Where are derivative cash flows reported?

I was wondering where are cash flows from derivatives reported? I suppose they are in the income statement somewhere and the usual suspect is "Other Income" but some companies have a line item called "Realized gains from derivatives". I believe that a company recognizes gains and losses under this heading when they sell the derivative and book a profit/loss comapred to cost. But can this line also include cash flow that are contractual payments of the derivatives?

For example, if I buy a $50 crude oil swap then I receive $50 dollars every day from my counterparty. I, myself am required to pay the counterparty the now prevailing market price. Let's assume it is $40 and stays that way for a quarter. So every day I receive $10 from my counterparty (the difference between fixed price and market price). Say, I have hedged 1000 barrels per day with the swap for a whole quarter. So basically I get $10 000 every day, for 90 days (days in a quarter), so in total I make $900 000 with the swap. Do I report this in "Realized gain from derivatives" or somewhere else?

 

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