World Fuel Services 2014 Annual Report Download - page 67

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62
The following table presents the effect and financial statement location of our derivative instruments not designated as
hedging instruments on our consolidated statements of income and comprehensive income (in thousands):
Derivatives Location Realized and Unrealized Gain (Loss)
For the Year ended December 31,
2014 2013 2012
Commodity contracts Revenue $ 64,485 $ 25,420 $ 14,967
Commodity contracts Cost of revenue 2,239 (5,391) 3,333
Foreign currency contracts Revenue 4,286 (55) (2,384)
Foreign currency contracts Other income (expense), net 12,631 (3,998) (2,271)
$ 83,641 $ 15,976 $ 13,645
We enter into derivative instrument contracts which may require us to periodically post collateral. Certain of these derivative
contracts contain clauses that are similar to credit-risk-related contingent features, including material adverse change,
general adequate assurance and internal credit review clauses that may require additional collateral to be posted and/or
settlement of the instruments in the event an aforementioned clause is triggered. The triggering events are not a quantifiable
measure; rather they are based on good faith and reasonable determination by the counterparty that the triggers have
occurred. As of December 31, 2014, the net liability position for such contracts is $111.7 million, the collateral posted is
$89.4 million and the amount of assets required to be posted and/or to settle the positions should a credit-risk contingent
feature be triggered is $22.3 million. As of December 31, 2013, the net liability position for derivative instrument contracts
that contain credit-risk contingent features was not significant.
4. Property and Equipment
The amount of property and equipment and their respective estimated useful lives are as follows (in thousands, except
estimated useful lives):
As of December 31, Estimated
2014 2013 Useful Lives
Land $ 17,333 $ 4,653 Indefinite
Buildings and leasehold improvements 43,356 20,299 3 - 40 years
Office equipment, furniture and fixtures 13,636 8,629 3 - 10 years
Computer equipment and software costs 102,713 88,077 3 - 10 years
Machinery, equipment and vehicles 132,469 92,364 3 - 40 years
309,507 214,022
Accumulated depreciation and amortization 106,791 84,337
$ 202,716 $ 129,685
For 2014, 2013 and 2012, we recorded depreciation expense of $30.3 million, $22.0 million and $18.6 million, respectively.
The amount of computer software costs, including capitalized internally developed software costs are as follows (in
thousands):
As of December 31,
2014 2013
Computer software costs $ 76,870 $ 67,366
Accumulated amortization 45,234 35,499
Computer software costs, net $ 31,636 $ 31,867
Included in capitalized computer software costs are costs incurred in connection with software development in progress of
$4.7 million and $6.0 million as of December 31, 2014 and 2013, respectively. For 2014, 2013 and 2012, we recorded
amortization expense related to computer software costs of $9.8 million, $7.8 million and $7.2 million, respectively.