.5 | ||||
_____________ | ||||||||||||
(1) | Total diluted weighted average limited partner units outstanding excludes 0.2 million and 0.2 million potentially dilutive phantom units for the years ended December 31, 2014 and 2013. |
Transactions_with_Related_Part
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Transactions with Related Parties |
During the years ended December 31, 2014, 2013 and 2012, the Company had product sales to related parties owned by a limited partner of $9.1 million, $9.7 million and $9.3 million, respectively. Trade accounts and other receivables from related parties at December 31, 2014 and 2013 were $1.2 million and $0.2 million, respectively. The Company also had purchases from related parties owned by a limited partner, excluding crude purchases related to Legacy Resources Co., L.P. (“Legacy Resources”) and directors’ and officers’ liability insurance premiums discussed below, during the years ended December 31, 2014, 2013 and 2012 of $41.1 million, $9.0 million and $7.2 million, respectively. Accounts payable to related parties, excluding accounts payable related to the Legacy Resources agreement discussed below, at December 31, 2014 and 2013 were $4.3 million and $4.3 million, respectively. | |
The Company has a crude oil supply agreement with Legacy Resources, the Master Crude Oil Purchase and Sale Agreement. Legacy Resources is owned in part by one of the Company’s general partners, an affiliate of the Company’s general partner, the Company’s chief executive officer and vice chairman of the board of the Company’s general partner, F. William Grube, and the Company’s executive vice president - strategy and development, Jennifer G. Straumins. No crude oil is currently being purchased by the Company under this agreement. During the years ended December 31, 2014, 2013 and 2012, the Company had crude oil purchases of $0.8 million, $1.2 million and $1.1 million, respectively, from Legacy Resources under spot agreements. The Company had no accounts payable to Legacy Resources at December 31, 2014 and $0.1 million at December 31, 2013. | |
Nicholas J. Rutigliano, a former member of the board of directors of the Company’s general partner who retired in September 2014, founded Tobias Insurance Group, Inc. (“Tobias”), a commercial insurance brokerage business, which was acquired by Assured Partners, LLC. Mr. Rutigliano continues to serve as president of Tobias. Tobias has historically placed the Company’s directors’ and officers’ liability insurance. The total premiums paid to Tobias by the Company for the years ended December 31, 2014, 2013 and 2012 were $0.7 million, $0.7 million and $0.5 million, respectively. With the exception of its directors’ and officers’ liability insurance which were placed with this commercial insurance brokerage company, the Company placed its insurance requirements with third parties during the years ended December 31, 2014, 2013 and 2012. |
Segments_and_Related_Informati
Segments and Related Information | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Segments and Related Information | Segments and Related Information | |||||||||||||||||||||||
a. Segment Reporting | ||||||||||||||||||||||||
The Company manages its business in multiple operating segments, which are grouped on the basis of similar product, market and operating factors into the following reportable segments: | ||||||||||||||||||||||||
• | Specialty Products. The specialty products segment produces a variety of lubricating oils, solvents, waxes, synthetic lubricants and other products which are sold to customers who purchase these products primarily as raw material components for basic automotive, industrial and consumer goods. Specialty products also include synthetic lubricants used in manufacturing, mining and automotive applications. | |||||||||||||||||||||||
• | Fuel Products. The fuel products segment produces primarily gasoline, diesel, jet fuel and asphalt which are primarily sold to customers located in the PADD 2, PADD 3 and PADD 4 areas within the U.S. | |||||||||||||||||||||||
• | Oilfield Services. The oilfield services segment markets its products and oilfield services including drilling fluids, completion fluids, production chemicals and solids control services to the oil and gas industry. | |||||||||||||||||||||||
During the fourth quarter 2014, the Company realigned its reportable segments for financial reporting purposes as a result of the Anchor and SOS Acquisitions in 2014 resulting in a new segment, oilfield services. Prior to this change, Anchor and SOS were reported as part of the specialty products segment. This reporting change did not impact the Company’s consolidated results. | ||||||||||||||||||||||||
The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies as disclosed in Note 2, except that the disaggregated financial results for the reporting segments have been prepared using a management approach, which is consistent with the basis and manner in which management internally disaggregates financial information for the purposes of assisting internal operating decisions. The Company evaluates performance based upon Adjusted EBITDA. The Company defines Adjusted EBITDA for any period as: (1) net income (loss) plus (2)(a) interest expense; (b) income taxes; (c) depreciation and amortization; (d) unrealized losses from mark to market accounting for hedging activities; (e) realized gains under derivative instruments excluded from the determination of net income (loss); (f) non-cash equity based compensation expense and other non-cash items (excluding items such as accruals of cash expenses in a future period or amortization of a prepaid cash expense) that were deducted in computing net income (loss); (g) debt refinancing fees, premiums and penalties and (h) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; minus (3)(a) unrealized gains from mark to market accounting for hedging activities; (b) realized losses under derivative instruments excluded from the determination of net income and (c) other non-recurring expenses and unrealized items that reduced net income (loss) for a prior period, but represent a cash item in the current period. | ||||||||||||||||||||||||
The Company manages its assets on a total company basis, not by segment. Therefore, management does not review any asset information by segment and, accordingly, the Company does not report asset information by segment. | ||||||||||||||||||||||||
Reportable segment information is as follows (in millions): | ||||||||||||||||||||||||
Year Ended December 31, 2014 | Specialty | Fuel | Oilfield | Combined | Eliminations | Consolidated | ||||||||||||||||||
Products | Products | Services | Segments | Total | ||||||||||||||||||||
Sales: | ||||||||||||||||||||||||
External customers | $ | 1,729.20 | $ | 3,693.40 | $ | 368.5 | $ | 5,791.10 | $ | — | $ | 5,791.10 | ||||||||||||
Intersegment sales | 18.4 | 89.8 | — | 108.2 | (108.2 | ) | — | |||||||||||||||||
Total sales | $ | 1,747.60 | $ | 3,783.20 | $ | 368.5 | $ | 5,899.30 | $ | (108.2 | ) | $ | 5,791.10 | |||||||||||
Adjusted EBITDA | $ | 220.8 | $ | 50 | $ | 35.1 | $ | 305.9 | $ | — | $ | 305.9 | ||||||||||||
Reconciling items to net loss: | ||||||||||||||||||||||||
Depreciation and amortization | 68.1 | 80 | 15 | 163.1 | — | 163.1 | ||||||||||||||||||
Realized gain (loss) on derivatives, not reflected in net loss | (1.9 | ) | 8.5 | — | 6.6 | — | 6.6 | |||||||||||||||||
Asset impairment | — | — | 36 | 36 | — | 36 | ||||||||||||||||||
Unrealized loss on derivatives | 0.6 | |||||||||||||||||||||||
Interest expense | 110.8 | |||||||||||||||||||||||
Debt extinguishment costs | 89.9 | |||||||||||||||||||||||
Non-cash equity based compensation and other items | 11.9 | |||||||||||||||||||||||
Income tax benefit | (0.8 | ) | ||||||||||||||||||||||
Net loss | $ | (112.2 | ) | |||||||||||||||||||||
Year Ended December 31, 2013 | Specialty | Fuel | Oilfield | Combined | Eliminations | Consolidated | ||||||||||||||||||
Products | Products | Services | Segments | Total | ||||||||||||||||||||
Sales: | ||||||||||||||||||||||||
External customers | $ | 1,774.90 | $ | 3,646.50 | $ | — | $ | 5,421.40 | $ | — | $ | 5,421.40 | ||||||||||||
Intersegment sales | — | 77.3 | — | 77.3 | (77.3 | ) | — | |||||||||||||||||
Total sales | $ | 1,774.90 | $ | 3,723.80 | $ | — | $ | 5,498.70 | $ | (77.3 | ) | $ | 5,421.40 | |||||||||||
Adjusted EBITDA | $ | 194.5 | $ | 47 | $ | — | $ | 241.5 | $ | — | $ | 241.5 | ||||||||||||
Reconciling items to net income: | ||||||||||||||||||||||||
Depreciation and amortization | 66.6 | 67.1 | — | 133.7 | — | 133.7 | ||||||||||||||||||
Realized loss on derivatives, not reflected in net income | (0.5 | ) | (1.3 | ) | — | (1.8 | ) | — | (1.8 | ) | ||||||||||||||
Asset impairment | 10.5 | — | — | 10.5 | — | 10.5 | ||||||||||||||||||
Unrealized gain on derivatives | (25.7 | ) | ||||||||||||||||||||||
Interest expense | 96.8 | |||||||||||||||||||||||
Debt extinguishment costs | 14.6 | |||||||||||||||||||||||
Non-cash equity based compensation and other items | 9.5 | |||||||||||||||||||||||
Income tax expense | 0.4 | |||||||||||||||||||||||
Net income | $ | 3.5 | ||||||||||||||||||||||
Year Ended December 31, 2012 | Specialty | Fuel | Oilfield | Combined | Eliminations | Consolidated | ||||||||||||||||||
Products | Products | Services | Segments | Total | ||||||||||||||||||||
Sales: | ||||||||||||||||||||||||
External customers | $ | 1,849.90 | $ | 2,807.40 | $ | — | $ | 4,657.30 | $ | — | $ | 4,657.30 | ||||||||||||
Intersegment sales | — | 50.2 | — | 50.2 | (50.2 | ) | — | |||||||||||||||||
Total Sales | $ | 1,849.90 | $ | 2,857.60 | $ | — | $ | 4,707.50 | $ | (50.2 | ) | $ | 4,657.30 | |||||||||||
Adjusted EBITDA | $ | 283.2 | $ | 121.4 | $ | — | $ | 404.6 | $ | — | $ | 404.6 | ||||||||||||
Reconciling items to net income: | ||||||||||||||||||||||||
Depreciation and amortization | 55.8 | 49.2 | — | 105 | — | 105 | ||||||||||||||||||
Realized loss on derivatives, not reflected in net income | (1.9 | ) | (3.1 | ) | — | (5.0 | ) | — | (5.0 | ) | ||||||||||||||
Asset impairment | 1.6 | — | — | 1.6 | — | 1.6 | ||||||||||||||||||
Unrealized loss on derivatives | 3.8 | |||||||||||||||||||||||
Interest expense | 85.6 | |||||||||||||||||||||||
Non-cash equity based compensation and other items | 7.1 | |||||||||||||||||||||||
Income tax expense | 0.8 | |||||||||||||||||||||||
Net income | $ | 205.7 | ||||||||||||||||||||||
b. Geographic Information | ||||||||||||||||||||||||
International sales accounted for less than 10% of consolidated sales in each of the three years ended December 31, 2014, 2013 and 2012. Substantially all of the Company’s long-lived assets are domestically located. | ||||||||||||||||||||||||
c. Product Information | ||||||||||||||||||||||||
The Company offers specialty products primarily in categories consisting of lubricating oils, solvents, waxes, packaged and synthetic specialty products and other. Fuel products categories primarily consist of gasoline, diesel, jet fuel, asphalt, heavy fuel oils and other. All oilfield services products are consolidated in a standalone category. The following table sets forth the major product category sales (in millions): | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Specialty products: | ||||||||||||||||||||||||
Lubricating oils | $ | 748.4 | 12.9 | % | $ | 848.8 | 15.7 | % | $ | 1,007.90 | 21.6 | % | ||||||||||||
Solvents | 485.2 | 8.4 | % | 511.7 | 9.4 | % | 491.1 | 10.5 | % | |||||||||||||||
Waxes | 144.1 | 2.5 | % | 141 | 2.6 | % | 142.8 | 3.1 | % | |||||||||||||||
Packaged and synthetic specialty products | 313.5 | 5.4 | % | 233.6 | 4.3 | % | 161.7 | 3.5 | % | |||||||||||||||
Other | 38 | 0.7 | % | 39.8 | 0.7 | % | 46.4 | 1 | % | |||||||||||||||
Total | 1,729.20 | 29.9 | % | 1,774.90 | 32.7 | % | 1,849.90 | 39.7 | % | |||||||||||||||
Fuel products: | ||||||||||||||||||||||||
Gasoline | 1,443.10 | 24.9 | % | 1,409.40 | 26 | % | 1,174.90 | 25.2 | % | |||||||||||||||
Diesel | 1,197.40 | 20.7 | % | 1,259.20 | 23.3 | % | 941 | 20.2 | % | |||||||||||||||
Jet fuel | 199.3 | 3.4 | % | 191.4 | 3.5 | % | 184 | 4 | % | |||||||||||||||
Asphalt, heavy fuel oils and other | 853.6 | 14.7 | % | 786.5 | 14.5 | % | 507.5 | 10.9 | % | |||||||||||||||
Total | 3,693.40 | 63.7 | % | 3,646.50 | 67.3 | % | 2,807.40 | 60.3 | % | |||||||||||||||
Oilfield services: | ||||||||||||||||||||||||
Total | 368.5 | 6.4 | % | — | — | % | — | — | % | |||||||||||||||
Consolidated sales | $ | 5,791.10 | 100 | % | $ | 5,421.40 | 100 | % | $ | 4,657.30 | 100 | % | ||||||||||||
d. Major Customers | ||||||||||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company had no customer that represented 10% or greater of consolidated sales. | ||||||||||||||||||||||||
e. Major Suppliers | ||||||||||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company had two suppliers that supplied approximately 45.9%, 54.1% and 65.0%, respectively, of its crude oil supply. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) | |||||||||||||||||||
The table below sets forth selected quarterly financial data for each of the last two fiscal years (in millions, except unit and per unit data): | ||||||||||||||||||||
First | Second | Third | Fourth | Total (1) | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
2014 | ||||||||||||||||||||
Sales | $ | 1,341.00 | $ | 1,434.90 | $ | 1,675.80 | $ | 1,339.40 | $ | 5,791.10 | ||||||||||
Gross profit | 124.8 | 99 | 182.6 | 123.3 | 529.7 | |||||||||||||||
Net income (loss) | (49.8 | ) | (8.3 | ) | 9.4 | (63.5 | ) | (112.2 | ) | |||||||||||
Net income (loss) available to limited partners | (52.6 | ) | (12.0 | ) | 5.4 | (66.2 | ) | (125.4 | ) | |||||||||||
Limited partners’ interest basic net income (loss) per unit | $ | (0.76 | ) | $ | (0.17 | ) | $ | 0.08 | $ | (0.95 | ) | $ | (1.80 | ) | ||||||
Limited partners’ interest diluted net income (loss) per unit | $ | (0.76 | ) | $ | (0.17 | ) | $ | 0.08 | $ | (0.95 | ) | $ | (1.80 | ) | ||||||
Weighted average limited partner units outstanding — basic | 69,622,884 | 69,604,669 | 69,684,621 | 69,775,827 | ||||||||||||||||
Weighted average limited partner units outstanding — diluted | 69,622,884 | 69,604,669 | 69,850,685 | 69,775,827 | ||||||||||||||||
First | Second | Third | Fourth | Total (1) | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
2013 | ||||||||||||||||||||
Sales | $ | 1,318.60 | $ | 1,354.20 | $ | 1,505.50 | $ | 1,243.10 | $ | 5,421.40 | ||||||||||
Gross profit | 134.4 | 101 | 62.1 | 112.5 | 410 | |||||||||||||||
Net income (loss) | 46 | 7.8 | (34.8 | ) | (15.5 | ) | 3.5 | |||||||||||||
Net income (loss) available to limited partners | 41.7 | 3.8 | (37.9 | ) | (19.0 | ) | (11.5 | ) | ||||||||||||
Limited partners’ interest basic net income (loss) per unit | $ | 0.67 | $ | 0.05 | $ | (0.54 | ) | $ | (0.27 | ) | $ | (0.17 | ) | |||||||
Limited partners’ diluted net income (loss) per unit | $ | 0.66 | $ | 0.05 | $ | (0.54 | ) | $ | (0.27 | ) | $ | (0.17 | ) | |||||||
Weighted average limited partner units outstanding — basic | 62,831,155 | 69,571,855 | 69,626,650 | 69,635,865 | ||||||||||||||||
Weighted average limited partner units outstanding — diluted | 63,017,869 | 69,769,536 | 69,626,650 | 69,635,865 | ||||||||||||||||
(1) | The sum of the four quarters may not equal the total year due to rounding. |
Subsequent_Events
Subsequent Events | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Subsequent Events [Abstract] | ||||||||||
Subsequent Events | Subsequent Events | |||||||||
On January 13, 2015, the Company terminated its interest rate swap, which was designated as a fair value hedge, related to the 2022 Notes and having a notional amount of $200.0 million. In settlement of this swap, the Company received approximately $3.3 million. | ||||||||||
On January 23, 2015, the Company declared a quarterly cash distribution of $0.685 per unit on all outstanding common units, or approximately $52.7 million (including the general partner’s incentive distribution rights) in aggregate, for the quarter ended December 31, 2014. The distribution was paid on February 13, 2015 to unitholders of record as of the close of business on February 3, 2015. This quarterly distribution of $0.685 per unit equates to $2.74 per unit, or approximately $210.8 million (including the general partner’s incentive distribution rights) in aggregate on an annualized basis. | ||||||||||
Subsequent to December 31, 2014, the Company settled select second quarter 2015 through calendar year 2016 fixed priced crack spread derivative instruments for net proceeds of approximately $9.6 million. | ||||||||||
Subsequent to December 31, 2014, the Company sold 307,985 common units for net proceeds of approximately $7.6 million under the Equity Placement Agreement. | ||||||||||
Subsequent to December 31, 2014, the Company entered into the following derivatives related to crude oil purchases in its fuel products segment: | ||||||||||
Crude Oil Basis Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||
($/Bbl) | ||||||||||
First Quarter 2015 | 423,500 | 4,706 | $ | 48.84 | ||||||
Second Quarter 2015 | 1,274,000 | 14,000 | $ | 52.61 | ||||||
Third Quarter 2015 | 382,950 | 4,163 | $ | 56.58 | ||||||
Fourth Quarter 2015 | 60,950 | 663 | $ | 58.4 | ||||||
479,460 | 1,310 | $ | 63.35 | |||||||
Total | 2,620,860 | |||||||||
Average price | $ | 54.68 | ||||||||
Subsequent to December 31, 2014, the Company entered into the following derivatives related to gasoline sales in its fuel products segment: | ||||||||||
Gasoline Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||
($/Bbl) | ||||||||||
First Quarter 2015 | 423,500 | 4,706 | $ | 61.64 | ||||||
Second Quarter 2015 | 1,274,000 | 14,000 | $ | 69.42 | ||||||
Third Quarter 2015 | 322,000 | 3,500 | $ | 70.55 | ||||||
Total | 2,019,500 | |||||||||
Average price | $ | 67.97 | ||||||||
Subsequent to December 31, 2014, the Company entered into the following derivatives related to diesel sales in its fuel products segment: | ||||||||||
Diesel Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||
($/Bbl) | ||||||||||
Third Quarter 2015 | 46,000 | 500 | $ | 77.39 | ||||||
Fourth Quarter 2015 | 46,000 | 500 | $ | 77.39 | ||||||
Calendar Year 2016 | 366,000 | 1,000 | $ | 82.99 | ||||||
Total | 458,000 | |||||||||
Average price | $ | 81.86 | ||||||||
Subsequent to December 31, 2014, the Company entered into the following derivatives related to diesel percent basis crack spread swap contracts in its fuel products segment, none of which are designated as cash flow hedges: | ||||||||||
Diesel Crack Spread Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average % of WTI/Bbl | |||||||
Third Quarter 2015 | 92,000 | 1,000 | 32.6 | % | ||||||
Fourth Quarter 2015 | 92,000 | 1,000 | 32.6 | % | ||||||
Calendar Year 2016 | 549,000 | 1,500 | 32 | % | ||||||
Total | 733,000 | |||||||||
Average percentage | 32.2 | % | ||||||||
The fair value of the Company’s derivatives that were outstanding as of December 31, 2014 decreased by approximately $16.0 million subsequent to December 31, 2014 to a net liability of approximately $15.0 million. The fair value of the Company’s senior notes has increased by approximately $104.0 million subsequent to December 31, 2014. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Consolidation | The consolidated financial statements reflect the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All intercompany profits, transactions and balances have been eliminated. | |||||||
Reclassifications | Certain amounts in the prior years’ consolidated financial statements have been reclassified to conform to the current year presentation. | |||||||
Use of Estimates | The Company’s consolidated financial statements are prepared in conformity with U.S. generally accepted accounting (“U.S. GAAP”) principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||
Cash and Cash Equivalents | Cash and cash equivalents includes all highly liquid investments with a maturity of three months or less at the time of purchase. | |||||||
Accounts Receivable | The Company performs periodic credit evaluations of customers’ financial condition and generally does not require collateral. Accounts receivable are carried at their face amounts and are generally due within 30 days to 45 days from date of invoice for the specialty products and oilfield services segments and 10 days from date of invoice for the fuel products segment. The Company maintains an allowance for doubtful accounts for estimated losses in the collection of accounts receivable. The Company makes estimates regarding the future ability of its customers to make required payments based on historical experience, the age of the accounts receivable balances, credit quality of the Company’s customers, current economic conditions, expected future trends and other factors that may affect customers’ ability to pay. Individual accounts are written off against the allowance for doubtful accounts after all reasonable collection efforts have been exhausted. | |||||||
Inventories | The cost of inventory is recorded using the last-in, first-out (“LIFO”) method. Costs include crude oil and other feedstocks, labor, processing costs and refining overhead costs. Inventories are valued at the lower of cost or market value. The replacement cost of these inventories, based on current market values, would have been $18.9 million lower and $32.2 million higher as of December 31, 2014 and 2013, respectively. At December 31, 2014 and 2013, the Company had $8.2 million and $2.6 million, respectively, of consigned inventory. | |||||||
Inventories consist of the following (in millions): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Raw materials | $ | 77.8 | $ | 122.7 | ||||
Work in process | 75.4 | 102.6 | ||||||
Finished goods | 360.3 | 342.1 | ||||||
$ | 513.5 | $ | 567.4 | |||||
Under the LIFO method, the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs. For each of the years ended December 31, 2014, 2013 and 2012, the Company recorded gains and (losses) of $(31.8) million, $4.2 million and $(4.2) million, respectively, in cost of sales in the consolidated statements of operations due to the liquidation of inventory layers. | ||||||||
In addition, the use of the LIFO inventory method may result in increases or decreases to cost of sales in years that inventory volumes decline as the result of charging cost of sales with LIFO inventory costs generated in prior periods. In periods of rapidly declining prices, LIFO inventories may have to be written down to market value due to the higher costs assigned to LIFO layers in prior periods. During the years ended December 31, 2014 and 2012 the Company recorded $74.1 million and $6.1 million, respectively, of losses in cost of sales in the consolidated statements of operations due to the lower of cost or market valuation. | ||||||||
Derivatives | The Company is exposed to fluctuations in the price of numerous commodities, such as crude oil (its principal raw material) and natural gas, as well as the sales prices of gasoline, diesel and jet fuel. Given the historical volatility of commodity prices, these fluctuations can significantly impact sales, gross profit and net income. Therefore, the Company utilizes derivative instruments primarily to minimize its price risk and volatility of cash flows associated with the purchase of crude oil and natural gas and the sale of fuel products. The Company employs various hedging strategies and does not hold or issue derivative instruments for trading purposes. | |||||||
Derivative Instruments Designated as Cash Flow Hedges | ||||||||
The Company accounts for certain derivatives hedging purchases of crude oil and sales of gasoline, diesel and jet fuel swaps as cash flow hedges. The derivative instruments designated as cash flow hedges that are hedging sales and purchases are recorded to sales and cost of sales, respectively, in the consolidated statements of operations upon recording the related hedged transaction in sales or cost of sales. The Company assesses, both at inception of the cash flow hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. Periodically, the Company may enter into crude oil and fuel product basis swaps to more effectively hedge its crude oil purchases, crude oil sales and fuel products sales. These derivatives can be combined with a swap contract in order to create a more effective cash flow hedge. | ||||||||
To the extent a derivative instrument designated as a cash flow hedge is determined to be effective as a cash flow hedge of an exposure to changes in the fair value of a future transaction, the change in fair value of the derivative is deferred in accumulated other comprehensive income (loss), a component of partners’ capital in the consolidated balance sheets, until the underlying transaction hedged is recognized in the consolidated statements of operations. | ||||||||
Ineffectiveness is inherent in the hedging of crude oil and fuel products. Due to the volatility in the markets for crude oil and fuel products, the Company is unable to predict the amount of ineffectiveness each period, determined on a derivative by derivative basis or in the aggregate for a specific commodity, and has the potential for the future loss of cash flow hedge accounting. Ineffectiveness has resulted, and the loss of cash flow hedge accounting has resulted, in increased volatility in the Company’s financial results. However, even though certain derivative instruments may not qualify for cash flow hedge accounting, the Company intends to continue to utilize such instruments as management believes such derivative instruments continue to provide the Company with the opportunity to more effectively stabilize cash flows. | ||||||||
Cash flow hedge accounting is discontinued when it is determined that a derivative no longer qualifies as an effective hedge or when it is no longer probable that the hedged forecasted transaction will occur. When cash flow hedge accounting is discontinued because the derivative instrument no longer qualifies as an effective cash flow hedge, the derivative instrument is subject to the mark-to-market method of accounting prospectively. Changes in the mark-to-market fair value of the derivative instrument are recorded to unrealized gain (loss) on derivative instruments in the consolidated statements of operations. Unrealized gains and losses related to discontinued cash flow hedges that were previously deferred in accumulated other comprehensive income (loss) will remain in accumulated other comprehensive income (loss) until the underlying transaction is reflected in earnings, unless it is probable that the hedged forecasted transaction will not occur, at which time, associated deferred amounts in accumulated other comprehensive income (loss) are immediately recognized in unrealized gain (loss) on derivative instruments. | ||||||||
The Company is exposed to price risks due to fluctuations in the price of crude oil, refined products (primarily in the Company’s fuel products segment), natural gas and precious metals. The Company uses various strategies to reduce its exposure to commodity price risk. The strategies to reduce the Company’s risk utilize both physical forward contracts and financially settled derivative instruments, such as swaps, collars and options, to attempt to reduce the Company’s exposure with respect to: | ||||||||
• | crude oil purchases and sales; | |||||||
• | fuel product sales and purchases; | |||||||
• | natural gas purchases; | |||||||
• | precious metals purchases: and | |||||||
•fluctuations in the value of crude oil between geographic regions and between the different types of crude oil such as NYMEX West Texas Intermediate (“NYMEX WTI”), Light Louisiana Sweet (“LLS”), Western Canadian Select (“WCS”), Mixed Sweet Blend (“MSW”) and ICE Brent (“Brent”). | ||||||||
The Company manages its exposure to commodity markets, credit, volumetric and liquidity risks to manage its costs and volatility of cash flows as conditions warrant or opportunities become available. These risks may be managed in a variety of ways that may include the use of derivative instruments. Derivative instruments may be used for the purpose of mitigating risks associated with an asset, liability, and anticipated future transactions and the changes in fair value of the Company’s derivative instruments will affect its earnings and cash flows; however, such changes should be offset by price or rate changes related to the underlying commodity or financial transaction that is part of the risk management strategy. The Company does not speculate with derivative instruments or other contractual arrangements that are not associated with its business objectives. Speculation is defined as increasing the Company’s natural position above the maximum position of its physical assets or trading in commodities, currencies or other risk bearing assets that are not associated with the Company’s business activities and objectives. The Company’s positions are monitored routinely by a risk management committee to ensure compliance with its stated risk management policy and documented risk management strategies. All strategies are reviewed on an ongoing basis by the Company’s risk management committee, which will add, remove or revise strategies in anticipation of changes in market conditions and/or in risk profiles. These changes in strategies are to position the Company in relation to its risk exposures in an attempt to capture market opportunities as they arise. | ||||||||
The Company recognizes all derivative instruments at their fair values (see Note 9) as either current assets or current liabilities in the consolidated balance sheets. Fair value includes any premiums paid or received and unrealized gains and losses. Fair value does not include any amounts receivable from or payable to counterparties, or collateral provided to counterparties. Derivative asset and liability amounts with the same counterparty are netted against each other for financial reporting purposes. The Company’s financial results are subject to the possibility that changes in a derivative’s fair value could result in significant ineffectiveness and potentially no longer qualify portions or all of our derivative instruments for hedge accounting. | ||||||||
Derivative Instruments Designated as Fair Value Hedges | ||||||||
For derivative instruments that are designated and qualify as a fair value hedge, the effective gain or loss on the derivative instrument, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized as interest expense in the consolidated statements of operations. No hedge ineffectiveness was recognized as the interest rate swap qualifies for the “shortcut” method and, as a result, changes in the fair value of the derivative instrument offset the changes in the fair value of the underlying hedged debt. In addition, the differential to be paid or received on the interest rate swap arrangement is accrued and recognized as an adjustment to interest expense in the consolidated statements of operations. The Company assesses at the inception of the fair value hedge whether the derivatives that are used in the hedging transactions are highly effective in offsetting changes in fair values of hedged items. | ||||||||
Fair value hedge accounting is discontinued when it is determined that a derivative no longer qualifies as an effective hedge or when it is no longer probable that the hedged forecasted transaction will occur. When fair value hedge accounting is discontinued because the derivative instrument no longer qualifies as effective fair value hedge, the derivative instrument is still subject to mark-to-market method of accounting, however the Company will cease to adjust the hedged asset or liability for changes in fair value. | ||||||||
Derivative Instruments Not Designated as Hedges | ||||||||
For derivative instruments not designated as hedges, the change in fair value of the asset or liability for the period is recorded to unrealized gain (loss) on derivative instruments in the consolidated statements of operations. Upon the settlement of a derivative not designated as a hedge, the gain or loss at settlement is recorded to realized gain (loss) on derivative instruments in the consolidated statements of operations. The Company has entered into crude oil basis swaps that do not qualify as cash flow hedges for accounting purposes as they were not entered into simultaneously with a corresponding NYMEX WTI derivative contract. Additionally, the Company has entered into diesel crack spread collars, gasoline crack spread collars, natural gas collars, and certain other crude oil swaps, diesel swaps, gasoline swaps, natural gas swaps and platinum swaps that do not qualify as cash flow hedges for accounting purposes as they are determined not to be highly effective in offsetting changes in the cash flows associated with crude oil purchases and gasoline and diesel sales at the Company’s Superior refinery. | ||||||||
Property, Plant and Equipment | Property, plant and equipment are stated on the basis of cost. Depreciation is calculated generally on composite groups, using the straight-line method over the estimated useful lives of the respective groups. Assets under capital leases are amortized over the lesser of the useful life of the asset or the term of the lease. | |||||||
Composite Depreciation Method | Under the composite depreciation method, the cost of partial retirements of a group is charged to accumulated depreciation. However, when there are dispositions of complete groups or significant portions of groups, the cost and related accumulated depreciation are retired, and any gain or loss is reflected in earnings. | |||||||
Capitalized Software | The Company capitalizes the cost of computer software developed or obtained for internal use. Capitalized software is amortized using the straight-line method over five years. | |||||||
Investment in Unconsolidated Affiliate | The Company accounts for its ownership in its Dakota Prairie Refining, LLC and Juniper GTL LLC joint ventures in accordance with ASC 323, Investments — Equity Method and Joint Ventures. The equity method of accounting is applied when the investor has an ownership interest of less than 50% and/or has significant influence over the operating or financial decisions of the investee. Under the equity method, the Company’s proportionate share of net income (loss) is reflected as a single-line item in the consolidated statements of operations and increases or decreases, as applicable, in the carrying value of the Company’s investment in the consolidated balance sheets. In addition, the proportionate share of net income (loss) is reflected as a non-cash activity in operating activities in the consolidated statements of cash flows. Contributions increase the carrying value of the investment and are reflected as an investing activity in the consolidated statements of cash flows. | |||||||
Equity method investments are assessed for other-than-temporary impairment when the investment generates net losses. No impairment was recognized in 2014 or 2013. | ||||||||
Goodwill and Indefinite Lived Intangible Assets | Goodwill represents the excess of purchase price over fair value of the net assets acquired in various acquisitions. See Note 3 for more information. The Company reviews goodwill for impairment annually on October 1 and whenever events or changes in circumstances indicate its carrying value may not be recoverable in accordance with ASC 350, Intangibles — Goodwill and Other (Topic 350): Testing Goodwill for Impairment (“ASU 2011-08”). Under ASU 2011-08, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. | |||||||
In assessing the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company assesses relevant events and circumstances that may impact the fair value and the carrying amount of the reporting unit. The identification of relevant events and circumstances and how these may impact a reporting unit’s fair value or carrying amount involve significant judgment and assumptions. The judgment and assumptions include the identification of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance and Company specific events and making the assessment on whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact. | ||||||||
If the Company’s qualitative assessment concludes that it is probable that an impairment exists or the Company skips the qualitative assessment then the Company needs to perform a quantitative assessment. In the first step of the quantitative assessment, the Company’s assets and liabilities, including existing goodwill and other intangible assets, are assigned to the identified reporting units to determine the carrying value of the reporting units. If the carrying value of a reporting unit is in excess of its fair value, an impairment may exist, and the Company must perform an impairment analysis, in which the implied fair value of the goodwill is compared to its carrying value to determine the impairment charge, if any. | ||||||||
When performing the quantitative assessment, the fair value of the reporting units is determined using the income approach. The income approach focuses on the income-producing capability of an asset, measuring the current value of the asset by calculating the present value of its future economic benefits such as cash earnings, cost savings, corporate tax structure and product offerings. Value indications are developed by discounting expected cash flows to their present value at a rate of return that incorporates the risk-free rate for the use of funds, the expected rate of inflation, and risks associated with the reporting unit. | ||||||||
Intangible assets with an indefinite life are not amortized but are subject to review each reporting period to determine whether events and circumstances continue to support an indefinite useful life as well as an annual impairment test. | ||||||||
Other Intangible Assets | Definite lived intangible assets consist of intangible assets associated with customer relationships, supplier agreements, tradenames, trade secrets, patents, non-competition agreements, distributor agreements and royalty agreements that were acquired in various acquisitions. The majority of these assets are being amortized using discounted estimated future cash flows over the term of the related agreements. Intangible assets associated with customer relationships are being amortized using the discounted estimated future cash flows method based upon assumed rates of annual customer attrition. | |||||||
Deferred Debt Issuance Cost | Deferred debt issuance costs were $34.7 million and $29.7 million as of December 31, 2014 and 2013, respectively, and are being amortized by the effective interest rate method over the lives of the related debt instruments. These amounts are net of accumulated amortization of $4.3 million and $13.6 million at December 31, 2014 and 2013, respectively. | |||||||
Turnaround Costs | Turnaround costs represent capitalized costs associated with the Company’s periodic major maintenance and repairs and were $70.1 million and $67.0 million as of December 31, 2014 and 2013, respectively. The Company capitalizes these costs and amortizes the costs on a straight-line basis over the lives of the turnaround assets. These amounts are net of accumulated amortization of $46.2 million and $25.7 million at December 31, 2014 and 2013, respectively. | |||||||
Impairment of Long-Lived Assets | The Company periodically evaluates the carrying value of long-lived assets to be held and used, including definite-lived intangible assets, when events or circumstances warrant such a review. The carrying value of a long-lived asset to be held and used is considered impaired when the anticipated separately identifiable undiscounted cash flows from such an asset are less than the carrying value of the asset. In such an event, a write-down of the asset would be recorded through a charge to operations, based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using anticipated cash flows assumed by a market participant discounted at a rate commensurate with the risk involved. Long-lived assets to be disposed of other than by sale are considered held and used until disposal. | |||||||
Business Combinations and Related Business Acquisition Costs | Assets and liabilities associated with business acquisitions are recorded at fair value, using the acquisition method of accounting. The Company allocates the purchase price of acquisitions based upon the fair value of each component, which may be derived from various observable or unobservable inputs and assumptions. The Company may utilize third-party valuation specialists to assist the Company in this allocation. Initial purchase price allocations are preliminary and subject to revision within the measurement period, not to exceed one year from the date of acquisition. The fair value of the property, plant and equipment and intangible assets are based upon the discounted cash flow method that involves inputs that are not observable in the market (Level 3). Goodwill assigned represents the amount of consideration transferred in excess of the fair value assigned to identifiable assets acquired and liabilities assumed. | |||||||
Business acquisition costs are expensed as incurred, and are reported as general and administrative expenses in the consolidated statements of operations. The Company defines these costs to include finder’s fees, advisory, legal, accounting, valuation, and other professional or consulting fees, as well as travel associated with the evaluation and effort to acquire specific businesses. | ||||||||
Revenue Recognition | The Company recognizes revenue on orders received from its customers when there is persuasive evidence of an arrangement with the customer that is supportive of revenue recognition, the customer has made a fixed commitment to purchase the product for a fixed or determinable sales price, collection is reasonably assured under the Company’s normal billing and credit terms, all of the Company’s obligations related to the product have been fulfilled and ownership and all risks of loss have been transferred to the buyer, which is primarily upon shipment to the customer or, in certain cases, upon receipt by the customer in accordance with contractual terms. The Company recognizes revenue on certain drilling fluids, completion fluids and production chemicals when consumed at the customer site during the drilling process. | |||||||
Concentrations of Credit Risk | The Company performs periodic credit evaluations of its customers’ financial condition and in some instances requires cash in advance or letters of credit prior to shipment for domestic orders. For international orders, letters of credit are generally required and the Company maintains insurance policies which cover certain export orders. The Company maintains an allowance for doubtful customer accounts for estimated losses resulting from the inability of its customers to make required payments. The allowance for doubtful accounts is developed based on several factors including historical experience, the age of the accounts receivable balances, credit quality of the Company’s customers, current economic conditions, expected future trends and other factors that may affect customers’ ability to pay, which exist as of the balance sheet dates. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. In addition, from time to time the Company has significant derivative assets with a limited number of counterparties. The evaluation of these counterparties is performed quarterly in connection with the Company’s ASC 820-10, Fair Value Measurements and Disclosures, valuations to determine the impact of the counterparty credit risk on the valuation of its derivative instruments. | |||||||
Income Taxes | The Company, as a partnership, is generally not liable for federal and state income taxes on the earnings of Calumet Specialty Products Partners, L.P. and its wholly-owned subsidiaries. However, the Company conducts certain activities through wholly-owned subsidiaries that are corporations, including ADF Holdings, Inc. and Anchor Drilling Fluids USA, Inc. (collectively “Anchor”), which are subject to federal, state and local income taxes. Additionally, the Company is subject to franchise taxes in certain states. Income taxes on the earnings of the Company, with the exception of the above mentioned taxes, are the responsibility of its partners, with earnings of the Company included in partners’ earnings. | |||||||
In the event that the Company’s taxable income does not meet certain qualification requirements, the Company would be taxed as a corporation. Interest and penalties related to income taxes, if any, would be recorded in income tax expense. Generally, tax returns remain subject to examination by taxing authorities for three years. The Company had no unrecognized tax benefits as of December 31, 2014 and 2013. | ||||||||
The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in earnings in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts more likely than not to be realized. | ||||||||
The determination of the provision for income taxes requires significant judgment, use of estimates, and the interpretation and application of complex tax laws. Significant judgment is required in assessing the timing and amounts of deductible and taxable items and the probability of sustaining uncertain tax positions. The benefits of uncertain tax positions are recorded in the Company’s financial statements only after determining a more-likely-than-not probability that the uncertain tax positions will withstand challenge, if any, from taxing authorities. When facts and circumstances change, the Company reassesses these probabilities and records any changes through the provision for income taxes. | ||||||||
Excise and Sales Taxes | The Company assesses, collects and remits excise taxes associated with the sale of certain of its fuel products. Furthermore, the Company collects and remits sales taxes associated with certain sales of its products to non-exempt customers. Excise taxes and sales taxes assessed and collected from customers are recorded on a net basis within sales in the Company’s consolidated statements of operations. | |||||||
Earnings Per Unit | The Company calculates earnings per unit under ASC 260-10, Earnings per Share. The Company treats incentive distribution rights (“IDRs”) as participating securities for the purposes of computing earnings per unit in the period that the general partner becomes contractually obligated to receive IDRs. Also, the undistributed earnings are allocated to the partnership interests based on the allocation of earnings to the Company’s partners’ capital accounts as specified in the Company’s partnership agreement. When distributions exceed earnings, net income is reduced by the actual distributions with the resulting net loss being allocated to capital accounts as specified in the Company’s partnership agreement. | |||||||
Unit Based Compensation | For unit based compensation awards granted, compensation expense is recognized in the Company’s consolidated financial statements on a straight line basis over the awards’ vesting periods based on their fair values on the dates of grant. The unit based compensation awards vest over a period not exceeding four years. The amount of compensation expense recognized at any date is at least equal to the portion of the grant date value of the award that is vested at that date. | |||||||
Unit based compensation liability awards are awards that are expected to be settled in cash on their vesting dates, rather than in equity units (“Liability Awards”). Liability Awards are recorded in accrued salaries, wages and benefits based on the vested portion of the fair value of the awards on the balance sheet date. The fair values of Liability Awards are updated at each balance sheet date and changes in the fair values of the vested portions of the awards are recorded as increases or decreases to compensation expense. | ||||||||
The Company’s general partner originally adopted a Long-Term Incentive Plan on January 24, 2006, which was amended and restated effective January 22, 2009, for its employees, consultants and directors and its affiliates who perform services for the Company. The Long-Term Incentive Plan provides for the grant of restricted units, phantom units, unit options and substitute awards and, with respect to unit options and phantom units, the grant of distribution equivalent rights (“DERs”). Subject to adjustment for certain events, an aggregate of 783,960 common units may be delivered pursuant to awards under the Long-Term Incentive Plan. Units withheld to satisfy the Company’s general partner’s tax withholding obligations are available for delivery pursuant to other awards. The Long-Term Incentive Plan is administered by the compensation committee of the Company’s general partner’s board of directors. | ||||||||
Non-employee directors of the Company’s general partner have been granted phantom units under the terms of the Long-Term Incentive Plan as part of their director compensation package related to fiscal years 2012, 2013 and 2014. These phantom units have a four year service period with one-quarter of the phantom units vesting annually on each December 31st of the vesting period. Although ownership of common units related to the vesting of such phantom units does not transfer to the recipients until the phantom units vest, the recipients have DERs on these phantom units from the date of grant. | ||||||||
For the years ended December 31, 2014 and 2012, named executive officers and certain employees were awarded phantom units under the terms of the Long-Term Incentive Plan, as part of the Company’s achievement of specified levels of financial performance in the fiscal year. These phantom units are subject to time-vesting requirements whereby 25% of the units vest during the performance period, and the remainder will vest ratably over the next three years on each December 31st. Although ownership of common units related to the vesting of such phantom units does not transfer to the recipients until the phantom units vest, the recipients have DERs on these phantom units from the date of grant. | ||||||||
The Company uses the market price of its common units on the grant date to calculate the fair value and related compensation cost of the phantom units. The Company amortizes this compensation cost to partners’ capital and general and administrative expense in the consolidated statements of operations using the straight-line method over the service period, as it expects these units to fully vest. | ||||||||
Liability Awards are awards that are expected to be settled in cash on their vesting dates, rather than in equity units. Phantom unit Liability Awards are recorded in accrued salaries, wages and benefits in the consolidated balance sheets based on the vested portion of the fair value of the awards on the balance sheet date. The fair value of Liability Awards are updated at each balance sheet date and changes in the fair values of the vested portions of the awards are recorded as increases or decreases to compensation expense within general and administrative expense in the consolidated statements of operations. | ||||||||
Shipping and Handling Costs | The Company complies with ASC 605-45, Revenue Recognition — Principal Agent Considerations. ASC 605-45 requires the classification of shipping and handling costs billed to customers in sales and the classification of shipping and handling costs incurred in cost of sales, or to be disclosed if classified elsewhere. | |||||||
Advertising Costs | The Company expenses advertising costs as incurred which totaled $20.5 million, $14.6 million and $8.2 million in 2014, 2013 and 2012, respectively. Advertising expenses are reported as selling expenses in the consolidated statements of operations. | |||||||
RINS Obligation | The Company’s Renewable Identification Numbers obligation (“RINs Obligation”) represents a liability for the purchase of RINs to satisfy the U.S. Environmental Protection Agency (“EPA”) requirement to blend biofuels into the fuel products it produces pursuant to the EPA’s Renewable Fuel Standard (“RFS”). RINs are assigned to biofuels produced in the U.S. as required by the EPA. The EPA sets annual quotas for the percentage of biofuels that must be blended into transportation fuels consumed in the U.S., and as a producer of motor fuels from petroleum, the Company is required to blend biofuels into the fuel products it produces at a rate that will meet the EPA’s annual quota. To the extent the Company is unable to blend biofuels at that rate, it must purchase RINs in the open market to satisfy the annual requirement. The Company’s RINs Obligation is based on the amount of RINs it must purchase and the price of those RINs as of the balance sheet date. The Company uses the inventory model to account for RINs, measuring acquired RINs at weighted-average cost. The cost of RINs used each period is charged to cost of sales with cash inflows and outflows recorded in the operating cash flow section of the consolidated statements of cash flows. Excess RINs are classified as inventory in the consolidated balance sheets. The Company recognizes a liability at the end of each reporting period in which the Company does not have sufficient RINs to cover the RINs Obligation. The liability is calculated by multiplying the RINs shortage (based on actual results) by the period end RIN spot price. | |||||||
From time to time, the Company holds varying amounts of RINs for resale. RINs obtained from third parties are initially recorded at their cost at the time the Company acquires them and are subsequently revalued at the lower of cost or market as of the last day of each accounting period and the resulting adjustments are reflected in costs of goods sold for the period. The value of RINs obtained from third parties would be reflected in prepaid expenses and other assets on the consolidated balance sheets. | ||||||||
Foreign Currency Translation and Transactions | Certain of the Company’s subsidiaries use a local currency as their functional currency. Assets and liabilities of subsidiaries with a local currency as their functional currency are translated at period-end rates of exchange, and revenues and expenses are translated at average exchange rates prevailing for each month. The resulting translation adjustments are made directly to a separate component of other comprehensive income (loss), which is reflected in partners’ capital in the Company’s consolidated balance sheets. | |||||||
Certain of the Company’s subsidiaries also enter into transactions and have monetary assets and liabilities that are denominated in a currency other than such entity’s respective functional currency. Gains and losses from the revaluation of foreign currency transactions and monetary assets and liabilities are included in other income (expense) in the consolidated statements of operations. | ||||||||
New Accounting Pronouncements | In February 2013, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2013-04, Liabilities (Topic 405) — Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (“ASU 2013-04”). ASU 2013-04 provides guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements from which the total amount of the obligation within the scope of this guidance is fixed at the reporting date. ASU 2013-04 was effective for fiscal periods (including interim periods) beginning after December 15, 2013 and should be applied retrospectively. The adoption of ASU 2013-04 did not have an impact on the Company’s consolidated financial statements. | |||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 will be effective beginning in fiscal year 2017 and early adoption is not permitted. ASU 2014-09 allows for either a full retrospective or a modified retrospective transition method. The Company is currently evaluating the impact of this standard on its consolidated financial statements. | ||||||||
In June 2014, the FASB issued ASU No. 2014-12, Compensation-Stock Compensation (Topic 718) - Accounting for Share-Based Payments When the Terms of an Award provide that a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). ASU 2014-12 provides guidance for the recognition, measurement and disclosure of obligations resulting from unit-based payments after the requisite service period has ended when the eligible employee has ceased rendering service and is still eligible to vest in the award if the performance target is achieved. ASU 2014-12 is effective for fiscal periods (including interim periods) beginning after December 15, 2015 and early adoption is permitted. Provisions of ASU 2014-12 may be applied either prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all or modified awards thereafter. The adoption of ASU 2014-12 is not expected to have an impact on the Company’s consolidated financial statements as its unit-based compensation plans do not currently provide for achieving performance targets subsequent to the end of requisite service periods. | ||||||||
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40) - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The adoption of ASU 2014-15 is not expected to have an impact on the Company’s consolidated financial statements. | ||||||||
In November 2014, the FASB issued ASU No. 2014-17, Business Combinations (Topic 805): Pushdown Accounting (“ASU 2014-17”). ASU 2014-17 provides guidance that allows all acquired entities to choose to apply pushdown accounting in their separate financial statements when an acquirer obtains control of them. ASU 2014-17 was effective on November 18, 2014. The adoption of ASU 2014-17 did not have an impact on the Company’s consolidated financial statements. |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Supplier agreements, tradenames (other than indefinite lived), trade secrets, patents, non-competition agreements, distributor agreements and royalty agreements are being amortized to properly match expenses with the discounted estimated future cash flows over the terms of the related agreements or the period expected to be benefited. Agreements with terms allowing for the potential extension of such agreements are being amortized based on the initial term only. Customer relationships are being amortized using discounted estimated future cash flows based upon assumed rates of annual customer attrition. |
Derivatives_Policies
Derivatives (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivatives | The Company is exposed to fluctuations in the price of numerous commodities, such as crude oil (its principal raw material) and natural gas, as well as the sales prices of gasoline, diesel and jet fuel. Given the historical volatility of commodity prices, these fluctuations can significantly impact sales, gross profit and net income. Therefore, the Company utilizes derivative instruments primarily to minimize its price risk and volatility of cash flows associated with the purchase of crude oil and natural gas and the sale of fuel products. The Company employs various hedging strategies and does not hold or issue derivative instruments for trading purposes. | |
Derivative Instruments Designated as Cash Flow Hedges | ||
The Company accounts for certain derivatives hedging purchases of crude oil and sales of gasoline, diesel and jet fuel swaps as cash flow hedges. The derivative instruments designated as cash flow hedges that are hedging sales and purchases are recorded to sales and cost of sales, respectively, in the consolidated statements of operations upon recording the related hedged transaction in sales or cost of sales. The Company assesses, both at inception of the cash flow hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. Periodically, the Company may enter into crude oil and fuel product basis swaps to more effectively hedge its crude oil purchases, crude oil sales and fuel products sales. These derivatives can be combined with a swap contract in order to create a more effective cash flow hedge. | ||
To the extent a derivative instrument designated as a cash flow hedge is determined to be effective as a cash flow hedge of an exposure to changes in the fair value of a future transaction, the change in fair value of the derivative is deferred in accumulated other comprehensive income (loss), a component of partners’ capital in the consolidated balance sheets, until the underlying transaction hedged is recognized in the consolidated statements of operations. | ||
Ineffectiveness is inherent in the hedging of crude oil and fuel products. Due to the volatility in the markets for crude oil and fuel products, the Company is unable to predict the amount of ineffectiveness each period, determined on a derivative by derivative basis or in the aggregate for a specific commodity, and has the potential for the future loss of cash flow hedge accounting. Ineffectiveness has resulted, and the loss of cash flow hedge accounting has resulted, in increased volatility in the Company’s financial results. However, even though certain derivative instruments may not qualify for cash flow hedge accounting, the Company intends to continue to utilize such instruments as management believes such derivative instruments continue to provide the Company with the opportunity to more effectively stabilize cash flows. | ||
Cash flow hedge accounting is discontinued when it is determined that a derivative no longer qualifies as an effective hedge or when it is no longer probable that the hedged forecasted transaction will occur. When cash flow hedge accounting is discontinued because the derivative instrument no longer qualifies as an effective cash flow hedge, the derivative instrument is subject to the mark-to-market method of accounting prospectively. Changes in the mark-to-market fair value of the derivative instrument are recorded to unrealized gain (loss) on derivative instruments in the consolidated statements of operations. Unrealized gains and losses related to discontinued cash flow hedges that were previously deferred in accumulated other comprehensive income (loss) will remain in accumulated other comprehensive income (loss) until the underlying transaction is reflected in earnings, unless it is probable that the hedged forecasted transaction will not occur, at which time, associated deferred amounts in accumulated other comprehensive income (loss) are immediately recognized in unrealized gain (loss) on derivative instruments. | ||
The Company is exposed to price risks due to fluctuations in the price of crude oil, refined products (primarily in the Company’s fuel products segment), natural gas and precious metals. The Company uses various strategies to reduce its exposure to commodity price risk. The strategies to reduce the Company’s risk utilize both physical forward contracts and financially settled derivative instruments, such as swaps, collars and options, to attempt to reduce the Company’s exposure with respect to: | ||
• | crude oil purchases and sales; | |
• | fuel product sales and purchases; | |
• | natural gas purchases; | |
• | precious metals purchases: and | |
•fluctuations in the value of crude oil between geographic regions and between the different types of crude oil such as NYMEX West Texas Intermediate (“NYMEX WTI”), Light Louisiana Sweet (“LLS”), Western Canadian Select (“WCS”), Mixed Sweet Blend (“MSW”) and ICE Brent (“Brent”). | ||
The Company manages its exposure to commodity markets, credit, volumetric and liquidity risks to manage its costs and volatility of cash flows as conditions warrant or opportunities become available. These risks may be managed in a variety of ways that may include the use of derivative instruments. Derivative instruments may be used for the purpose of mitigating risks associated with an asset, liability, and anticipated future transactions and the changes in fair value of the Company’s derivative instruments will affect its earnings and cash flows; however, such changes should be offset by price or rate changes related to the underlying commodity or financial transaction that is part of the risk management strategy. The Company does not speculate with derivative instruments or other contractual arrangements that are not associated with its business objectives. Speculation is defined as increasing the Company’s natural position above the maximum position of its physical assets or trading in commodities, currencies or other risk bearing assets that are not associated with the Company’s business activities and objectives. The Company’s positions are monitored routinely by a risk management committee to ensure compliance with its stated risk management policy and documented risk management strategies. All strategies are reviewed on an ongoing basis by the Company’s risk management committee, which will add, remove or revise strategies in anticipation of changes in market conditions and/or in risk profiles. These changes in strategies are to position the Company in relation to its risk exposures in an attempt to capture market opportunities as they arise. | ||
The Company recognizes all derivative instruments at their fair values (see Note 9) as either current assets or current liabilities in the consolidated balance sheets. Fair value includes any premiums paid or received and unrealized gains and losses. Fair value does not include any amounts receivable from or payable to counterparties, or collateral provided to counterparties. Derivative asset and liability amounts with the same counterparty are netted against each other for financial reporting purposes. The Company’s financial results are subject to the possibility that changes in a derivative’s fair value could result in significant ineffectiveness and potentially no longer qualify portions or all of our derivative instruments for hedge accounting. | ||
Derivative Instruments Designated as Fair Value Hedges | ||
For derivative instruments that are designated and qualify as a fair value hedge, the effective gain or loss on the derivative instrument, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized as interest expense in the consolidated statements of operations. No hedge ineffectiveness was recognized as the interest rate swap qualifies for the “shortcut” method and, as a result, changes in the fair value of the derivative instrument offset the changes in the fair value of the underlying hedged debt. In addition, the differential to be paid or received on the interest rate swap arrangement is accrued and recognized as an adjustment to interest expense in the consolidated statements of operations. The Company assesses at the inception of the fair value hedge whether the derivatives that are used in the hedging transactions are highly effective in offsetting changes in fair values of hedged items. | ||
Fair value hedge accounting is discontinued when it is determined that a derivative no longer qualifies as an effective hedge or when it is no longer probable that the hedged forecasted transaction will occur. When fair value hedge accounting is discontinued because the derivative instrument no longer qualifies as effective fair value hedge, the derivative instrument is still subject to mark-to-market method of accounting, however the Company will cease to adjust the hedged asset or liability for changes in fair value. | ||
Derivative Instruments Not Designated as Hedges | ||
For derivative instruments not designated as hedges, the change in fair value of the asset or liability for the period is recorded to unrealized gain (loss) on derivative instruments in the consolidated statements of operations. Upon the settlement of a derivative not designated as a hedge, the gain or loss at settlement is recorded to realized gain (loss) on derivative instruments in the consolidated statements of operations. The Company has entered into crude oil basis swaps that do not qualify as cash flow hedges for accounting purposes as they were not entered into simultaneously with a corresponding NYMEX WTI derivative contract. Additionally, the Company has entered into diesel crack spread collars, gasoline crack spread collars, natural gas collars, and certain other crude oil swaps, diesel swaps, gasoline swaps, natural gas swaps and platinum swaps that do not qualify as cash flow hedges for accounting purposes as they are determined not to be highly effective in offsetting changes in the cash flows associated with crude oil purchases and gasoline and diesel sales at the Company’s Superior refinery. |
Fair_Value_Measurements_Polici
Fair Value Measurements (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Fair Value Disclosures [Abstract] | ||
Fair Value Measurement, Policy | All settlements from derivative instruments designated as cash flow hedges and deemed “effective” are included in sales for gasoline, diesel and jet fuel derivatives, and cost of sales for crude oil in the consolidated statements of operations in the period that the hedged cash flow occurs. Any “ineffectiveness” associated with these settlements from derivative instruments designated as cash flow hedges are recorded in earnings in realized gain (loss) on derivative instruments in the consolidated statements of operations. All settlements from derivative instruments designated as fair value hedges are accrued and recorded as an adjustment to interest expense in the consolidated statements of operations. All settlements from derivative instruments not designated as hedges are recorded in realized gain (loss) on derivative instruments in the consolidated statements of operations. | |
Nonrecurring Fair Value Measurements | ||
Certain nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. Assets and liabilities acquired in business combinations are recorded at their fair value as of the date of acquisition. Refer to Note 3 for the fair values of assets acquired and liabilities assumed in connection with the Company’s acquisitions. | ||
The Company reviews for goodwill impairment annually on October 1 and whenever events or changes in circumstances indicate its carrying value may not be recoverable. The fair value of the reporting units is determined using the income approach. The income approach focuses on the income-producing capability of an asset, measuring the current value of the asset by calculating the present value of its future economic benefits such as cash earnings, cost savings, corporate tax structure and product offerings. Value indications are developed by discounting expected cash flows to their present value at a rate of return that incorporates the risk-free rate for the use of funds, the expected rate of inflation and risks associated with the reporting unit. These assets would generally be classified within Level 3, in the event that the Company were required to measure and record such assets at fair value within its consolidated financial statements, as discussed in Note 5. | ||
The Company periodically evaluates the carrying value of long-lived assets to be held and used, including indefinite-lived intangible assets and property plant and equipment, when events or circumstances warrant such a review. Fair value is determined primarily using anticipated cash flows assumed by a market participant discounted at a rate commensurate with the risk involved and these assets would generally be classified within Level 3, in the event that the Company was required to measure and record such assets at fair value within its consolidated financial statements. | ||
Derivative instruments are reported in the accompanying consolidated financial statements at fair value. The Company’s derivative instruments consist of over-the-counter (“OTC”) contracts, which are not traded on a public exchange. | ||
To estimate the fair values of the Company’s commodity derivative instruments, the Company uses the forward rate, the strike price, contractual notional amounts, the risk free rate of return and contract maturity. To estimate the fair value of the Company’s fixed-to-floating interest rate swap derivative instrument, the Company uses discounted cash flows, which use observable inputs such as maturity and market interest rates. Various analytical tests are performed to validate the counterparty data. The fair values of the Company’s derivative instruments are adjusted for nonperformance risk and creditworthiness of the hedging entities through the Company’s credit valuation adjustment (“CVA”). The CVA is calculated at the counterparty level utilizing the fair value exposure at each payment date and applying a weighted probability of the appropriate survival and marginal default percentages. The Company uses the counterparty’s marginal default rate and the Company’s survival rate when the Company is in a net asset position at the payment date and uses the Company’s marginal default rate and the counterparty’s survival rate when the Company is in a net liability position at the payment date. | ||
Pension Assets | ||
Pension assets are reported at fair value in the accompanying consolidated financial statements. At December 31, 2014, the Company’s investments associated with its pension plan (as such term is hereinafter defined) primarily consisted of mutual funds. The mutual funds are categorized as Level 2 because inputs used in their valuation are not quoted prices in active markets that are indirectly observable and are valued at the NAV of shares in each fund held by the pension plan at quarter end as provided by the third party administrator. See Note 12 for further information on pension assets. | ||
Liability Awards | ||
Unit based compensation liability awards are awards that are expected to be settled in cash on their vesting dates, rather than in equity units (“Liability Awards”). The Liability Awards are categorized as Level 1 because the fair value of the Liability Awards is based on the Company’s quoted closing unit price as of each balance sheet date. | ||
Renewable Identification Numbers Obligation | ||
The Company’s RINs Obligation represents a liability for the purchase of RINs to satisfy the EPA requirement to blend biofuels into the fuel products it produces pursuant to the EPA’s Renewable Fuel Standard. RINs are assigned to biofuels produced in the U.S. as required by the EPA. The EPA sets annual quotas for the percentage of biofuels that must be blended into transportation fuels consumed in the U.S., and as a producer of motor fuels from petroleum, the Company is required to blend biofuels into the fuel products it produces at a rate that will meet the EPA’s annual quota. To the extent the Company is unable to blend biofuels at that rate, it must purchase RINs in the open market to satisfy the annual requirement. The Company’s RINs Obligation is based on the amount of RINs it must purchase net of amounts internally generated and the price of those RINs as of the balance sheet date. The RINs Obligation is categorized as Level 2 and is measured at fair value using the market approach based on quoted prices from an independent pricing service. | ||
The estimated fair value of long-term debt at December 31, 2014 and 2013 consists primarily of the senior notes. The estimated aggregate fair value of the Company’s senior notes defined as Level 1 was based upon quoted market prices in an active market. The estimated aggregate fair value of the Company’s senior notes classified as Level 2 was based upon directly observable inputs. The carrying value of borrowings, if any, under the Company’s revolving credit facility and capital lease obligations approximate their fair values as determined by discounted cash flows and are classified as Level 3. | ||
The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. Observable inputs are from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. These tiers include the following: | ||
• | Level 1—inputs include observable unadjusted quoted prices in active markets for identical assets or liabilities | |
• | Level 2—inputs include other than quoted prices in active markets that are either directly or indirectly observable | |
• | Level 3—inputs include unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions | |
In determining fair value, the Company uses various valuation techniques and prioritizes the use of observable inputs. The availability of observable inputs varies from instrument to instrument and depends on a variety of factors including the type of instrument, whether the instrument is actively traded and other characteristics particular to the instrument. For many financial instruments, pricing inputs are readily observable in the market, the valuation methodology used is widely accepted by market participants and the valuation does not require significant management judgment. For other financial instruments, pricing inputs are less observable in the marketplace and may require management judgment. | ||
Observable inputs utilized to estimate the fair values of the Company’s derivative instruments were primarily based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Based on the use of various unobservable inputs, principally non-performance risk, creditworthiness of the hedging entities and unobservable inputs in the forward rate, the Company has categorized these derivative instruments as Level 3. Significant increases (decreases) in any of those unobservable inputs in isolation would result in a significantly lower (higher) fair value measurement. The Company believes it has obtained the most accurate information available for the types of derivative instruments it holds. |
UnitBased_Compensation_Policie
Unit-Based Compensation (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unit Based Compensation | For unit based compensation awards granted, compensation expense is recognized in the Company’s consolidated financial statements on a straight line basis over the awards’ vesting periods based on their fair values on the dates of grant. The unit based compensation awards vest over a period not exceeding four years. The amount of compensation expense recognized at any date is at least equal to the portion of the grant date value of the award that is vested at that date. |
Unit based compensation liability awards are awards that are expected to be settled in cash on their vesting dates, rather than in equity units (“Liability Awards”). Liability Awards are recorded in accrued salaries, wages and benefits based on the vested portion of the fair value of the awards on the balance sheet date. The fair values of Liability Awards are updated at each balance sheet date and changes in the fair values of the vested portions of the awards are recorded as increases or decreases to compensation expense. | |
The Company’s general partner originally adopted a Long-Term Incentive Plan on January 24, 2006, which was amended and restated effective January 22, 2009, for its employees, consultants and directors and its affiliates who perform services for the Company. The Long-Term Incentive Plan provides for the grant of restricted units, phantom units, unit options and substitute awards and, with respect to unit options and phantom units, the grant of distribution equivalent rights (“DERs”). Subject to adjustment for certain events, an aggregate of 783,960 common units may be delivered pursuant to awards under the Long-Term Incentive Plan. Units withheld to satisfy the Company’s general partner’s tax withholding obligations are available for delivery pursuant to other awards. The Long-Term Incentive Plan is administered by the compensation committee of the Company’s general partner’s board of directors. | |
Non-employee directors of the Company’s general partner have been granted phantom units under the terms of the Long-Term Incentive Plan as part of their director compensation package related to fiscal years 2012, 2013 and 2014. These phantom units have a four year service period with one-quarter of the phantom units vesting annually on each December 31st of the vesting period. Although ownership of common units related to the vesting of such phantom units does not transfer to the recipients until the phantom units vest, the recipients have DERs on these phantom units from the date of grant. | |
For the years ended December 31, 2014 and 2012, named executive officers and certain employees were awarded phantom units under the terms of the Long-Term Incentive Plan, as part of the Company’s achievement of specified levels of financial performance in the fiscal year. These phantom units are subject to time-vesting requirements whereby 25% of the units vest during the performance period, and the remainder will vest ratably over the next three years on each December 31st. Although ownership of common units related to the vesting of such phantom units does not transfer to the recipients until the phantom units vest, the recipients have DERs on these phantom units from the date of grant. | |
The Company uses the market price of its common units on the grant date to calculate the fair value and related compensation cost of the phantom units. The Company amortizes this compensation cost to partners’ capital and general and administrative expense in the consolidated statements of operations using the straight-line method over the service period, as it expects these units to fully vest. | |
Liability Awards are awards that are expected to be settled in cash on their vesting dates, rather than in equity units. Phantom unit Liability Awards are recorded in accrued salaries, wages and benefits in the consolidated balance sheets based on the vested portion of the fair value of the awards on the balance sheet date. The fair value of Liability Awards are updated at each balance sheet date and changes in the fair values of the vested portions of the awards are recorded as increases or decreases to compensation expense within general and administrative expense in the consolidated statements of operations. |
Segments_and_Related_Informati1
Segments and Related Information (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Segment Reporting [Abstract] | |
Segment Reporting, Policy | The Company evaluates performance based upon Adjusted EBITDA. The Company defines Adjusted EBITDA for any period as: (1) net income (loss) plus (2)(a) interest expense; (b) income taxes; (c) depreciation and amortization; (d) unrealized losses from mark to market accounting for hedging activities; (e) realized gains under derivative instruments excluded from the determination of net income (loss); (f) non-cash equity based compensation expense and other non-cash items (excluding items such as accruals of cash expenses in a future period or amortization of a prepaid cash expense) that were deducted in computing net income (loss); (g) debt refinancing fees, premiums and penalties and (h) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; minus (3)(a) unrealized gains from mark to market accounting for hedging activities; (b) realized losses under derivative instruments excluded from the determination of net income and (c) other non-recurring expenses and unrealized items that reduced net income (loss) for a prior period, but represent a cash item in the current period. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Allowance for Doubtful Accounts Activity | The activity in the allowance for doubtful accounts was as follows (in millions): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Beginning balance | $ | 1.2 | $ | 1.2 | $ | 0.9 | ||||||
Provision | 0.5 | 0.1 | — | |||||||||
Recoveries | — | — | 0.4 | |||||||||
Write-offs, net | (0.1 | ) | (0.1 | ) | (0.1 | ) | ||||||
Ending balance | $ | 1.6 | $ | 1.2 | $ | 1.2 | ||||||
Inventories | Inventories consist of the following (in millions): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Raw materials | $ | 77.8 | $ | 122.7 | ||||||||
Work in process | 75.4 | 102.6 | ||||||||||
Finished goods | 360.3 | 342.1 | ||||||||||
$ | 513.5 | $ | 567.4 | |||||||||
Property, Plant and Equipment | Property, plant and equipment, including depreciable lives, consisted of the following (in millions): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Land | $ | 18.3 | $ | 17.6 | ||||||||
Buildings and improvements (10 to 40 years) | 66.8 | 39.1 | ||||||||||
Machinery and equipment (10 to 20 years) | 1,419.10 | 1,327.40 | ||||||||||
Furniture and fixtures (5 to 10 years) | 21.8 | 21.7 | ||||||||||
Assets under capital leases (10 to 28 years) | 50.5 | 11.1 | ||||||||||
Construction-in-progress | 354 | 121.5 | ||||||||||
1,930.50 | 1,538.40 | |||||||||||
Less accumulated depreciation | (466.1 | ) | (378.0 | ) | ||||||||
$ | 1,464.40 | $ | 1,160.40 | |||||||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Purchase price allocation | The allocations of the aggregate purchase prices to assets acquired and liabilities assumed for acquisitions are as follows (in millions): | |||||||||||||||||||||||||||||||||||||||
2014 Acquisitions | 2013 Acquisitions | 2012 Acquisitions | ||||||||||||||||||||||||||||||||||||||
SOS | Anchor | United Petroleum | Bel-Ray | Crude Oil Logistics | San Antonio | Montana | Royal Purple | Calumet Packaging | Missouri | |||||||||||||||||||||||||||||||
Accounts receivable | $ | 11.6 | $ | 75 | $ | — | $ | 4.3 | $ | — | $ | — | $ | 29 | $ | 15.2 | $ | 5.2 | $ | — | ||||||||||||||||||||
Inventories | 2.7 | 61.2 | 0.2 | 11.1 | — | 17 | 43.7 | 19.3 | 8 | 2.7 | ||||||||||||||||||||||||||||||
Prepaid expenses and other current assets | 0.1 | 0.4 | — | 0.6 | 0.1 | — | 23.1 | 0.2 | 0.3 | — | ||||||||||||||||||||||||||||||
Deposits | — | 0.6 | — | — | — | — | 0.3 | — | — | — | ||||||||||||||||||||||||||||||
Deferred tax asset | — | 0.9 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Property, plant and equipment, net | 15.1 | 35.9 | — | 6.5 | 0.9 | 100.7 | 125.4 | 10.6 | 17.7 | 10 | ||||||||||||||||||||||||||||||
Investment in unconsolidated affiliates | — | 1.9 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Goodwill | 0.8 | 69 | 5 | 9.1 | 5.2 | 5.7 | 27.6 | 109.2 | 0.4 | 1.5 | ||||||||||||||||||||||||||||||
Other intangible assets, net | 5.7 | 74 | 5.2 | 41.4 | — | — | — | 183.4 | 2.6 | 5.4 | ||||||||||||||||||||||||||||||
Other noncurrent assets, net | — | — | — | 0.3 | — | — | 0.3 | — | — | — | ||||||||||||||||||||||||||||||
Accounts payable | (6.2 | ) | (44.2 | ) | — | (3.9 | ) | — | — | (8.4 | ) | (3.8 | ) | (2.7 | ) | — | ||||||||||||||||||||||||
Accrued salaries, wages and benefits | — | (18.2 | ) | — | (1.3 | ) | — | (0.1 | ) | (1.4 | ) | (1.7 | ) | (0.2 | ) | — | ||||||||||||||||||||||||
Accrued income taxes payable | — | — | — | — | — | — | (15.6 | ) | — | — | — | |||||||||||||||||||||||||||||
Other taxes payable | (0.2 | ) | (1.8 | ) | — | (1.7 | ) | — | — | (3.0 | ) | (0.2 | ) | — | — | |||||||||||||||||||||||||
Other current liabilities | — | (0.4 | ) | — | (0.8 | ) | — | (5.4 | ) | (0.1 | ) | (1.0 | ) | (0.9 | ) | — | ||||||||||||||||||||||||
Current portion of long-term debt | — | — | — | (11.9 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Long-term debt | — | — | — | — | — | — | — | — | (3.5 | ) | — | |||||||||||||||||||||||||||||
Deferred income tax liability | — | (30.7 | ) | — | — | — | — | (27.6 | ) | — | — | — | ||||||||||||||||||||||||||||
Other long-term liabilities | — | — | — | (0.1 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Pension and postretirement benefit obligations | — | — | — | — | — | — | (1.7 | ) | — | — | — | |||||||||||||||||||||||||||||
Total purchase price, net of cash acquired | $ | 29.6 | $ | 223.6 | $ | 10.4 | $ | 53.6 | $ | 6.2 | $ | 117.9 | $ | 191.6 | $ | 331.2 | $ | 26.9 | $ | 19.6 | ||||||||||||||||||||
Components of intangible asset | The components of intangible assets listed in the table above were as follows (in millions): | |||||||||||||||||||||||||||||||||||||||
SOS | Anchor | United Petroleum | Bel-Ray | |||||||||||||||||||||||||||||||||||||
1-Aug-14 | 31-Mar-14 | 28-Feb-14 | 10-Dec-13 | |||||||||||||||||||||||||||||||||||||
Amount | Life (Years) | Amount | Life (Years) | Amount | Life (Years) | Amount | Life (Years) | |||||||||||||||||||||||||||||||||
Customer relationships | $ | 4.3 | 15 | $ | 52.7 | 20 | $ | 3.8 | 20 | $ | 28.6 | 30 | ||||||||||||||||||||||||||||
Tradenames | 1.4 | 20 | 18.4 | 21 | 1.4 | 20 | 4.2 | 18 | ||||||||||||||||||||||||||||||||
Trade secrets | — | — | — | — | — | — | 8.5 | 18 | ||||||||||||||||||||||||||||||||
Non-competition agreements | — | — | 2.9 | 2 | — | — | 0.1 | 3 | ||||||||||||||||||||||||||||||||
Totals | $ | 5.7 | $ | 74 | $ | 5.2 | $ | 41.4 | ||||||||||||||||||||||||||||||||
Weighted average amortization period | 16 | 20 | 20 | 26 | ||||||||||||||||||||||||||||||||||||
Schedule of business acquisitions | In connection with the respective acquisitions, the Company incurred the following expenses, which are reflected in general and administrative expenses in the consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012 (in millions): | |||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
SOS Acquisition | $ | 0.1 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Anchor Acquisition | $ | 0.6 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
United Petroleum Acquisition | $ | 0.1 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Bel-Ray Acquisition | $ | 0.3 | $ | 0.4 | $ | — | ||||||||||||||||||||||||||||||||||
Crude Oil Logistics Acquisition | $ | — | $ | 0.2 | $ | — | ||||||||||||||||||||||||||||||||||
San Antonio Acquisition | $ | — | $ | 0.5 | $ | — | ||||||||||||||||||||||||||||||||||
Montana Acquisition | $ | — | $ | 0.1 | $ | 3.3 | ||||||||||||||||||||||||||||||||||
Royal Purple Acquisition | $ | — | $ | — | $ | 0.4 | ||||||||||||||||||||||||||||||||||
Calumet Packaging Acquisition | $ | — | $ | — | $ | 0.2 | ||||||||||||||||||||||||||||||||||
Missouri Acquisition | $ | — | $ | — | $ | 0.5 | ||||||||||||||||||||||||||||||||||
The Company recorded the following goodwill (in millions): | ||||||||||||||||||||||||||||||||||||||||
Amount | Business Segment | |||||||||||||||||||||||||||||||||||||||
SOS Acquisition (1) | $ | 0.8 | Oilfield Services | |||||||||||||||||||||||||||||||||||||
Anchor Acquisition (1) (3) | $ | 69 | Oilfield Services | |||||||||||||||||||||||||||||||||||||
United Petroleum Acquisition (1) | $ | 5 | Specialty Products | |||||||||||||||||||||||||||||||||||||
Bel-Ray Acquisition (1) | $ | 9.1 | Specialty Products | |||||||||||||||||||||||||||||||||||||
Crude Oil Logistics Acquisition (2) | $ | 5.2 | Fuel Products | |||||||||||||||||||||||||||||||||||||
San Antonio Acquisition (1) | $ | 5.7 | Fuel Products | |||||||||||||||||||||||||||||||||||||
(1) | Goodwill recognized relates primarily to enhancing the Company’s strategic platform for expansion in the respective business segment noted above. | |||||||||||||||||||||||||||||||||||||||
(2) | Goodwill recognized relates primarily to enhancing the Company’s crude oil gathering operations to support the Superior refinery and sales to third party customers. | |||||||||||||||||||||||||||||||||||||||
(3) | Approximately $9.7 million of goodwill associated with the Anchor Acquisition is tax deductible due to Anchor’s tax status as a corporation. | |||||||||||||||||||||||||||||||||||||||
Unaudited pro forma financial information | The following financial information reflects sales and operating income (loss) of the United Petroleum, Anchor and SOS Acquisitions in 2014, the San Antonio and Bel-Ray Acquisitions in 2013 and the Missouri, Calumet Packaging, Royal Purple and Montana Acquisitions in 2012 that are included in the consolidated statements of operations (in millions): | |||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
Sales | $ | 382.9 | $ | 480.1 | $ | 266.1 | ||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | (11.2 | ) | $ | (22.5 | ) | $ | 18.6 | ||||||||||||||||||||||||||||||||
Unaudited Pro Forma Financial Information | ||||||||||||||||||||||||||||||||||||||||
The following unaudited pro forma financial information reflects the unaudited consolidated results of operations of the Company as if the Anchor Acquisition had taken place on January 1, 2013 (in millions, except for per unit data): | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Sales | $ | 5,873.60 | $ | 5,730.80 | ||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (124.6 | ) | $ | 21.9 | |||||||||||||||||||||||||||||||||||
Limited partners’ interest net income (loss) per unit — basic | $ | (1.97 | ) | $ | 0.1 | |||||||||||||||||||||||||||||||||||
Limited partners’ interest net income (loss) per unit — diluted | $ | (1.97 | ) | $ | 0.1 | |||||||||||||||||||||||||||||||||||
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Schedule of Goodwill | Changes in goodwill balances are as follows (in millions): | |||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Specialty | Fuel | Oilfield | Specialty | Fuel | Oilfield | |||||||||||||||||||||||||||
Products | Products | Services | Total | Products | Products | Services | Total | |||||||||||||||||||||||||
Beginning balance: | $ | 168.5 | $ | 38.5 | $ | — | $ | 207 | $ | 159.4 | $ | 27.6 | $ | — | $ | 187 | ||||||||||||||||
Acquisitions | 5 | — | 69.8 | 74.8 | 9.1 | 10.9 | — | 20 | ||||||||||||||||||||||||
Accumulated impairment losses | — | — | (36.0 | ) | (36.0 | ) | — | — | — | — | ||||||||||||||||||||||
Ending balance: | $ | 173.5 | $ | 38.5 | $ | 33.8 | $ | 245.8 | $ | 168.5 | $ | 38.5 | $ | — | $ | 207 | ||||||||||||||||
Schedule of Other Intangible Assets | Other intangible assets consist of the following (in millions): | |||||||||||||||||||||||||||||||
Weighted Average Life (Years) | 31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||
Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||||||||||||||||||||
Customer relationships | 21 | $ | 243.7 | $ | (68.4 | ) | $ | 182.9 | $ | (40.3 | ) | |||||||||||||||||||||
Supplier agreements | 4 | 21.5 | (21.5 | ) | 21.5 | (21.5 | ) | |||||||||||||||||||||||||
Tradenames | Indefinite | 14.8 | — | 14.8 | — | |||||||||||||||||||||||||||
Tradenames | 18 | 31.8 | (4.9 | ) | 10.6 | (1.6 | ) | |||||||||||||||||||||||||
Trade secrets | 13 | 52.7 | (16.7 | ) | 52.7 | (9.6 | ) | |||||||||||||||||||||||||
Patents | 12 | 1.6 | (1.3 | ) | 1.6 | (1.2 | ) | |||||||||||||||||||||||||
Non-competition agreements | 4 | 8.8 | (7.3 | ) | 5.9 | (5.8 | ) | |||||||||||||||||||||||||
Distributor agreements | 3 | 2 | (2.0 | ) | 2 | (2.0 | ) | |||||||||||||||||||||||||
Royalty agreements | 19 | 4.5 | (1.8 | ) | 4.5 | (1.6 | ) | |||||||||||||||||||||||||
18 | $ | 381.4 | $ | (123.9 | ) | $ | 296.5 | $ | (83.6 | ) | ||||||||||||||||||||||
Schedule of Estimated Future Amortization Expense | As of December 31, 2014, the Company estimates that amortization of intangible assets for the next five years will be as follows (in millions): | |||||||||||||||||||||||||||||||
Year | Amortization Amount | |||||||||||||||||||||||||||||||
2015 | $ | 41.4 | ||||||||||||||||||||||||||||||
2016 | $ | 35.3 | ||||||||||||||||||||||||||||||
2017 | $ | 30.5 | ||||||||||||||||||||||||||||||
2018 | $ | 25.7 | ||||||||||||||||||||||||||||||
2019 | $ | 21.3 | ||||||||||||||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Operating Leases, Fiscal Year Maturity Schedule | As of December 31, 2014, the Company had estimated minimum commitments for the payment of rentals under leases which, at inception, had a noncancelable term of more than one year, as follows (in millions): | ||||
Year | Operating | ||||
Leases | |||||
2015 | $ | 39.3 | |||
2016 | 33.1 | ||||
2017 | 29.5 | ||||
2018 | 26.4 | ||||
2019 | 16.9 | ||||
Thereafter | 36.2 | ||||
Total | $ | 181.4 | |||
Purchase Commitment, Fiscal Year Maturity Schedule | As of December 31, 2014, the estimated minimum purchase commitments under the Company’s crude oil, other feedstock supply and finished product agreements were as follows (in millions): | ||||
Year | Commitment | ||||
2015 | $ | 563.6 | |||
2016 | 115.8 | ||||
2017 | 113.5 | ||||
2018 | 113.2 | ||||
2019 | 103.7 | ||||
Thereafter | — | ||||
Total | $ | 1,009.80 | |||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Instrument [Line Items] | ||||||||
Summary of long-term debt | Long-term debt consisted of the following (in millions): | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Borrowings under amended and restated senior secured revolving credit agreement with third-party lenders, interest payments quarterly, borrowings due July 2019, weighted average interest rate of 2.6% at December 31, 2014 | $ | 150.8 | $ | — | ||||
Borrowings under 2019 Notes, interest at a fixed rate of 9.375%, interest payments semiannually, borrowings due May 2019 | — | 500 | ||||||
Borrowings under 2020 Notes, interest at a fixed rate of 9.625%, interest payments semiannually, borrowings due August 2020, effective interest rate of 10.1% for the year ended December 31, 2014 and 10.0% for the year ended December 31, 2013 | 275 | 275 | ||||||
Borrowings under 2021 Notes, interest at a fixed rate of 6.50%, interest payments semiannually, borrowings due April 2021, effective interest rate of 6.7% for the year ended December 31, 2014 | 900 | — | ||||||
Borrowings under 2022 Notes, interest at a fixed rate of 7.625%, interest payments semiannually, borrowings due January 2022, effective interest rate of 8.0% for the year ended December 31, 2014 and 7.9% for the year ended December 31, 2013 (1) | 352.5 | 350 | ||||||
Capital lease obligations, at various interest rates, interest and principal payments monthly through October 2034 | 43.6 | 4.8 | ||||||
Less unamortized discounts | (8.4 | ) | (19.0 | ) | ||||
Total long-term debt | 1,713.50 | 1,110.80 | ||||||
Less current portion of long-term debt | 0.6 | 0.4 | ||||||
$ | 1,712.90 | $ | 1,110.40 | |||||
(1) | The balance includes a fair value interest rate hedge adjustment, which increased the debt balance by $2.5 million and $0.0 million as of December 31, 2014 and 2013, respectively (refer to Note 8 for additional information on the interest rate swap designated as a fair value hedge). | |||||||
Schedule of basis spread | As of December 31, 2014, the margin was 75 basis points for prime and 175 basis points for LIBOR; however, the margin can fluctuate quarterly based on the Company’s average availability for additional borrowings under the revolving credit facility in the preceding calendar quarter as follows: | |||||||
Quarterly Average Availability Percentage | Margin on Base Rate | Margin on LIBOR | ||||||
Revolving Loans | Revolving Loans | |||||||
≥ 66% | 0.50% | 1.50% | ||||||
≥ 33% and < 66% | 0.75% | 1.75% | ||||||
< 33% | 1.00% | 2.00% | ||||||
Summary of future minimum lease payments | As of December 31, 2014, the Company had estimated minimum commitments for the payment of total rentals under capital leases as follows (in millions): | |||||||
Year | Capital | |||||||
Leases | ||||||||
2015 | $ | 7 | ||||||
2016 | 7 | |||||||
2017 | 7 | |||||||
2018 | 7 | |||||||
2019 | 6.9 | |||||||
Thereafter | 102.9 | |||||||
Total minimum lease payments | 137.8 | |||||||
Less amount representing interest | 94.2 | |||||||
Capital lease obligations | 43.6 | |||||||
Less obligations due within one year | 0.6 | |||||||
Long-term capital lease obligations | $ | 43 | ||||||
Maturities of long-term debt | As of December 31, 2014, principal payments of debt obligations and future minimum rentals on capital lease obligations are as follows (in millions): | |||||||
Year | Maturity | |||||||
2015 | $ | 0.6 | ||||||
2016 | 0.7 | |||||||
2017 | 0.7 | |||||||
2018 | 0.8 | |||||||
2019 | 151.5 | |||||||
Thereafter | 1,565.10 | |||||||
Total | $ | 1,719.40 | ||||||
6.50% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Summary of redemption price during the period | On and after April 15, 2017, the Company may on any one or more occasions redeem all or a part of the 2021 Notes at the redemption prices (expressed as percentages of principal amount) set forth below, plus any accrued and unpaid interest to the applicable redemption date on such 2021 Notes, if redeemed during the twelve-month period beginning on April 15 of the years indicated below: | |||||||
Year | Percentage | |||||||
2017 | 103.25 | % | ||||||
2018 | 101.625 | % | ||||||
2019 and thereafter | 100 | % | ||||||
7.625% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Summary of redemption price during the period | On and after January 15, 2018, the Company may on any one or more occasions redeem all or a part of the 2022 Notes at the redemption prices (expressed as percentages of principal amount) set forth below, plus any accrued and unpaid interest to the applicable redemption date on such 2022 Notes, if redeemed during the twelve-month period beginning on January 15 of the years indicated below: | |||||||
Year | Percentage | |||||||
2018 | 103.813 | % | ||||||
2019 | 101.906 | % | ||||||
2020 and thereafter | 100 | % | ||||||
9.625% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Summary of redemption price during the period | On and after August 1, 2016, the Company may on any one or more occasions redeem all or a part of the 2020 Notes at the redemption prices (expressed as percentages of principal amount) set forth below, plus any accrued and unpaid interest to the applicable redemption date on such 2020 Notes, if redeemed during the twelve-month period beginning on August 1 of the years indicated below: | |||||||
Year | Percentage | |||||||
2016 | 104.813 | % | ||||||
2017 | 102.406 | % | ||||||
2018 and thereafter | 100 | % |
Derivatives_Tables
Derivatives (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||||
Offsetting Assets | The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative assets in the Company’s consolidated balance sheets as of December 31, 2014 and 2013 (in millions): | |||||||||||||||||||||||||||
31-Dec-14 | December 31, 2013 | |||||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Assets Presented in the Consolidated Balance Sheets | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Assets Presented in the Consolidated Balance Sheets | |||||||||||||||||||||||
Derivative instruments designated as hedges: | ||||||||||||||||||||||||||||
Fuel products segment: | ||||||||||||||||||||||||||||
Crude oil swaps | $ | — | $ | (10.0 | ) | $ | (10.0 | ) | $ | 45.4 | $ | (45.4 | ) | $ | — | |||||||||||||
Gasoline swaps | 15.9 | (4.4 | ) | 11.5 | 1 | (1.0 | ) | — | ||||||||||||||||||||
Diesel swaps | — | — | — | 3.5 | (3.5 | ) | — | |||||||||||||||||||||
Jet fuel swaps | — | — | — | 0.1 | (0.1 | ) | — | |||||||||||||||||||||
Swaps not allocated to a specific segment: | ||||||||||||||||||||||||||||
Interest rate swaps | 2.5 | — | 2.5 | — | — | — | ||||||||||||||||||||||
Total derivative instruments designated as hedges | 18.4 | (14.4 | ) | 4 | 50 | (50.0 | ) | — | ||||||||||||||||||||
Derivative instruments not designated as hedges: | ||||||||||||||||||||||||||||
Fuel products segment: | ||||||||||||||||||||||||||||
Crude oil swaps | 31.4 | (111.2 | ) | (79.8 | ) | 6.3 | (6.3 | ) | — | |||||||||||||||||||
Crude oil basis swaps | 0.8 | — | 0.8 | 1 | (1.0 | ) | — | |||||||||||||||||||||
Crude oil percent basis swaps | — | (0.2 | ) | (0.2 | ) | — | — | — | ||||||||||||||||||||
Gasoline swaps | 2.4 | (0.4 | ) | 2 | — | — | — | |||||||||||||||||||||
Diesel swaps | 116.1 | (19.1 | ) | 97 | 0.7 | (0.7 | ) | — | ||||||||||||||||||||
Jet fuel swaps | 7.9 | (5.2 | ) | 2.7 | 0.9 | (0.9 | ) | — | ||||||||||||||||||||
Diesel crack spread swaps | 4.5 | — | 4.5 | — | — | — | ||||||||||||||||||||||
Diesel crack spread collars | — | — | — | 0.3 | (0.3 | ) | — | |||||||||||||||||||||
Platinum swaps | — | (0.1 | ) | (0.1 | ) | — | — | — | ||||||||||||||||||||
Specialty products segment: | ||||||||||||||||||||||||||||
Natural gas swaps | — | (7.2 | ) | (7.2 | ) | 0.4 | (0.4 | ) | — | |||||||||||||||||||
Natural gas collars | 0.1 | (0.6 | ) | (0.5 | ) | — | — | — | ||||||||||||||||||||
Total derivative instruments not designated as hedges | 163.2 | (144.0 | ) | 19.2 | 9.6 | (9.6 | ) | — | ||||||||||||||||||||
Total derivative instruments | $ | 181.6 | $ | (158.4 | ) | $ | 23.2 | $ | 59.6 | $ | (59.6 | ) | $ | — | ||||||||||||||
Offsetting Liabilities | The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative liabilities in the Company’s consolidated balance sheets as of December 31, 2014 and 2013 (in millions): | |||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | |||||||||||||||||||||||
Derivative instruments designated as hedges: | ||||||||||||||||||||||||||||
Fuel products segment: | ||||||||||||||||||||||||||||
Crude oil swaps | $ | (13.8 | ) | $ | 10 | $ | (3.8 | ) | $ | (13.0 | ) | $ | 45.4 | $ | 32.4 | |||||||||||||
Gasoline swaps | — | 4.4 | 4.4 | (19.7 | ) | 1 | (18.7 | ) | ||||||||||||||||||||
Diesel swaps | — | — | — | (51.3 | ) | 3.5 | (47.8 | ) | ||||||||||||||||||||
Jet fuel swaps | — | — | — | (13.4 | ) | 0.1 | (13.3 | ) | ||||||||||||||||||||
Total derivative instruments designated as hedges | (13.8 | ) | 14.4 | 0.6 | (97.4 | ) | 50 | (47.4 | ) | |||||||||||||||||||
Derivative instruments not designated as hedges: | ||||||||||||||||||||||||||||
Fuel products segment: | ||||||||||||||||||||||||||||
Crude oil swaps | (102.4 | ) | 111.2 | 8.8 | (1.7 | ) | 6.3 | 4.6 | ||||||||||||||||||||
Crude oil basis swaps | — | — | — | (0.6 | ) | 1 | 0.4 | |||||||||||||||||||||
Crude oil percent basis swaps | (0.2 | ) | 0.2 | — | — | — | — | |||||||||||||||||||||
Gasoline swaps | (1.0 | ) | 0.4 | (0.6 | ) | (9.4 | ) | — | (9.4 | ) | ||||||||||||||||||
Diesel swaps | (28.1 | ) | 19.1 | (9.0 | ) | (3.5 | ) | 0.7 | (2.8 | ) | ||||||||||||||||||
Jet fuel swaps | (5.2 | ) | 5.2 | — | — | 0.9 | 0.9 | |||||||||||||||||||||
Diesel crack spread collars | — | — | — | (0.2 | ) | 0.3 | 0.1 | |||||||||||||||||||||
Platinum swaps | (0.1 | ) | 0.1 | — | — | — | — | |||||||||||||||||||||
Specialty products segment: | ||||||||||||||||||||||||||||
Natural gas swaps | (12.1 | ) | 7.2 | (4.9 | ) | (1.6 | ) | 0.4 | (1.2 | ) | ||||||||||||||||||
Natural gas collars | (1.1 | ) | 0.6 | (0.5 | ) | — | — | — | ||||||||||||||||||||
Total derivative instruments not designated as hedges | (150.2 | ) | 144 | (6.2 | ) | (17.0 | ) | 9.6 | (7.4 | ) | ||||||||||||||||||
Total derivative instruments | $ | (164.0 | ) | $ | 158.4 | $ | (5.6 | ) | $ | (114.4 | ) | $ | 59.6 | $ | (54.8 | ) | ||||||||||||
Derivative Instruments, Gain (Loss) by Hedging Relationship, by Income Statement Location, by Derivative Instrument Risk | The Company recorded the following gains (losses) in its consolidated statements of operations for the years ended December 31, 2014 and 2013 related to its derivative instruments not designated as hedges (in millions): | |||||||||||||||||||||||||||
Amount of Gain (Loss) | Amount of Gain (Loss) | |||||||||||||||||||||||||||
Recognized in Realized Gain | Recognized in Unrealized Gain | |||||||||||||||||||||||||||
(Loss) on Derivative Instruments | (Loss) on Derivative Instruments | |||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||
Type of Derivative | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Fuel products segment: | ||||||||||||||||||||||||||||
Crude oil swaps | $ | (48.5 | ) | $ | (6.3 | ) | $ | (61.9 | ) | $ | 46.3 | |||||||||||||||||
Crude oil basis swaps | 5.7 | (7.7 | ) | 0.1 | 3.8 | |||||||||||||||||||||||
Gasoline swaps | (2.2 | ) | 3.2 | 10.1 | (9.9 | ) | ||||||||||||||||||||||
Diesel swaps | 76.3 | 8.1 | 71.5 | (11.7 | ) | |||||||||||||||||||||||
Jet fuel swaps | 3.2 | 0.7 | 0.7 | 0.9 | ||||||||||||||||||||||||
Jet fuel crack spread swaps | (0.1 | ) | — | — | — | |||||||||||||||||||||||
Diesel crack spread swaps | (3.6 | ) | — | 4.5 | — | |||||||||||||||||||||||
Diesel crack spread collars | 1 | — | (0.1 | ) | 0.1 | |||||||||||||||||||||||
Gasoline crack spread collars | (0.4 | ) | — | — | — | |||||||||||||||||||||||
Platinum swaps | — | — | (0.1 | ) | — | |||||||||||||||||||||||
Specialty products segment: | ||||||||||||||||||||||||||||
Crude oil swaps | — | 1.8 | — | (1.6 | ) | |||||||||||||||||||||||
Natural gas swaps | 1.1 | (0.6 | ) | (11.9 | ) | (1.2 | ) | |||||||||||||||||||||
Total | $ | 32.5 | $ | (0.8 | ) | $ | 12.9 | $ | 26.7 | |||||||||||||||||||
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | Absent a change in the fair market value of the underlying transactions, except for any underlying transactions pertaining to the payment of interest on existing financial instruments, the following other comprehensive income at December 31, 2014 will be reclassified to earnings by December 31, 2016 with balances being recognized as follows (in millions): | |||||||||||||||||||||||||||
Year | Accumulated Other Comprehensive Income | |||||||||||||||||||||||||||
2015 | $ | 15 | ||||||||||||||||||||||||||
2016 | 10.8 | |||||||||||||||||||||||||||
Total | $ | 25.8 | ||||||||||||||||||||||||||
Specialty Product | Natural Gas Swap Contracts | ||||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||||
Schedule of Outstanding Derivative Positions | Natural Gas Swap Contracts | |||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to natural gas purchases in its specialty products segment, none of which are designated as hedges: | ||||||||||||||||||||||||||||
Natural Gas Swap Contracts by Expiration Dates | MMBtu | $/MMBtu | ||||||||||||||||||||||||||
First Quarter 2015 | 1,770,000 | $ | 4.09 | |||||||||||||||||||||||||
Second Quarter 2015 | 1,500,000 | $ | 4.11 | |||||||||||||||||||||||||
Third Quarter 2015 | 1,500,000 | $ | 4.11 | |||||||||||||||||||||||||
Fourth Quarter 2015 | 1,900,000 | $ | 4.12 | |||||||||||||||||||||||||
Calendar Year 2016 | 5,880,000 | $ | 4.22 | |||||||||||||||||||||||||
Calendar Year 2017 | 1,830,000 | $ | 4.28 | |||||||||||||||||||||||||
Total | 14,380,000 | |||||||||||||||||||||||||||
Average price | $ | 4.18 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to natural gas purchases in its specialty products segment, none of which are designated as hedges: | ||||||||||||||||||||||||||||
Natural Gas Swap Contracts by Expiration Dates | MMBtu | $/MMBtu | ||||||||||||||||||||||||||
First Quarter 2014 | 750,000 | $ | 4.14 | |||||||||||||||||||||||||
Second Quarter 2014 | 750,000 | $ | 4.14 | |||||||||||||||||||||||||
Third Quarter 2014 | 750,000 | $ | 4.14 | |||||||||||||||||||||||||
Fourth Quarter 2014 | 850,000 | $ | 4.21 | |||||||||||||||||||||||||
Calendar Year 2015 | 3,500,000 | $ | 4.27 | |||||||||||||||||||||||||
Calendar Year 2016 | 2,700,000 | $ | 4.42 | |||||||||||||||||||||||||
Calendar Year 2017 | 1,000,000 | $ | 4.29 | |||||||||||||||||||||||||
Total | 10,300,000 | |||||||||||||||||||||||||||
Average price | $ | 4.28 | ||||||||||||||||||||||||||
Specialty Product | Natural Gas Collars | ||||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||||
Schedule of Outstanding Derivative Positions | Natural Gas Collars | |||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to natural gas purchases in its specialty products segment, none of which are designated as hedges: | ||||||||||||||||||||||||||||
Natural Gas Collars by Expiration Dates | MMBtu | Average Bought Call ($/MMBtu) | Average Sold Put ($/MMBtu) | |||||||||||||||||||||||||
First Quarter 2015 | 240,000 | $ | 4.25 | $ | 3.79 | |||||||||||||||||||||||
Second Quarter 2015 | 240,000 | $ | 4.25 | $ | 3.79 | |||||||||||||||||||||||
Third Quarter 2015 | 240,000 | $ | 4.25 | $ | 3.79 | |||||||||||||||||||||||
Fourth Quarter 2015 | 200,000 | $ | 4.25 | $ | 3.85 | |||||||||||||||||||||||
Calendar Year 2016 | 600,000 | $ | 4.25 | $ | 3.89 | |||||||||||||||||||||||
Total | 1,520,000 | |||||||||||||||||||||||||||
Average price | $ | 4.25 | $ | 3.84 | ||||||||||||||||||||||||
Fuel Product | Crude Oil Swaps | ||||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||||
Schedule of Outstanding Derivative Positions | Crude Oil Swap Contracts | |||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to crude oil purchases in its fuel products segment, all of which are designated as cash flow hedges. | ||||||||||||||||||||||||||||
Crude Oil Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 315,000 | 3,500 | $ | 97.71 | ||||||||||||||||||||||||
Total | 315,000 | |||||||||||||||||||||||||||
Average price | $ | 97.71 | ||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to crude oil purchases in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Crude Oil Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 1,674,000 | 18,600 | $ | 89.55 | ||||||||||||||||||||||||
Second Quarter 2015 | 91,000 | 1,000 | $ | 89.89 | ||||||||||||||||||||||||
Third Quarter 2015 | 386,400 | 4,200 | $ | 69.2 | ||||||||||||||||||||||||
Fourth Quarter 2015 | 386,400 | 4,200 | $ | 69.2 | ||||||||||||||||||||||||
Calendar Year 2016 | 972,828 | 2,658 | $ | 78.02 | ||||||||||||||||||||||||
Total | 3,510,628 | |||||||||||||||||||||||||||
Average price | $ | 81.89 | ||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to crude oil sales in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Crude Oil Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 1,674,000 | 18,600 | $ | 84.21 | ||||||||||||||||||||||||
Total | 1,674,000 | |||||||||||||||||||||||||||
Average price | $ | 84.21 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to crude oil purchases in its fuel products segment, all of which are designated as cash flow hedges. | ||||||||||||||||||||||||||||
Crude Oil Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2014 | 2,520,000 | 28,000 | $ | 92.06 | ||||||||||||||||||||||||
Second Quarter 2014 | 2,411,500 | 26,500 | $ | 91.97 | ||||||||||||||||||||||||
Third Quarter 2014 | 2,530,000 | 27,500 | $ | 91.23 | ||||||||||||||||||||||||
Fourth Quarter 2014 | 2,024,000 | 22,000 | $ | 90.61 | ||||||||||||||||||||||||
Calendar Year 2015 | 5,556,500 | 15,223 | $ | 89.08 | ||||||||||||||||||||||||
Calendar Year 2016 | 1,830,000 | 5,000 | $ | 84.73 | ||||||||||||||||||||||||
Total | 16,872,000 | |||||||||||||||||||||||||||
Average price | $ | 89.97 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to crude oil purchases in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Crude Oil Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2014 | 810,000 | 9,000 | $ | 94.56 | ||||||||||||||||||||||||
Second Quarter 2014 | 591,500 | 6,500 | $ | 94.37 | ||||||||||||||||||||||||
Third Quarter 2014 | 874,000 | 9,500 | $ | 92.92 | ||||||||||||||||||||||||
Fourth Quarter 2014 | 184,000 | 2,000 | $ | 94.62 | ||||||||||||||||||||||||
Calendar Year 2015 | 1,004,000 | 2,751 | $ | 89.28 | ||||||||||||||||||||||||
Total | 3,463,500 | |||||||||||||||||||||||||||
Average price | $ | 92.59 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to crude oil sales in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Crude Oil Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2014 | 45,000 | 500 | $ | 96.9 | ||||||||||||||||||||||||
Second Quarter 2014 | 45,500 | 500 | $ | 96.9 | ||||||||||||||||||||||||
Third Quarter 2014 | 46,000 | 500 | $ | 96.9 | ||||||||||||||||||||||||
Fourth Quarter 2014 | 46,000 | 500 | $ | 96.9 | ||||||||||||||||||||||||
Total | 182,500 | |||||||||||||||||||||||||||
Average price | $ | 96.9 | ||||||||||||||||||||||||||
Fuel Product | Crude Oil Basis Swaps | ||||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||||
Schedule of Outstanding Derivative Positions | Crude Oil Basis Swap Contracts | |||||||||||||||||||||||||||
The Company has entered into crude oil basis swaps to mitigate the risk of future changes in pricing differentials between Canadian heavy crude oil and NYMEX WTI crude oil, pricing differentials between LLS and NYMEX WTI and pricing differentials between MSW and NYMEX WTI. At December 31, 2014, the Company had the following derivatives related to crude oil basis swaps in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Crude Oil Basis Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Differential to NYMEX WTI | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 118,000 | 2,000 | $ | (22.40 | ) | |||||||||||||||||||||||
Total | 118,000 | |||||||||||||||||||||||||||
Average differential | $ | (22.40 | ) | |||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to crude oil basis swaps in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Crude Oil Basis Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Differential to NYMEX WTI | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2014 | 118,000 | 1,311 | $ | (28.50 | ) | |||||||||||||||||||||||
Third Quarter 2014 | 184,000 | 2,000 | $ | (21.75 | ) | |||||||||||||||||||||||
Fourth Quarter 2014 | 184,000 | 2,000 | $ | (21.50 | ) | |||||||||||||||||||||||
Total | 486,000 | |||||||||||||||||||||||||||
Average differential | $ | (23.29 | ) | |||||||||||||||||||||||||
As of December 31, 2013, the Company had approximately 248,000 barrels of crude oil basis swaps related to future crude oil purchases and sales to mitigate the risk of future changes in pricing differentials between Brent and NYMEX WTI on the Company’s reselling of crude oil. The net impact of these derivative instruments, none of which are designated as hedges, was a net loss of $0.6 million that was recorded to realized gain (loss) on derivative instruments in the consolidated statements of operations for the year ended December 31, 2013. | ||||||||||||||||||||||||||||
Subsequent to December 31, 2014, the Company entered into the following derivatives related to crude oil purchases in its fuel products segment: | ||||||||||||||||||||||||||||
Crude Oil Basis Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 423,500 | 4,706 | $ | 48.84 | ||||||||||||||||||||||||
Second Quarter 2015 | 1,274,000 | 14,000 | $ | 52.61 | ||||||||||||||||||||||||
Third Quarter 2015 | 382,950 | 4,163 | $ | 56.58 | ||||||||||||||||||||||||
Fourth Quarter 2015 | 60,950 | 663 | $ | 58.4 | ||||||||||||||||||||||||
479,460 | 1,310 | $ | 63.35 | |||||||||||||||||||||||||
Total | 2,620,860 | |||||||||||||||||||||||||||
Average price | $ | 54.68 | ||||||||||||||||||||||||||
Fuel Product | Crude Oil Percent Basis Swaps [Member] | ||||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||||
Schedule of Outstanding Derivative Positions | Crude Oil Percent Basis Swap Contracts | |||||||||||||||||||||||||||
During the fourth quarter of 2014, the Company entered into derivative instruments to secure a percentage differential on WCS crude oil to NYMEX WTI. At December 31, 2014, the Company had the following derivatives related to crude oil percent basis swaps in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Crude Oil Percent Basis Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | |||||||||||||||||||||||||
Third Quarter 2015 | 184,000 | 2,000 | 73 | % | ||||||||||||||||||||||||
Fourth Quarter 2015 | 184,000 | 2,000 | 73 | % | ||||||||||||||||||||||||
Total | 368,000 | |||||||||||||||||||||||||||
Average percentage | 73 | % | ||||||||||||||||||||||||||
Fuel Product | Diesel Swaps | ||||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||||
Schedule of Outstanding Derivative Positions | Diesel Swap Contracts | |||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to diesel sales in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Diesel Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 1,449,000 | 16,100 | $ | 116.27 | ||||||||||||||||||||||||
Second Quarter 2015 | 91,000 | 1,000 | $ | 117.92 | ||||||||||||||||||||||||
Third Quarter 2015 | 322,000 | 3,500 | $ | 95.04 | ||||||||||||||||||||||||
Fourth Quarter 2015 | 322,000 | 3,500 | $ | 95.04 | ||||||||||||||||||||||||
Calendar Year 2016 | 915,000 | 2,500 | $ | 104.32 | ||||||||||||||||||||||||
Total | 3,099,000 | |||||||||||||||||||||||||||
Average price | $ | 108.38 | ||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to diesel purchases in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Diesel Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 1,449,000 | 16,100 | $ | 105.78 | ||||||||||||||||||||||||
Total | 1,449,000 | |||||||||||||||||||||||||||
Average price | $ | 105.78 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to diesel sales in its fuel products segment, all of which are designated as cash flow hedges. | ||||||||||||||||||||||||||||
Diesel Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2014 | 1,125,000 | 12,500 | $ | 117.54 | ||||||||||||||||||||||||
Second Quarter 2014 | 1,183,000 | 13,000 | $ | 116.78 | ||||||||||||||||||||||||
Third Quarter 2014 | 1,288,000 | 14,000 | $ | 116.82 | ||||||||||||||||||||||||
Fourth Quarter 2014 | 1,288,000 | 14,000 | $ | 116.96 | ||||||||||||||||||||||||
Calendar Year 2015 | 4,781,500 | 13,100 | $ | 115.81 | ||||||||||||||||||||||||
Calendar Year 2016 | 1,830,000 | 5,000 | $ | 112 | ||||||||||||||||||||||||
Total | 11,495,500 | |||||||||||||||||||||||||||
Average price | $ | 115.72 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to diesel sales in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Diesel Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2014 | 270,000 | 3,000 | $ | 121.72 | ||||||||||||||||||||||||
Second Quarter 2014 | 182,000 | 2,000 | $ | 123.22 | ||||||||||||||||||||||||
Third Quarter 2014 | 230,000 | 2,500 | $ | 121.74 | ||||||||||||||||||||||||
Fourth Quarter 2014 | 184,000 | 2,000 | $ | 123.02 | ||||||||||||||||||||||||
Calendar Year 2015 | 1,004,000 | 2,751 | $ | 117.15 | ||||||||||||||||||||||||
Total | 1,870,000 | |||||||||||||||||||||||||||
Average price | $ | 119.54 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to diesel purchases in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Diesel Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2014 | 45,000 | 500 | $ | 121.8 | ||||||||||||||||||||||||
Second Quarter 2014 | 45,500 | 500 | $ | 121.8 | ||||||||||||||||||||||||
Third Quarter 2014 | 46,000 | 500 | $ | 121.8 | ||||||||||||||||||||||||
Fourth Quarter 2014 | 46,000 | 500 | $ | 121.8 | ||||||||||||||||||||||||
Total | 182,500 | |||||||||||||||||||||||||||
Average price | $ | 121.8 | ||||||||||||||||||||||||||
Subsequent to December 31, 2014, the Company entered into the following derivatives related to diesel sales in its fuel products segment: | ||||||||||||||||||||||||||||
Diesel Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
Third Quarter 2015 | 46,000 | 500 | $ | 77.39 | ||||||||||||||||||||||||
Fourth Quarter 2015 | 46,000 | 500 | $ | 77.39 | ||||||||||||||||||||||||
Calendar Year 2016 | 366,000 | 1,000 | $ | 82.99 | ||||||||||||||||||||||||
Total | 458,000 | |||||||||||||||||||||||||||
Average price | $ | 81.86 | ||||||||||||||||||||||||||
Fuel Product | Diesel Crack Spread | ||||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||||
Schedule of Outstanding Derivative Positions | Diesel Percent Basis Crack Spread Swap Contracts | |||||||||||||||||||||||||||
During the fourth quarter of 2014, the Company entered into derivative instruments to secure a fixed percentage of gross profit on diesel in excess of the floating value of NYMEX WTI crude oil. At December 31, 2014, the Company had the following diesel percent basis crack spread swap contracts in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Diesel Crack Spread Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average % of WTI/Bbl | |||||||||||||||||||||||||
Third Quarter 2015 | 414,000 | 4,500 | 33.2 | % | ||||||||||||||||||||||||
Fourth Quarter 2015 | 414,000 | 4,500 | 33.2 | % | ||||||||||||||||||||||||
Calendar Year 2016 | 1,647,000 | 4,500 | 31.7 | % | ||||||||||||||||||||||||
Total | 2,475,000 | |||||||||||||||||||||||||||
Average percentage | 32.2 | % | ||||||||||||||||||||||||||
Subsequent to December 31, 2014, the Company entered into the following derivatives related to diesel percent basis crack spread swap contracts in its fuel products segment, none of which are designated as cash flow hedges: | ||||||||||||||||||||||||||||
Diesel Crack Spread Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average % of WTI/Bbl | |||||||||||||||||||||||||
Third Quarter 2015 | 92,000 | 1,000 | 32.6 | % | ||||||||||||||||||||||||
Fourth Quarter 2015 | 92,000 | 1,000 | 32.6 | % | ||||||||||||||||||||||||
Calendar Year 2016 | 549,000 | 1,500 | 32 | % | ||||||||||||||||||||||||
Total | 733,000 | |||||||||||||||||||||||||||
Average percentage | 32.2 | % | ||||||||||||||||||||||||||
Fuel Product | Diesel Crack Spread Collars | ||||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||||
Schedule of Outstanding Derivative Positions | Diesel Crack Spread Collars | |||||||||||||||||||||||||||
At December 31, 2013, the Company had the following diesel crack spread collars related to diesel sales and crude oil purchases in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Diesel Crack Spread Collars by Expiration Dates | Barrels Purchased and Sold | BPD | Average Bought | Average Sold | ||||||||||||||||||||||||
Put ($/Bbl) | Call ($/Bbl) | |||||||||||||||||||||||||||
First Quarter 2014 | 90,000 | 1,000 | $ | 26 | $ | 35 | ||||||||||||||||||||||
Second Quarter 2014 | 91,000 | 1,000 | $ | 26 | $ | 35 | ||||||||||||||||||||||
Third Quarter 2014 | 92,000 | 1,000 | $ | 26 | $ | 35 | ||||||||||||||||||||||
Fourth Quarter 2014 | 92,000 | 1,000 | $ | 26 | $ | 35 | ||||||||||||||||||||||
Total | 365,000 | |||||||||||||||||||||||||||
Average price | $ | 26 | $ | 35 | ||||||||||||||||||||||||
Fuel Product | Jet Fuel Swap Contracts | ||||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||||
Schedule of Outstanding Derivative Positions | Jet Fuel Swap Contracts | |||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to jet fuel sales in its fuel products segment, none of which are designated as cash flow hedges. | ||||||||||||||||||||||||||||
Jet Fuel Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 180,000 | 2,000 | $ | 115.65 | ||||||||||||||||||||||||
Total | 180,000 | |||||||||||||||||||||||||||
Average price | $ | 115.65 | ||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives to purchase jet fuel in its fuel products segment, none of which are designated as cash flow hedges. | ||||||||||||||||||||||||||||
Jet Fuel Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 180,000 | 2,000 | $ | 100.91 | ||||||||||||||||||||||||
Total | 180,000 | |||||||||||||||||||||||||||
Average price | $ | 100.91 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to jet fuel sales in its fuel products segment, all of which are designated as cash flow hedges. | ||||||||||||||||||||||||||||
Jet Fuel Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2014 | 450,000 | 5,000 | $ | 117.5 | ||||||||||||||||||||||||
Second Quarter 2014 | 273,000 | 3,000 | $ | 116.68 | ||||||||||||||||||||||||
Third Quarter 2014 | 276,000 | 3,000 | $ | 116.18 | ||||||||||||||||||||||||
Fourth Quarter 2014 | 276,000 | 3,000 | $ | 115.65 | ||||||||||||||||||||||||
Calendar Year 2015 | 775,000 | 2,123 | $ | 114.05 | ||||||||||||||||||||||||
Total | 2,050,000 | |||||||||||||||||||||||||||
Average price | $ | 115.66 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives to purchase jet fuel in its fuel products segment, none of which are designated as cash flow hedges: | ||||||||||||||||||||||||||||
Jet Fuel Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap ($/Bbl) | |||||||||||||||||||||||||
First Quarter 2014 | 90,000 | 1,000 | $ | 116.71 | ||||||||||||||||||||||||
Total | 90,000 | |||||||||||||||||||||||||||
Average price | $ | 116.71 | ||||||||||||||||||||||||||
Fuel Product | Gasoline Swap Contracts | ||||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||||
Schedule of Outstanding Derivative Positions | Gasoline Swap Contracts | |||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to gasoline sales in its fuel products segment, all of which are designated as cash flow hedges: | ||||||||||||||||||||||||||||
Gasoline Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 315,000 | 3,500 | $ | 109.68 | ||||||||||||||||||||||||
Total | 315,000 | |||||||||||||||||||||||||||
Average price | $ | 109.68 | ||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to gasoline sales in its fuel products segment, none of which are designated as hedges: | ||||||||||||||||||||||||||||
Gasoline Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 45,000 | 500 | $ | 111.72 | ||||||||||||||||||||||||
Total | 45,000 | |||||||||||||||||||||||||||
Average price | $ | 111.72 | ||||||||||||||||||||||||||
At December 31, 2014, the Company had the following derivatives related to gasoline purchases in its fuel products segment, none of which are designated as hedges: | ||||||||||||||||||||||||||||
Gasoline Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 45,000 | 500 | $ | 78.12 | ||||||||||||||||||||||||
Total | 45,000 | |||||||||||||||||||||||||||
Average price | $ | 78.12 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to gasoline sales in its fuel products segment, all of which are designated as cash flow hedges: | ||||||||||||||||||||||||||||
Gasoline Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2014 | 945,000 | 10,500 | $ | 104.39 | ||||||||||||||||||||||||
Second Quarter 2014 | 955,500 | 10,500 | $ | 109.68 | ||||||||||||||||||||||||
Third Quarter 2014 | 966,000 | 10,500 | $ | 106.6 | ||||||||||||||||||||||||
Fourth Quarter 2014 | 460,000 | 5,000 | $ | 104.85 | ||||||||||||||||||||||||
Total | 3,326,500 | |||||||||||||||||||||||||||
Average price | $ | 106.61 | ||||||||||||||||||||||||||
At December 31, 2013, the Company had the following derivatives related to gasoline sales in its fuel products segment, none of which are designated as hedges. | ||||||||||||||||||||||||||||
Gasoline Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2014 | 630,000 | 7,000 | $ | 105.67 | ||||||||||||||||||||||||
Second Quarter 2014 | 409,500 | 4,500 | $ | 110.48 | ||||||||||||||||||||||||
Third Quarter 2014 | 644,000 | 7,000 | $ | 108.24 | ||||||||||||||||||||||||
Total | 1,683,500 | |||||||||||||||||||||||||||
Average price | $ | 107.82 | ||||||||||||||||||||||||||
Subsequent to December 31, 2014, the Company entered into the following derivatives related to gasoline sales in its fuel products segment: | ||||||||||||||||||||||||||||
Gasoline Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||||||||||||||||||||
($/Bbl) | ||||||||||||||||||||||||||||
First Quarter 2015 | 423,500 | 4,706 | $ | 61.64 | ||||||||||||||||||||||||
Second Quarter 2015 | 1,274,000 | 14,000 | $ | 69.42 | ||||||||||||||||||||||||
Third Quarter 2015 | 322,000 | 3,500 | $ | 70.55 | ||||||||||||||||||||||||
Total | 2,019,500 | |||||||||||||||||||||||||||
Average price | $ | 67.97 | ||||||||||||||||||||||||||
Commodity Contract [Member] | Designated as Hedging Instrument | Cash Flow Hedging [Member] | ||||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) by Hedging Relationship, by Income Statement Location, by Derivative Instrument Risk | The Company recorded the following amounts in its consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive income (loss) and consolidated statements of partners’ capital as of, and for the years ended December 31, 2014 and 2013 related to its derivative instruments that were designated as cash flow hedges (in millions): | |||||||||||||||||||||||||||
Amount of Gain (Loss) | Amount of Gain (Loss) | Amount of Gain (Loss) Recognized in Net | ||||||||||||||||||||||||||
Recognized in | Reclassified from | Income (Loss) on Derivatives | ||||||||||||||||||||||||||
Accumulated Other | Accumulated Other | (Ineffective Portion) | ||||||||||||||||||||||||||
Comprehensive | Comprehensive Income (Loss) into | |||||||||||||||||||||||||||
Income (Loss) on Derivatives | Net Income (Loss) (Effective Portion) | |||||||||||||||||||||||||||
(Effective Portion) | ||||||||||||||||||||||||||||
Year Ended December 31, | Location of | Year Ended December 31, | Location of | Year Ended December 31, | ||||||||||||||||||||||||
Type of Derivative | 2014 | 2013 | (Gain) Loss | 2014 | 2013 | Gain (Loss) | 2014 | 2013 | ||||||||||||||||||||
Fuel products segment: | ||||||||||||||||||||||||||||
Crude oil swaps | $ | (185.8 | ) | $ | 18.7 | Cost of sales | $ | 44.2 | $ | 3.1 | Unrealized/Realized | $ | 4.8 | $ | (3.0 | ) | ||||||||||||
Gasoline swaps | 56.3 | (19.5 | ) | Sales | (1.4 | ) | (0.4 | ) | Unrealized/Realized | (7.6 | ) | (1.7 | ) | |||||||||||||||
Diesel swaps | 220 | (28.8 | ) | Sales | (6.7 | ) | (4.4 | ) | Unrealized/Realized | — | (5.3 | ) | ||||||||||||||||
Jet fuel swaps | 23.7 | (7.3 | ) | Sales | (0.9 | ) | 1.7 | Unrealized/Realized | 0.6 | 5.1 | ||||||||||||||||||
Specialty products segment: | ||||||||||||||||||||||||||||
Crude oil swaps | — | — | Cost of sales | 1.8 | 0.5 | Unrealized/Realized | — | — | ||||||||||||||||||||
Total | $ | 114.2 | $ | (36.9 | ) | $ | 37 | $ | 0.5 | $ | (2.2 | ) | $ | (4.9 | ) | |||||||||||||
Interest Rate Contract [Member] | Designated as Hedging Instrument | Fair Value Hedging [Member] | ||||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) by Hedging Relationship, by Income Statement Location, by Derivative Instrument Risk | The Company recorded the following gains (losses) in its consolidated statements of operations for the years ended December 31, 2014 and 2013 related to its derivative instrument designated as a fair value hedge (in millions): | |||||||||||||||||||||||||||
Location of Gain (Loss) of Derivative | Amount of Gain Recognized in Net Income (Loss) | Hedged Item | Location of Gain (Loss) on Hedged Item | Amount of Loss Recognized in Net Income (Loss) | ||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Swaps not allocated to a specific segment: | ||||||||||||||||||||||||||||
Interest rate swap | Interest expense | $ | 2.5 | $ | — | 2022 Notes | Interest expense | $ | (2.5 | ) | $ | — | ||||||||||||||||
Total | $ | 2.5 | $ | — | $ | (2.5 | ) | $ | — | |||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Hierarchy of Recurring Fair Value Measurements | The Company’s recurring assets and liabilities measured at fair value at December 31, 2014 and 2013 were as follows (in millions): | |||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||
Crude oil swaps | $ | — | $ | — | $ | (89.8 | ) | $ | (89.8 | ) | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Crude oil basis swaps | — | — | 0.8 | 0.8 | — | — | — | — | ||||||||||||||||||||||||
Crude oil percent basis swaps | — | — | (0.2 | ) | (0.2 | ) | — | — | — | — | ||||||||||||||||||||||
Gasoline swaps | — | — | 13.5 | 13.5 | — | — | — | — | ||||||||||||||||||||||||
Diesel swaps | — | — | 97 | 97 | — | — | — | — | ||||||||||||||||||||||||
Diesel crack spread swaps | — | — | 4.5 | 4.5 | — | — | — | — | ||||||||||||||||||||||||
Jet fuel swaps | — | — | 2.7 | 2.7 | — | — | — | — | ||||||||||||||||||||||||
Natural gas swaps | — | — | (7.2 | ) | (7.2 | ) | — | — | — | — | ||||||||||||||||||||||
Natural gas collars | — | — | (0.5 | ) | (0.5 | ) | — | — | — | — | ||||||||||||||||||||||
Platinum swaps | — | — | (0.1 | ) | (0.1 | ) | — | — | — | — | ||||||||||||||||||||||
Interest rate swaps | — | — | 2.5 | 2.5 | — | — | — | — | ||||||||||||||||||||||||
Total derivative assets | — | — | 23.2 | 23.2 | — | — | — | — | ||||||||||||||||||||||||
Pension plan investments | 0.2 | 49.4 | — | 49.6 | — | 45.8 | — | 45.8 | ||||||||||||||||||||||||
Total recurring assets at fair value | $ | 0.2 | $ | 49.4 | $ | 23.2 | $ | 72.8 | $ | — | $ | 45.8 | $ | — | $ | 45.8 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||||||
Crude oil swaps | $ | — | $ | — | $ | 5 | $ | 5 | $ | — | $ | — | $ | 37 | $ | 37 | ||||||||||||||||
Crude oil basis swaps | — | — | — | — | — | — | 0.4 | 0.4 | ||||||||||||||||||||||||
Gasoline swaps | — | — | 3.8 | 3.8 | — | — | (28.1 | ) | (28.1 | ) | ||||||||||||||||||||||
Diesel swaps | — | — | (9.0 | ) | (9.0 | ) | — | — | (50.6 | ) | (50.6 | ) | ||||||||||||||||||||
Jet fuel swaps | — | — | — | — | — | — | (12.4 | ) | (12.4 | ) | ||||||||||||||||||||||
Diesel crack spread collars | — | — | — | — | — | — | 0.1 | 0.1 | ||||||||||||||||||||||||
Natural gas swaps | — | — | (4.9 | ) | (4.9 | ) | — | — | (1.2 | ) | (1.2 | ) | ||||||||||||||||||||
Natural gas collars | — | — | (0.5 | ) | (0.5 | ) | — | — | — | — | ||||||||||||||||||||||
Total derivative liabilities | — | — | (5.6 | ) | (5.6 | ) | — | — | (54.8 | ) | (54.8 | ) | ||||||||||||||||||||
RINs Obligation | — | (16.3 | ) | — | (16.3 | ) | — | (5.3 | ) | — | (5.3 | ) | ||||||||||||||||||||
Liability Awards | (4.7 | ) | — | — | (4.7 | ) | (3.7 | ) | — | — | (3.7 | ) | ||||||||||||||||||||
Total recurring liabilities at fair value | $ | (4.7 | ) | $ | (16.3 | ) | $ | (5.6 | ) | $ | (26.6 | ) | $ | (3.7 | ) | $ | (5.3 | ) | $ | (54.8 | ) | $ | (63.8 | ) | ||||||||
Summary of Net Changes in Fair Value of the Company's Level 3 Financial Assets and Liabilities | The table below sets forth a summary of net changes in fair value of the Company’s Level 3 financial assets and liabilities for the years ended December 31, 2014 and 2013 (in millions): | |||||||||||||||||||||||||||||||
Derivative Instruments, Net | ||||||||||||||||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Fair value at January 1, | $ | (54.8 | ) | $ | (44.9 | ) | ||||||||||||||||||||||||||
Realized (gain) loss on derivative instruments | (43.8 | ) | 4.7 | |||||||||||||||||||||||||||||
Unrealized gain (loss) on derivative instruments | (0.6 | ) | 25.7 | |||||||||||||||||||||||||||||
Interest income, net | (0.8 | ) | — | |||||||||||||||||||||||||||||
Change in fair value of cash flow hedges | 114.2 | (36.9 | ) | |||||||||||||||||||||||||||||
Settlements | 3.4 | (3.4 | ) | |||||||||||||||||||||||||||||
Transfers in (out) of Level 3 | — | — | ||||||||||||||||||||||||||||||
Fair value at December 31, | $ | 17.6 | $ | (54.8 | ) | |||||||||||||||||||||||||||
Total gain (loss) included in net income (loss) attributable to changes in unrealized gain (loss) relating to financial assets and liabilities held as of December 31, | $ | (0.6 | ) | $ | 25.7 | |||||||||||||||||||||||||||
Carrying and Estimated Fair Value of the Company's Financial Instruments, Carried at Adjusted Historical Cost, by Balance Sheet Grouping | The Company’s carrying and estimated fair value of the Company’s financial instruments, carried at adjusted historical cost, at December 31, 2014 and 2013 were as follows (in millions): | |||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Level | Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||||||||||||||||
Financial Instrument: | ||||||||||||||||||||||||||||||||
Senior notes | 1 | $ | 630 | $ | 619.1 | $ | 863.6 | $ | 761.2 | |||||||||||||||||||||||
Senior notes | 2 | $ | 803.3 | $ | 900 | $ | 353.9 | $ | 344.8 | |||||||||||||||||||||||
Revolving credit facility | 3 | $ | 150.8 | $ | 150.8 | $ | — | $ | — | |||||||||||||||||||||||
Capital lease and other obligations | 3 | $ | 43.6 | $ | 43.6 | $ | 4.8 | $ | 4.8 | |||||||||||||||||||||||
Partners_Capital_Partners_Capi
Partners' Capital Partner's Capital (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||
Schedule of Incentive Distributions | The Company’s general partner is entitled to incentive distributions if the amount it distributes to unitholders with respect to any quarter exceeds specified target levels shown below: | |||||||||||||||||||||
Total Quarterly | Marginal Percentage | |||||||||||||||||||||
Distribution Per Common Unit | Interest in Distributions | |||||||||||||||||||||
Target Amount | Unitholders | General Partner | ||||||||||||||||||||
Minimum Quarterly Distribution | $0.45 | 98 | % | 2 | % | |||||||||||||||||
First Target Distribution | up to $0.495 | 98 | % | 2 | % | |||||||||||||||||
Second Target Distribution | above $0.495 up to $0.563 | 85 | % | 15 | % | |||||||||||||||||
Third Target Distribution | above $0.563 up to $0.675 | 75 | % | 25 | % | |||||||||||||||||
Thereafter | above $0.675 | 50 | % | 50 | % | |||||||||||||||||
Public Offering of Common Units | During 2014, 2013 and 2012, the Company completed the following marketed public offerings of its common units (in millions except unit and per unit data): | |||||||||||||||||||||
Closing Date | Number of Common Units Offered | Price per Unit | Net Proceeds (1) | General Partner Contribution (2) | Underwriting Discount | Use of Proceeds | ||||||||||||||||
May 8, 2012 | 6,000,000 | $ | 25.5 | $ | 146.6 | $ | 3.1 | $ | 6.2 | Net proceeds were used to repay borrowings under the revolving credit facility. | ||||||||||||
January 8, 2013 | 5,750,000 | (3) | $ | 31.81 | $ | 175.2 | $ | 3.8 | $ | 7.4 | Net proceeds were used to repay borrowings under the revolving credit facility and for general partnership purposes. | |||||||||||
April 1, 2013 | 6,037,500 | (4) | $ | 37.5 | $ | 217.3 | $ | 4.6 | $ | 9.1 | Net proceeds were used for general partnership purposes. | |||||||||||
(1) | Proceeds are net of underwriting discounts, commissions and expenses but before its general partner’s capital contribution. | |||||||||||||||||||||
(2) | The Company’s general partner contributions were made to retain its 2% general partner interest. | |||||||||||||||||||||
(3) | Includes the full exercise of the overallotment option of 750,000 common units which closed concurrently with the 5,000,000 firm units on January 8, 2013. | |||||||||||||||||||||
(4) | Includes the full exercise of the overallotment option of 787,500 common units which closed on April 4, 2013. |
UnitBased_Compensation_Tables
Unit-Based Compensation (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||
Summary of the Company's nonvested phantom units | A summary of the Company’s nonvested phantom units as of December 31, 2014, and the changes during the years ended December 31, 2014, 2013 and 2012, are presented below: | ||||||
Number of | Weighted-Average | ||||||
Phantom Units | Grant Date | ||||||
Fair Value | |||||||
Non-vested at January 1, 2012 | 562,696 | $ | 19.77 | ||||
Granted | 616,997 | 26.69 | |||||
Vested | (286,976 | ) | 21.16 | ||||
Forfeited | (56,790 | ) | 20 | ||||
Non-vested at December 31, 2012 | 835,927 | $ | 27.57 | ||||
Granted | 483,044 | 27.73 | |||||
Vested | (276,115 | ) | 24.22 | ||||
Forfeited | (354,600 | ) | 30.6 | ||||
Non-vested at December 31, 2013 | 688,256 | $ | 23.7 | ||||
Granted | 477,527 | 25.97 | |||||
Vested | (280,263 | ) | 23.72 | ||||
Forfeited | (383,400 | ) | 25.59 | ||||
Non-vested at December 31, 2014 | 502,120 | $ | 26.48 | ||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||
Schedule of Contribution Expenses | The Company recorded the following 401(k) Plan matching contribution and profit sharing expenses in the consolidated statement of operations for the years ended December 31, 2014, 2013 and 2012 (in millions): | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
401(k) Plan matching contribution expense | $ | 5.4 | $ | 4.1 | $ | 3.2 | ||||||||||||||||||
Profit sharing expense | $ | 1.2 | $ | 0.9 | $ | 2.5 | ||||||||||||||||||
Schedule of Changes in Projected Benefit Obligations | The change in the benefit obligations, change in the plan assets, funded status and amounts recognized in the consolidated balance sheets were as follows (in millions): | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Pension | Other Plan | Pension | Other Plan | |||||||||||||||||||||
Plan | Plan | |||||||||||||||||||||||
Change in projected benefit obligation: | ||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 57.2 | $ | 0.3 | $ | 65.3 | $ | 0.3 | ||||||||||||||||
Service cost | 0.4 | — | 0.4 | — | ||||||||||||||||||||
Interest cost | 2.6 | — | 2.4 | — | ||||||||||||||||||||
Benefits paid | (2.5 | ) | (0.1 | ) | (2.3 | ) | — | |||||||||||||||||
Actuarial (gain) loss | 11.7 | — | (8.5 | ) | — | |||||||||||||||||||
Administrative expense | (0.1 | ) | — | (0.1 | ) | — | ||||||||||||||||||
Benefit obligation at end of year | $ | 69.3 | $ | 0.2 | $ | 57.2 | $ | 0.3 | ||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 45.8 | $ | — | $ | 41.6 | $ | — | ||||||||||||||||
Benefit payments | (2.5 | ) | (0.1 | ) | (2.3 | ) | — | |||||||||||||||||
Actual return on assets | 4.9 | — | 3.2 | — | ||||||||||||||||||||
Administrative expense | (0.1 | ) | — | (0.1 | ) | — | ||||||||||||||||||
Employer contribution | 1.5 | — | 3.4 | — | ||||||||||||||||||||
Fair value of plan assets at end of year | $ | 49.6 | $ | (0.1 | ) | $ | 45.8 | $ | — | |||||||||||||||
Funded status — benefit obligation in excess of plan assets | $ | (19.7 | ) | $ | (0.3 | ) | $ | (11.4 | ) | $ | (0.3 | ) | ||||||||||||
Reconciliation of amounts recognized in the consolidated balance sheets: | ||||||||||||||||||||||||
Accrued benefit obligation, long-term | $ | (19.7 | ) | $ | (0.3 | ) | $ | (11.4 | ) | $ | (0.3 | ) | ||||||||||||
Prior service credit | — | (0.2 | ) | — | (0.2 | ) | ||||||||||||||||||
Unrecognized net actuarial (gain) loss | 11.9 | (0.2 | ) | 2.3 | (0.2 | ) | ||||||||||||||||||
Accumulated other comprehensive (income) loss | 11.9 | (0.4 | ) | 2.3 | (0.4 | ) | ||||||||||||||||||
Net amount recognized at end of year | $ | (7.8 | ) | $ | (0.7 | ) | $ | (9.1 | ) | $ | (0.7 | ) | ||||||||||||
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Selected information for the Company’s pension plans with an accumulated benefit obligation in excess of plan assets were as follows (in millions): | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Accumulated benefit obligation | $ | 68.4 | $ | 52.9 | ||||||||||||||||||||
Fair value of plan assets | $ | 49.6 | $ | 41.8 | ||||||||||||||||||||
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | Selected information for the Company’s Pension Plan with projected benefit obligation in excess of plan assets were as follows (in millions): | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Projected benefit obligation | $ | 69.3 | $ | 57.2 | ||||||||||||||||||||
Fair value of plan assets | $ | 49.6 | $ | 45.8 | ||||||||||||||||||||
Components of Net Periodic Pension and Other Post Retirement Benefits Cost | The components of net periodic pension cost and other post retirement benefits income for 2014, 2013 and 2012 were as follows (in millions): | |||||||||||||||||||||||
Pension Plan | Other Plan | |||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 0.4 | $ | 0.4 | $ | 1.1 | $ | — | $ | — | $ | 0.3 | ||||||||||||
Interest cost | 2.6 | 2.4 | 2.4 | — | — | 0.2 | ||||||||||||||||||
Expected return on assets | (3.1 | ) | (2.9 | ) | (1.7 | ) | — | — | — | |||||||||||||||
Amortization of net loss | 0.3 | 0.8 | 0.6 | — | — | — | ||||||||||||||||||
Curtailment gain recognized | — | — | (0.2 | ) | — | — | (7.0 | ) | ||||||||||||||||
Settlement gain recognized | — | — | — | — | — | (0.2 | ) | |||||||||||||||||
Net periodic benefit cost (income) | $ | 0.2 | $ | 0.7 | $ | 2.2 | $ | — | $ | — | $ | (6.7 | ) | |||||||||||
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | The components of changes recognized in other comprehensive (income) loss for the Pension Plan and Other Plan for 2014, 2013 and 2012 were as follows (in millions): | |||||||||||||||||||||||
Pension Plan | Other Plan | |||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss: | ||||||||||||||||||||||||
Net (gain) loss | $ | 9.9 | $ | (8.8 | ) | $ | 4.3 | $ | — | $ | — | $ | 0.1 | |||||||||||
Net prior service cost | — | — | — | — | — | (0.1 | ) | |||||||||||||||||
Amounts recognized as a component of net periodic benefit cost: | ||||||||||||||||||||||||
Amortization or settlement recognition of net loss | (0.3 | ) | (0.8 | ) | (0.6 | ) | — | — | (0.8 | ) | ||||||||||||||
Amortization or curtailment recognition of prior service credit | — | — | — | — | — | 0.1 | ||||||||||||||||||
Total recognized in other comprehensive (income) loss | $ | 9.6 | $ | (9.6 | ) | $ | 3.7 | $ | — | $ | — | $ | (0.7 | ) | ||||||||||
Schedule of Assumptions Used | The significant weighted average assumptions used to determine the benefit obligations for the years ended December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||
Benefit Obligations | ||||||||||||||||||||||||
Assumptions | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Pension Plan: | ||||||||||||||||||||||||
Discount rate for Penreco Pension Plan | 3.92 | % | 4.78 | % | ||||||||||||||||||||
Discount rate for Superior Pension Plan | 3.86 | % | 4.66 | % | ||||||||||||||||||||
Discount rate for Montana Pension Plan | 4.13 | % | 4.97 | % | ||||||||||||||||||||
Rate of compensation increase for Montana Pension Plan | 3 | % | 3 | % | ||||||||||||||||||||
Other Plan: | ||||||||||||||||||||||||
Discount rate for Penreco Other Plan | 3.7 | % | 4.29 | % | ||||||||||||||||||||
Immediate trend rate for Penreco Other Plan (1) | 7.3 | % | 7.5 | % | ||||||||||||||||||||
Ultimate trend rate for Penreco Other Plan (1) | 4.5 | % | 4.5 | % | ||||||||||||||||||||
Year that the rate reaches ultimate trend rate for Penreco Other Plan (1) | 2029 | 2029 | ||||||||||||||||||||||
(1) | For measurement purposes, an annual rate of increase in the per capita cost of covered health care benefits was assumed for 2014. The rate was assumed to decrease by 0.20% per year for an ultimate rate of 4.50% in 2029 for the Penreco Other Plan and remain at that level thereafter. | |||||||||||||||||||||||
The significant weighted average assumptions used to determine the net periodic benefit cost (income) for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
Net Periodic Benefit Cost (Income) | ||||||||||||||||||||||||
Assumptions | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Pension Plan: | ||||||||||||||||||||||||
Discount rate for Penreco Pension Plan | 4.78 | % | 3.86 | % | 4.63 | % | ||||||||||||||||||
Discount rate for Superior Pension Plan | 4.66 | % | 3.75 | % | 4.55 | % | ||||||||||||||||||
Discount rate for Montana Pension Plan | 4.97 | % | 4.03 | % | 3.89 | % | ||||||||||||||||||
Expected return on plan assets for Penreco Pension Plan (1) | 6.75 | % | 6.75 | % | 6 | % | ||||||||||||||||||
Expected return on plan assets for Superior Pension Plan (1) | 6.75 | % | 6.75 | % | 3 | % | ||||||||||||||||||
Expected return on plan assets for Montana Pension Plan (1) | 6.75 | % | 6.75 | % | 6 | % | ||||||||||||||||||
Rate of compensation increase for Superior Pension Plan | N/A | N/A | 3.75 | % | ||||||||||||||||||||
Rate of compensation increase for Montana Pension Plan | 3 | % | 3 | % | 3 | % | ||||||||||||||||||
Other Plan: | ||||||||||||||||||||||||
Discount rate for Penreco Other Plan | 4.29 | % | 3.33 | % | 4.04 | % | ||||||||||||||||||
Discount rate for Superior Other Plan | N/A | N/A | 4.65 | % | ||||||||||||||||||||
Immediate trend rate (2) | 7.5 | % | 7.7 | % | 8 | % | ||||||||||||||||||
Ultimate trend rate for Penreco Other Plan (2) | 4.5 | % | 4.5 | % | 4.5 | % | ||||||||||||||||||
Ultimate trend rate for Superior Other Plan (2) | N/A | N/A | 4.5 | % | ||||||||||||||||||||
Year that the rate reaches ultimate trend rate for Penreco Other Plan (2) | 2029 | 2029 | 2029 | |||||||||||||||||||||
Year that the rate reaches ultimate trend rate for Superior Other Plan (2) | N/A | N/A | 2029 | |||||||||||||||||||||
(1) | The Company considered the historical returns, the future expectation for returns for each asset class and fair value of the plan assets, as well as the target asset allocation of the Pension Plan portfolio which was developed in accordance with the Company’s Statement of Investment Policy, to develop the expected long-term rate of return on plan assets. | |||||||||||||||||||||||
(2) | For measurement purposes, an annual rate of increase in the per capita cost of covered health care benefits was assumed for 2014. The rate was assumed to decrease by 0.20% per year for an ultimate rate of 4.50% for 2029 for the Penreco Other Plan and remain at that level thereafter. | |||||||||||||||||||||||
Schedule of Allocation of Plan Assets | The Pension Plan’s target asset allocation is currently comprised of the following: | |||||||||||||||||||||||
Asset Class | Range of | Target | ||||||||||||||||||||||
Asset Allocation | Allocation | |||||||||||||||||||||||
Domestic equities | 0 — 50% | 25 | % | |||||||||||||||||||||
Foreign equities | 0 — 50% | 25 | % | |||||||||||||||||||||
Fixed income | 50 — 100% | 50 | % | |||||||||||||||||||||
The Company’s Pension Plan asset allocations, as of December 31, 2014 and 2013 by asset category, are as follows: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Domestic equities | 20 | % | 23 | % | ||||||||||||||||||||
Foreign equities | 19 | % | 23 | % | ||||||||||||||||||||
Fixed income | 61 | % | 54 | % | ||||||||||||||||||||
100 | % | 100 | % | |||||||||||||||||||||
Schedule of Pension Plan assets measured at fair value | The Company’s Pension Plan assets measured at fair value at December 31, 2014 and 2013 were as follows (in millions): | |||||||||||||||||||||||
Fair Value of Pension Assets at December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 1 | Level 2 | |||||||||||||||||||||
Cash and cash equivalents | $ | 0.2 | $ | — | $ | — | $ | — | ||||||||||||||||
Domestic equities | — | 10 | — | 10.6 | ||||||||||||||||||||
Foreign equities | — | 9.4 | — | 10.6 | ||||||||||||||||||||
Fixed income | — | 30 | — | 24.6 | ||||||||||||||||||||
$ | 0.2 | $ | 49.4 | $ | — | $ | 45.8 | |||||||||||||||||
Schedule of Expected Benefit Payments | The following benefit payments for the Pension Plan, which reflect expected future service, as appropriate, are expected to be paid in the years indicated as of December 31, 2014 (in millions): | |||||||||||||||||||||||
Pension | ||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||
2015 | $ | 2.6 | ||||||||||||||||||||||
2016 | 2.7 | |||||||||||||||||||||||
2017 | 2.8 | |||||||||||||||||||||||
2018 | 3 | |||||||||||||||||||||||
2019 | 3.2 | |||||||||||||||||||||||
2020 to 2024 | 18 | |||||||||||||||||||||||
Total | $ | 32.3 | ||||||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The table below sets forth a summary of changes in accumulated other comprehensive loss by component for the year ended December 31, 2014 (in millions): | |||||||||||||||
Derivatives | Defined Benefit Pension And Retiree Health Benefit Plans | Foreign Currency Translation Adjustment | Total | |||||||||||||
Accumulated other comprehensive loss at December 31, 2013 | $ | (51.4 | ) | $ | (1.9 | ) | $ | (0.1 | ) | $ | (53.4 | ) | ||||
Other comprehensive income (loss) before reclassifications | 114.2 | (9.9 | ) | (0.5 | ) | 103.8 | ||||||||||
Amounts reclassified from accumulated other comprehensive income | (37.0 | ) | 0.3 | — | (36.7 | ) | ||||||||||
Net current period other comprehensive income (loss) | 77.2 | (9.6 | ) | (0.5 | ) | 67.1 | ||||||||||
Accumulated other comprehensive income (loss) at December 31, 2014 | $ | 25.8 | $ | (11.5 | ) | $ | (0.6 | ) | $ | 13.7 | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The table below sets forth a summary of reclassification adjustments out of accumulated other comprehensive loss in the Company’s consolidated statements of operations for the year ended December 31, 2014 (in millions): | |||||||||||||||
Components of Accumulated Other Comprehensive Loss | Amount Reclassified From Accumulated Other Comprehensive Loss | Location of Gain (Loss) | ||||||||||||||
Derivative gains (losses) reflected in gross profit | ||||||||||||||||
$ | (9.0 | ) | Sales | |||||||||||||
46 | Cost of sales | |||||||||||||||
$ | 37 | Total | ||||||||||||||
Amortization of defined benefit pension benefit plans: | ||||||||||||||||
Amortization of net loss | $ | (0.3 | ) | (1) | ||||||||||||
$ | (0.3 | ) | Total | |||||||||||||
________________________ | ||||||||||||||||
(1) | This accumulated other comprehensive loss component is included in the computation of net periodic pension cost. See Note 12 for additional information. |
Income_Taxes_Income_Taxes_Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | he components of federal and state income tax expense are summarized as follows (in millions): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current expense: | ||||||||||||
Federal | $ | 0.2 | $ | — | $ | — | ||||||
State | 0.2 | 0.4 | 0.8 | |||||||||
Total | $ | 0.4 | $ | 0.4 | $ | 0.8 | ||||||
Deferred expense (benefit): | ||||||||||||
Federal | $ | (1.5 | ) | $ | — | $ | — | |||||
State | 0.3 | — | — | |||||||||
Total | $ | (1.2 | ) | $ | — | $ | — | |||||
Total income tax expense (benefit) | $ | (0.8 | ) | $ | 0.4 | $ | 0.8 | |||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of effective tax rate to the U.S. statutory rate attributable to operations for December 31, 2014, 2013 and 2012 is as follows: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
Partnership earnings not subject to tax | (22.4 | )% | (35.0 | )% | (35.0 | )% | ||||||
State income taxes, net of federal income tax effect | (0.4 | )% | 11.4 | % | 0.4 | % | ||||||
Impact of non-deductible goodwill | (11.5 | )% | — | % | — | % | ||||||
Other items, net | — | % | (1.1 | )% | — | % | ||||||
Effective tax rate | 0.7 | % | 10.3 | % | 0.4 | % | ||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The table below summarizes the principal components of the deferred tax assets (liabilities) as follows as of December 31, 2014 and 2013 (in millions): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred income tax assets: | ||||||||||||
Inventory | $ | 2.3 | $ | — | ||||||||
Net operating loss carryforwards | 3.7 | — | ||||||||||
Total deferred income tax assets | $ | 6 | $ | — | ||||||||
Deferred income tax liabilities: | ||||||||||||
Intangible assets | $ | (22.0 | ) | $ | — | |||||||
Property, plant and equipment | (14.0 | ) | (1.7 | ) | ||||||||
Total deferred income tax liabilities | $ | (36.0 | ) | $ | (1.7 | ) | ||||||
Net deferred income tax liability | $ | (30.0 | ) | $ | (1.7 | ) | ||||||
Earnings_Per_Unit_Tables
Earnings Per Unit (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Unit [Abstract] | ||||||||||||
Earnings per Unit | The following table sets forth the computation of basic and diluted earnings per limited partner unit for the years ended December 31, 2014, 2013 and 2012 (in millions, except unit and per unit data): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Numerator for basic and diluted earnings per limited partner unit: | ||||||||||||
Net income (loss) | $ | (112.2 | ) | $ | 3.5 | $ | 205.7 | |||||
Less: | ||||||||||||
General partner’s interest in net income (loss) | (2.2 | ) | 0.1 | 4.1 | ||||||||
General partner’s incentive distribution rights | 15.4 | 14.7 | 5.5 | |||||||||
Non-vested share based payments | — | 0.2 | 1.1 | |||||||||
Net income (loss) available to limited partners | $ | (125.4 | ) | $ | (11.5 | ) | $ | 195 | ||||
Denominator for basic and diluted earnings per limited partner unit: | ||||||||||||
Basic weighted average limited partner units outstanding | 69,671,827 | 67,938,784 | 55,559,183 | |||||||||
Effect of dilutive securities: | ||||||||||||
Participating securities — phantom units | — | — | 117,558 | |||||||||
Diluted weighted average limited partner units outstanding (1) | 69,671,827 | 67,938,784 | 55,676,741 | |||||||||
Limited partners’ interest basic net income (loss) per unit | $ | (1.80 | ) | $ | (0.17 | ) | $ | 3.51 | ||||
Limited partners’ interest diluted net income (loss) per unit | $ | (1.80 | ) | $ | (0.17 | ) | $ | 3.5 | ||||
_____________ | ||||||||||||
(1) | Total diluted weighted average limited partner units outstanding excludes 0.2 million and 0.2 million potentially dilutive phantom units for the years ended December 31, 2014 and 2013. |
Segments_and_Related_Informati2
Segments and Related Information (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Reportable segment information | Reportable segment information is as follows (in millions): | |||||||||||||||||||||||
Year Ended December 31, 2014 | Specialty | Fuel | Oilfield | Combined | Eliminations | Consolidated | ||||||||||||||||||
Products | Products | Services | Segments | Total | ||||||||||||||||||||
Sales: | ||||||||||||||||||||||||
External customers | $ | 1,729.20 | $ | 3,693.40 | $ | 368.5 | $ | 5,791.10 | $ | — | $ | 5,791.10 | ||||||||||||
Intersegment sales | 18.4 | 89.8 | — | 108.2 | (108.2 | ) | — | |||||||||||||||||
Total sales | $ | 1,747.60 | $ | 3,783.20 | $ | 368.5 | $ | 5,899.30 | $ | (108.2 | ) | $ | 5,791.10 | |||||||||||
Adjusted EBITDA | $ | 220.8 | $ | 50 | $ | 35.1 | $ | 305.9 | $ | — | $ | 305.9 | ||||||||||||
Reconciling items to net loss: | ||||||||||||||||||||||||
Depreciation and amortization | 68.1 | 80 | 15 | 163.1 | — | 163.1 | ||||||||||||||||||
Realized gain (loss) on derivatives, not reflected in net loss | (1.9 | ) | 8.5 | — | 6.6 | — | 6.6 | |||||||||||||||||
Asset impairment | — | — | 36 | 36 | — | 36 | ||||||||||||||||||
Unrealized loss on derivatives | 0.6 | |||||||||||||||||||||||
Interest expense | 110.8 | |||||||||||||||||||||||
Debt extinguishment costs | 89.9 | |||||||||||||||||||||||
Non-cash equity based compensation and other items | 11.9 | |||||||||||||||||||||||
Income tax benefit | (0.8 | ) | ||||||||||||||||||||||
Net loss | $ | (112.2 | ) | |||||||||||||||||||||
Year Ended December 31, 2013 | Specialty | Fuel | Oilfield | Combined | Eliminations | Consolidated | ||||||||||||||||||
Products | Products | Services | Segments | Total | ||||||||||||||||||||
Sales: | ||||||||||||||||||||||||
External customers | $ | 1,774.90 | $ | 3,646.50 | $ | — | $ | 5,421.40 | $ | — | $ | 5,421.40 | ||||||||||||
Intersegment sales | — | 77.3 | — | 77.3 | (77.3 | ) | — | |||||||||||||||||
Total sales | $ | 1,774.90 | $ | 3,723.80 | $ | — | $ | 5,498.70 | $ | (77.3 | ) | $ | 5,421.40 | |||||||||||
Adjusted EBITDA | $ | 194.5 | $ | 47 | $ | — | $ | 241.5 | $ | — | $ | 241.5 | ||||||||||||
Reconciling items to net income: | ||||||||||||||||||||||||
Depreciation and amortization | 66.6 | 67.1 | — | 133.7 | — | 133.7 | ||||||||||||||||||
Realized loss on derivatives, not reflected in net income | (0.5 | ) | (1.3 | ) | — | (1.8 | ) | — | (1.8 | ) | ||||||||||||||
Asset impairment | 10.5 | — | — | 10.5 | — | 10.5 | ||||||||||||||||||
Unrealized gain on derivatives | (25.7 | ) | ||||||||||||||||||||||
Interest expense | 96.8 | |||||||||||||||||||||||
Debt extinguishment costs | 14.6 | |||||||||||||||||||||||
Non-cash equity based compensation and other items | 9.5 | |||||||||||||||||||||||
Income tax expense | 0.4 | |||||||||||||||||||||||
Net income | $ | 3.5 | ||||||||||||||||||||||
Year Ended December 31, 2012 | Specialty | Fuel | Oilfield | Combined | Eliminations | Consolidated | ||||||||||||||||||
Products | Products | Services | Segments | Total | ||||||||||||||||||||
Sales: | ||||||||||||||||||||||||
External customers | $ | 1,849.90 | $ | 2,807.40 | $ | — | $ | 4,657.30 | $ | — | $ | 4,657.30 | ||||||||||||
Intersegment sales | — | 50.2 | — | 50.2 | (50.2 | ) | — | |||||||||||||||||
Total Sales | $ | 1,849.90 | $ | 2,857.60 | $ | — | $ | 4,707.50 | $ | (50.2 | ) | $ | 4,657.30 | |||||||||||
Adjusted EBITDA | $ | 283.2 | $ | 121.4 | $ | — | $ | 404.6 | $ | — | $ | 404.6 | ||||||||||||
Reconciling items to net income: | ||||||||||||||||||||||||
Depreciation and amortization | 55.8 | 49.2 | — | 105 | — | 105 | ||||||||||||||||||
Realized loss on derivatives, not reflected in net income | (1.9 | ) | (3.1 | ) | — | (5.0 | ) | — | (5.0 | ) | ||||||||||||||
Asset impairment | 1.6 | — | — | 1.6 | — | 1.6 | ||||||||||||||||||
Unrealized loss on derivatives | 3.8 | |||||||||||||||||||||||
Interest expense | 85.6 | |||||||||||||||||||||||
Non-cash equity based compensation and other items | 7.1 | |||||||||||||||||||||||
Income tax expense | 0.8 | |||||||||||||||||||||||
Net income | $ | 205.7 | ||||||||||||||||||||||
Major product category sales | The following table sets forth the major product category sales (in millions): | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Specialty products: | ||||||||||||||||||||||||
Lubricating oils | $ | 748.4 | 12.9 | % | $ | 848.8 | 15.7 | % | $ | 1,007.90 | 21.6 | % | ||||||||||||
Solvents | 485.2 | 8.4 | % | 511.7 | 9.4 | % | 491.1 | 10.5 | % | |||||||||||||||
Waxes | 144.1 | 2.5 | % | 141 | 2.6 | % | 142.8 | 3.1 | % | |||||||||||||||
Packaged and synthetic specialty products | 313.5 | 5.4 | % | 233.6 | 4.3 | % | 161.7 | 3.5 | % | |||||||||||||||
Other | 38 | 0.7 | % | 39.8 | 0.7 | % | 46.4 | 1 | % | |||||||||||||||
Total | 1,729.20 | 29.9 | % | 1,774.90 | 32.7 | % | 1,849.90 | 39.7 | % | |||||||||||||||
Fuel products: | ||||||||||||||||||||||||
Gasoline | 1,443.10 | 24.9 | % | 1,409.40 | 26 | % | 1,174.90 | 25.2 | % | |||||||||||||||
Diesel | 1,197.40 | 20.7 | % | 1,259.20 | 23.3 | % | 941 | 20.2 | % | |||||||||||||||
Jet fuel | 199.3 | 3.4 | % | 191.4 | 3.5 | % | 184 | 4 | % | |||||||||||||||
Asphalt, heavy fuel oils and other | 853.6 | 14.7 | % | 786.5 | 14.5 | % | 507.5 | 10.9 | % | |||||||||||||||
Total | 3,693.40 | 63.7 | % | 3,646.50 | 67.3 | % | 2,807.40 | 60.3 | % | |||||||||||||||
Oilfield services: | ||||||||||||||||||||||||
Total | 368.5 | 6.4 | % | — | — | % | — | — | % | |||||||||||||||
Consolidated sales | $ | 5,791.10 | 100 | % | $ | 5,421.40 | 100 | % | $ | 4,657.30 | 100 | % | ||||||||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Quarterly Financial Data (Unaudited) | The table below sets forth selected quarterly financial data for each of the last two fiscal years (in millions, except unit and per unit data): | |||||||||||||||||||
First | Second | Third | Fourth | Total (1) | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
2014 | ||||||||||||||||||||
Sales | $ | 1,341.00 | $ | 1,434.90 | $ | 1,675.80 | $ | 1,339.40 | $ | 5,791.10 | ||||||||||
Gross profit | 124.8 | 99 | 182.6 | 123.3 | 529.7 | |||||||||||||||
Net income (loss) | (49.8 | ) | (8.3 | ) | 9.4 | (63.5 | ) | (112.2 | ) | |||||||||||
Net income (loss) available to limited partners | (52.6 | ) | (12.0 | ) | 5.4 | (66.2 | ) | (125.4 | ) | |||||||||||
Limited partners’ interest basic net income (loss) per unit | $ | (0.76 | ) | $ | (0.17 | ) | $ | 0.08 | $ | (0.95 | ) | $ | (1.80 | ) | ||||||
Limited partners’ interest diluted net income (loss) per unit | $ | (0.76 | ) | $ | (0.17 | ) | $ | 0.08 | $ | (0.95 | ) | $ | (1.80 | ) | ||||||
Weighted average limited partner units outstanding — basic | 69,622,884 | 69,604,669 | 69,684,621 | 69,775,827 | ||||||||||||||||
Weighted average limited partner units outstanding — diluted | 69,622,884 | 69,604,669 | 69,850,685 | 69,775,827 | ||||||||||||||||
First | Second | Third | Fourth | Total (1) | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
2013 | ||||||||||||||||||||
Sales | $ | 1,318.60 | $ | 1,354.20 | $ | 1,505.50 | $ | 1,243.10 | $ | 5,421.40 | ||||||||||
Gross profit | 134.4 | 101 | 62.1 | 112.5 | 410 | |||||||||||||||
Net income (loss) | 46 | 7.8 | (34.8 | ) | (15.5 | ) | 3.5 | |||||||||||||
Net income (loss) available to limited partners | 41.7 | 3.8 | (37.9 | ) | (19.0 | ) | (11.5 | ) | ||||||||||||
Limited partners’ interest basic net income (loss) per unit | $ | 0.67 | $ | 0.05 | $ | (0.54 | ) | $ | (0.27 | ) | $ | (0.17 | ) | |||||||
Limited partners’ diluted net income (loss) per unit | $ | 0.66 | $ | 0.05 | $ | (0.54 | ) | $ | (0.27 | ) | $ | (0.17 | ) | |||||||
Weighted average limited partner units outstanding — basic | 62,831,155 | 69,571,855 | 69,626,650 | 69,635,865 | ||||||||||||||||
Weighted average limited partner units outstanding — diluted | 63,017,869 | 69,769,536 | 69,626,650 | 69,635,865 | ||||||||||||||||
(1) | The sum of the four quarters may not equal the total year due to rounding. |
Subsequent_Events_Subsequent_E
Subsequent Events Subsequent Events (Tables) (Fuel Product) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Crude Oil Basis Swaps | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Schedule of Outstanding Derivative Positions | Crude Oil Basis Swap Contracts | |||||||||
The Company has entered into crude oil basis swaps to mitigate the risk of future changes in pricing differentials between Canadian heavy crude oil and NYMEX WTI crude oil, pricing differentials between LLS and NYMEX WTI and pricing differentials between MSW and NYMEX WTI. At December 31, 2014, the Company had the following derivatives related to crude oil basis swaps in its fuel products segment, none of which are designated as hedges. | ||||||||||
Crude Oil Basis Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Differential to NYMEX WTI | |||||||
($/Bbl) | ||||||||||
First Quarter 2015 | 118,000 | 2,000 | $ | (22.40 | ) | |||||
Total | 118,000 | |||||||||
Average differential | $ | (22.40 | ) | |||||||
At December 31, 2013, the Company had the following derivatives related to crude oil basis swaps in its fuel products segment, none of which are designated as hedges. | ||||||||||
Crude Oil Basis Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Differential to NYMEX WTI | |||||||
($/Bbl) | ||||||||||
First Quarter 2014 | 118,000 | 1,311 | $ | (28.50 | ) | |||||
Third Quarter 2014 | 184,000 | 2,000 | $ | (21.75 | ) | |||||
Fourth Quarter 2014 | 184,000 | 2,000 | $ | (21.50 | ) | |||||
Total | 486,000 | |||||||||
Average differential | $ | (23.29 | ) | |||||||
As of December 31, 2013, the Company had approximately 248,000 barrels of crude oil basis swaps related to future crude oil purchases and sales to mitigate the risk of future changes in pricing differentials between Brent and NYMEX WTI on the Company’s reselling of crude oil. The net impact of these derivative instruments, none of which are designated as hedges, was a net loss of $0.6 million that was recorded to realized gain (loss) on derivative instruments in the consolidated statements of operations for the year ended December 31, 2013. | ||||||||||
Subsequent to December 31, 2014, the Company entered into the following derivatives related to crude oil purchases in its fuel products segment: | ||||||||||
Crude Oil Basis Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||
($/Bbl) | ||||||||||
First Quarter 2015 | 423,500 | 4,706 | $ | 48.84 | ||||||
Second Quarter 2015 | 1,274,000 | 14,000 | $ | 52.61 | ||||||
Third Quarter 2015 | 382,950 | 4,163 | $ | 56.58 | ||||||
Fourth Quarter 2015 | 60,950 | 663 | $ | 58.4 | ||||||
479,460 | 1,310 | $ | 63.35 | |||||||
Total | 2,620,860 | |||||||||
Average price | $ | 54.68 | ||||||||
Gasoline Swap Contracts | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Schedule of Outstanding Derivative Positions | Gasoline Swap Contracts | |||||||||
At December 31, 2014, the Company had the following derivatives related to gasoline sales in its fuel products segment, all of which are designated as cash flow hedges: | ||||||||||
Gasoline Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||
($/Bbl) | ||||||||||
First Quarter 2015 | 315,000 | 3,500 | $ | 109.68 | ||||||
Total | 315,000 | |||||||||
Average price | $ | 109.68 | ||||||||
At December 31, 2014, the Company had the following derivatives related to gasoline sales in its fuel products segment, none of which are designated as hedges: | ||||||||||
Gasoline Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||
($/Bbl) | ||||||||||
First Quarter 2015 | 45,000 | 500 | $ | 111.72 | ||||||
Total | 45,000 | |||||||||
Average price | $ | 111.72 | ||||||||
At December 31, 2014, the Company had the following derivatives related to gasoline purchases in its fuel products segment, none of which are designated as hedges: | ||||||||||
Gasoline Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||
($/Bbl) | ||||||||||
First Quarter 2015 | 45,000 | 500 | $ | 78.12 | ||||||
Total | 45,000 | |||||||||
Average price | $ | 78.12 | ||||||||
At December 31, 2013, the Company had the following derivatives related to gasoline sales in its fuel products segment, all of which are designated as cash flow hedges: | ||||||||||
Gasoline Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||
($/Bbl) | ||||||||||
First Quarter 2014 | 945,000 | 10,500 | $ | 104.39 | ||||||
Second Quarter 2014 | 955,500 | 10,500 | $ | 109.68 | ||||||
Third Quarter 2014 | 966,000 | 10,500 | $ | 106.6 | ||||||
Fourth Quarter 2014 | 460,000 | 5,000 | $ | 104.85 | ||||||
Total | 3,326,500 | |||||||||
Average price | $ | 106.61 | ||||||||
At December 31, 2013, the Company had the following derivatives related to gasoline sales in its fuel products segment, none of which are designated as hedges. | ||||||||||
Gasoline Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||
($/Bbl) | ||||||||||
First Quarter 2014 | 630,000 | 7,000 | $ | 105.67 | ||||||
Second Quarter 2014 | 409,500 | 4,500 | $ | 110.48 | ||||||
Third Quarter 2014 | 644,000 | 7,000 | $ | 108.24 | ||||||
Total | 1,683,500 | |||||||||
Average price | $ | 107.82 | ||||||||
Subsequent to December 31, 2014, the Company entered into the following derivatives related to gasoline sales in its fuel products segment: | ||||||||||
Gasoline Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||
($/Bbl) | ||||||||||
First Quarter 2015 | 423,500 | 4,706 | $ | 61.64 | ||||||
Second Quarter 2015 | 1,274,000 | 14,000 | $ | 69.42 | ||||||
Third Quarter 2015 | 322,000 | 3,500 | $ | 70.55 | ||||||
Total | 2,019,500 | |||||||||
Average price | $ | 67.97 | ||||||||
Diesel Swaps | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Schedule of Outstanding Derivative Positions | Diesel Swap Contracts | |||||||||
At December 31, 2014, the Company had the following derivatives related to diesel sales in its fuel products segment, none of which are designated as hedges. | ||||||||||
Diesel Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||
($/Bbl) | ||||||||||
First Quarter 2015 | 1,449,000 | 16,100 | $ | 116.27 | ||||||
Second Quarter 2015 | 91,000 | 1,000 | $ | 117.92 | ||||||
Third Quarter 2015 | 322,000 | 3,500 | $ | 95.04 | ||||||
Fourth Quarter 2015 | 322,000 | 3,500 | $ | 95.04 | ||||||
Calendar Year 2016 | 915,000 | 2,500 | $ | 104.32 | ||||||
Total | 3,099,000 | |||||||||
Average price | $ | 108.38 | ||||||||
At December 31, 2014, the Company had the following derivatives related to diesel purchases in its fuel products segment, none of which are designated as hedges. | ||||||||||
Diesel Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||
($/Bbl) | ||||||||||
First Quarter 2015 | 1,449,000 | 16,100 | $ | 105.78 | ||||||
Total | 1,449,000 | |||||||||
Average price | $ | 105.78 | ||||||||
At December 31, 2013, the Company had the following derivatives related to diesel sales in its fuel products segment, all of which are designated as cash flow hedges. | ||||||||||
Diesel Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||
($/Bbl) | ||||||||||
First Quarter 2014 | 1,125,000 | 12,500 | $ | 117.54 | ||||||
Second Quarter 2014 | 1,183,000 | 13,000 | $ | 116.78 | ||||||
Third Quarter 2014 | 1,288,000 | 14,000 | $ | 116.82 | ||||||
Fourth Quarter 2014 | 1,288,000 | 14,000 | $ | 116.96 | ||||||
Calendar Year 2015 | 4,781,500 | 13,100 | $ | 115.81 | ||||||
Calendar Year 2016 | 1,830,000 | 5,000 | $ | 112 | ||||||
Total | 11,495,500 | |||||||||
Average price | $ | 115.72 | ||||||||
At December 31, 2013, the Company had the following derivatives related to diesel sales in its fuel products segment, none of which are designated as hedges. | ||||||||||
Diesel Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||
($/Bbl) | ||||||||||
First Quarter 2014 | 270,000 | 3,000 | $ | 121.72 | ||||||
Second Quarter 2014 | 182,000 | 2,000 | $ | 123.22 | ||||||
Third Quarter 2014 | 230,000 | 2,500 | $ | 121.74 | ||||||
Fourth Quarter 2014 | 184,000 | 2,000 | $ | 123.02 | ||||||
Calendar Year 2015 | 1,004,000 | 2,751 | $ | 117.15 | ||||||
Total | 1,870,000 | |||||||||
Average price | $ | 119.54 | ||||||||
At December 31, 2013, the Company had the following derivatives related to diesel purchases in its fuel products segment, none of which are designated as hedges. | ||||||||||
Diesel Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap | |||||||
($/Bbl) | ||||||||||
First Quarter 2014 | 45,000 | 500 | $ | 121.8 | ||||||
Second Quarter 2014 | 45,500 | 500 | $ | 121.8 | ||||||
Third Quarter 2014 | 46,000 | 500 | $ | 121.8 | ||||||
Fourth Quarter 2014 | 46,000 | 500 | $ | 121.8 | ||||||
Total | 182,500 | |||||||||
Average price | $ | 121.8 | ||||||||
Subsequent to December 31, 2014, the Company entered into the following derivatives related to diesel sales in its fuel products segment: | ||||||||||
Diesel Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap | |||||||
($/Bbl) | ||||||||||
Third Quarter 2015 | 46,000 | 500 | $ | 77.39 | ||||||
Fourth Quarter 2015 | 46,000 | 500 | $ | 77.39 | ||||||
Calendar Year 2016 | 366,000 | 1,000 | $ | 82.99 | ||||||
Total | 458,000 | |||||||||
Average price | $ | 81.86 | ||||||||
Diesel Crack Spread | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Schedule of Outstanding Derivative Positions | Diesel Percent Basis Crack Spread Swap Contracts | |||||||||
During the fourth quarter of 2014, the Company entered into derivative instruments to secure a fixed percentage of gross profit on diesel in excess of the floating value of NYMEX WTI crude oil. At December 31, 2014, the Company had the following diesel percent basis crack spread swap contracts in its fuel products segment, none of which are designated as hedges. | ||||||||||
Diesel Crack Spread Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average % of WTI/Bbl | |||||||
Third Quarter 2015 | 414,000 | 4,500 | 33.2 | % | ||||||
Fourth Quarter 2015 | 414,000 | 4,500 | 33.2 | % | ||||||
Calendar Year 2016 | 1,647,000 | 4,500 | 31.7 | % | ||||||
Total | 2,475,000 | |||||||||
Average percentage | 32.2 | % | ||||||||
Subsequent to December 31, 2014, the Company entered into the following derivatives related to diesel percent basis crack spread swap contracts in its fuel products segment, none of which are designated as cash flow hedges: | ||||||||||
Diesel Crack Spread Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average % of WTI/Bbl | |||||||
Third Quarter 2015 | 92,000 | 1,000 | 32.6 | % | ||||||
Fourth Quarter 2015 | 92,000 | 1,000 | 32.6 | % | ||||||
Calendar Year 2016 | 549,000 | 1,500 | 32 | % | ||||||
Total | 733,000 | |||||||||
Average percentage | 32.2 | % |
Description_of_the_Business_De
Description of the Business (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Limited Partners | ||
Organization, Consolidation and Presentation of Financial Statements | ||
Limited Partners' Capital Account, Units Outstanding | 69,452,233 | 69,317,278 |
Incentive distribution rights | 98.00% | |
General Partner | ||
Organization, Consolidation and Presentation of Financial Statements | ||
Number of units | 1,417,392 | |
Incentive distribution rights | 2.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Activity in Allowance for Doubtful Accounts | |||
Beginning balance | $1.20 | $1.20 | $0.90 |
Provision | 0.5 | 0.1 | 0 |
Recoveries | 0 | 0 | 0.4 |
Write-offs, net | -0.1 | -0.1 | -0.1 |
Ending balance | $1.60 | $1.20 | $1.20 |
Specialty Product | Minimum | |||
Account Receivable | |||
Accounts receivable due within | 30 days | ||
Specialty Product | Maximum | |||
Account Receivable | |||
Accounts receivable due within | 45 days | ||
Fuel Product | |||
Account Receivable | |||
Accounts receivable due within | 10 days | ||
Oilfield Services | |||
Account Receivable | |||
Accounts receivable due within | 30 days |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Inventories | |||
Raw materials | $77.80 | $122.70 | |
Work in process | 75.4 | 102.6 | |
Finished goods | 360.3 | 342.1 | |
Inventories total | 513.5 | 567.4 | |
Cost of Inventories Determined | last-in, first-out (“LIFOâ€) | ||
Higher (lower) replacement cost of inventories, based on current market values | -18.9 | 32.2 | |
Consignment inventory | 8.2 | 2.6 | |
Gain (Loss) due to Liquidation of Inventory Layers | -31.8 | -4.2 | -4.2 |
Losses due to lower of cost or market valuation | ($74.10) | $2.10 | ($6.10) |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment, Net, by Type | ||
Property, plant and equipment, gross | 1,930.50 | $1,538.40 |
Less accumulated depreciation | -466.1 | -378 |
Property, plant and equipment, net | 1,464.40 | 1,160.40 |
Land | ||
Property, Plant and Equipment, Net, by Type | ||
Property, plant and equipment, gross | 18.3 | 17.6 |
Building and improvements | ||
Property, Plant and Equipment, Net, by Type | ||
Property, plant and equipment, gross | 66.8 | 39.1 |
Building and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Building and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 40 years | |
Machinery and equipment | ||
Property, Plant and Equipment, Net, by Type | ||
Property, plant and equipment, gross | 1,419.10 | 1,327.40 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years | |
Furniture and fixtures | ||
Property, Plant and Equipment, Net, by Type | ||
Property, plant and equipment, gross | 21.8 | 21.7 |
Furniture and fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Assets under capital leases | ||
Property, Plant and Equipment, Net, by Type | ||
Property, plant and equipment, gross | 50.5 | 11.1 |
Less accumulated depreciation | -5.7 | -5 |
Assets under capital leases | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Assets under capital leases | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 28 years | |
Construction-in-progress | ||
Property, Plant and Equipment, Net, by Type | ||
Property, plant and equipment, gross | 354 | $121.50 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Capitalized Interest Costs | |||
Interest Costs Incurred | $122.80 | $101.20 | $86.30 |
Interest Costs Capitalized in PPE | 12 | 4.4 | 0.7 |
Depreciation [Abstract] | |||
Depreciation | 98.3 | 92 | 74.3 |
Capitalized Computer Software [Abstract] | |||
Capitalized Computer Software, Net | 17.4 | 17.3 | |
Assets under capital leases | |||
Depreciation [Abstract] | |||
Depreciation | 0.8 | 0.7 | 1 |
Software developed or obtained | |||
Depreciation [Abstract] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Capitalized Computer Software [Abstract] | |||
Amortization | $3.40 | $3.30 | $1 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | |||
Reviews for goodwill impairment annually on | 1-Oct-14 | ||
Goodwill impairment losses | $36 | $0 | $0 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accounting Policies [Abstract] | ||
Deferred debt issuance costs | $34.70 | $29.70 |
Accumulated amortization, deferred debt issuance costs | 4.3 | 13.6 |
Capitalized major maintenance and repairs | 70.1 | 67 |
Accumulated amortization, capitalized major maintenance and repairs | $46.20 | $25.70 |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies (Details 6) (Specialty Product, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Specialty Product | |
Accounting Policies [Line Items] | |
Asset impairment | $10.50 |
Recovered_Sheet1
Summary of Significant Accounting Policies (Details 7) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ||
Unrecognized Tax Benefits | $0 | $0 |
Recovered_Sheet2
Summary of Significant Accounting Policies (Details 8) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | |||
Shipping and handling costs | $171.40 | $142.70 | $107.90 |
Recovered_Sheet3
Summary of Significant Accounting Policies (Details 9) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | |||
Advertising expense | $20.50 | $14.60 | $8.20 |
Acquisitions_Details
Acquisitions (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 01, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Dec. 10, 2013 | Aug. 09, 2013 | Jan. 02, 2013 | Oct. 02, 2012 | Jul. 03, 2012 | Jan. 06, 2012 | Jan. 03, 2012 | ||||||||||
In Millions, unless otherwise specified | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Goodwill | $245.80 | $207 | $187 | ||||||||||||||||||||
SOS Acquisition [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Accounts receivable | 11.6 | ||||||||||||||||||||||
Inventories | 2.7 | ||||||||||||||||||||||
Prepaid expenses and other current assets | 0.1 | ||||||||||||||||||||||
Deposits | 0 | ||||||||||||||||||||||
Deferred tax asset | 0 | ||||||||||||||||||||||
Property, plant and equipment | 15.1 | ||||||||||||||||||||||
Investment in unconsolidated affiliates | 0 | ||||||||||||||||||||||
Goodwill | 0.8 | [1] | |||||||||||||||||||||
Other intangible assets | 5.7 | ||||||||||||||||||||||
Other noncurrent assets, net | 0 | ||||||||||||||||||||||
Accounts payable | -6.2 | ||||||||||||||||||||||
Accrued salaries, wages and benefits | 0 | ||||||||||||||||||||||
Accrued income taxes payable | 0 | ||||||||||||||||||||||
Other taxes payable | -0.2 | ||||||||||||||||||||||
Other current liabilities | 0 | ||||||||||||||||||||||
Current portion of long-term debt | 0 | ||||||||||||||||||||||
Long-term debt | 0 | ||||||||||||||||||||||
Deferred income tax liability | 0 | ||||||||||||||||||||||
Other long-term liabilities | 0 | ||||||||||||||||||||||
Pension and postretirement benefit obligations | 0 | ||||||||||||||||||||||
Total purchase price, net of cash acquired | 29.6 | ||||||||||||||||||||||
Anchor Acquisition [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Accounts receivable | 75 | ||||||||||||||||||||||
Inventories | 61.2 | ||||||||||||||||||||||
Prepaid expenses and other current assets | 0.4 | ||||||||||||||||||||||
Deposits | 0.6 | ||||||||||||||||||||||
Deferred tax asset | 0.9 | ||||||||||||||||||||||
Property, plant and equipment | 35.9 | ||||||||||||||||||||||
Investment in unconsolidated affiliates | 1.9 | ||||||||||||||||||||||
Goodwill | 69 | [1],[2] | |||||||||||||||||||||
Other intangible assets | 74 | ||||||||||||||||||||||
Other noncurrent assets, net | 0 | ||||||||||||||||||||||
Accounts payable | -44.2 | ||||||||||||||||||||||
Accrued salaries, wages and benefits | -18.2 | ||||||||||||||||||||||
Accrued income taxes payable | 0 | ||||||||||||||||||||||
Other taxes payable | -1.8 | ||||||||||||||||||||||
Other current liabilities | -0.4 | ||||||||||||||||||||||
Current portion of long-term debt | 0 | ||||||||||||||||||||||
Long-term debt | 0 | ||||||||||||||||||||||
Deferred income tax liability | -30.7 | ||||||||||||||||||||||
Other long-term liabilities | 0 | ||||||||||||||||||||||
Pension and postretirement benefit obligations | 0 | ||||||||||||||||||||||
Total purchase price, net of cash acquired | 223.6 | ||||||||||||||||||||||
United Acquisition [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Accounts receivable | 0 | ||||||||||||||||||||||
Inventories | 0.2 | ||||||||||||||||||||||
Prepaid expenses and other current assets | 0 | ||||||||||||||||||||||
Deposits | 0 | ||||||||||||||||||||||
Deferred tax asset | 0 | ||||||||||||||||||||||
Property, plant and equipment | 0 | ||||||||||||||||||||||
Investment in unconsolidated affiliates | 0 | ||||||||||||||||||||||
Goodwill | 5 | [1] | |||||||||||||||||||||
Other intangible assets | 5.2 | ||||||||||||||||||||||
Other noncurrent assets, net | 0 | ||||||||||||||||||||||
Accounts payable | 0 | ||||||||||||||||||||||
Accrued salaries, wages and benefits | 0 | ||||||||||||||||||||||
Accrued income taxes payable | 0 | ||||||||||||||||||||||
Other taxes payable | 0 | ||||||||||||||||||||||
Other current liabilities | 0 | ||||||||||||||||||||||
Current portion of long-term debt | 0 | ||||||||||||||||||||||
Long-term debt | 0 | ||||||||||||||||||||||
Deferred income tax liability | 0 | ||||||||||||||||||||||
Other long-term liabilities | 0 | ||||||||||||||||||||||
Pension and postretirement benefit obligations | 0 | ||||||||||||||||||||||
Total purchase price, net of cash acquired | 10.4 | ||||||||||||||||||||||
Bel-ray Acquisition | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Accounts receivable | 4.3 | ||||||||||||||||||||||
Inventories | 11.1 | ||||||||||||||||||||||
Prepaid expenses and other current assets | 0.6 | ||||||||||||||||||||||
Deposits | 0 | ||||||||||||||||||||||
Deferred tax asset | 0 | ||||||||||||||||||||||
Property, plant and equipment | 6.5 | ||||||||||||||||||||||
Investment in unconsolidated affiliates | 0 | ||||||||||||||||||||||
Goodwill | 9.1 | [1] | |||||||||||||||||||||
Other intangible assets | 41.4 | ||||||||||||||||||||||
Other noncurrent assets, net | 0.3 | ||||||||||||||||||||||
Accounts payable | -3.9 | ||||||||||||||||||||||
Accrued salaries, wages and benefits | -1.3 | ||||||||||||||||||||||
Accrued income taxes payable | 0 | ||||||||||||||||||||||
Other taxes payable | -1.7 | ||||||||||||||||||||||
Other current liabilities | -0.8 | ||||||||||||||||||||||
Current portion of long-term debt | -11.9 | ||||||||||||||||||||||
Long-term debt | 0 | ||||||||||||||||||||||
Deferred income tax liability | 0 | ||||||||||||||||||||||
Other long-term liabilities | -0.1 | ||||||||||||||||||||||
Pension and postretirement benefit obligations | 0 | ||||||||||||||||||||||
Total purchase price, net of cash acquired | 53.6 | ||||||||||||||||||||||
Crude Oil Logistics Acquisition | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Accounts receivable | 0 | ||||||||||||||||||||||
Inventories | 0 | ||||||||||||||||||||||
Prepaid expenses and other current assets | 0.1 | ||||||||||||||||||||||
Deposits | 0 | ||||||||||||||||||||||
Deferred tax asset | 0 | ||||||||||||||||||||||
Property, plant and equipment | 0.9 | ||||||||||||||||||||||
Investment in unconsolidated affiliates | 0 | ||||||||||||||||||||||
Goodwill | 5.2 | [3] | |||||||||||||||||||||
Other intangible assets | 0 | ||||||||||||||||||||||
Other noncurrent assets, net | 0 | ||||||||||||||||||||||
Accounts payable | 0 | ||||||||||||||||||||||
Accrued salaries, wages and benefits | 0 | ||||||||||||||||||||||
Accrued income taxes payable | 0 | ||||||||||||||||||||||
Other taxes payable | 0 | ||||||||||||||||||||||
Other current liabilities | 0 | ||||||||||||||||||||||
Current portion of long-term debt | 0 | ||||||||||||||||||||||
Long-term debt | 0 | ||||||||||||||||||||||
Deferred income tax liability | 0 | ||||||||||||||||||||||
Other long-term liabilities | 0 | ||||||||||||||||||||||
Pension and postretirement benefit obligations | 0 | ||||||||||||||||||||||
Total purchase price, net of cash acquired | 6.2 | ||||||||||||||||||||||
San Antonio Acquisition | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Accounts receivable | 0 | ||||||||||||||||||||||
Inventories | 17 | ||||||||||||||||||||||
Prepaid expenses and other current assets | 0 | ||||||||||||||||||||||
Deposits | 0 | ||||||||||||||||||||||
Deferred tax asset | 0 | ||||||||||||||||||||||
Property, plant and equipment | 100.7 | ||||||||||||||||||||||
Investment in unconsolidated affiliates | 0 | ||||||||||||||||||||||
Goodwill | 5.7 | [1] | |||||||||||||||||||||
Other intangible assets | 0 | ||||||||||||||||||||||
Other noncurrent assets, net | 0 | ||||||||||||||||||||||
Accounts payable | 0 | ||||||||||||||||||||||
Accrued salaries, wages and benefits | -0.1 | ||||||||||||||||||||||
Accrued income taxes payable | 0 | ||||||||||||||||||||||
Other taxes payable | 0 | ||||||||||||||||||||||
Other current liabilities | -5.4 | ||||||||||||||||||||||
Current portion of long-term debt | 0 | ||||||||||||||||||||||
Long-term debt | 0 | ||||||||||||||||||||||
Deferred income tax liability | 0 | ||||||||||||||||||||||
Other long-term liabilities | 0 | ||||||||||||||||||||||
Pension and postretirement benefit obligations | 0 | ||||||||||||||||||||||
Total purchase price, net of cash acquired | 117.9 | ||||||||||||||||||||||
Montana Refining Company, Inc. [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Accounts receivable | 29 | ||||||||||||||||||||||
Inventories | 43.7 | ||||||||||||||||||||||
Prepaid expenses and other current assets | 23.1 | ||||||||||||||||||||||
Deposits | 0.3 | ||||||||||||||||||||||
Deferred tax asset | 0 | ||||||||||||||||||||||
Property, plant and equipment | 125.4 | ||||||||||||||||||||||
Investment in unconsolidated affiliates | 0 | ||||||||||||||||||||||
Goodwill | 27.6 | [1] | |||||||||||||||||||||
Other intangible assets | 0 | ||||||||||||||||||||||
Other noncurrent assets, net | 0.3 | ||||||||||||||||||||||
Accounts payable | -8.4 | ||||||||||||||||||||||
Accrued salaries, wages and benefits | -1.4 | ||||||||||||||||||||||
Accrued income taxes payable | -15.6 | ||||||||||||||||||||||
Other taxes payable | -3 | ||||||||||||||||||||||
Other current liabilities | -0.1 | ||||||||||||||||||||||
Current portion of long-term debt | 0 | ||||||||||||||||||||||
Long-term debt | 0 | ||||||||||||||||||||||
Deferred income tax liability | -27.6 | ||||||||||||||||||||||
Other long-term liabilities | 0 | ||||||||||||||||||||||
Pension and postretirement benefit obligations | -1.7 | ||||||||||||||||||||||
Total purchase price, net of cash acquired | 191.6 | ||||||||||||||||||||||
Royal Purple Acquisition [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Accounts receivable | 15.2 | ||||||||||||||||||||||
Inventories | 19.3 | ||||||||||||||||||||||
Prepaid expenses and other current assets | 0.2 | ||||||||||||||||||||||
Deposits | 0 | ||||||||||||||||||||||
Deferred tax asset | 0 | ||||||||||||||||||||||
Property, plant and equipment | 10.6 | ||||||||||||||||||||||
Investment in unconsolidated affiliates | 0 | ||||||||||||||||||||||
Goodwill | 109.2 | [1] | |||||||||||||||||||||
Other intangible assets | 183.4 | ||||||||||||||||||||||
Other noncurrent assets, net | 0 | ||||||||||||||||||||||
Accounts payable | -3.8 | ||||||||||||||||||||||
Accrued salaries, wages and benefits | -1.7 | ||||||||||||||||||||||
Accrued income taxes payable | 0 | ||||||||||||||||||||||
Other taxes payable | -0.2 | ||||||||||||||||||||||
Other current liabilities | -1 | ||||||||||||||||||||||
Current portion of long-term debt | 0 | ||||||||||||||||||||||
Long-term debt | 0 | ||||||||||||||||||||||
Deferred income tax liability | 0 | ||||||||||||||||||||||
Other long-term liabilities | 0 | ||||||||||||||||||||||
Pension and postretirement benefit obligations | 0 | ||||||||||||||||||||||
Total purchase price, net of cash acquired | 331.2 | ||||||||||||||||||||||
Tru South Acquisition [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Accounts receivable | 5.2 | ||||||||||||||||||||||
Inventories | 8 | ||||||||||||||||||||||
Prepaid expenses and other current assets | 0.3 | ||||||||||||||||||||||
Deposits | 0 | ||||||||||||||||||||||
Deferred tax asset | 0 | ||||||||||||||||||||||
Property, plant and equipment | 17.7 | ||||||||||||||||||||||
Investment in unconsolidated affiliates | 0 | ||||||||||||||||||||||
Goodwill | 0.4 | [1] | |||||||||||||||||||||
Other intangible assets | 2.6 | ||||||||||||||||||||||
Other noncurrent assets, net | 0 | ||||||||||||||||||||||
Accounts payable | -2.7 | ||||||||||||||||||||||
Accrued salaries, wages and benefits | -0.2 | ||||||||||||||||||||||
Accrued income taxes payable | 0 | ||||||||||||||||||||||
Other taxes payable | 0 | ||||||||||||||||||||||
Other current liabilities | -0.9 | ||||||||||||||||||||||
Current portion of long-term debt | 0 | ||||||||||||||||||||||
Long-term debt | -3.5 | ||||||||||||||||||||||
Deferred income tax liability | 0 | ||||||||||||||||||||||
Other long-term liabilities | 0 | ||||||||||||||||||||||
Pension and postretirement benefit obligations | 0 | ||||||||||||||||||||||
Total purchase price, net of cash acquired | 26.9 | ||||||||||||||||||||||
Missouri Acquisition [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Accounts receivable | 0 | ||||||||||||||||||||||
Inventories | 2.7 | ||||||||||||||||||||||
Prepaid expenses and other current assets | 0 | ||||||||||||||||||||||
Deposits | 0 | ||||||||||||||||||||||
Deferred tax asset | 0 | ||||||||||||||||||||||
Property, plant and equipment | 10 | ||||||||||||||||||||||
Investment in unconsolidated affiliates | 0 | ||||||||||||||||||||||
Goodwill | 1.5 | [1] | |||||||||||||||||||||
Other intangible assets | 5.4 | ||||||||||||||||||||||
Other noncurrent assets, net | 0 | ||||||||||||||||||||||
Accounts payable | 0 | ||||||||||||||||||||||
Accrued salaries, wages and benefits | 0 | ||||||||||||||||||||||
Accrued income taxes payable | 0 | ||||||||||||||||||||||
Other taxes payable | 0 | ||||||||||||||||||||||
Other current liabilities | 0 | ||||||||||||||||||||||
Current portion of long-term debt | 0 | ||||||||||||||||||||||
Long-term debt | 0 | ||||||||||||||||||||||
Deferred income tax liability | 0 | ||||||||||||||||||||||
Other long-term liabilities | 0 | ||||||||||||||||||||||
Pension and postretirement benefit obligations | 0 | ||||||||||||||||||||||
Total purchase price, net of cash acquired | $19.60 | ||||||||||||||||||||||
[1] | Goodwill recognized relates primarily to enhancing the Company’s strategic platform for expansion in the respective business segment noted above. | ||||||||||||||||||||||
[2] | Approximately $9.7 million of goodwill associated with the Anchor Acquisition is tax deductible due to Anchor’s tax status as a corporation. | ||||||||||||||||||||||
[3] | Goodwill recognized relates primarily to enhancing the Company’s crude oil gathering operations to support the Superior refinery and sales to third party customers. |
Acquisitions_Details_1
Acquisitions (Details 1) (USD $) | 0 Months Ended | ||||
In Millions, unless otherwise specified | Aug. 01, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Dec. 12, 2013 | Dec. 10, 2013 |
SOS Acquisition [Member] | |||||
Component of intangible asset | |||||
Amount | $5.70 | ||||
Life | 16 years | ||||
SOS Acquisition [Member] | Customer relationships | |||||
Component of intangible asset | |||||
Amount | 4.3 | ||||
Life | 15 years | ||||
SOS Acquisition [Member] | Tradenames | |||||
Component of intangible asset | |||||
Amount | 1.4 | ||||
Life | 20 years | ||||
SOS Acquisition [Member] | Trade secrets | |||||
Component of intangible asset | |||||
Amount | 0 | ||||
SOS Acquisition [Member] | Non-competition agreements | |||||
Component of intangible asset | |||||
Amount | 0 | ||||
Anchor Acquisition [Member] | |||||
Component of intangible asset | |||||
Amount | 74 | ||||
Life | 20 years | ||||
Anchor Acquisition [Member] | Customer relationships | |||||
Component of intangible asset | |||||
Amount | 52.7 | ||||
Life | 20 years | ||||
Anchor Acquisition [Member] | Tradenames | |||||
Component of intangible asset | |||||
Amount | 18.4 | ||||
Life | 21 years | ||||
Anchor Acquisition [Member] | Trade secrets | |||||
Component of intangible asset | |||||
Amount | 0 | ||||
Anchor Acquisition [Member] | Non-competition agreements | |||||
Component of intangible asset | |||||
Amount | 2.9 | ||||
Life | 2 years | ||||
United Acquisition [Member] | |||||
Component of intangible asset | |||||
Amount | 5.2 | ||||
Life | 20 years | ||||
United Acquisition [Member] | Customer relationships | |||||
Component of intangible asset | |||||
Amount | 3.8 | ||||
Life | 20 years | ||||
United Acquisition [Member] | Tradenames | |||||
Component of intangible asset | |||||
Amount | 1.4 | ||||
Life | 20 years | ||||
United Acquisition [Member] | Trade secrets | |||||
Component of intangible asset | |||||
Amount | 0 | ||||
United Acquisition [Member] | Non-competition agreements | |||||
Component of intangible asset | |||||
Amount | 0 | ||||
Bel-ray Acquisition | |||||
Component of intangible asset | |||||
Amount | 41.4 | ||||
Life | 26 years | ||||
Bel-ray Acquisition | Customer relationships | |||||
Component of intangible asset | |||||
Amount | 28.6 | ||||
Life | 30 years | ||||
Bel-ray Acquisition | Tradenames | |||||
Component of intangible asset | |||||
Amount | 4.2 | ||||
Life | 18 years | ||||
Bel-ray Acquisition | Trade secrets | |||||
Component of intangible asset | |||||
Amount | 8.5 | ||||
Life | 18 years | ||||
Bel-ray Acquisition | Non-competition agreements | |||||
Component of intangible asset | |||||
Amount | $0.10 | ||||
Life | 3 years |
Acquisitions_Details_2
Acquisitions (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 01, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Dec. 10, 2013 | Aug. 09, 2013 | Jan. 02, 2013 | ||||||
In Millions, unless otherwise specified | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | $245.80 | $207 | $187 | ||||||||||||
SOS Acquisition [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | 0.8 | [1] | |||||||||||||
Anchor Acquisition [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | 69 | [1],[2] | |||||||||||||
United Acquisition [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | 5 | [1] | |||||||||||||
Bel-ray Acquisition | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | 9.1 | [1] | |||||||||||||
Crude Oil Logistics Acquisition | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | 5.2 | [3] | |||||||||||||
San Antonio Acquisition | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | $5.70 | [1] | |||||||||||||
[1] | Goodwill recognized relates primarily to enhancing the Company’s strategic platform for expansion in the respective business segment noted above. | ||||||||||||||
[2] | Approximately $9.7 million of goodwill associated with the Anchor Acquisition is tax deductible due to Anchor’s tax status as a corporation. | ||||||||||||||
[3] | Goodwill recognized relates primarily to enhancing the Company’s crude oil gathering operations to support the Superior refinery and sales to third party customers. |
Acquisitions_Details_3
Acquisitions (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
SOS Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Acquisition Related Costs | $0.10 | $0 | $0 |
Anchor Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Acquisition Related Costs | 0.6 | 0 | 0 |
United Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Acquisition Related Costs | 0.1 | 0 | 0 |
Bel-ray Acquisition | |||
Business Acquisition [Line Items] | |||
Business Combination, Acquisition Related Costs | 0.3 | 0.4 | 0 |
Crude Oil Logistics Acquisition | |||
Business Acquisition [Line Items] | |||
Business Combination, Acquisition Related Costs | 0 | 0.2 | 0 |
San Antonio Acquisition | |||
Business Acquisition [Line Items] | |||
Business Combination, Acquisition Related Costs | 0 | 0.5 | 0 |
Montana Refining Company, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Acquisition Related Costs | 0 | 0.1 | 3.3 |
Royal Purple Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Acquisition Related Costs | 0 | 0 | 0.4 |
Tru South Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Acquisition Related Costs | 0 | 0 | 0.2 |
Missouri Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Acquisition Related Costs | $0 | $0 | $0.50 |
Acquisitions_Details_4
Acquisitions (Details 4) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Result of sales and operating income | |||
Sales | $382.90 | $480.10 | $266.10 |
Operating income (loss) | -11.2 | -22.5 | 18.6 |
Business Acquisition, Pro Forma Information [Abstract] | |||
Pro Forma Sales | 5,873.60 | 5,730.80 | |
Pro Forma Net income (loss) | ($124.60) | $21.90 | |
Pro Forma Limited partners’ interest net income (loss) per unit — basic | ($1.97) | $0.10 | |
Pro Forma Limited partners’ interest net income (loss) per unit — diluted | ($1.97) | $0.10 |
Acquisition_Details_Textual
Acquisition (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||
In Millions, unless otherwise specified | Mar. 30, 2014 | Nov. 26, 2013 | Dec. 31, 2014 | Jun. 29, 2012 | Aug. 01, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Dec. 10, 2013 | Aug. 09, 2013 | Jan. 02, 2013 | Oct. 02, 2012 | Jul. 03, 2012 | Jan. 06, 2012 | Jan. 03, 2012 |
Business Acquisition [Line Items] | ||||||||||||||
Business Acquisition, Percent Required to Pay in Post-Closing Transaction Tax Deductions | 50.00% | |||||||||||||
SOS Acquisition [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total purchase price | $29.60 | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 0 | |||||||||||||
Anchor Acquisition [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total purchase price | 223.6 | |||||||||||||
Business Acquisition, Post-Closing Transaction Tax Deductions | 1 | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 30.7 | |||||||||||||
United Acquisition [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total purchase price | 10.4 | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 0 | |||||||||||||
Bel-ray Acquisition | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total purchase price | 53.6 | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 0 | |||||||||||||
Crude Oil Logistics Acquisition | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total purchase price | 6.2 | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 0 | |||||||||||||
Production capacity | 10,000 | |||||||||||||
San Antonio Acquisition | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total purchase price | 117.9 | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 0 | |||||||||||||
Production capacity | 17,500 | |||||||||||||
Montana Refining Company, Inc. [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total purchase price | 191.6 | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 27.6 | |||||||||||||
Royal Purple Acquisition [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total purchase price | 331.2 | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 0 | |||||||||||||
Tru South Acquisition [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total purchase price | 26.9 | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 0 | |||||||||||||
Missouri Acquisition [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total purchase price | 19.6 | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 0 | |||||||||||||
6.50% Notes | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Proceeds from debt | 884 | |||||||||||||
Maturity date | 15-Apr-21 | |||||||||||||
7.625% Notes | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Proceeds from debt | 337.4 | |||||||||||||
Maturity date | 15-Jan-22 | 15-Jan-22 | ||||||||||||
9.625% Notes | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Proceeds from debt | $262.50 | |||||||||||||
Maturity date | 1-Aug-20 |
Investment_in_Unconsolidated_A1
Investment in Unconsolidated Affiliate (Details) (USD $) | 0 Months Ended | ||||
In Millions, unless otherwise specified | Feb. 07, 2013 | Jun. 09, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
Schedule of Equity Method Investments [Line Items] | |||||
Investment in unconsolidated affiliates | $137.30 | $33.40 | |||
Juniper GTL LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Joint Venture, Ownership Percentage in Entity | 100.00% | ||||
Juniper GTL LLC [Member] | Management | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Ownership Percentage in Entity | 10.00% | ||||
Dakota Prairie Refining, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Contribution amount funded | 217.5 | ||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||
Investment in unconsolidated affiliates | 117.2 | 33.4 | |||
Investment in Unconsolidated Affiliates, Committed Funds within the next Twelve Months | 23 | ||||
Dakota Prairie Refining, LLC [Member] | MDU Resources Group Inc | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Contribution amount funded | 217.5 | ||||
Dakota Prairie Refining, LLC [Member] | Cash Contributions | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Contribution amount funded | 142.5 | ||||
Dakota Prairie Refining, LLC [Member] | Proceeds From Term Loan | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Contribution amount funded | 75 | ||||
Juniper GTL LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Contribution amount funded | 25 | ||||
Equity Method Investment, Ownership Percentage | 23.00% | ||||
Investment in unconsolidated affiliates | 18.5 | ||||
Investment in Unconsolidated Affiliates, Committed Funds within the next Twelve Months | 6.5 | ||||
Juniper GTL LLC [Member] | Cash Contributions | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Contribution amount funded | 100 | ||||
Juniper GTL LLC [Member] | Proceeds From Term Loan | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Contribution amount funded | $35 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill | |||
Beginning balance: | $207 | $187 | |
Acquisitions | 74.8 | 20 | |
Accumulated impairment losses | -36 | 0 | 0 |
Ending balance: | 245.8 | 207 | 187 |
Specialty Product | |||
Goodwill | |||
Beginning balance: | 168.5 | 159.4 | |
Acquisitions | 5 | 9.1 | |
Accumulated impairment losses | 0 | 0 | |
Ending balance: | 173.5 | 168.5 | |
Fuel Product | |||
Goodwill | |||
Beginning balance: | 38.5 | 27.6 | |
Acquisitions | 0 | 10.9 | |
Accumulated impairment losses | 0 | 0 | |
Ending balance: | 38.5 | 38.5 | |
Oilfield Services | |||
Goodwill | |||
Beginning balance: | 0 | 0 | |
Acquisitions | 69.8 | 0 | |
Accumulated impairment losses | -36 | 0 | |
Ending balance: | $33.80 | $0 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets (Details 1) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-Lived Intangible Assets, Weighted Average Life | 18 years | |
Gross Amount | $381.40 | $296.50 |
Accumulated Amortization | -123.9 | -83.6 |
Customer relationships | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-Lived Intangible Assets, Weighted Average Life | 21 years | |
Gross Amount | 243.7 | 182.9 |
Accumulated Amortization | -68.4 | -40.3 |
Supplier agreements | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-Lived Intangible Assets, Weighted Average Life | 4 years | |
Gross Amount | 21.5 | 21.5 |
Accumulated Amortization | -21.5 | -21.5 |
Tradenames | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-Lived Intangible Assets, Weighted Average Life | 18 years | |
Gross Amount | 31.8 | 10.6 |
Accumulated Amortization | -4.9 | -1.6 |
Trade secrets | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-Lived Intangible Assets, Weighted Average Life | 13 years | |
Gross Amount | 52.7 | 52.7 |
Accumulated Amortization | -16.7 | -9.6 |
Patents | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-Lived Intangible Assets, Weighted Average Life | 12 years | |
Gross Amount | 1.6 | 1.6 |
Accumulated Amortization | -1.3 | -1.2 |
Non-competition agreements | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-Lived Intangible Assets, Weighted Average Life | 4 years | |
Gross Amount | 8.8 | 5.9 |
Accumulated Amortization | -7.3 | -5.8 |
Distributor agreements | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-Lived Intangible Assets, Weighted Average Life | 3 years | |
Gross Amount | 2 | 2 |
Accumulated Amortization | -2 | -2 |
Royalty agreements | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-Lived Intangible Assets, Weighted Average Life | 19 years | |
Gross Amount | 4.5 | 4.5 |
Accumulated Amortization | -1.8 | -1.6 |
Tradenames | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | 0 | 0 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $14.80 | $14.80 |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets (Details 2) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2015 | $41.40 |
2016 | 35.3 |
2017 | 30.5 |
2018 | 25.7 |
2019 | $21.30 |
Goodwill_and_Intangibles_Detai
Goodwill and Intangibles (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Asset impairment | $36 | $10.50 | $1.60 |
Fair Value Inputs, Discount Rate | 13.50% | ||
Amortization of Intangible Assets | $40.30 | $25.60 | $16.90 |
For Year of 2015 [Member] | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Fair Value Inputs, Long-term Revenue Growth Rate | -7.00% | ||
For Year of 2016 and Beyond [Member] | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Fair Value Inputs, Long-term Revenue Growth Rate | 15.00% | ||
For Year of 2016 and Beyond [Member] | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Fair Value Inputs, Long-term Revenue Growth Rate | 3.00% |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating leases, rent expense | $59.90 | $35.30 | $26.90 |
Operating Leases, Future Minimum Commitments | |||
2015 | 39.3 | ||
2016 | 33.1 | ||
2017 | 29.5 | ||
2018 | 26.4 | ||
2019 | 16.9 | ||
Thereafter | 36.2 | ||
Total | $181.40 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 1) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Purchase Obligation, Future Minimum Commitments | |
2015 | 563.6 |
2016 | 115.8 |
2017 | 113.5 |
2018 | 113.2 |
2019 | 103.7 |
Thereafter | 0 |
Total | 1,009.80 |
BP Purchase Agreement | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Intial term | 1 year |
Automatic renewal term | 1 year |
Termination notice | 90 days |
BP Purchase Agreement | Minimum | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Daily required commitment | 35,000 |
BP Purchase Agreement | Maximum | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Daily required commitment | 45,000 |
Limited interest in collateral pledged | 100 |
Houston Refining | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Annual purchase amount | 113.2 |
LVT Feedstock Agreement | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Intial term | 10 years |
Annual purchase amount | 41.5 |
Naphthenic Lubricating Oils | Houston Refining | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Daily required commitment | 3,100 |
White Mineral Oil | Houston Refining | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Daily required commitment | 600 |
Commitments_and_Contingencies_3
Commitments and Contingencies Commitments and Contingencies (Details 2) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Dakota Prairie Refining, LLC [Member] | |
Other Commitments [Line Items] | |
Investment in Unconsolidated Affiliates, Committed Funds within the next Twelve Months | $23 |
Juniper GTL LLC [Member] | |
Other Commitments [Line Items] | |
Investment in Unconsolidated Affiliates, Committed Funds within the next Twelve Months | $6.50 |
Commitments_and_Contingencies_4
Commitments and Contingencies Commitments and Contingencies (Details 3) (San Antonio and Montana Refineries [Member], USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
San Antonio and Montana Refineries [Member] | |
Other Commitments [Line Items] | |
Capital Expenditures, Commited Funds within the next Twelve Months | $1.10 |
Commitments_and_Contingencies_5
Commitments and Contingencies (Details 4) (USD $) | 12 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 29, 2012 |
Montana | |||
Loss Contingencies [Line Items] | |||
Environmental remediation expense | $16.50 | ||
WDNR-Superior | |||
Loss Contingencies [Line Items] | |||
Environmental remediation expense | 0.7 | 1.9 | |
Estimates costs of equipment upgrades and conduct other discrete | 1 | ||
EPA | |||
Loss Contingencies [Line Items] | |||
Payments for Environmental Liabilities | 0.1 | ||
LDEQ-Shreveport, Cotton Valley & Princeton [Member] | |||
Loss Contingencies [Line Items] | |||
Environmental remediation expense | 0.6 | 4.9 | |
Environmental settlement | 23-Dec-10 | ||
Settlement agreement with the LDEQ | 31-Jan-12 | ||
Settlement agreement, environmental studies period | 2 years | ||
LDEQ-Shreveport, Cotton Valley & Princeton [Member] | Maximum | |||
Loss Contingencies [Line Items] | |||
Environmental remediation expense | 12 | ||
LDEQ-Shreveport, Cotton Valley & Princeton [Member] | Minimum | |||
Loss Contingencies [Line Items] | |||
Environmental remediation expense | 10 | ||
Shreveport | |||
Loss Contingencies [Line Items] | |||
Specified environmental liabilities first | 5 | ||
Weston Agreement Trust | 0.8 | ||
Shreveport | Maximum | |||
Loss Contingencies [Line Items] | |||
Specified environmental liabilities first required to contribute up to | 1 | ||
Capital Expenditure [Member] | Montana | |||
Loss Contingencies [Line Items] | |||
Environmental remediation expense | 14.1 | ||
Expense [Member] | Montana | |||
Loss Contingencies [Line Items] | |||
Environmental remediation expense | $2.40 |
Commitments_and_Contingencies_6
Commitments and Contingencies (Details 5) (Occupational Safety and Health Administration, USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 14, 2011 |
Loss Contingencies [Line Items] | ||||
Environmental remediation expense | $1.10 | $3.20 | ||
OSHA spending | first quarter of 2011 | |||
Notification of penalty | 14-Mar-11 | |||
Proposed penalty | 0.2 | |||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
Expected environmental capital expenditures | $1.60 |
Commitments_and_Contingencies_7
Commitments and Contingencies (Details 6) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
employee | |||
Concentration Risk [Line Items] | |||
Number of employees | 2,200 | ||
Number of Employees Concentration Risk, Percentage | 45.90% | 54.10% | 65.00% |
Labor Force Concentration Risk | Workforce Subject to Collective Bargaining Arrangements | |||
Concentration Risk [Line Items] | |||
Number of employees | 590 | ||
Number of Employees Concentration Risk, Percentage | 26.80% | ||
Labor Force Concentration Risk | Workforce Subject to Collective Bargaining Arrangements Expiring within One Year | |||
Concentration Risk [Line Items] | |||
Number of employees | 200 | ||
Number of Employees Concentration Risk, Percentage | 9.10% |
Commitments_and_Contingencies_8
Commitments and Contingencies (Details 7) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Revolving Credit Facility [Member] | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding amount | $114.30 | $95.20 |
Maximum | Revolving Credit Facility [Member] | ||
Debt Disclosure [Abstract] | ||
Letter of credit sublimit | 600 | |
Letter of credit sublimit percentage | 90.00% | |
Revolving Credit Facility [Member] | ||
Loss Contingencies [Line Items] | ||
Letter of Credit Availability | 310.8 | 472.4 |
Debt Disclosure [Abstract] | ||
Senior secured revolving credit facility | 1,000 | 850 |
Revolving Credit Facility [Member] | Maximum | ||
Debt Disclosure [Abstract] | ||
Letter of credit sublimit | 680 | |
Letter of credit sublimit percentage | 80.00% | |
Revolving Credit Facility [Member] | Minimum | ||
Debt Disclosure [Abstract] | ||
Letter of credit sublimit | $400 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of Long-term debt | |||
Total long-term debt | $1,713.50 | $1,110.80 | |
Less current portion of long-term debt | 0.6 | 0.4 | |
Long-term Debt, Excluding Current Maturities | 1,712.90 | 1,110.40 | |
Senior Notes [Abstract] | |||
Lease Expiration Date | 31-Oct-34 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Weighted Average Interest Rate | 2.60% | ||
Summary of Long-term debt | |||
Borrowings under amended and restated senior secured revolving credit agreement with third-party lenders, interest payments quarterly, borrowings due July 2019, weighted average interest rate of 2.6% at December 31, 2014 | 150.8 | 0 | |
Borrowings under 2019 Notes, interest at a fixed rate of 9.375%, interest payments semiannually, borrowings due May 2019 | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate Percentage | 9.38% | ||
Summary of Long-term debt | |||
Borrowings under Senior Notes | 0 | 500 | |
Senior Notes [Abstract] | |||
Effective Interest Rate Percentage | 9.90% | ||
9.625% Notes | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate Percentage | 9.63% | 9.63% | |
Summary of Long-term debt | |||
Borrowings under Senior Notes | 275 | 275 | |
Senior Notes [Abstract] | |||
Effective Interest Rate Percentage | 10.10% | 10.00% | |
6.50% Notes | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate Percentage | 6.50% | ||
Summary of Long-term debt | |||
Borrowings under Senior Notes | 900 | 0 | |
Senior Notes [Abstract] | |||
Effective Interest Rate Percentage | 6.70% | ||
Borrowings under 2022 Notes, interest at a fixed rate of 7.625%, interest payments semiannually, borrowings due January 2022, effective interest rate of 8.0% for the year ended December 31, 2014 and 7.9% for the year ended December 31, 2013 (1) | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate Percentage | 7.63% | 7.63% | |
Summary of Long-term debt | |||
Borrowings under Senior Notes | 352.5 | [1] | 350 |
Senior Notes [Abstract] | |||
Effective Interest Rate Percentage | 8.00% | 7.90% | |
Capital lease obligations, at various interest rates, interest and principal payments monthly through October 2034 | |||
Summary of Long-term debt | |||
Capital lease obligations, at various interest rates, interest and principal payments monthly through October 2034 | 43.6 | 4.8 | |
Less unamortized discounts | |||
Summary of Long-term debt | |||
Less unamortized discounts | ($8.40) | ($19) | |
[1] | (1) The balance includes a fair value interest rate hedge adjustment, which increased the debt balance by $2.5 million and $0.0 million as of December 31, 2014 and 2013, respectively (refer to Note 8 for additional information on the interest rate swap designated as a fair value hedge). |
LongTerm_Debt_LongTerm_Debt_De
Long-Term Debt Long-Term Debt (Details 1) (6.50% Notes) | 0 Months Ended |
Mar. 30, 2014 | |
April 15, 2017 through April 14, 2018 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.25% |
April 15, 2018 through April 14, 2019 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.63% |
April 15, 2019 & Thereafter [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
LongTerm_Debt_LongTerm_Debt_De1
Long-Term Debt Long-Term Debt (Details 2) (7.625% Notes) | 0 Months Ended |
Nov. 26, 2013 | |
January 15, 2018 through January 14, 2019 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.81% |
January 15, 2019 through January 14, 2020 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.91% |
After January 15, 2020 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
LongTerm_Debt_LongTerm_Debt_De2
Long-Term Debt Long-Term Debt (Details 3) (9.625% Notes) | 0 Months Ended |
Jun. 29, 2012 | |
January 15, 2018 through January 14, 2019 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 104.81% |
August 1, 2017 through July 30, 2018 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 102.41% |
After August 1, 2018 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
LongTerm_Debt_Details_4
Long-Term Debt (Details 4) (Revolving Credit Facility [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Prime | Greater than 66% | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
Prime | Between 33% and 66% | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 0.75% |
Prime | Less than 33% | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Libor | Greater than 66% | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
Libor | Between 33% and 66% | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.75% |
Libor | Less than 33% | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
LongTerm_Debt_LongTerm_Debt_De3
Long-Term Debt Long-Term Debt (Details 5) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Capital Leased Assets [Line Items] | |
2015 | $7 |
2016 | 7 |
2017 | 7 |
2018 | 7 |
2019 | 6.9 |
Thereafter | 102.9 |
Total | 137.8 |
Less amount representing interest | 94.2 |
Capital lease obligations | 43.6 |
Less obligations due within one year | 0.6 |
Long-term capital lease obligations | $43 |
LongTerm_Debt_Details_6
Long-Term Debt (Details 6) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Maturities of long-term debt | |
2015 | $0.60 |
2016 | 0.7 |
2017 | 0.7 |
2018 | 0.8 |
2019 | 151.5 |
Thereafter | 1,565.10 |
Total | $1,719.40 |
LongTerm_Debt_Details_Textual
Long-Term Debt (Details Textual) (USD $) | 12 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 30, 2014 | Sep. 30, 2014 | Nov. 26, 2013 | Jun. 29, 2012 | Apr. 21, 2011 | Sep. 19, 2011 |
bbl | |||||||||
Long Term Debt Textual [Abstract] | |||||||||
Repayments of borrowings — senior notes | ($500) | ($100) | $0 | ||||||
Gains (Losses) on Extinguishment of Debt | -89.9 | -14.6 | 0 | ||||||
Property, plant and equipment, gross | 1,930.50 | 1,538.40 | |||||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 466.1 | 378 | |||||||
TexStar pipeline capacity | 30,000 | ||||||||
TexStar contract period | 20 years | ||||||||
TexStar Capital Lease Obligation | 39.3 | ||||||||
TexStar Depreciation | 0.3 | ||||||||
Minimum | |||||||||
Long Term Debt Textual [Abstract] | |||||||||
TexStar KNPS Expected Delivery Capacity | 12,000 | ||||||||
6.50% Notes | |||||||||
Long Term Debt Textual [Abstract] | |||||||||
Senior Notes, Issuance Date | 31-Mar-14 | ||||||||
Senior Notes Issued, Gross | 900 | ||||||||
Maturity date | 15-Apr-21 | ||||||||
Proceeds from debt | 884 | ||||||||
Interest and principal payments of debt instruments | semiannually | ||||||||
Redemption Percentage | 35.00% | ||||||||
Redemption Price | 106.50% | ||||||||
Minimum Percentage of Senior Notes Outstanding After Redemption Date | 65.00% | ||||||||
Redemption occurs within days of the date of the closing of such public or private equity offering | 180 days | ||||||||
Debt Instrument Percentage of Discount Price | 100.00% | 100.00% | |||||||
Notes redemption proceeds | 570.9 | 111.2 | |||||||
9.375% Notes | |||||||||
Long Term Debt Textual [Abstract] | |||||||||
Extinguishment of Debt, Amount | 500 | ||||||||
7.625% Notes | |||||||||
Long Term Debt Textual [Abstract] | |||||||||
Senior Notes, Issuance Date | 26-Nov-13 | ||||||||
Senior Notes Issued, Gross | 350 | ||||||||
Maturity date | 15-Jan-22 | 15-Jan-22 | |||||||
Proceeds from debt | 337.4 | ||||||||
Redemption Percentage | 35.00% | ||||||||
Redemption Price | 107.63% | ||||||||
Minimum Percentage of Senior Notes Outstanding After Redemption Date | 65.00% | ||||||||
Redemption occurs within days of the date of the closing of such public or private equity offering | 180 days | ||||||||
Debt Instrument Percentage of Discount Price | 98.49% | ||||||||
9.625% Notes | |||||||||
Long Term Debt Textual [Abstract] | |||||||||
Senior Notes, Issuance Date | 29-Jun-12 | ||||||||
Senior Notes Issued, Gross | 275 | ||||||||
Maturity date | 1-Aug-20 | ||||||||
Proceeds from debt | 262.5 | ||||||||
Redemption Percentage | 35.00% | ||||||||
Redemption Price | 109.63% | ||||||||
Minimum Percentage of Senior Notes Outstanding After Redemption Date | 65.00% | ||||||||
Redemption occurs within days of the date of the closing of such public or private equity offering | 120 days | ||||||||
Debt Instrument Percentage of Discount Price | 98.25% | ||||||||
9 3/8% Notes issued in April 2011 | |||||||||
Long Term Debt Textual [Abstract] | |||||||||
Senior Notes, Issuance Date | 21-Apr-11 | ||||||||
Senior Notes Issued, Gross | 400 | ||||||||
Maturity date | 1-May-19 | ||||||||
Proceeds from debt | 389 | ||||||||
Extinguishment of Debt, Amount | 326 | 74 | |||||||
9 3/8% Notes issued in September 2011 | |||||||||
Long Term Debt Textual [Abstract] | |||||||||
Senior Notes, Issuance Date | 19-Sep-11 | ||||||||
Senior Notes Issued, Gross | 200 | ||||||||
Maturity date | 1-May-19 | ||||||||
Proceeds from debt | 180.3 | ||||||||
Extinguishment of Debt, Amount | 174 | 26 | |||||||
Debt Instrument Percentage of Discount Price | 93.00% | ||||||||
Revolving Credit Facility [Member] | |||||||||
Long Term Debt Textual [Abstract] | |||||||||
Maturity date | 14-Jul-19 | ||||||||
Interest and principal payments of debt instruments | quarterly | ||||||||
Senior secured revolving credit facility | 1,000 | 850 | |||||||
Incremental Uncommitted Expansion Feature | 500 | ||||||||
Customary letter of credit fee, including a fronting fee per annum on the stated amount of each outstanding letter of credit | 0.13% | ||||||||
Line of Credit Facility, Current Borrowing Capacity | 575.9 | ||||||||
Line of Credit Facility, Amount Outstanding | 150.8 | 0 | |||||||
Available for additional borrowings based on specified availability limitations | 310.8 | ||||||||
Financial covenant availability under the revolving credit facility falls below the greater | greater of (a) 12.5% of the Borrowing Base (as defined in the revolving credit agreement) then in effect and (b)Â $45.0 million, then the Company will be required to maintain as of the end of each fiscal quarter a Fixed Charge Coverage Ratio (as defined in the revolving credit agreement) of at least 1.0 to 1.0 | ||||||||
Revolving Credit Facility [Member] | Maximum | |||||||||
Long Term Debt Textual [Abstract] | |||||||||
Unutilized commitments fee to the lender under the revolving credit facility | 0.38% | ||||||||
Revolving Credit Facility [Member] | Minimum | |||||||||
Long Term Debt Textual [Abstract] | |||||||||
Unutilized commitments fee to the lender under the revolving credit facility | 0.25% | ||||||||
Senior Notes [Member] | |||||||||
Long Term Debt Textual [Abstract] | |||||||||
Gains (Losses) on Extinguishment of Debt | 89.6 | 14.6 | |||||||
Senior Notes [Member] | Maximum | |||||||||
Long Term Debt Textual [Abstract] | |||||||||
Fixed charge coverage ratio | 2.5 | ||||||||
Prime Rate | Revolving Credit Facility [Member] | |||||||||
Long Term Debt Textual [Abstract] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 75.00% | ||||||||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility [Member] | |||||||||
Long Term Debt Textual [Abstract] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 175.00% | ||||||||
Interest Rate Swap [Member] | Designated as Hedging Instrument | Fair Value Hedging [Member] | Interest Expense [Member] | |||||||||
Long Term Debt Textual [Abstract] | |||||||||
Liabilities, Fair Value Adjustment | -2.5 | 0 | |||||||
Assets under capital leases | |||||||||
Long Term Debt Textual [Abstract] | |||||||||
Property, plant and equipment, gross | 50.5 | 11.1 | |||||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $5.70 | $5 |
Derivatives_Offsetting_Derivat
Derivatives (Offsetting Derivative Assets) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $181.60 | $59.60 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -158.4 | -59.6 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 23.2 | |
Derivative Asset | 0 | |
Designated as Hedging Instrument | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 18.4 | 50 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -14.4 | -50 |
Derivative Asset | 4 | 0 |
Not Designated as Hedging Instrument | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 163.2 | 9.6 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -144 | -9.6 |
Derivative Asset | 19.2 | 0 |
Commodity Contract [Member] | Not Designated as Hedging Instrument | Fuel Product | Crude Oil Swaps | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 31.4 | 6.3 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -111.2 | -6.3 |
Derivative Asset | -79.8 | 0 |
Commodity Contract [Member] | Not Designated as Hedging Instrument | Fuel Product | Crude Oil Basis Swaps | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0.8 | 1 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | -1 |
Derivative Asset | 0.8 | 0 |
Commodity Contract [Member] | Not Designated as Hedging Instrument | Fuel Product | Crude Oil Percent Basis Swaps [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -0.2 | 0 |
Derivative Asset | -0.2 | 0 |
Commodity Contract [Member] | Not Designated as Hedging Instrument | Fuel Product | Gasoline swaps | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 2.4 | 0 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -0.4 | 0 |
Derivative Asset | 2 | 0 |
Commodity Contract [Member] | Not Designated as Hedging Instrument | Fuel Product | Diesel Swaps | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 116.1 | 0.7 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -19.1 | -0.7 |
Derivative Asset | 97 | 0 |
Commodity Contract [Member] | Not Designated as Hedging Instrument | Fuel Product | Jet Fuel Swaps | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 7.9 | 0.9 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -5.2 | -0.9 |
Derivative Asset | 2.7 | 0 |
Commodity Contract [Member] | Not Designated as Hedging Instrument | Fuel Product | Diesel Crack Spread | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 4.5 | 0 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 |
Derivative Asset | 4.5 | 0 |
Commodity Contract [Member] | Not Designated as Hedging Instrument | Specialty Product | Natural Gas Swaps | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0.4 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -7.2 | -0.4 |
Derivative Asset | -7.2 | 0 |
Commodity Contract [Member] | Not Designated as Hedging Instrument | Specialty Product | Natural Gas Collars | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0.1 | 0 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -0.6 | 0 |
Derivative Asset | -0.5 | 0 |
Commodity Option [Member] | Not Designated as Hedging Instrument | Fuel Product | Platinum Swaps | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -0.1 | 0 |
Derivative Asset | -0.1 | 0 |
Commodity Option [Member] | Not Designated as Hedging Instrument | Fuel Product | Diesel Crack Spread Collars | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0.3 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | -0.3 |
Derivative Asset | 0 | 0 |
Cash Flow Hedging [Member] | Commodity Contract [Member] | Designated as Hedging Instrument | Fuel Product | Crude Oil Swaps | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 45.4 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -10 | -45.4 |
Derivative Asset | -10 | 0 |
Cash Flow Hedging [Member] | Commodity Contract [Member] | Designated as Hedging Instrument | Fuel Product | Gasoline swaps | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 15.9 | 1 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -4.4 | -1 |
Derivative Asset | 11.5 | 0 |
Cash Flow Hedging [Member] | Commodity Contract [Member] | Designated as Hedging Instrument | Fuel Product | Diesel Swaps | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 3.5 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | -3.5 |
Derivative Asset | 0 | 0 |
Cash Flow Hedging [Member] | Commodity Contract [Member] | Designated as Hedging Instrument | Fuel Product | Jet Fuel Swaps | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0.1 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | -0.1 |
Derivative Asset | 0 | 0 |
Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument | Fuel Product | Interest Rate Swap [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 2.5 | 0 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 |
Derivative Asset | $2.50 | $0 |
Derivatives_Offsetting_Derivat1
Derivatives (Offsetting Derivative Liabilities) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | ($164) | ($114.40) |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 158.4 | 59.6 |
Derivative Liability | -5.6 | -54.8 |
Designated as Hedging Instrument | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | -13.8 | -97.4 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 14.4 | 50 |
Derivative Liability | 0.6 | -47.4 |
Not Designated as Hedging Instrument | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | -150.2 | -17 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 144 | 9.6 |
Derivative Liability | -6.2 | -7.4 |
Commodity Contract [Member] | Not Designated as Hedging Instrument | Fuel Product | Crude Oil Swaps | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | -102.4 | -1.7 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 111.2 | 6.3 |
Derivative Liability | 8.8 | 4.6 |
Commodity Contract [Member] | Not Designated as Hedging Instrument | Fuel Product | Crude Oil Basis Swaps | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | -0.6 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 1 |
Derivative Liability | 0 | 0.4 |
Commodity Contract [Member] | Not Designated as Hedging Instrument | Fuel Product | Crude Oil Percent Basis Swaps [Member] | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | -0.2 | 0 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0.2 | 0 |
Derivative Liability | 0 | 0 |
Commodity Contract [Member] | Not Designated as Hedging Instrument | Fuel Product | Gasoline swaps | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | -1 | -9.4 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0.4 | 0 |
Derivative Liability | -0.6 | -9.4 |
Commodity Contract [Member] | Not Designated as Hedging Instrument | Fuel Product | Diesel Swaps | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | -28.1 | -3.5 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 19.1 | 0.7 |
Derivative Liability | -9 | -2.8 |
Commodity Contract [Member] | Not Designated as Hedging Instrument | Fuel Product | Jet Fuel Swaps | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | -5.2 | 0 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 5.2 | 0.9 |
Derivative Liability | 0 | 0.9 |
Commodity Contract [Member] | Not Designated as Hedging Instrument | Specialty Product | Natural Gas Swaps | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | -12.1 | -1.6 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 7.2 | 0.4 |
Derivative Liability | -4.9 | -1.2 |
Commodity Option [Member] | Not Designated as Hedging Instrument | Fuel Product | Diesel Crack Spread Collars | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | -0.2 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0.3 |
Derivative Liability | 0 | 0.1 |
Commodity Option [Member] | Not Designated as Hedging Instrument | Fuel Product | Platinum Swaps | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | -0.1 | 0 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0.1 | 0 |
Derivative Liability | 0 | 0 |
Commodity Option [Member] | Not Designated as Hedging Instrument | Specialty Product | Natural Gas Collars | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | -1.1 | 0 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0.6 | 0 |
Derivative Liability | -0.5 | 0 |
Cash Flow Hedging [Member] | Commodity Contract [Member] | Designated as Hedging Instrument | Fuel Product | Crude Oil Swaps | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | -13.8 | -13 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 10 | 45.4 |
Derivative Liability | -3.8 | 32.4 |
Cash Flow Hedging [Member] | Commodity Contract [Member] | Designated as Hedging Instrument | Fuel Product | Gasoline swaps | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | -19.7 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 4.4 | 1 |
Derivative Liability | 4.4 | -18.7 |
Cash Flow Hedging [Member] | Commodity Contract [Member] | Designated as Hedging Instrument | Fuel Product | Diesel Swaps | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | -51.3 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 3.5 |
Derivative Liability | 0 | -47.8 |
Cash Flow Hedging [Member] | Commodity Contract [Member] | Designated as Hedging Instrument | Fuel Product | Jet Fuel Swaps | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | -13.4 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0.1 |
Derivative Liability | $0 | ($13.30) |
Derivatives_Cash_Flow_Hedges
Derivatives (Cash Flow Hedges) (Cash Flow Hedging [Member], Designated as Hedging Instrument, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | $114.20 | ($36.90) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Net Income (Loss) (Effective Portion) | 37 | 0.5 |
Amount of Gain (Loss) Recognized in Net Income (Loss) on Derivatives (Ineffective Portion) | -2.2 | -4.9 |
Commodity Contract [Member] | Fuel Product | Crude Oil Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | -185.8 | 18.7 |
Commodity Contract [Member] | Fuel Product | Crude Oil Swaps | Cost of Sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Net Income (Loss) (Effective Portion) | 44.2 | 3.1 |
Commodity Contract [Member] | Fuel Product | Crude Oil Swaps | Unrealized Realized | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Net Income (Loss) on Derivatives (Ineffective Portion) | 4.8 | -3 |
Commodity Contract [Member] | Fuel Product | Gasoline swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | 56.3 | -19.5 |
Commodity Contract [Member] | Fuel Product | Gasoline swaps | Sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Net Income (Loss) (Effective Portion) | -1.4 | -0.4 |
Commodity Contract [Member] | Fuel Product | Gasoline swaps | Unrealized Realized | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Net Income (Loss) on Derivatives (Ineffective Portion) | -7.6 | -1.7 |
Commodity Contract [Member] | Fuel Product | Diesel Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | 220 | -28.8 |
Commodity Contract [Member] | Fuel Product | Diesel Swaps | Sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Net Income (Loss) (Effective Portion) | -6.7 | -4.4 |
Commodity Contract [Member] | Fuel Product | Diesel Swaps | Unrealized Realized | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Net Income (Loss) on Derivatives (Ineffective Portion) | 0 | -5.3 |
Commodity Contract [Member] | Fuel Product | Jet Fuel Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | 23.7 | -7.3 |
Commodity Contract [Member] | Fuel Product | Jet Fuel Swaps | Sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Net Income (Loss) (Effective Portion) | -0.9 | 1.7 |
Commodity Contract [Member] | Fuel Product | Jet Fuel Swaps | Unrealized Realized | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Net Income (Loss) on Derivatives (Ineffective Portion) | 0.6 | 5.1 |
Commodity Contract [Member] | Specialty Product | Crude Oil Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | 0 | 0 |
Commodity Contract [Member] | Specialty Product | Crude Oil Swaps | Cost of Sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Net Income (Loss) (Effective Portion) | 1.8 | 0.5 |
Commodity Contract [Member] | Specialty Product | Crude Oil Swaps | Unrealized Realized | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Net Income (Loss) on Derivatives (Ineffective Portion) | $0 | $0 |
Derivatives_Cash_Flow_Hedges_c
Derivatives (Cash Flow Hedges classified in AOCIL) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss) | $13.70 | ($53.40) |
2015 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 15 | |
2016 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 10.8 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss) | $25.80 | ($51.40) |
Derivatives_Derivatives_Fair_V
Derivatives Derivatives (Fair Value Hedges) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain on Derivative | $0.60 | |
Fair Value Hedging [Member] | Interest Expense [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain on Derivative | 2.5 | 0 |
Liabilities, Fair Value Adjustment | -2.5 | 0 |
Interest Rate Contract [Member] | Fair Value Hedging [Member] | Interest Expense [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain on Derivative | 2.5 | 0 |
Liabilities, Fair Value Adjustment | ($2.50) | $0 |
Derivatives_Not_Designated_as_
Derivatives (Not Designated as Hedges) (Not Designated as Hedging Instrument, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Specialty Product | Commodity Contract [Member] | Realized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $32.50 | ($0.80) |
Specialty Product | Commodity Contract [Member] | Unrealized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 12.9 | 26.7 |
Crude Oil Swaps | Fuel Product | Commodity Contract [Member] | Realized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | -48.5 | -6.3 |
Crude Oil Swaps | Fuel Product | Commodity Contract [Member] | Unrealized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | -61.9 | 46.3 |
Crude Oil Swaps | Specialty Product | Commodity Contract [Member] | Realized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 0 | 1.8 |
Crude Oil Swaps | Specialty Product | Commodity Contract [Member] | Unrealized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 0 | -1.6 |
Crude Oil Basis Swaps | Fuel Product | Commodity Contract [Member] | Realized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 5.7 | -7.7 |
Crude Oil Basis Swaps | Fuel Product | Commodity Contract [Member] | Unrealized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 0.1 | 3.8 |
Gasoline swaps | Fuel Product | Commodity Contract [Member] | Realized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | -2.2 | 3.2 |
Gasoline swaps | Fuel Product | Commodity Contract [Member] | Unrealized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 10.1 | -9.9 |
Diesel Swaps | Fuel Product | Commodity Contract [Member] | Realized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 76.3 | 8.1 |
Diesel Swaps | Fuel Product | Commodity Contract [Member] | Unrealized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 71.5 | -11.7 |
Jet Fuel Swaps | Fuel Product | Commodity Contract [Member] | Realized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 3.2 | 0.7 |
Jet Fuel Swaps | Fuel Product | Commodity Contract [Member] | Unrealized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 0.7 | 0.9 |
Jet Fuel Crack Swaps [Member] | Fuel Product | Commodity Contract [Member] | Realized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | -0.1 | 0 |
Jet Fuel Crack Swaps [Member] | Fuel Product | Commodity Contract [Member] | Unrealized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 0 | 0 |
Diesel Crack Spread | Fuel Product | Commodity Contract [Member] | Realized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | -3.6 | 0 |
Diesel Crack Spread | Fuel Product | Commodity Contract [Member] | Unrealized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 4.5 | 0 |
Diesel Crack Spread Collars | Fuel Product | Commodity Option [Member] | Realized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 1 | 0 |
Diesel Crack Spread Collars | Fuel Product | Commodity Option [Member] | Unrealized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | -0.1 | 0.1 |
Gasoline Crack Spread Collars | Fuel Product | Commodity Option [Member] | Realized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | -0.4 | 0 |
Gasoline Crack Spread Collars | Fuel Product | Commodity Option [Member] | Unrealized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 0 | 0 |
Platinum Swaps | Fuel Product | Commodity Contract [Member] | Realized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 0 | 0 |
Platinum Swaps | Fuel Product | Commodity Contract [Member] | Unrealized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | -0.1 | 0 |
Natural Gas Swaps | Specialty Product | Commodity Contract [Member] | Realized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 1.1 | -0.6 |
Natural Gas Swaps | Specialty Product | Commodity Contract [Member] | Unrealized Gain (Loss) | ||
Derivative instruments not designated as cash flow hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | ($11.90) | ($1.20) |
Derivatives_Natural_Gas_Swaps
Derivatives (Natural Gas Swaps) (Commodity Contract [Member], Natural Gas Swaps, Specialty Product, Not Designated as Hedging Instrument) | Dec. 31, 2014 | Dec. 31, 2013 |
bbl | bbl | |
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 14,380,000 | 10,300,000 |
$/MMBtu | 4.18 | 4.28 |
First Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 750,000 | |
$/MMBtu | 4.14 | |
Second Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 750,000 | |
$/MMBtu | 4.14 | |
Third Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 750,000 | |
$/MMBtu | 4.14 | |
Fourth Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 850,000 | |
$/MMBtu | 4.21 | |
First Quarter 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,770,000 | |
$/MMBtu | 4.09 | |
Second Quarter 2015 [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,500,000 | |
$/MMBtu | 4.11 | |
Third Quarter 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,500,000 | |
$/MMBtu | 4.11 | |
Fourth Quarter 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,900,000 | |
$/MMBtu | 4.12 | |
Calendar Year 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 3,500,000 | |
$/MMBtu | 4.27 | |
Calendar Year 2016 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 5,880,000 | 2,700,000 |
$/MMBtu | 4.22 | 4.42 |
Calendar Year 2017 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,830,000 | 1,000,000 |
$/MMBtu | 4.28 | 4.29 |
Derivatives_Derivatives_Natura
Derivatives Derivatives (Natural Gas Collars) (Specialty Product, Commodity Contract [Member], Not Designated as Hedging Instrument, Natural Gas Collars) | Dec. 31, 2014 |
bbl | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 1,520,000 |
Average Bought Call ($/Bbl) | 4.25 |
Average Sold Put ($/Bbl) | 3.84 |
First Quarter 2015 | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 240,000 |
Average Bought Call ($/Bbl) | 4.25 |
Average Sold Put ($/Bbl) | 3.79 |
Second Quarter 2015 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 240,000 |
Average Bought Call ($/Bbl) | 4.25 |
Average Sold Put ($/Bbl) | 3.79 |
Third Quarter 2015 | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 240,000 |
Average Bought Call ($/Bbl) | 4.25 |
Average Sold Put ($/Bbl) | 3.79 |
Fourth Quarter 2015 | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 200,000 |
Average Bought Call ($/Bbl) | 4.25 |
Average Sold Put ($/Bbl) | 3.85 |
Calendar Year 2016 | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 600,000 |
Average Bought Call ($/Bbl) | 4.25 |
Average Sold Put ($/Bbl) | 3.89 |
Derivatives_Crude_Oil_Swaps
Derivatives (Crude Oil Swaps) (Commodity Contract [Member], Fuel Product) | Dec. 31, 2014 | Dec. 31, 2013 |
bbl | bbl | |
Crude Oil Swap Purchases | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 3,510,628 | 3,463,500 |
Average Swap ($/Bbl) | 81.89 | 92.59 |
Crude Oil Swap Purchases | Not Designated as Hedging Instrument | First Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 810,000 | |
Barrels per Day Purchased | 9,000 | |
Average Swap ($/Bbl) | 94.56 | |
Crude Oil Swap Purchases | Not Designated as Hedging Instrument | Second Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 591,500 | |
Barrels per Day Purchased | 6,500 | |
Average Swap ($/Bbl) | 94.37 | |
Crude Oil Swap Purchases | Not Designated as Hedging Instrument | Third Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 874,000 | |
Barrels per Day Purchased | 9,500 | |
Average Swap ($/Bbl) | 92.92 | |
Crude Oil Swap Purchases | Not Designated as Hedging Instrument | Fourth Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 184,000 | |
Barrels per Day Purchased | 2,000 | |
Average Swap ($/Bbl) | 94.62 | |
Crude Oil Swap Purchases | Not Designated as Hedging Instrument | First Quarter 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,674,000 | |
Barrels per Day Purchased | 18,600 | |
Average Swap ($/Bbl) | 89.55 | |
Crude Oil Swap Purchases | Not Designated as Hedging Instrument | Second Quarter 2015 [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 91,000 | |
Barrels per Day Purchased | 1,000 | |
Average Swap ($/Bbl) | 89.89 | |
Crude Oil Swap Purchases | Not Designated as Hedging Instrument | Third Quarter 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 386,400 | |
Barrels per Day Purchased | 4,200 | |
Average Swap ($/Bbl) | 69.2 | |
Crude Oil Swap Purchases | Not Designated as Hedging Instrument | Fourth Quarter 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 386,400 | |
Barrels per Day Purchased | 4,200 | |
Average Swap ($/Bbl) | 69.2 | |
Crude Oil Swap Purchases | Not Designated as Hedging Instrument | Calendar Year 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,004,000 | |
Barrels per Day Purchased | 2,751 | |
Average Swap ($/Bbl) | 89.28 | |
Crude Oil Swap Purchases | Not Designated as Hedging Instrument | Calendar Year 2016 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 972,828 | |
Barrels per Day Purchased | 2,658 | |
Average Swap ($/Bbl) | 78.02 | |
Crude Oil Swap Sales | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,674,000 | 182,500 |
Average Swap ($/Bbl) | 84.21 | 96.9 |
Crude Oil Swap Sales | Not Designated as Hedging Instrument | First Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 45,000 | |
Barrels per Day Purchased | 500 | |
Average Swap ($/Bbl) | 96.9 | |
Crude Oil Swap Sales | Not Designated as Hedging Instrument | Second Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 45,500 | |
Barrels per Day Purchased | 500 | |
Average Swap ($/Bbl) | 96.9 | |
Crude Oil Swap Sales | Not Designated as Hedging Instrument | Third Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 46,000 | |
Barrels per Day Purchased | 500 | |
Average Swap ($/Bbl) | 96.9 | |
Crude Oil Swap Sales | Not Designated as Hedging Instrument | Fourth Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 46,000 | |
Barrels per Day Purchased | 500 | |
Average Swap ($/Bbl) | 96.9 | |
Crude Oil Swap Sales | Not Designated as Hedging Instrument | First Quarter 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,674,000 | |
Barrels per Day Sold | 18,600 | |
Average Swap ($/Bbl) | 84.21 | |
Cash Flow Hedging [Member] | Crude Oil Swap Purchases | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 315,000 | 16,872,000 |
Average Swap ($/Bbl) | 97.71 | 89.97 |
Cash Flow Hedging [Member] | Crude Oil Swap Purchases | Designated as Hedging Instrument | First Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 2,520,000 | |
Barrels per Day Purchased | 28,000 | |
Average Swap ($/Bbl) | 92.06 | |
Cash Flow Hedging [Member] | Crude Oil Swap Purchases | Designated as Hedging Instrument | Second Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 2,411,500 | |
Barrels per Day Purchased | 26,500 | |
Average Swap ($/Bbl) | 91.97 | |
Cash Flow Hedging [Member] | Crude Oil Swap Purchases | Designated as Hedging Instrument | Third Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 2,530,000 | |
Barrels per Day Purchased | 27,500 | |
Average Swap ($/Bbl) | 91.23 | |
Cash Flow Hedging [Member] | Crude Oil Swap Purchases | Designated as Hedging Instrument | Fourth Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 2,024,000 | |
Barrels per Day Purchased | 22,000 | |
Average Swap ($/Bbl) | 90.61 | |
Cash Flow Hedging [Member] | Crude Oil Swap Purchases | Designated as Hedging Instrument | First Quarter 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 315,000 | |
Barrels per Day Purchased | 3,500 | |
Average Swap ($/Bbl) | 97.71 | |
Cash Flow Hedging [Member] | Crude Oil Swap Purchases | Designated as Hedging Instrument | Calendar Year 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 5,556,500 | |
Barrels per Day Purchased | 15,223 | |
Average Swap ($/Bbl) | 89.08 | |
Cash Flow Hedging [Member] | Crude Oil Swap Purchases | Designated as Hedging Instrument | Calendar Year 2016 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,830,000 | |
Barrels per Day Purchased | 5,000 | |
Average Swap ($/Bbl) | 84.73 |
Derivatives_Crude_Oil_Basis_Sw
Derivatives (Crude Oil Basis Swaps) (Commodity Contract [Member], Crude Oil Basis Swaps Purchased [Member], Fuel Product, Not Designated as Hedging Instrument) | Dec. 31, 2014 | Dec. 31, 2013 |
bbl | bbl | |
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 118,000 | 486,000 |
Derivative, Average Swap Differential to Publicly Traded Future | -22.4 | -23.29 |
First Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 118,000 | |
Barrels per Day Purchased | 1,311 | |
Derivative, Average Swap Differential to Publicly Traded Future | -28.5 | |
Third Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 184,000 | |
Barrels per Day Purchased | 2,000 | |
Derivative, Average Swap Differential to Publicly Traded Future | -21.75 | |
Fourth Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 184,000 | |
Barrels per Day Purchased | 2,000 | |
Derivative, Average Swap Differential to Publicly Traded Future | -21.5 | |
First Quarter 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 118,000 | |
Barrels per Day Purchased | 2,000 | |
Derivative, Average Swap Differential to Publicly Traded Future | -22.4 |
Derivatives_Derivatives_Crude_
Derivatives Derivatives (Crude Oil Percent Basis Swaps) (Commodity Contract [Member], Crude Oil Percent Basis Swaps Purchased [Member], Fuel Product, Not Designated as Hedging Instrument) | Dec. 31, 2014 |
bbl | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 368,000 |
Derivative, Fixed Percentage to Publicly Traded Future | 73.00% |
Third Quarter 2015 | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 184,000 |
Barrels per Day Purchased | 2,000 |
Derivative, Fixed Percentage to Publicly Traded Future | 73.00% |
Fourth Quarter 2015 | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 184,000 |
Barrels per Day Purchased | 2,000 |
Derivative, Fixed Percentage to Publicly Traded Future | 73.00% |
Derivative_Diesel_Swaps
Derivative (Diesel Swaps) (Commodity Contract [Member], Fuel Product) | Dec. 31, 2014 | Dec. 31, 2013 |
bbl | bbl | |
Diesel Swaps Sold [Member] | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,870,000 | |
Average Swap ($/Bbl) | 119.54 | |
Diesel Swaps Sold [Member] | Not Designated as Hedging Instrument | First Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 270,000 | |
Barrels per Day Sold | 3,000 | |
Average Swap ($/Bbl) | 121.72 | |
Diesel Swaps Sold [Member] | Not Designated as Hedging Instrument | Second Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 182,000 | |
Barrels per Day Sold | 2,000 | |
Average Swap ($/Bbl) | 123.22 | |
Diesel Swaps Sold [Member] | Not Designated as Hedging Instrument | Third Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 230,000 | |
Barrels per Day Sold | 2,500 | |
Average Swap ($/Bbl) | 121.74 | |
Diesel Swaps Sold [Member] | Not Designated as Hedging Instrument | Fourth Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 184,000 | |
Barrels per Day Sold | 2,000 | |
Average Swap ($/Bbl) | 123.02 | |
Diesel Swaps Sold [Member] | Not Designated as Hedging Instrument | Calendar Year 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,004,000 | |
Barrels per Day Sold | 2,751 | |
Average Swap ($/Bbl) | 117.15 | |
Diesel Swaps Purchased | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,449,000 | 182,500 |
Average Swap ($/Bbl) | 105.78 | 121.8 |
Diesel Swaps Purchased | Not Designated as Hedging Instrument | First Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 45,000 | |
Barrels per Day Purchased | 500 | |
Average Swap ($/Bbl) | 121.8 | |
Diesel Swaps Purchased | Not Designated as Hedging Instrument | Second Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 45,500 | |
Barrels per Day Purchased | 500 | |
Average Swap ($/Bbl) | 121.8 | |
Diesel Swaps Purchased | Not Designated as Hedging Instrument | Third Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 46,000 | |
Barrels per Day Purchased | 500 | |
Average Swap ($/Bbl) | 121.8 | |
Diesel Swaps Purchased | Not Designated as Hedging Instrument | Fourth Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 46,000 | |
Barrels per Day Purchased | 500 | |
Average Swap ($/Bbl) | 121.8 | |
Diesel Swaps Purchased | Not Designated as Hedging Instrument | First Quarter 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,449,000 | |
Barrels per Day Purchased | 16,100 | |
Average Swap ($/Bbl) | 105.78 | |
Cash Flow Hedging [Member] | Diesel Swaps Sold [Member] | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 11,495,500 | |
Average Swap ($/Bbl) | 115.72 | |
Cash Flow Hedging [Member] | Diesel Swaps Sold [Member] | Designated as Hedging Instrument | First Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,125,000 | |
Barrels per Day Sold | 12,500 | |
Average Swap ($/Bbl) | 117.54 | |
Cash Flow Hedging [Member] | Diesel Swaps Sold [Member] | Designated as Hedging Instrument | Second Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,183,000 | |
Barrels per Day Sold | 13,000 | |
Average Swap ($/Bbl) | 116.78 | |
Cash Flow Hedging [Member] | Diesel Swaps Sold [Member] | Designated as Hedging Instrument | Third Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,288,000 | |
Barrels per Day Sold | 14,000 | |
Average Swap ($/Bbl) | 116.82 | |
Cash Flow Hedging [Member] | Diesel Swaps Sold [Member] | Designated as Hedging Instrument | Fourth Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,288,000 | |
Barrels per Day Sold | 14,000 | |
Average Swap ($/Bbl) | 116.96 | |
Cash Flow Hedging [Member] | Diesel Swaps Sold [Member] | Designated as Hedging Instrument | Calendar Year 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 4,781,500 | |
Barrels per Day Sold | 13,100 | |
Average Swap ($/Bbl) | 115.81 | |
Cash Flow Hedging [Member] | Diesel Swaps Sold [Member] | Designated as Hedging Instrument | Calendar Year 2016 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,830,000 | |
Barrels per Day Sold | 5,000 | |
Average Swap ($/Bbl) | 112 | |
Cash Flow Hedging [Member] | Diesel Swaps Sold [Member] | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 3,099,000 | |
Average Swap ($/Bbl) | 108.38 | |
Cash Flow Hedging [Member] | Diesel Swaps Sold [Member] | Not Designated as Hedging Instrument | First Quarter 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,449,000 | |
Barrels per Day Sold | 16,100 | |
Average Swap ($/Bbl) | 116.27 | |
Cash Flow Hedging [Member] | Diesel Swaps Sold [Member] | Not Designated as Hedging Instrument | Second Quarter 2015 [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 91,000 | |
Barrels per Day Sold | 1,000 | |
Average Swap ($/Bbl) | 117.92 | |
Cash Flow Hedging [Member] | Diesel Swaps Sold [Member] | Not Designated as Hedging Instrument | Third Quarter 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 322,000 | |
Barrels per Day Sold | 3,500 | |
Average Swap ($/Bbl) | 95.04 | |
Cash Flow Hedging [Member] | Diesel Swaps Sold [Member] | Not Designated as Hedging Instrument | Fourth Quarter 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 322,000 | |
Barrels per Day Sold | 3,500 | |
Average Swap ($/Bbl) | 95.04 | |
Cash Flow Hedging [Member] | Diesel Swaps Sold [Member] | Not Designated as Hedging Instrument | Calendar Year 2016 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 915,000 | |
Barrels per Day Sold | 2,500 | |
Average Swap ($/Bbl) | 104.32 |
Derivatives_Derivatives_Diesel
Derivatives Derivatives (Diesel Crack Spread) (Commodity Option [Member], Diesel Crack Spread, Fuel Product, Not Designated as Hedging Instrument) | Dec. 31, 2014 |
bbl | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 2,475,000 |
Derivative, Fixed Percentage to Publicly Traded Future | 32.20% |
Third Quarter 2015 | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 414,000 |
Barrels per Day Sold | 4,500 |
Derivative, Fixed Percentage to Publicly Traded Future | 33.20% |
Fourth Quarter 2015 | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 414,000 |
Barrels per Day Sold | 4,500 |
Derivative, Fixed Percentage to Publicly Traded Future | 33.20% |
Calendar Year 2016 | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 1,647,000 |
Barrels per Day Sold | 4,500 |
Derivative, Fixed Percentage to Publicly Traded Future | 31.70% |
Derivative_Diesel_Crack_Spread
Derivative (Diesel Crack Spread Collars) (Commodity Option [Member], Diesel Crack Spread Collars, Fuel Product, Not Designated as Hedging Instrument) | Dec. 31, 2013 |
bbl | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 365,000 |
Average Bought Put ($/Bbl) | 26 |
Average Sold Call ($/Bbl) | 35 |
First Quarter 2014 | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 90,000 |
Barrels per Day Sold and Purchased | 1,000 |
Average Bought Put ($/Bbl) | 26 |
Average Sold Call ($/Bbl) | 35 |
Second Quarter 2014 | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 91,000 |
Barrels per Day Sold and Purchased | 1,000 |
Average Bought Put ($/Bbl) | 26 |
Average Sold Call ($/Bbl) | 35 |
Third Quarter 2014 | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 92,000 |
Barrels per Day Sold and Purchased | 1,000 |
Average Bought Put ($/Bbl) | 26 |
Average Sold Call ($/Bbl) | 35 |
Fourth Quarter 2014 | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 92,000 |
Barrels per Day Sold and Purchased | 1,000 |
Average Bought Put ($/Bbl) | 26 |
Average Sold Call ($/Bbl) | 35 |
Derivative_Jet_Fuel_Swaps
Derivative (Jet Fuel Swaps) (Commodity Contract [Member], Fuel Product) | Dec. 31, 2014 | Dec. 31, 2013 |
bbl | bbl | |
Jet Fuel Swaps Sold | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 180,000 | |
Average Swap ($/Bbl) | 115.65 | |
Jet Fuel Swaps Sold | Not Designated as Hedging Instrument | First Quarter 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 180,000 | |
Barrels per Day Sold | 2,000 | |
Average Swap ($/Bbl) | 115.65 | |
Jet Fuel Swaps Purchased | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 180,000 | 90,000 |
Average Swap ($/Bbl) | 100.91 | 116.71 |
Jet Fuel Swaps Purchased | Not Designated as Hedging Instrument | First Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 90,000 | |
Barrels per Day Purchased | 1,000 | |
Average Swap ($/Bbl) | 116.71 | |
Jet Fuel Swaps Purchased | Not Designated as Hedging Instrument | First Quarter 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 180,000 | |
Barrels per Day Purchased | 2,000 | |
Average Swap ($/Bbl) | 100.91 | |
Cash Flow Hedging [Member] | Jet Fuel Swaps Sold | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 2,050,000 | |
Average Swap ($/Bbl) | 115.66 | |
Cash Flow Hedging [Member] | Jet Fuel Swaps Sold | Designated as Hedging Instrument | First Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 450,000 | |
Barrels per Day Sold | 5,000 | |
Average Swap ($/Bbl) | 117.5 | |
Cash Flow Hedging [Member] | Jet Fuel Swaps Sold | Designated as Hedging Instrument | Second Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 273,000 | |
Barrels per Day Sold | 3,000 | |
Average Swap ($/Bbl) | 116.68 | |
Cash Flow Hedging [Member] | Jet Fuel Swaps Sold | Designated as Hedging Instrument | Third Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 276,000 | |
Barrels per Day Sold | 3,000 | |
Average Swap ($/Bbl) | 116.18 | |
Cash Flow Hedging [Member] | Jet Fuel Swaps Sold | Designated as Hedging Instrument | Fourth Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 276,000 | |
Barrels per Day Sold | 3,000 | |
Average Swap ($/Bbl) | 115.65 | |
Cash Flow Hedging [Member] | Jet Fuel Swaps Sold | Designated as Hedging Instrument | Calendar Year 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 775,000 | |
Barrels per Day Sold | 2,123 | |
Average Swap ($/Bbl) | 114.05 |
Derivative_Gasoline_Swaps
Derivative (Gasoline Swaps) (Commodity Contract [Member], Fuel Product) | Dec. 31, 2014 | Dec. 31, 2013 |
bbl | bbl | |
Gasoline Swaps Sold [Member] | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 45,000 | 1,683,500 |
Average Swap ($/Bbl) | 111.72 | 107.82 |
Gasoline Swaps Sold [Member] | Not Designated as Hedging Instrument | First Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 630,000 | |
Barrels per Day Sold | 7,000 | |
Average Swap ($/Bbl) | 105.67 | |
Gasoline Swaps Sold [Member] | Not Designated as Hedging Instrument | Second Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 409,500 | |
Barrels per Day Sold | 4,500 | |
Average Swap ($/Bbl) | 110.48 | |
Gasoline Swaps Sold [Member] | Not Designated as Hedging Instrument | Third Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 644,000 | |
Barrels per Day Sold | 7,000 | |
Average Swap ($/Bbl) | 108.24 | |
Gasoline Swaps Sold [Member] | Not Designated as Hedging Instrument | First Quarter 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 45,000 | |
Barrels per Day Sold | 500 | |
Average Swap ($/Bbl) | 111.72 | |
Gasoline Swaps Purchased [Member] | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 45,000 | |
Average Swap ($/Bbl) | 78.12 | |
Gasoline Swaps Purchased [Member] | Not Designated as Hedging Instrument | First Quarter 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 45,000 | |
Barrels per Day Purchased | 500 | |
Average Swap ($/Bbl) | 78.12 | |
Cash Flow Hedging [Member] | Gasoline Swaps Sold [Member] | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 315,000 | 3,326,500 |
Average Swap ($/Bbl) | 109.68 | 106.61 |
Cash Flow Hedging [Member] | Gasoline Swaps Sold [Member] | Designated as Hedging Instrument | First Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 945,000 | |
Barrels per Day Sold | 10,500 | |
Average Swap ($/Bbl) | 104.39 | |
Cash Flow Hedging [Member] | Gasoline Swaps Sold [Member] | Designated as Hedging Instrument | Second Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 955,500 | |
Barrels per Day Sold | 10,500 | |
Average Swap ($/Bbl) | 109.68 | |
Cash Flow Hedging [Member] | Gasoline Swaps Sold [Member] | Designated as Hedging Instrument | Third Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 966,000 | |
Barrels per Day Sold | 10,500 | |
Average Swap ($/Bbl) | 106.6 | |
Cash Flow Hedging [Member] | Gasoline Swaps Sold [Member] | Designated as Hedging Instrument | Fourth Quarter 2014 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 460,000 | |
Barrels per Day Sold | 5,000 | |
Average Swap ($/Bbl) | 104.85 | |
Cash Flow Hedging [Member] | Gasoline Swaps Sold [Member] | Designated as Hedging Instrument | First Quarter 2015 | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 315,000 | |
Barrels per Day Sold | 3,500 | |
Average Swap ($/Bbl) | 109.68 |
Derivatives_Derivatives_Platin
Derivatives Derivatives (Platinum Swaps) (Commodity Option [Member], Not Designated as Hedging Instrument, Fuel Product, Platinum Swaps, Calendar Year 2015) | Dec. 31, 2014 |
Commodity Option [Member] | Not Designated as Hedging Instrument | Fuel Product | Platinum Swaps | Calendar Year 2015 | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 1,900 |
Derivatives_Details_Textual
Derivatives (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 26, 2013 |
Derivative [Line Items] | ||||
Derivative, cash received on settlement | $44.80 | |||
Derivative, Counterparty | 5 | 0 | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 23.2 | 23.2 | ||
Collateral Already Posted, Aggregate Fair Value | 0 | 0 | 0 | |
Accumulated other comprehensive income (loss) | 13.7 | 13.7 | -53.4 | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 15 | |||
Derivative, Notional Amount | 200 | 200 | ||
Derivative, Gain on Derivative | 0.6 | |||
7.625% Notes | ||||
Derivative [Line Items] | ||||
Debt Instrument, Maturity Date | 15-Jan-22 | 15-Jan-22 | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||
Derivative [Line Items] | ||||
Accumulated other comprehensive income (loss) | $25.80 | $25.80 | ($51.40) | |
Commodity Contract [Member] | Not Designated as Hedging Instrument | Fuel Product | Crude Oil Basis Swaps Purchased [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Nonmonetary Notional Amount | 118,000 | 118,000 | 486,000 | |
Fourth Quarter 2013 [Member] | Commodity Contract [Member] | Not Designated as Hedging Instrument | Fuel Product | Crude Oil Basis Swaps Purchased [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Nonmonetary Notional Amount | 248,000 | 248,000 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative assets: | ||
Total derivative assets | $0 | |
Derivative liabilities: | ||
Total derivative liabilities | -5.6 | -54.8 |
Level 1 | ||
Derivative assets: | ||
Pension plan investments | 0.2 | 0 |
Level 2 | ||
Derivative assets: | ||
Pension plan investments | 49.4 | 45.8 |
Fair Value, Measurements, Recurring | ||
Derivative assets: | ||
Total derivative assets | 23.2 | 0 |
Pension plan investments | 49.6 | 45.8 |
Total recurring assets at fair value | 72.8 | 45.8 |
Derivative liabilities: | ||
Total derivative liabilities | -5.6 | -54.8 |
RINS Obligation | -16.3 | -5.3 |
Liability Awards | -4.7 | -3.7 |
Total recurring liabilities at fair value | -26.6 | -63.8 |
Fair Value, Measurements, Recurring | Level 1 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Pension plan investments | 0.2 | 0 |
Total recurring assets at fair value | 0.2 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
RINS Obligation | 0 | 0 |
Liability Awards | -4.7 | -3.7 |
Total recurring liabilities at fair value | -4.7 | -3.7 |
Fair Value, Measurements, Recurring | Level 2 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Pension plan investments | 49.4 | 45.8 |
Total recurring assets at fair value | 49.4 | 45.8 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
RINS Obligation | -16.3 | -5.3 |
Liability Awards | 0 | 0 |
Total recurring liabilities at fair value | -16.3 | -5.3 |
Fair Value, Measurements, Recurring | Level 3 | ||
Derivative assets: | ||
Total derivative assets | 23.2 | 0 |
Pension plan investments | 0 | 0 |
Total recurring assets at fair value | 23.2 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | -5.6 | -54.8 |
RINS Obligation | 0 | 0 |
Liability Awards | 0 | 0 |
Total recurring liabilities at fair value | -5.6 | -54.8 |
Fair Value, Measurements, Recurring | Crude Oil Swaps | ||
Derivative assets: | ||
Total derivative assets | -89.8 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 5 | 37 |
Fair Value, Measurements, Recurring | Crude Oil Swaps | Level 1 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Crude Oil Swaps | Level 2 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Crude Oil Swaps | Level 3 | ||
Derivative assets: | ||
Total derivative assets | -89.8 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 5 | 37 |
Fair Value, Measurements, Recurring | Crude Oil Basis Swaps | ||
Derivative assets: | ||
Total derivative assets | 0.8 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0.4 |
Fair Value, Measurements, Recurring | Crude Oil Basis Swaps | Level 1 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Crude Oil Basis Swaps | Level 2 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Crude Oil Basis Swaps | Level 3 | ||
Derivative assets: | ||
Total derivative assets | 0.8 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0.4 |
Fair Value, Measurements, Recurring | Crude Oil Percent Basis Swaps [Member] | ||
Derivative assets: | ||
Total derivative assets | -0.2 | 0 |
Fair Value, Measurements, Recurring | Crude Oil Percent Basis Swaps [Member] | Level 1 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Crude Oil Percent Basis Swaps [Member] | Level 2 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Crude Oil Percent Basis Swaps [Member] | Level 3 | ||
Derivative assets: | ||
Total derivative assets | -0.2 | 0 |
Fair Value, Measurements, Recurring | Gasoline swaps | ||
Derivative assets: | ||
Total derivative assets | 13.5 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 3.8 | -28.1 |
Fair Value, Measurements, Recurring | Gasoline swaps | Level 1 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Gasoline swaps | Level 2 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Gasoline swaps | Level 3 | ||
Derivative assets: | ||
Total derivative assets | 13.5 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | -3.8 | -28.1 |
Fair Value, Measurements, Recurring | Diesel Swaps | ||
Derivative assets: | ||
Total derivative assets | 97 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | -9 | -50.6 |
Fair Value, Measurements, Recurring | Diesel Swaps | Level 1 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Diesel Swaps | Level 2 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Diesel Swaps | Level 3 | ||
Derivative assets: | ||
Total derivative assets | 97 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | -9 | -50.6 |
Fair Value, Measurements, Recurring | Diesel Crack Spread | ||
Derivative assets: | ||
Total derivative assets | 4.5 | 0 |
Fair Value, Measurements, Recurring | Diesel Crack Spread | Level 1 | ||
Derivative assets: | ||
Total derivative assets | 0 | |
Fair Value, Measurements, Recurring | Diesel Crack Spread | Level 2 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Diesel Crack Spread | Level 3 | ||
Derivative assets: | ||
Total derivative assets | 4.5 | 0 |
Fair Value, Measurements, Recurring | Jet Fuel Swaps | ||
Derivative assets: | ||
Total derivative assets | 2.7 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | -12.4 |
Fair Value, Measurements, Recurring | Jet Fuel Swaps | Level 1 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Jet Fuel Swaps | Level 2 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Jet Fuel Swaps | Level 3 | ||
Derivative assets: | ||
Total derivative assets | 2.7 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | -12.4 |
Fair Value, Measurements, Recurring | Diesel Crack Spread Collars | ||
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0.1 |
Fair Value, Measurements, Recurring | Diesel Crack Spread Collars | Level 1 | ||
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Diesel Crack Spread Collars | Level 2 | ||
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Diesel Crack Spread Collars | Level 3 | ||
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0.1 |
Fair Value, Measurements, Recurring | Natural Gas Swaps | ||
Derivative assets: | ||
Total derivative assets | -7.2 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | -4.9 | -1.2 |
Fair Value, Measurements, Recurring | Natural Gas Swaps | Level 1 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Natural Gas Swaps | Level 2 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Natural Gas Swaps | Level 3 | ||
Derivative assets: | ||
Total derivative assets | -7.2 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | -4.9 | -1.2 |
Fair Value, Measurements, Recurring | Natural Gas Collars | ||
Derivative assets: | ||
Total derivative assets | -0.5 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | -0.5 | 0 |
Fair Value, Measurements, Recurring | Natural Gas Collars | Level 1 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Natural Gas Collars | Level 2 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Natural Gas Collars | Level 3 | ||
Derivative assets: | ||
Total derivative assets | -0.5 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | -0.5 | 0 |
Fair Value, Measurements, Recurring | Platinum Swaps | ||
Derivative assets: | ||
Total derivative assets | -0.1 | 0 |
Fair Value, Measurements, Recurring | Platinum Swaps | Level 1 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Platinum Swaps | Level 2 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Platinum Swaps | Level 3 | ||
Derivative assets: | ||
Total derivative assets | -0.1 | 0 |
Fair Value, Measurements, Recurring | Interest Rate Swap [Member] | ||
Derivative assets: | ||
Total derivative assets | 2.5 | 0 |
Fair Value, Measurements, Recurring | Interest Rate Swap [Member] | Level 1 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Interest Rate Swap [Member] | Level 2 | ||
Derivative assets: | ||
Total derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Interest Rate Swap [Member] | Level 3 | ||
Derivative assets: | ||
Total derivative assets | $2.50 | $0 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of net changes in fair value of the company's level 3 financial assets and liabilities | |||
Realized Gain Loss on Derivative Instruments | $43.80 | ($4.70) | $9.50 |
Unrealized loss on derivative instruments | -0.6 | 25.7 | |
Change in fair value of cash flow hedges | 114.2 | -36.9 | -215.1 |
Level 3 | |||
Summary of net changes in fair value of the company's level 3 financial assets and liabilities | |||
Fair value at January 1, | -54.8 | -44.9 | |
Realized Gain Loss on Derivative Instruments | -43.8 | 4.7 | |
Unrealized loss on derivative instruments | -0.6 | 25.7 | |
Interest Income (Expense), Net | -0.8 | 0 | |
Change in fair value of cash flow hedges | 114.2 | -36.9 | |
Settlements | -3.4 | -3.4 | |
Transfers in (out) of Level 3 | 0 | 0 | |
Fair value at December 31, | $17.60 | ($54.80) |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Capital Lease Obligations [Member] | ||
Financial Instrument: | ||
Capital lease obligations, at various interest rates, interest and principal payments monthly through October 2034 | $43.60 | $4.80 |
Fair Value | Level 1 | ||
Financial Instrument: | ||
Notes Payable, Fair Value Disclosure | 630 | 863.6 |
Fair Value | Level 2 | ||
Financial Instrument: | ||
Notes Payable, Fair Value Disclosure | 803.3 | 353.9 |
Fair Value | Level 3 | ||
Financial Instrument: | ||
Lines of Credit, Fair Value Disclosure | 0 | |
Fair Value | Revolving Credit Facility [Member] | Level 3 | ||
Financial Instrument: | ||
Lines of Credit, Fair Value Disclosure | 150.8 | |
Carrying Value | Level 1 | ||
Financial Instrument: | ||
Notes Payable, Fair Value Disclosure | 619.1 | 761.2 |
Carrying Value | Level 2 | ||
Financial Instrument: | ||
Notes Payable, Fair Value Disclosure | 900 | 344.8 |
Carrying Value | Level 3 | ||
Financial Instrument: | ||
Lines of Credit, Fair Value Disclosure | 150.8 | 0 |
Carrying Value | Capital Lease Obligations [Member] | Level 3 | ||
Financial Instrument: | ||
Capital lease obligations, at various interest rates, interest and principal payments monthly through October 2034 | $43.60 | $4.80 |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value Disclosures [Abstract] | ||
Derivative Credit Risk Valuation Adjustment, Derivative Assets | ($2) | |
Gain on Sale of RINs | 18.2 | |
Fair Value Measurements (Textual) [Abstract] | ||
Derivative Credit Risk Valuation Adjustment, Derivative Liabilities | ($0.10) | ($1.90) |
Reviews for goodwill impairment annually on | 1-Oct-14 |
Partners_Capital_Partners_Capi1
Partners' Capital Partner's Capital (Details 1) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum Quarterly Distribution | Minimum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive Distribution, Distribution Per Unit | $0.45 |
Minimum Quarterly Distribution | Limited Partners | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal percentage interest in distributions | 98.00% |
Minimum Quarterly Distribution | General Partner | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal percentage interest in distributions | 2.00% |
First Target Distribution | Maximum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive Distribution, Distribution Per Unit | $0.50 |
First Target Distribution | Limited Partners | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal percentage interest in distributions | 98.00% |
First Target Distribution | General Partner | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal percentage interest in distributions | 2.00% |
Second Target Distribution | Minimum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive Distribution, Distribution Per Unit | $0.50 |
Second Target Distribution | Maximum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive Distribution, Distribution Per Unit | $0.56 |
Second Target Distribution | Limited Partners | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal percentage interest in distributions | 85.00% |
Second Target Distribution | General Partner | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal percentage interest in distributions | 15.00% |
Third Target Distribution | Minimum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive Distribution, Distribution Per Unit | $0.56 |
Third Target Distribution | Maximum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive Distribution, Distribution Per Unit | $0.68 |
Third Target Distribution | Limited Partners | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal percentage interest in distributions | 75.00% |
Third Target Distribution | General Partner | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal percentage interest in distributions | 25.00% |
After Target Distributions | Minimum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive Distribution, Distribution Per Unit | $0.68 |
After Target Distributions | Limited Partners | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal percentage interest in distributions | 50.00% |
After Target Distributions | General Partner | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal percentage interest in distributions | 50.00% |
Partners_Capital_Partners_Capi2
Partners' Capital Partner's Capital (Details 2) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||
In Millions, except Share data, unless otherwise specified | Apr. 02, 2013 | Jan. 08, 2013 | 8-May-12 | Feb. 24, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 08, 2013 | ||||
Public Offering of Common Units [Line Items] | ||||||||||||
Partners' Capital Account, Units, Sold in Public Offering | 6,037,500 | [1] | 5,750,000 | [2] | 6,000,000 | 134,955 | ||||||
Stock Price, Offering Price Per Share | $37.50 | $31.81 | $25.50 | 31.81 | ||||||||
Proceeds from Issuance of Common Limited Partners Units | $217.30 | [3] | $175.20 | [3] | $146.60 | [3] | $3.60 | $392.50 | $146.60 | |||
General Partners' Contributed Capital | 4.6 | [4] | 3.8 | [4] | 3.1 | [4] | 0.1 | 3.8 | [4] | |||
Offering Costs, Partnership Interests | $9.10 | $7.40 | $6.20 | $0.10 | 7.4 | |||||||
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 2.00% | |||||||||||
Overallotment Option [Member] | ||||||||||||
Public Offering of Common Units [Line Items] | ||||||||||||
Partners' Capital Account, Units, Sold in Public Offering | 787,500 | 750,000 | ||||||||||
Firm Units [Member] | ||||||||||||
Public Offering of Common Units [Line Items] | ||||||||||||
Partners' Capital Account, Units, Sold in Public Offering | 5,000,000 | |||||||||||
[1] | (4)Â Includes the full exercise of the overallotment option of 787,500 common units which closed on April 4, 2013. | |||||||||||
[2] | (3)Â Includes the full exercise of the overallotment option of 750,000 common units which closed concurrently with the 5,000,000 firm units on January 8, 2013. | |||||||||||
[3] | (1) Proceeds are net of underwriting discounts, commissions and expenses but before its general partner’s capital contribution. | |||||||||||
[4] | (2) The Company’s general partner contributions were made to retain its 2% general partner interest. |
Partners_Capital_Partners_Capi3
Partners' Capital Partner's Capital (Details Textuals) (USD $) | 0 Months Ended | 12 Months Ended | |||||||
In Millions, except Share data, unless otherwise specified | Apr. 02, 2013 | Jan. 08, 2013 | 8-May-12 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Capital Unit [Line Items] | |||||||||
Limited Partners' Cash Distributions Rights Period | 45 days | ||||||||
Limited Partners' Ownership Percentage Threshold, Event of Voting Exclusion | 20.00% | ||||||||
General Partners' Ownership Percentage Threshold, Event of Units Sale by Limited Parnters to General Parnters | 80.00% | ||||||||
Payments of Capital Distribution | $210.20 | $201.60 | $132.40 | ||||||
General partner's incentive distribution rights | 15.4 | 14.7 | 5.5 | ||||||
Equity Placement Agreement aggregate offering price | 300 | ||||||||
Partners' Capital Account, Units, Sold in Public Offering | 6,037,500 | [1] | 5,750,000 | [2] | 6,000,000 | 134,955 | |||
Proceeds from Issuance of Common Limited Partners Units | 217.3 | [3] | 175.2 | [3] | 146.6 | [3] | 3.6 | 392.5 | 146.6 |
Offering Costs, Partnership Interests | 9.1 | 7.4 | 6.2 | 0.1 | |||||
General Partners' Contributed Capital | 4.6 | [4] | 3.8 | [4] | 3.1 | [4] | 0.1 | ||
Limited Partners' Minimum Vote Required for Removal of General Partner | 66.67% | ||||||||
Partners' Capital, After Distribution Required Cash Amount | 45 | ||||||||
Partners' Capital, Distribution, Fixed Charge Coverage Ratio Threshold | 1.75 | ||||||||
Maximum | 9.625% Notes | |||||||||
Capital Unit [Line Items] | |||||||||
Partners' Capital, Distribution Amount, Below Fixed Charge Coverage Ratio Threshold | 120 | ||||||||
Maximum | 6.50% Notes | |||||||||
Capital Unit [Line Items] | |||||||||
Partners' Capital, Distribution Amount, Below Fixed Charge Coverage Ratio Threshold | 225 | ||||||||
Maximum | 7.625% Notes | |||||||||
Capital Unit [Line Items] | |||||||||
Partners' Capital, Distribution Amount, Below Fixed Charge Coverage Ratio Threshold | $210 | ||||||||
Lesser of Borrowing Base [Member] | |||||||||
Capital Unit [Line Items] | |||||||||
Partners' Capital, After Distribution Required Threshold Percentage | 15.00% | ||||||||
Lesser of Credit Facility Commitments [Member] | |||||||||
Capital Unit [Line Items] | |||||||||
Partners' Capital, After Distribution Required Threshold Percentage | 12.50% | ||||||||
Investor [Member] | |||||||||
Capital Unit [Line Items] | |||||||||
Partners' Capital Account, Units | 51,823,027 | ||||||||
Affiliated Entity [Member] | |||||||||
Capital Unit [Line Items] | |||||||||
Partners' Capital Account, Units | 17,629,206 | ||||||||
Limited Partners | |||||||||
Capital Unit [Line Items] | |||||||||
Limited Partners' Capital Account, Units Outstanding | 69,452,233 | 69,317,278 | |||||||
General Partner | |||||||||
Capital Unit [Line Items] | |||||||||
Partners' Capital Account, Units | 1,417,392 | ||||||||
[1] | (4)Â Includes the full exercise of the overallotment option of 787,500 common units which closed on April 4, 2013. | ||||||||
[2] | (3)Â Includes the full exercise of the overallotment option of 750,000 common units which closed concurrently with the 5,000,000 firm units on January 8, 2013. | ||||||||
[3] | (1) Proceeds are net of underwriting discounts, commissions and expenses but before its general partner’s capital contribution. | ||||||||
[4] | (2) The Company’s general partner contributions were made to retain its 2% general partner interest. |
UnitBased_Compensation_Details
Unit-Based Compensation (Details) (Nonvested Phantom Units, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Nonvested Phantom Units | |||
Number of Phantom Units | |||
Nonvested at beginning of period | 688,256 | 835,927 | 562,696 |
Granted | 477,527 | 483,044 | 616,997 |
Vested | -280,263 | -276,115 | -286,976 |
Forfeited | -383,400 | -354,600 | -56,790 |
Nonvested at end of period | 502,120 | 688,256 | 835,927 |
Weighted-Average Grant Date Fair Value | |||
Nonvested at beginning of period | $23.70 | $27.57 | $19.77 |
Granted | $25.97 | $27.73 | $26.69 |
Vested | $23.72 | $24.22 | $21.16 |
Forfeited | $25.59 | $30.60 | $20 |
Nonvested at end of period | $26.48 | $23.70 | $27.57 |
UnitBased_Compensation_Details1
Unit-Based Compensation (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for grant under the Plan | 783,960 | ||
Vested phantom unit grants | |||
Unit-Based Compensation (Textual) [Abstract] | |||
Compensation expense related to vested phantom unit grants | $5.50 | $4.80 | $4.60 |
Vested phantom unit grants, liability awards | |||
Unit-Based Compensation (Textual) [Abstract] | |||
Compensation expense related to vested phantom unit grants | 2.5 | 1.6 | |
Nonvested phantom units | |||
Unit-Based Compensation (Textual) [Abstract] | |||
Unrecognized compensation costs related to nonvested phantom unit grants | 12.2 | 16.3 | |
Unit-Based Compensation nonvested phantom compensation costs are expected to be recognized over a weighted-average period | 3 years | ||
Fair value of phantom units vested during the period | 6.7 | 6.7 | |
Nonvested phantom units, liability awards [Member] | |||
Unit-Based Compensation (Textual) [Abstract] | |||
Compensation expense related to vested phantom unit grants | $10.50 | $12.40 | |
Long-Term Incentive Plan | Phantom Share Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Annual Vesting | Director Compensation Package | Phantom Share Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 25.00% | ||
Director | Long-Term Incentive Plan | Phantom Share Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Service period | 4 years | 4 years | 4 years |
Management | Vested at Grant | Long-Term Incentive Plan | Phantom Share Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 25.00% |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (Calumet 401k Plan [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Defined Contribution Plan [Line Items] | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 5.00% |
Minimum | |
Defined Contribution Plan [Line Items] | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 1.00% |
Maximum | |
Defined Contribution Plan [Line Items] | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 70.00% |
Defined Contribution Plan, Range 1 [Member] | |
Defined Contribution Plan [Line Items] | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 4.00% |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Incremental Percentage Point | 1.00% |
Defined Contribution Plan, Range 2 [Member] | |
Defined Contribution Plan [Line Items] | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 6.00% |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Incremental Percentage Point | 1.00% |
Employee_Benefit_Plans_Details1
Employee Benefit Plans (Details 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Defined Contribution Plan, Cost Recognized | $5.40 | $4.10 | $3.20 |
Employer discretionary contribution amount | $1.20 | $0.90 | $2.50 |
Employee_Benefit_Plans_Details2
Employee Benefit Plans (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution | $1.50 | $3.40 | |
Estimated future employer contributions in next fiscal year | 1.6 | ||
Curtailment gain recognized | 0 | 0 | 0.2 |
Other Postretirement Benefit Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution | 0 | 0 | |
Curtailment gain recognized | 0 | 0 | 7 |
Penreco Plan | Domestic Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Employee's Compensation Period Used in Benefit Calculation | 60 months | ||
Superior Plan | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Employee's Compensation Period Used in Benefit Calculation | 3 years | ||
Curtailment gain recognized | 0.2 | ||
Superior Plan | Other Postretirement Benefit Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment gain recognized | $7 | ||
Montana Plan | Domestic Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Employee's Compensation Period Used in Benefit Calculation | 36 months | ||
Maximum | Superior Plan | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Employee's Compensation Period Used in Benefit Calculation | 10 years |
Employee_Benefit_Plans_Details3
Employee Benefit Plans (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of amounts recognized in the consolidated balance sheets: | |||
Accumulated other comprehensive (income) loss | ($11.50) | ($1.90) | |
Pension Plans, Defined Benefit | |||
Change in projected benefit obligation: | |||
Benefit obligation at beginning of year | 57.2 | 65.3 | |
Service cost | 0.4 | 0.4 | 1.1 |
Interest cost | 2.6 | 2.4 | 2.4 |
Benefits paid | -2.5 | -2.3 | |
Actuarial (gain) loss | 11.7 | -8.5 | |
Administrative expense | -0.1 | -0.1 | |
Benefit obligation at end of year | 69.3 | 57.2 | 65.3 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 45.8 | 41.6 | |
Benefit payments | -2.5 | -2.3 | |
Actual return on assets | 4.9 | 3.2 | |
Administrative expense | -0.1 | -0.1 | |
Employer contribution | 1.5 | 3.4 | |
Fair value of plan assets at end of year | 49.6 | 45.8 | 41.6 |
Funded status — benefit obligation in excess of plan assets | -19.7 | -11.4 | |
Reconciliation of amounts recognized in the consolidated balance sheets: | |||
Accrued benefit obligation, long-term | -19.7 | -11.4 | |
Prior service credit | 0 | 0 | |
Unrecognized net actuarial (gain) loss | 11.9 | 2.3 | |
Accumulated other comprehensive (income) loss | 11.9 | 2.3 | |
Net amount recognized at end of year | -7.8 | -9.1 | |
Other Postretirement Benefit Plans, Defined Benefit | |||
Change in projected benefit obligation: | |||
Benefit obligation at beginning of year | 0.3 | 0.3 | |
Service cost | 0 | 0 | 0.3 |
Interest cost | 0 | 0 | 0.2 |
Benefits paid | -0.1 | 0 | |
Actuarial (gain) loss | 0 | 0 | |
Administrative expense | 0 | 0 | |
Benefit obligation at end of year | 0.2 | 0.3 | 0.3 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Benefit payments | -0.1 | 0 | |
Actual return on assets | 0 | 0 | |
Administrative expense | 0 | 0 | |
Employer contribution | 0 | 0 | |
Fair value of plan assets at end of year | -0.1 | 0 | 0 |
Funded status — benefit obligation in excess of plan assets | -0.3 | -0.3 | |
Reconciliation of amounts recognized in the consolidated balance sheets: | |||
Accrued benefit obligation, long-term | -0.3 | -0.3 | |
Prior service credit | -0.2 | -0.2 | |
Unrecognized net actuarial (gain) loss | -0.2 | -0.2 | |
Accumulated other comprehensive (income) loss | -0.4 | -0.4 | |
Net amount recognized at end of year | ($0.70) | ($0.70) |
Employee_Benefit_Plans_Details4
Employee Benefit Plans (Details 4) (Pension Plans, Defined Benefit, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $68.40 | $56.70 |
Accumulated benefit obligation in excess of fair value of plan assets, accumulated benefit obligation | 68.4 | 52.9 |
Accumulated benefit obligation in excess of fair value of plan assets, fair value of plan assets | $49.60 | $41.80 |
Employee_Benefit_Plans_Details5
Employee Benefit Plans (Details 5) (Pension Plans, Defined Benefit, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligations in Excess of Plan Assets, Projected Benefit Obligation | $69.30 | $57.20 |
Projected Benefit Obligations in Excess of Plan Assets, Fair Value of Plan Assets | $49.60 | $45.80 |
Employee_Benefit_Plans_Details6
Employee Benefit Plans (Details 6) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plans, Defined Benefit | |||
Components of net periodic pension and other post retirement benefits cost | |||
Service cost | $0.40 | $0.40 | $1.10 |
Interest cost | 2.6 | 2.4 | 2.4 |
Expected return on assets | -3.1 | -2.9 | -1.7 |
Amortization of net loss | 0.3 | 0.8 | 0.6 |
Curtailment gain recognized | 0 | 0 | -0.2 |
Settlement gain recognized | 0 | 0 | 0 |
Net periodic benefit cost (income) | 0.2 | 0.7 | 2.2 |
Other Post Retirement Employee Benefits | |||
Components of net periodic pension and other post retirement benefits cost | |||
Service cost | 0 | 0 | 0.3 |
Interest cost | 0 | 0 | 0.2 |
Expected return on assets | 0 | 0 | 0 |
Amortization of net loss | 0 | 0 | 0 |
Curtailment gain recognized | 0 | 0 | -7 |
Settlement gain recognized | 0 | 0 | -0.2 |
Net periodic benefit cost (income) | $0 | $0 | ($6.70) |
Employee_Benefit_Plans_Details7
Employee Benefit Plans (Details 7) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Total recognized in other comprehensive (income) loss | $9.60 | ($9.60) | $3 |
Classified in accumulated other comprehensive loss | -11.5 | -1.9 | |
Amounts that will be amortized from accumulated other comprehensive income in next fiscal year | 0.8 | ||
Pension Plans, Defined Benefit | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Net (gain) loss | 9.9 | -8.8 | 4.3 |
Net prior service cost | 0 | 0 | 0 |
Amortization or settlement recognition of net loss | -0.3 | -0.8 | -0.6 |
Amortization or curtailment recognition of prior service credit | 0 | 0 | 0 |
Total recognized in other comprehensive (income) loss | 9.6 | -9.6 | 3.7 |
Classified in accumulated other comprehensive loss | 11.9 | 2.3 | |
Other Postretirement Benefit Plans, Defined Benefit | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Net (gain) loss | 0 | 0 | 0.1 |
Net prior service cost | 0 | 0 | -0.1 |
Amortization or settlement recognition of net loss | 0 | 0 | -0.8 |
Amortization or curtailment recognition of prior service credit | 0 | 0 | 0.1 |
Total recognized in other comprehensive (income) loss | 0 | 0 | -0.7 |
Classified in accumulated other comprehensive loss | ($0.40) | ($0.40) |
Employee_Benefit_Plans_Details8
Employee Benefit Plans (Details 8) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Other Postretirement Benefit Plans, Defined Benefit | ||||||
Assumed Trend Rates | ||||||
Immediate trend rate | 7.50% | [1] | 7.70% | [1] | 8.00% | [1] |
Penreco Plan | Pension Plans, Defined Benefit | ||||||
Significant Weighted Average Assumptions Used to Determine the Benefit Obligations | ||||||
Discount rate | 3.92% | 4.78% | ||||
Significant Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | ||||||
Discount rate | 4.78% | 3.86% | 4.63% | |||
Expected return on plan assets | 6.75% | [2] | 6.75% | [2] | 6.00% | [2] |
Penreco Plan | Other Postretirement Benefit Plans, Defined Benefit | ||||||
Significant Weighted Average Assumptions Used to Determine the Benefit Obligations | ||||||
Discount rate | 3.70% | 4.29% | ||||
Significant Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | ||||||
Discount rate | 4.29% | 3.33% | 4.04% | |||
Assumed Trend Rates | ||||||
Immediate trend rate | 7.30% | [3] | 7.50% | |||
Benefit obligation ultimate trend rate | 4.50% | [3] | 4.50% | |||
Net periodic cost ultimate trend rate | 4.50% | [1] | 4.50% | [1] | 4.50% | [1] |
Benefit obligation year that rate reaches ultimate trend rate | 2029 | [3] | 2029 | |||
Net periodic cost year that rate reaches ultimate trend rate | 2029 | [1] | 2029 | [1] | 2029 | [1] |
Assumed annual percentage change for trend rate | -0.20% | |||||
Superior Plan | Pension Plans, Defined Benefit | ||||||
Significant Weighted Average Assumptions Used to Determine the Benefit Obligations | ||||||
Discount rate | 3.86% | 4.66% | ||||
Significant Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | ||||||
Discount rate | 4.66% | 3.75% | 4.55% | |||
Expected return on plan assets | 6.75% | [2] | 6.75% | [2] | 3.00% | [2] |
Rate of compensation increase | 3.75% | |||||
Superior Plan | Other Postretirement Benefit Plans, Defined Benefit | ||||||
Significant Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | ||||||
Discount rate | 4.65% | |||||
Assumed Trend Rates | ||||||
Net periodic cost ultimate trend rate | 4.50% | [1] | ||||
Net periodic cost year that rate reaches ultimate trend rate | 2029 | [1] | ||||
Montana Plan | Pension Plans, Defined Benefit | ||||||
Significant Weighted Average Assumptions Used to Determine the Benefit Obligations | ||||||
Discount rate | 4.13% | 4.97% | ||||
Rate of compensation increase | 3.00% | 3.00% | ||||
Significant Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | ||||||
Discount rate | 4.97% | 4.03% | 3.89% | |||
Expected return on plan assets | 6.75% | [2] | 6.75% | [2] | 6.00% | [2] |
Rate of compensation increase | 3.00% | 3.00% | 3.00% | |||
[1] | (2)Â For measurement purposes, an annual rate of increase in the per capita cost of covered health care benefits was assumed for 2014. The rate was assumed to decrease by 0.20%Â per year for an ultimate rate of 4.50% for 2029 for the Penreco Other Plan and remain at that level thereafter. | |||||
[2] | (1) The Company considered the historical returns, the future expectation for returns for each asset class and fair value of the plan assets, as well as the target asset allocation of the Pension Plan portfolio which was developed in accordance with the Company’s Statement of Investment Policy, to develop the expected long-term rate of return on plan assets. | |||||
[3] | (1)Â For measurement purposes, an annual rate of increase in the per capita cost of covered health care benefits was assumed for 2014. The rate was assumed to decrease by 0.20%Â per year for an ultimate rate of 4.50% in 2029 for the Penreco Other Plan and remain at that level thereafter. |
Employee_Benefit_Plans_Details9
Employee Benefit Plans (Details 9) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |
1% Point Increase or decrease, effect on postretirement benefit obligation | $0.10 |
Penreco Plan | Other Postretirement Benefit Plans, Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
1% Increase or decrease, effect on service and interest cost | $0.10 |
Recovered_Sheet4
Employee Benefit Plans (Details 10) | 12 Months Ended |
Dec. 31, 2014 | |
Equity funds | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Target Allocation Minimum | 0.00% |
Target Allocation Maximum | 50.00% |
Target Allocation | 25.00% |
Foreign equities | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Target Allocation Minimum | 0.00% |
Target Allocation Maximum | 50.00% |
Target Allocation | 25.00% |
Fixed income | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Target Allocation Minimum | 50.00% |
Target Allocation Maximum | 100.00% |
Target Allocation | 50.00% |
Recovered_Sheet5
Employee Benefit Plans (Details 11) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% |
Level 1 | ||
Schedule of Pension Plan assets measured at fair value | ||
Fair value of plan assets | 0.2 | 0 |
Level 2 | ||
Schedule of Pension Plan assets measured at fair value | ||
Fair value of plan assets | 49.4 | 45.8 |
Cash and cash equivalents | Level 1 | ||
Schedule of Pension Plan assets measured at fair value | ||
Fair value of plan assets | 0.2 | 0 |
Cash and cash equivalents | Level 2 | ||
Schedule of Pension Plan assets measured at fair value | ||
Fair value of plan assets | 0 | 0 |
Equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 20.00% | 23.00% |
Equity funds | Level 1 | ||
Schedule of Pension Plan assets measured at fair value | ||
Fair value of plan assets | 0 | 0 |
Equity funds | Level 2 | ||
Schedule of Pension Plan assets measured at fair value | ||
Fair value of plan assets | 10 | 10.6 |
Foreign equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 19.00% | 23.00% |
Foreign equities | Level 1 | ||
Schedule of Pension Plan assets measured at fair value | ||
Fair value of plan assets | 0 | 0 |
Foreign equities | Level 2 | ||
Schedule of Pension Plan assets measured at fair value | ||
Fair value of plan assets | 9.4 | 10.6 |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 61.00% | 54.00% |
Fixed income | Level 1 | ||
Schedule of Pension Plan assets measured at fair value | ||
Fair value of plan assets | 0 | 0 |
Fixed income | Level 2 | ||
Schedule of Pension Plan assets measured at fair value | ||
Fair value of plan assets | 30 | 24.6 |
Recovered_Sheet6
Employee Benefit Plans (Details 12) (Pension Plans, Defined Benefit, USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Pension Plans, Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | $2.60 |
2016 | 2.7 |
2017 | 2.8 |
2018 | 3 |
2019 | 3.2 |
2020 to 2024 | 18 |
Total | $32.30 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance: Accumulated other comprehensive loss | ($53.40) | ||
Other comprehensive income (loss) before reclassifications | 103.8 | ||
Amounts reclassified from accumulated other comprehensive income | -36.7 | ||
Total other comprehensive income (loss) | 67.1 | -27.9 | -64 |
Ending balance: Accumulated other comprehensive loss | 13.7 | -53.4 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance: Accumulated other comprehensive loss | -51.4 | ||
Other comprehensive income (loss) before reclassifications | 114.2 | ||
Amounts reclassified from accumulated other comprehensive income | -37 | ||
Total other comprehensive income (loss) | 77.2 | ||
Ending balance: Accumulated other comprehensive loss | 25.8 | ||
Accumulated Defined Benefit Plans Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance: Accumulated other comprehensive loss | -1.9 | ||
Other comprehensive income (loss) before reclassifications | -9.9 | ||
Amounts reclassified from accumulated other comprehensive income | 0.3 | ||
Total other comprehensive income (loss) | -9.6 | ||
Ending balance: Accumulated other comprehensive loss | -11.5 | ||
Accumulated Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance: Accumulated other comprehensive loss | -0.1 | ||
Other comprehensive income (loss) before reclassifications | -0.5 | ||
Amounts reclassified from accumulated other comprehensive income | 0 | ||
Total other comprehensive income (loss) | -0.5 | ||
Ending balance: Accumulated other comprehensive loss | ($0.60) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Details 1) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Total other comprehensive income (loss) | $67.10 | ($27.90) | ($64) | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Total other comprehensive income (loss) | 77.2 | |||
Accumulated Defined Benefit Plans Adjustment | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Total other comprehensive income (loss) | -9.6 | |||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Sales | -9 | |||
Cost of Goods Sold | 46 | |||
Total other comprehensive income (loss) | 37 | |||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other Income | -0.3 | [1] | ||
Total other comprehensive income (loss) | ($0.30) | |||
[1] | (1)Â This accumulated other comprehensive loss component is included in the computation of net periodic pension cost. See Note 12 for additional information. |
Income_Taxes_Income_Taxes_Deta
Income Taxes Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Federal | $0.20 | $0 | $0 |
State | 0.2 | 0.4 | 0.8 |
Total | 0.4 | 0.4 | 0.8 |
Federal | -1.5 | 0 | 0 |
State | 0.3 | 0 | 0 |
Total | -1.2 | 0 | 0 |
Total income tax expense (benefit) | ($0.80) | $0.40 | $0.80 |
Income_Taxes_Income_Taxes_Deta1
Income Taxes Income Taxes (Details 1) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate | 35.00% | 35.00% | 35.00% |
Partnership earnings not subject to tax | -22.40% | -35.00% | -35.00% |
State income taxes, net of federal income tax effect | -0.40% | 11.40% | 0.40% |
Goodwill impairment | -11.50% | 0.00% | 0.00% |
Other items, net | 0.00% | -1.10% | 0.00% |
Effective tax rate | 0.70% | 10.30% | 0.40% |
Income_Taxes_Income_Taxes_Deta2
Income Taxes Income Taxes (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Inventory | $2.30 | $0 |
Net operating loss carryforwards | 3.7 | 0 |
Total deferred income tax assets | 6 | 0 |
Intangible assets | -22 | 0 |
Property, plant and equipment | -14 | -1.7 |
Total deferred income tax liabilities | -36 | -1.7 |
Net deferred income tax liability | ($30) | ($1.70) |
Income_Taxes_Income_Taxes_Text
Income Taxes Income Taxes (Textuals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Operating Loss Carryforwards | $14.30 | |
Net operating loss carryforwards | $3.70 | $0 |
Earnings_Per_Unit_Details
Earnings Per Unit (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Numerator for basic and diluted earnings per limited partner unit: | |||||||||||||
Net income (loss) | ($63.50) | $9.40 | ($8.30) | ($49.80) | ($15.50) | ($34.80) | $7.80 | $46 | ($112.20) | $3.50 | $205.70 | ||
General partner’s interest in net income (loss) | 2.2 | -0.1 | -4.1 | ||||||||||
General partner's incentive distribution rights | 15.4 | 14.7 | 5.5 | ||||||||||
Non-vested share based payments | 0 | -0.2 | -1.1 | ||||||||||
Net income (loss) available to limited partners | ($66.20) | $5.40 | ($12) | ($52.60) | ($19) | ($37.90) | $3.80 | $41.70 | ($125.40) | ($11.50) | $195 | ||
Denominator for basic and diluted earnings per limited partner unit: | |||||||||||||
Weighted average limited partner units outstanding — basic | 69,775,827 | 69,684,621 | 69,604,669 | 69,622,884 | 69,635,865 | 69,626,650 | 69,571,855 | 62,831,155 | 69,671,827 | 67,938,784 | 55,559,183 | ||
Participating securities — phantom units | 0 | 0 | 117,558 | ||||||||||
Weighted average limited partner units outstanding — diluted | 69,775,827 | 69,850,685 | 69,604,669 | 69,622,884 | 69,635,865 | 69,626,650 | 69,769,536 | 63,017,869 | 69,671,827 | [1] | 67,938,784 | [1] | 55,676,741 |
Limited partners’ interest basic net income (loss) per unit | ($0.95) | $0.08 | ($0.17) | ($0.76) | ($0.27) | ($0.54) | $0.05 | $0.67 | ($1.80) | ($0.17) | $3.51 | ||
Limited partners’ interest diluted net income (loss) per unit | ($0.95) | $0.08 | ($0.17) | ($0.76) | ($0.27) | ($0.54) | $0.05 | $0.66 | ($1.80) | ($0.17) | $3.50 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 200,000 | 200,000 | |||||||||||
[1] | (1) Total diluted weighted average limited partner units outstanding excludes 0.2 million and 0.2 million potentially dilutive phantom units for the years ended December 31, 2014 and 2013. |
Transactions_with_Related_Part1
Transactions with Related Parties Transactions with Related Parties (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Limited Partners | |||
Related Party Transaction [Line Items] | |||
Product sales to related parties | $9.10 | $9.70 | $9.30 |
Trade accounts and other receivables | 1.2 | 0.2 | |
Excluding Legacy Resources | |||
Related Party Transaction [Line Items] | |||
Purchases from related party | 41.1 | 9 | 7.2 |
Accounts payable from related parties | 4.3 | 4.3 | |
Legacy Resources | |||
Related Party Transaction [Line Items] | |||
Purchases from related party | 0.8 | 1.2 | 1.1 |
Accounts payable from related parties | 0 | 0.1 | |
Tobias Insurance Group, Inc | |||
Related Party Transaction [Line Items] | |||
Purchases from related party | $0.70 | $0.70 | $0.50 |
Segments_and_Related_Informati3
Segments and Related Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reportable segment information | |||||||||||
Sales | $1,339.40 | $1,675.80 | $1,434.90 | $1,341 | $1,243.10 | $1,505.50 | $1,354.20 | $1,318.60 | $5,791.10 | $5,421.40 | $4,657.30 |
Adjusted EBITDA | 305.9 | 241.5 | 404.6 | ||||||||
Reconciling items to net income: | |||||||||||
Depreciation and amortization | 163.1 | 133.7 | 105 | ||||||||
Realized gain (loss) on derivatives, not reflected in net income (loss) | 6.6 | -1.8 | -5 | ||||||||
Asset impairment | 36 | 10.5 | 1.6 | ||||||||
Unrealized (gain) loss on derivatives | 0.6 | -25.7 | 3.8 | ||||||||
Interest expense | 110.8 | 96.8 | 85.6 | ||||||||
Debt extinguishment costs | 89.9 | 14.6 | 0 | ||||||||
Non-cash equity based compensation and other non-cash items | 11.9 | 9.5 | 7.1 | ||||||||
Income tax expense (benefit) | 0.8 | -0.4 | -0.8 | ||||||||
Net income (loss) | -63.5 | 9.4 | -8.3 | -49.8 | -15.5 | -34.8 | 7.8 | 46 | -112.2 | 3.5 | 205.7 |
Sales Revenue, Segment | |||||||||||
Reportable segment information | |||||||||||
Sales | 5,791.10 | 5,421.40 | 4,657.30 | ||||||||
Intersubsegment Eliminations | |||||||||||
Reportable segment information | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Intersegment Eliminations | |||||||||||
Reportable segment information | |||||||||||
Sales | -108.2 | -77.3 | -50.2 | ||||||||
Adjusted EBITDA | 0 | 0 | 0 | ||||||||
Reconciling items to net income: | |||||||||||
Depreciation and amortization | 0 | ||||||||||
Realized gain (loss) on derivatives, not reflected in net income (loss) | 0 | 0 | |||||||||
Asset impairment | 0 | 0 | 0 | ||||||||
Intersegment Eliminations | Sales Revenue, Segment | |||||||||||
Reportable segment information | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Intersegment Eliminations | Intersubsegment Eliminations | |||||||||||
Reportable segment information | |||||||||||
Sales | -108.2 | -77.3 | -50.2 | ||||||||
Specialty Product | Operating Segments | |||||||||||
Reportable segment information | |||||||||||
Sales | 1,747.60 | 1,774.90 | 1,849.90 | ||||||||
Adjusted EBITDA | 220.8 | 194.5 | 283.2 | ||||||||
Reconciling items to net income: | |||||||||||
Depreciation and amortization | 68.1 | 66.6 | 55.8 | ||||||||
Realized gain (loss) on derivatives, not reflected in net income (loss) | -1.9 | -0.5 | -1.9 | ||||||||
Asset impairment | 0 | 10.5 | 1.6 | ||||||||
Specialty Product | Operating Segments | Sales Revenue, Segment | |||||||||||
Reportable segment information | |||||||||||
Sales | 1,729.20 | 1,774.90 | 1,849.90 | ||||||||
Specialty Product | Operating Segments | Intersubsegment Eliminations | |||||||||||
Reportable segment information | |||||||||||
Sales | 18.4 | 0 | 0 | ||||||||
Fuel Product | Operating Segments | |||||||||||
Reportable segment information | |||||||||||
Sales | 3,783.20 | 3,723.80 | 2,857.60 | ||||||||
Adjusted EBITDA | 50 | 47 | 121.4 | ||||||||
Reconciling items to net income: | |||||||||||
Depreciation and amortization | 80 | 67.1 | 49.2 | ||||||||
Realized gain (loss) on derivatives, not reflected in net income (loss) | 8.5 | -1.3 | -3.1 | ||||||||
Asset impairment | 0 | 0 | 0 | ||||||||
Fuel Product | Operating Segments | Sales Revenue, Segment | |||||||||||
Reportable segment information | |||||||||||
Sales | 3,693.40 | 3,646.50 | 2,807.40 | ||||||||
Fuel Product | Operating Segments | Intersubsegment Eliminations | |||||||||||
Reportable segment information | |||||||||||
Sales | 89.8 | 77.3 | 50.2 | ||||||||
Oilfield Services | Operating Segments | |||||||||||
Reportable segment information | |||||||||||
Sales | 368.5 | 0 | 0 | ||||||||
Adjusted EBITDA | 35.1 | 0 | 0 | ||||||||
Reconciling items to net income: | |||||||||||
Depreciation and amortization | 15 | 0 | 0 | ||||||||
Realized gain (loss) on derivatives, not reflected in net income (loss) | 0 | 0 | 0 | ||||||||
Asset impairment | 36 | 0 | 0 | ||||||||
Oilfield Services | Operating Segments | Sales Revenue, Segment | |||||||||||
Reportable segment information | |||||||||||
Sales | 368.5 | 0 | 0 | ||||||||
Oilfield Services | Operating Segments | Intersubsegment Eliminations | |||||||||||
Reportable segment information | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Combined Segments | Operating Segments | |||||||||||
Reportable segment information | |||||||||||
Sales | 5,899.30 | 5,498.70 | 4,707.50 | ||||||||
Adjusted EBITDA | 305.9 | 241.5 | 404.6 | ||||||||
Reconciling items to net income: | |||||||||||
Depreciation and amortization | 163.1 | 133.7 | 105 | ||||||||
Realized gain (loss) on derivatives, not reflected in net income (loss) | 6.6 | 1.8 | -5 | ||||||||
Asset impairment | 36 | 10.5 | 1.6 | ||||||||
Combined Segments | Operating Segments | Sales Revenue, Segment | |||||||||||
Reportable segment information | |||||||||||
Sales | 5,791.10 | 5,421.40 | 4,657.30 | ||||||||
Combined Segments | Operating Segments | Intersubsegment Eliminations | |||||||||||
Reportable segment information | |||||||||||
Sales | 108.2 | 77.3 | 50.2 | ||||||||
Eliminations | |||||||||||
Reconciling items to net income: | |||||||||||
Depreciation and amortization | $0 |
Segments_and_Related_Informati4
Segments and Related Information (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Major product category sales | |||||||||||
Sales | $1,339.40 | $1,675.80 | $1,434.90 | $1,341 | $1,243.10 | $1,505.50 | $1,354.20 | $1,318.60 | $5,791.10 | $5,421.40 | $4,657.30 |
Concentration Risk, Percentage | 45.90% | 54.10% | 65.00% | ||||||||
Product Concentration Risk | |||||||||||
Major product category sales | |||||||||||
Sales | 5,791.10 | 5,421.40 | 4,657.30 | ||||||||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | ||||||||
Product Concentration Risk | Specialty Product | |||||||||||
Major product category sales | |||||||||||
Sales | 1,729.20 | 1,774.90 | 1,849.90 | ||||||||
Concentration Risk, Percentage | 29.90% | 32.70% | 39.70% | ||||||||
Product Concentration Risk | Specialty Product | Lubricating oils | |||||||||||
Major product category sales | |||||||||||
Sales | 748.4 | 848.8 | 1,007.90 | ||||||||
Concentration Risk, Percentage | 12.90% | 15.70% | 21.60% | ||||||||
Product Concentration Risk | Specialty Product | Solvents | |||||||||||
Major product category sales | |||||||||||
Sales | 485.2 | 511.7 | 491.1 | ||||||||
Concentration Risk, Percentage | 8.40% | 9.40% | 10.50% | ||||||||
Product Concentration Risk | Specialty Product | Waxes | |||||||||||
Major product category sales | |||||||||||
Sales | 144.1 | 141 | 142.8 | ||||||||
Concentration Risk, Percentage | 2.50% | 2.60% | 3.10% | ||||||||
Product Concentration Risk | Specialty Product | Packaged and synthetic specialty products | |||||||||||
Major product category sales | |||||||||||
Sales | 313.5 | 233.6 | 161.7 | ||||||||
Concentration Risk, Percentage | 5.40% | 4.30% | 3.50% | ||||||||
Product Concentration Risk | Specialty Product | Other | |||||||||||
Major product category sales | |||||||||||
Sales | 38 | 39.8 | 46.4 | ||||||||
Concentration Risk, Percentage | 0.70% | 0.70% | 1.00% | ||||||||
Product Concentration Risk | Fuel Product | |||||||||||
Major product category sales | |||||||||||
Sales | 3,693.40 | 3,646.50 | 2,807.40 | ||||||||
Concentration Risk, Percentage | 63.70% | 67.30% | 60.30% | ||||||||
Product Concentration Risk | Fuel Product | Gasoline | |||||||||||
Major product category sales | |||||||||||
Sales | 1,443.10 | 1,409.40 | 1,174.90 | ||||||||
Concentration Risk, Percentage | 24.90% | 26.00% | 25.20% | ||||||||
Product Concentration Risk | Fuel Product | Diesel | |||||||||||
Major product category sales | |||||||||||
Sales | 1,197.40 | 1,259.20 | 941 | ||||||||
Concentration Risk, Percentage | 20.70% | 23.30% | 20.20% | ||||||||
Product Concentration Risk | Fuel Product | Jet fuel | |||||||||||
Major product category sales | |||||||||||
Sales | 199.3 | 191.4 | 184 | ||||||||
Concentration Risk, Percentage | 3.40% | 3.50% | 4.00% | ||||||||
Product Concentration Risk | Fuel Product | Asphalt, heavy fuel oils and other | |||||||||||
Major product category sales | |||||||||||
Sales | 853.6 | 786.5 | 507.5 | ||||||||
Concentration Risk, Percentage | 14.70% | 14.50% | 10.90% | ||||||||
Product Concentration Risk | Oilfield Services | |||||||||||
Major product category sales | |||||||||||
Sales | $368.50 | $0 | $0 | ||||||||
Concentration Risk, Percentage | 6.40% | 0.00% | 0.00% |
Segments_and_Related_Informati5
Segments and Related Information (Details 2) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting [Abstract] | |||
Concentration Risk, Percentage | 45.90% | 54.10% | 65.00% |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Sales | $1,339.40 | $1,675.80 | $1,434.90 | $1,341 | $1,243.10 | $1,505.50 | $1,354.20 | $1,318.60 | $5,791.10 | $5,421.40 | $4,657.30 | ||
Gross Profit | 123.3 | 182.6 | 99 | 124.8 | 112.5 | 62.1 | 101 | 134.4 | 529.7 | 410 | 513.2 | ||
Net income (loss) | -63.5 | 9.4 | -8.3 | -49.8 | -15.5 | -34.8 | 7.8 | 46 | -112.2 | 3.5 | 205.7 | ||
Net income (loss) available to limited partners | ($66.20) | $5.40 | ($12) | ($52.60) | ($19) | ($37.90) | $3.80 | $41.70 | ($125.40) | ($11.50) | $195 | ||
Limited partners’ interest basic net income (loss) per unit | ($0.95) | $0.08 | ($0.17) | ($0.76) | ($0.27) | ($0.54) | $0.05 | $0.67 | ($1.80) | ($0.17) | $3.51 | ||
Limited partners’ interest diluted net income (loss) per unit | ($0.95) | $0.08 | ($0.17) | ($0.76) | ($0.27) | ($0.54) | $0.05 | $0.66 | ($1.80) | ($0.17) | $3.50 | ||
Weighted average limited partner units outstanding — basic | 69,775,827 | 69,684,621 | 69,604,669 | 69,622,884 | 69,635,865 | 69,626,650 | 69,571,855 | 62,831,155 | 69,671,827 | 67,938,784 | 55,559,183 | ||
Weighted average limited partner units outstanding — diluted | 69,775,827 | 69,850,685 | 69,604,669 | 69,622,884 | 69,635,865 | 69,626,650 | 69,769,536 | 63,017,869 | 69,671,827 | [1] | 67,938,784 | [1] | 55,676,741 |
[1] | (1) Total diluted weighted average limited partner units outstanding excludes 0.2 million and 0.2 million potentially dilutive phantom units for the years ended December 31, 2014 and 2013. |
Subsequent_Events_Subsequent_E1
Subsequent Events Subsequent Events (Crude Oil Basis Swaps) (Not Designated as Hedging Instrument, Crude Oil Basis Swaps Purchased [Member], Fuel Product, Commodity Contract [Member]) | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 02, 2015 |
bbl | bbl | bbl | |
Subsequent Event [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 118,000 | 486,000 | |
Derivative, Average Swap Differential to Publicly Traded Future | 22.4 | 23.29 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 2,620,860 | ||
Derivative, Average Swap Differential to Publicly Traded Future | 54.68 | ||
First Quarter 2015 | |||
Subsequent Event [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 118,000 | ||
Barrels per Day Purchased | 2,000 | ||
Derivative, Average Swap Differential to Publicly Traded Future | 22.4 | ||
First Quarter 2015 | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 423,500 | ||
Barrels per Day Purchased | 4,706 | ||
Derivative, Average Swap Differential to Publicly Traded Future | 48.84 | ||
Second Quarter 2015 [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 1,274,000 | ||
Barrels per Day Purchased | 14,000 | ||
Derivative, Average Swap Differential to Publicly Traded Future | 52.61 | ||
Third Quarter 2015 | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 382,950 | ||
Barrels per Day Purchased | 4,163 | ||
Derivative, Average Swap Differential to Publicly Traded Future | 56.58 | ||
Fourth Quarter 2015 | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 60,950 | ||
Barrels per Day Purchased | 663 | ||
Derivative, Average Swap Differential to Publicly Traded Future | 58.4 | ||
Calendar Year 2016 | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 479,460 | ||
Barrels per Day Purchased | 1,310 | ||
Derivative, Average Swap Differential to Publicly Traded Future | 63.35 |
Subsequent_Events_Subsequent_E2
Subsequent Events Subsequent Events (Gasoline Swaps) (Commodity Contract [Member], Not Designated as Hedging Instrument, Fuel Product, Gasoline Swaps Sold [Member]) | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 02, 2015 |
bbl | bbl | bbl | |
Subsequent Event [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 45,000 | 1,683,500 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 2,019,500 | ||
Derivative, Average Swap Differential to Publicly Traded Future | 67.97 | ||
First Quarter 2015 | |||
Subsequent Event [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 45,000 | ||
Barrels per Day Sold | 500 | ||
First Quarter 2015 | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 423,500 | ||
Barrels per Day Sold | 4,706 | ||
Derivative, Average Swap Differential to Publicly Traded Future | 61.64 | ||
Second Quarter 2015 [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 1,274,000 | ||
Barrels per Day Sold | 14,000 | ||
Derivative, Average Swap Differential to Publicly Traded Future | 69.42 | ||
Third Quarter 2015 | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 322,000 | ||
Barrels per Day Sold | 3,500 | ||
Derivative, Average Swap Differential to Publicly Traded Future | 70.55 |
Subsequent_Events_Subsequent_E3
Subsequent Events Subsequent Events (Diesel Swaps) (Commodity Contract [Member], Diesel Swaps Sold [Member], Fuel Product, Not Designated as Hedging Instrument) | Dec. 31, 2013 | Mar. 02, 2015 |
bbl | bbl | |
Subsequent Event [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,870,000 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 458,000 | |
Derivative, Average Swap Differential to Publicly Traded Future | 81.86 | |
Third Quarter 2015 | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 46,000 | |
Barrels per Day Sold | 500 | |
Derivative, Average Swap Differential to Publicly Traded Future | 77.39 | |
Fourth Quarter 2015 | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 46,000 | |
Barrels per Day Sold | 500 | |
Derivative, Average Swap Differential to Publicly Traded Future | 77.39 | |
Calendar Year 2016 | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 366,000 | |
Barrels per Day Sold | 1,000 | |
Derivative, Average Swap Differential to Publicly Traded Future | 82.99 |
Subsequent_Events_Subsequent_E4
Subsequent Events Subsequent Events (Crude Crack Swaps) (Diesel Crack Spread, Not Designated as Hedging Instrument, Fuel Product, Commodity Option [Member]) | Dec. 31, 2014 | Mar. 02, 2015 |
bbl | bbl | |
Subsequent Event [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 2,475,000 | |
Derivative, Fixed Percentage to Publicly Traded Future | 32.20% | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 733,000 | |
Derivative, Fixed Percentage to Publicly Traded Future | 32.15% | |
Third Quarter 2015 | ||
Subsequent Event [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 414,000 | |
Barrels per Day Sold | 4,500 | |
Derivative, Fixed Percentage to Publicly Traded Future | 33.20% | |
Third Quarter 2015 | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 92,000 | |
Barrels per Day Sold | 1,000 | |
Derivative, Fixed Percentage to Publicly Traded Future | 32.58% | |
Fourth Quarter 2015 | ||
Subsequent Event [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 414,000 | |
Barrels per Day Sold | 4,500 | |
Derivative, Fixed Percentage to Publicly Traded Future | 33.20% | |
Fourth Quarter 2015 | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 92,000 | |
Barrels per Day Sold | 1,000 | |
Derivative, Fixed Percentage to Publicly Traded Future | 32.58% | |
Calendar Year 2016 | ||
Subsequent Event [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,647,000 | |
Barrels per Day Sold | 4,500 | |
Derivative, Fixed Percentage to Publicly Traded Future | 31.70% | |
Calendar Year 2016 | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 549,000 | |
Barrels per Day Sold | 1,500 | |
Derivative, Fixed Percentage to Publicly Traded Future | 32.00% |
Subsequent_Events_Details_Text
Subsequent Events (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | 2 Months Ended | 0 Months Ended | ||||||||||
In Millions, except Share data, unless otherwise specified | Apr. 02, 2013 | Jan. 08, 2013 | 8-May-12 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 02, 2015 | Jan. 23, 2015 | Feb. 13, 2015 | Feb. 03, 2015 | Jan. 13, 2015 | |||
Subsequent Event [Line Items] | ||||||||||||||
Derivative, Notional Amount | $200 | |||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||
Partners' Capital Account, Units, Sold in Public Offering | 6,037,500 | [1] | 5,750,000 | [2] | 6,000,000 | 134,955 | ||||||||
Proceeds from Issuance of Common Limited Partners Units | 217.3 | [3] | 175.2 | [3] | 146.6 | [3] | 3.6 | 392.5 | 146.6 | |||||
Interest Expense [Member] | Interest Rate Swap [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Liabilities, Fair Value Adjustment | -2.5 | 0 | ||||||||||||
Subsequent Event [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Derivative, Notional Amount | 200 | |||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||
Derivative decrease to fair value | -16 | |||||||||||||
Fair of value net liability | 15 | |||||||||||||
Long-term debt increase to fair value | 104 | |||||||||||||
Partners' Capital Account, Units, Sold in Public Offering | 307,985 | |||||||||||||
Proceeds from Issuance of Common Limited Partners Units | 7.6 | |||||||||||||
Subsequent Event [Member] | Dividend Declared | ||||||||||||||
Partners' Capital Account, Distributions [Abstract] | ||||||||||||||
Aggregate quarterly distribution | 23-Jan-15 | |||||||||||||
Cash distribution per unit | $0.69 | |||||||||||||
Dividends Payable | 52.7 | |||||||||||||
Subsequent Event [Member] | Dividend Paid | ||||||||||||||
Partners' Capital Account, Distributions [Abstract] | ||||||||||||||
Cash distribution per unit | $2.74 | |||||||||||||
Dividends Payable | 210.8 | |||||||||||||
Distribution paid date | 13-Feb-15 | |||||||||||||
Record date for the close of business | 3-Feb-15 | |||||||||||||
Subsequent Event [Member] | Interest Expense [Member] | Not Designated as Hedging Instrument | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Liabilities, Fair Value Adjustment | 9.6 | |||||||||||||
Subsequent Event [Member] | Interest Expense [Member] | Interest Rate Swap [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Liabilities, Fair Value Adjustment | $3.30 | |||||||||||||
[1] | (4)Â Includes the full exercise of the overallotment option of 787,500 common units which closed on April 4, 2013. | |||||||||||||
[2] | (3)Â Includes the full exercise of the overallotment option of 750,000 common units which closed concurrently with the 5,000,000 firm units on January 8, 2013. | |||||||||||||
[3] | (1) Proceeds are net of underwriting discounts, commissions and expenses but before its general partner’s capital contribution. |