World Fuel Services 2015 Annual Report Download - page 68

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63
The following table presents the effect and financial statement location of our derivative instruments in cash flow hedging
relationships on our accumulated other comprehensive income and consolidated statements of income and comprehensive
income (in millions):
Amount of Gain (Loss)
Recognized in Accumulated
Other Comprehensive
Income (Effective Portion)
Location of Realized Gain
(Loss)
Amount of Gain (Loss)
Reclassified from
Accumulated Other
Comprehensive Income
(Effective Portion)
Amount of Gain
(Loss) Recognized in
Income (Ineffective
Portion)
Derivative Instruments 2015 2014 (Effective Portion) 2015 2014 2015 2014
Commodity Contracts $ 106.2 $ — Revenue $ 6.1 $ — $ 28.6 $ —
Commodity Contracts (105.6) — Cost of revenue (5.7) — (17.8) —
Total
$ 0.6
$
—
$ 0.4
$ —
$ 10.8 $
—
In the event forecasted cash outflows are less than the hedged amounts, a portion or all of the gain or losses recorded in
accumulated other comprehensive income are reclassified to the consolidated statements of income and comprehensive
income. As of December 31, 2015, the maximum amount that could be reclassified to the consolidated statements of income
and comprehensive income for the next twelve months is not significant.
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 millions):
Derivatives Location Realized and Unrealized Gain (Loss)
For the Year ended December 31,
2015 2014 2013
Commodity contracts Revenue $ 171.7 $ 64.5 $ 25.4
Commodity contracts Cost of revenue (139.0) 2.2 (5.4)
Foreign currency contracts Revenue 4.1 4.3 —
Foreign currency contracts Other income (expense), net 9.5 12.6 (4.0)
$ 46.3 $ 83.6 $ 16.0
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, 2015, the net liability position for such contracts is $63.2 million, the collateral posted is $28.1
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 $35.1 million. 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.