World Fuel Services 2014 Annual Report Download - page 83

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78
As of December 31, 2014, we had $301.0 million of cash collateral deposits held by financial counterparties, of which $274.3
million have been offset against the total amount of commodity fair value liabilities in the above table and the remaining
$26.7 million is included in other current assets in the accompanying consolidated balance sheets. In addition, as of
December 31, 2014, we have offset $46.7 million of cash collateral received from customers against the total amount of
commodity fair value assets in the above table. As of December 31, 2013, we had $13.0 million of cash collateral deposits
held by financial counterparties and there were no significant amounts of cash collateral that were offset against the total
commodity fair value liabilities in the above table. Additionally, as of December 31, 2013, we had offset $4.7 million of cash
collateral deposits received from customers against the total amount of commodity fair value assets in the above table.
The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis
that utilized Level 3 inputs for the periods presented (in thousands):
Realized and Change in Unrealized Location of Realized
Unrealized Gains Gains Relating to and Unrealized
(Losses) Assets and Liabilities Gains (Losses)
Beginning Included in Transfers End that are Held at Included in
of Period Earnings Settlements Into Level 3 of Period End of Period Earnings
2014
Assets:
Commodity contracts
$
—
$ 12,702 $ 8,969
$ 417
$ 4,150
$ 4,150
Revenue
Liabilities:
Commodity contracts
$
—
$ (1,439) $ 86
$ —
$ (1,353)
$ (1,353)
Cost of revenue
2013
Liabilities:
Commodity contracts
$
—
$ (20) $ 20
$ —
$ —
$ —
Cost of revenue
The nature of inputs that are considered Level 3 are model inputs. Commodity contracts categorized in Level 3 are placed
there due to the significance of the unobservable model inputs to their respective fair values. The unobservable model
inputs, such as basis differentials, are based on the difference between the historical prices of our prior transactions and
underlying observable data as well as certain risk related to non-performance. The effect on our income before income
taxes of a 10% change in the model input for non-performance risk would not be significant.