Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table presents the effect of derivative instruments on the statements of financial position.



	As of March 31, 2013
	Asset Derivatives			Liability Derivatives
	Balance Sheet			Balance Sheet
	Location	Fair Value		Location	Fair Value
Derivatives not designated as hedging instruments:
Commodity contracts (futures and forwards)	Accounts receivable	$	1,621	Accrued liabilities	$	(3,066	)
Total derivatives not designated as hedging instruments		$	1,621		$	(3,066	)

Derivatives designated as hedging instruments:
Commodity contracts (swaps)	Accounts receivable	$	10,919		$	—
Fair value hedge		—		Other non-current liabilities	(2,274		)
Total derivatives designated as hedging instruments		$	10,919		$	(2,274	)
Total derivatives		$	12,540		$	(5,340	)



	As of December 31, 2012
	Asset Derivatives			Liability Derivatives
	Balance Sheet			Balance Sheet
	Location	Fair Value		Location	Fair Value
Derivatives not designated as hedging instruments:
Commodity contracts (futures and forwards)	Accounts receivable	$	386		$	—
Total derivatives not designated as hedging instruments		$	386		$	—

Derivatives designated as hedging instruments:
Commodity contracts (swaps)	Accounts receivable	$	2,287	Accrued liabilities	$	(773	)
Fair value hedge		—		Other non-current liabilities	(346		)
Total derivatives designated as hedging instruments		$	2,287		$	(1,119	)
Total derivatives		$	2,673		$	(1,119	)

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following tables present the effect of derivative instruments on the Company’s statements of operations and accumulated other comprehensive income.



Cash Flow Hedging Relationships	Gain (Loss) Recognized in OCI			Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)				Gain (Loss) Reclassified from Accumulated OCI into Income (Ineffective Portion and Amount Excluded from Effectiveness Testing)
				Location	Amount			Location	Amount
For the Three Months Ended March 31, 2013
Commodity contracts (swaps)	$	9,405		Losses on commodity swaps	$	(24	)		$	—
Total derivatives	$	9,405			$	(24	)		$	—

For the Three Months Ended March 31, 2012
Commodity contracts (swaps)	$	(36,860	)	Losses on commodity swaps	$	(3,662	)		$	—
Total derivatives	$	(36,860	)		$	(3,662	)		$	—

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location

Derivatives in fair value hedging relationships:



		Gain (Loss) Recognized in Income
		For the Three Months Ended
		March 31,
	Location	2013			2012
Fair value hedge	Cost of sales	$	(1,928	)	$	—
Total derivatives		$	(1,928	)	$	—

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

Derivatives not designated as hedging instruments:



		Gain (Loss) Recognized in Income
		For the Three Months Ended
		March 31,
	Location	2013			2012
Commodity contracts (futures & forwards)	Cost of sales	$	(2,202	)	$	(1,438	)
Commodity contracts (swaps)	Losses on commodity swaps	—			(42,003		)
Commodity contracts (call options)	Other income (loss), net	—			(8,153		)
Total derivatives		$	(2,202	)	$	(51,594	)

Summary of offsetting derivative instruments by type

The following table presents offsetting information regarding the Company's derivatives by type of transaction as of March 31, 2013 and December 31, 2012:



As of March 31, 2013	Gross Amounts of Recognized Assets (Liabilities)			Gross Amounts offset in the Statement of Financial Position		Net Amounts of Assets (Liabilities) Presented in the Statement of Financial Position			Gross Amounts Not offset in the Statement of Financial Position				Net Amount
As of March 31, 2013	Gross Amounts of Recognized Assets (Liabilities)			Gross Amounts offset in the Statement of Financial Position					Financial Instruments		Cash Collateral Pledged		Net Amount
Commodity Derivative Assets:
Futures & forwards	$	1,621		$	—	$	1,621		$	—	$	—	$	1,621
Swaps	10,919			—		10,919			—		—		10,919

Commodity Derivative Liabilities:
Futures & forwards	$	(3,066	)	$	—	$	(3,066	)	$	—	$	3,066	$	—



As of December 31, 2012	Gross Amounts of Recognized Assets (Liabilities)			Gross Amounts offset in the Statement of Financial Position		Net Amounts of Assets (Liabilities) Presented in the Statement of Financial Position			Gross Amounts Not offset in the Statement of Financial Position				Net Amount
As of December 31, 2012	Gross Amounts of Recognized Assets (Liabilities)			Gross Amounts offset in the Statement of Financial Position					Financial Instruments		Cash Collateral Pledged		Net Amount
Commodity Derivative Assets:
Futures & forwards	$	386		$	—	$	386		$	—	$	—	$	386
Swaps	2,287			—		2,287			—		—		2,287

Commodity Derivative Liabilities:
Swaps	$	(773	)	$	—	$	(773	)	$	—	$	—	$	(773	)

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References+ Details

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details

Alon Refining Krotz Springs, Inc. 10-Q