World Fuel Services 2015 Annual Report Download - page 41

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36
As of December 31, 2015, our derivative instruments, at their respective fair value positions were as follows (in millions,
except weighted average fixed price and weighted average mark-to-market amount):
Weighted
Weighted Average
Average Mark-to- Fair
Settlement Fixed Market Value
Hedge Strategy Period Derivative Instrument Notional Unit Price Amount Amount
Fair Value Hedge 2016 Commodity contracts for inventory hedging 2.8 BBL $ 54.104 $ 4.929 $ 13.8
2017 Commodity contracts for inventory hedging 0.1 BBL 57.576 5.000 0.5
$ 14.3
Cash Flow Hedge 2016 Commodity contracts for inventory hedging 9.8 BBL 66.947 0.847 8.3
2017 Commodity contracts for inventory hedging 0.8 BBL 66.784 8.625 6.9
$ 15.2
Non-Designated 2016 Commodity contracts (long) 50.9 BBL 45.030 (15.935) (811.1)
2016 Commodity contracts (short) 41.8 BBL 54.410 19.770 826.4
2017 Commodity contracts (long) 3.1 BBL 25.400 (2.452) (7.6)
2017 Commodity contracts (short) 2.3 BBL 26.810 3.348 7.7
2018 Commodity contracts (long) 0.7 BBL 10.000 2.857 2.0
2018 Commodity contracts (short) 0.5 BBL 11.280 (1.200) (0.6)
2020 Commodity contracts (long) 0.1 BBL 21.750 (1.000) (0.1)
2020 Commodity contracts (short) 0.1 BBL 18.840 6.000 0.6
2016 Foreign currency contracts 6.5 AUD 0.717 (0.031) (0.2)
2016 Foreign currency contracts 4.3 BRL 3.881 — —
2016 Foreign currency contracts 82.8 CAD 1.335 0.025 2.1
2016 Foreign currency contracts 0.3 CHF 0.964 — —
2016 Foreign currency contracts 4,199.0 CLP 702.379 — —
2016 Foreign currency contracts 52,263.5 COP 3,064.704 — 0.1
2016 Foreign currency contracts 73.8 DKK 6.854 (0.003) (0.2)
2016 Foreign currency contracts 45.7 EUR 1.099 0.033 1.5
2016 Foreign currency contracts 124.7 GBP 1.530 0.023 2.9
2016 Foreign currency contracts 111.4 INR 66.366 — —
2016 Foreign currency contracts 546.3 JPY 120.938 — —
2016 Foreign currency contracts 1,794.6 MXN 16.803 — (0.1)
2016 Foreign currency contracts 47.3 NOK 8.474 0.004 0.2
2016 Foreign currency contracts 12.6 PLN 3.892 0.008 0.1
2016 Foreign currency contracts 42.9 RON 4.083 0.014 0.6
2016 Foreign currency contracts 45.6 SEK 8.343 (0.002) (0.1)
2016 Foreign currency contracts 23.8 SGD 1.411 (0.004) (0.1)
2016 Foreign currency contracts 109.3 ZAR 14.245 0.001 0.1
2017 Foreign currency contracts 1.8 EUR 1.083 — —
2017 Foreign currency contracts 8.0 GBP 1.553 0.063 0.5
2017 Foreign currency contracts 1.7 EUR 1.105 — —
$ 24.7
Interest Rate
Borrowings under our Credit Facility and Term Loans related to base rate loans or Eurodollar rate loans bear floating interest
rates plus applicable margins. As of December 31, 2015, the applicable margins for base rate loans and Eurodollar rate
loans were 1.25% and 2.25%, respectively. As of December 31, 2015, we had outstanding borrowings under our Credit
Facility totaling $416.0 million and $333.2 million in Term Loans. As of December 31, 2015, the aggregate outstanding
balance of our capital lease obligations was $12.0 million, which bear interest at annual rates ranging from 3.0% to 6.3%.
Our remaining outstanding debt of $11.0 million as of December 31, 2015 primarily relates to acquisition promissory notes
and loans payable to noncontrolling shareholders of a consolidated subsidiary which are payable in varying amounts from
July 2016 to May 2018 and bear interest at annual rates ranging from 1.3% to 6.8%.The weighted average interest rate on
our short-term debt was 2.7% as of December 31, 2015. A 1.0% fluctuation in the interest rate on our outstanding debt
would result in a $7.6 million change in interest expense during the next twelve months.
Foreign Currency
We analyzed our assets and liabilities denominated in currencies other than their respective functional currencies to identify
consolidated currency exposures as of December 31, 2015, including derivatives utilized to hedge such exposures. For
these assets and liabilities, we then assessed the effect of a hypothetical uniform 10% strengthening in the value of the U.S.
dollar relative to these other currencies. This analysis indicated that the effect on our income before income taxes would
not be significant.