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Table of Contents HOLLYFRONTIER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Continued
77
The following table presents the pre-tax effect on other comprehensive income and earnings due to fair value adjustments and
maturities of HEP's interest rate swaps under hedge accounting:
Unrealized Gain
(Loss)
Recognized in
OCI
Loss Recognized in Earnings Due to
Settlements
Location Amount
(In thousands)
Year Ended December 31, 2014
Interest rate swaps
Change in fair value $ (2,104)
Loss reclassified to earnings due to settlements 2,202 Interest expense $ (2,202)
Total $ 98 $ (2,202)
Year Ended December 31, 2013
Interest rate swaps
Change in fair value $ 1,194
Loss reclassified to earnings due to settlements 2,092
Amortization of discontinued hedge reclassified to earnings 849 Interest expense $ (2,941)
Total $ 4,135 $ (2,941)
Year Ended December 31, 2012
Interest rate swaps
Change in fair value $ (4,418)
Loss reclassified to earnings due to settlements 1,508
Amortization of discontinued hedge reclassified to earnings 5,095 Interest expense $ (6,603)
Total $ 2,185 $ (6,603)
The following table presents the fair value and balance sheet locations of our outstanding derivative instruments. These amounts
are presented on a gross basis with offsetting balances that reconcile to a net asset or liability position in our consolidated balance
sheets. We present on a net basis to reflect the net settlement of these positions in accordance with provisions of our master netting
arrangements.
Derivatives in Net Asset Position Derivatives in Net Liability Position
Gross Assets
Gross
Liabilities
Offset in
Balance Sheet
Net Assets
Recognized in
Balance Sheet Gross
Liabilities
Gross Assets
Offset in
Balance Sheet
Net
Liabilities
Recognized in
Balance Sheet
(In thousands)
December 31, 2014
Derivatives designated as cash flow hedging instruments:
Commodity price swap
contracts $ 173,658 $ (142,115) $ 31,543 $ 21,441 $ — $ 21,441
Interest rate swap contracts 1,019 — 1,019 1,065 — 1,065
$ 174,677 $ (142,115) $ 32,562 $ 22,506 $ — $ 22,506
Derivatives not designated as cash flow hedging instruments:
Commodity price swap
contracts $ 17,630 $ (12,942) $ 4,688 $ 20,398 $ (17,007) $ 3,391
NYMEX futures contracts 17,619 — 17,619 — — —
$ 35,249 $ (12,942) $ 22,307 $ 20,398 $ (17,007) $ 3,391
Total net balance $ 54,869 $ 25,897
Balance sheet classification: Prepayment and other $ 53,850
Intangibles and other 1,019 Other long-term liabilities $ 25,897
$ 54,869 $ 25,897