World Fuel Services 2007 Annual Report Download - page 44

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ˆ1KGX9SH6B80KZ5W.Š
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64435 TX 36WORLD FUEL SERVICES
ANNUAL REPORT
26-Feb-2008 23:31 EST
CLN PSTAM
RR Donnelley ProFile SER scheg0cm 4*
PMT 2C
CHMFBUAC350606
9.9.26
Commodity
As of December 31, 2007, our commodity related derivative instruments and their respective fair value
position were as follows (in thousands, except average underlying prices):
Settlement
Period Hedge Strategy Derivative Instrument
Notional Amount Average
Prices
Mark to Market
Gains (Losses)(metric tons) (gallons)
2008 Fair Value Hedge Inventory Effect on Hedged Item 18,984 0.05 1,027
Futures (Sell) 18,984 0.06 (1,089)
2008 Fair Value Hedge Sales Swaps (Purchases) 68,989 0.33 22,937 (1)
Effect on Hedged Item 60,051 0.38 (22,938)(1)
2008 Non-Designated Collars (Purchases) 39,460 0.24 9,321
Collars (Sell) 39,460 0.24 (9,321)
Swaps (Buy) 712 0.48 342
Swaps (Sell) 1,762 0.20 (352)
2009 Fair Value Hedge Sales Effect on Hedged Item 3,048 0.002 6
Swaps (Sell) 6,097 0.001 (6)
2009 Non-Designated Collars (Buy) 2,664 0.10 267
Collars (Sell) 2,664 0.10 (267)
2008 Fair Value Hedge Inventory Effect on Hedged Item 24 29.67 703
Swaps (Sell) 20 25.05 (501)
Futures (Sell) 4 16.78 (62)
2008 Fair Value Hedge Sales Swaps (Buy) 30 5.70 169
Effect on Hedged Item 30 6.81 (202)
2008 Fair Value Hedge Purchase Effect on Hedged Item 246 20.35 5,004
Swaps (Sell) 246 20.47 (5,034)
2008 Non-Designated Swaps (Buy) 1,454 74.48 108,303
Swaps (Sell) 1,614 80.29 (129,545)
Futures (Sell) 5 3.35 (17)
Purchase Commitments 156 170.14 26,542
Sell Commitments 156 34.54 (5,388)
2009 Fair Value Hedge Sales Swaps (Buy) 7 35.42 255
Effect on Hedged Item 7 34.72 (250)
2009 Fair Value Hedge Purchase Effect on Hedged Item 60 108.27 6,496 (2)
Swaps (Sell) 60 108.45 (6,507)(2)
2009 Non-Designated Swaps (Buy) 11 133.06 1,437
Swaps (Sell) 11 133.06 (1,437)
$ (107)
(1) The mark to market amount includes $17.2 million in unrealized net losses associated with sales
commitments that were previously non-designated derivatives for which the normal purchase and normal
sales election were made and subsequently were designated as the hedged items in a fair value hedge
relationship in the fourth quarter of 2007. The unrealized net losses were offset by $17.2 million in
unrealized net gains associated with swaps related to the sales commitments.
(2) The mark to market amount includes $4.7 million in unrealized net gains associated with purchase
commitments that were previously non-designated derivatives for which the normal purchase and normal
sales election were made and subsequently were designated as hedged items in fair value hedges in the
fourth quarter of 2007. The unrealized net gains were offset by $4.7 million in unrealized net losses
associated with swaps related to the purchase commitments.
36