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WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table presents additional information about our financial instruments measured at fair value
on a recurring basis that utilized Level 3 inputs for 2008 (in thousands):
Balance,
beginning
of period
Total
gains/(losses)
(realized and
unrealized)
Purchases,
Sales and
Settlements,
net
Transfers in
and/or
out of
Level 3
Balance,
end of
period
Change in
unrealized
gains/(losses)
relating to
instruments
still held at
December 31,
2008
Assets:
Short-term investments . . . . . . $8,100 $ — $ — $ — $8,100 $—
Derivatives . . . . . . . . . . . . . . . . — 1,903 (1,863) — 40 —
Hedged item commitments . . . — (7,960) (9,143) 17,103 — —
Total . . . . . . . . . . . . . . . . . $8,100 $(6,057) $(11,006) $17,103 $8,140 $—
Liabilities:
Derivatives . . . . . . . . . . . . . . . . $ — $ 8,784 $ (2,306) $ — $6,478 $—
Hedged item commitments . . . — 994 (696) — 298 —
Total . . . . . . . . . . . . . . . . . $ — $ 9,778 $ (3,002) $ — $6,776 $—
Fair Value Option. Effective January 1, 2008, we adopted FAS No. 159, “The Fair Value Option for
Financial Assets and Financial Liabilities.” FAS 159 provides an option, on an instrument-by-instrument basis,
for certain financial instruments and other items that are not otherwise measured at fair value to be reported at
fair value with changes in fair value reported in earnings. After the initial adoption, the election is generally made
at the acquisition of the instrument and may not be revoked. At adoption, we did not elect to apply the fair value
option to any eligible items, and accordingly, the adoption of FAS No. 159 did not have an impact on our
financial position, results of operations or cash flows.
12. Business Segments, Geographic Information, and Major Customers
Business Segments
Based on the nature of operations and quantitative thresholds pursuant to FAS 131, “Disclosures about
Segments of an Enterprise and Related Information,” we have three reportable operating business segments:
marine, aviation and land. Corporate expenses are allocated to the segments based on usage, where possible, or
on other factors according to the nature of the activity. The results of operations and related assets and liabilities
of our acquisition of the Texor business are included in our land segment since June 1, 2008. The results of
operations and related assets and liabilities of our AVCARD acquisition are included in our aviation segment
since December 1, 2007. The accounting policies of the reportable operating segments are the same as those
described in the Summary of Significant Accounting Policies (see Note 1).
87