World Fuel Services 2015 Annual Report Download - page 84

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79
The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis
as of December 31, 2015 and 2014 (in millions):
Netting and
Level 1 Level 2 Level 3 Sub-Total Collateral Total
2015
Assets:
Commodity contracts
$ 255.4
$ 251.9
$ 3.2
$ 510.5
$ (279.0)
$ 231.5
Foreign currency contracts
—
12.4
—
12.4
(4.1)
8.3
Cash surrender value of life
insurance
—
2.4
—
2.4
—
2.4
Total
$ 255.4
$ 266.7
$ 3.2
$ 525.3
$ (283.1)
$ 242.2
Liabilities:
Commodity contracts
$ 340.1
$ 123.4
$ 0.2
$ 463.7
$ (389.6)
$ 74.1
Foreign currency contracts
—
5.0
—
5.0
(4.1)
0.9
Inventories
—
14.3
14.3
—
14.3
Total
$ 340.1
$ 142.7
$ 0.2
$ 483.0
$ (393.7)
$ 89.3
2014
Assets:
Commodity contracts
$ 173.7
$ 495.6
$ 4.2
$ 673.5
$ (368.0)
$ 305.5
Foreign currency contracts
—
21.8
—
21.8
(12.0)
9.8
Cash surrender value of life
insurance
—
2.2
—
2.2
—
2.2
Total
$ 173.7
$ 519.6
$ 4.2
$ 697.5
$ (380.0)
$ 317.5
Liabilities:
Commodity contracts
$ 306.4
$ 329.9
$ 1.3
$ 637.6
$ (595.6)
$ 42.0
Foreign currency contracts
—
12.0
—
12.0
(12.0)
—
Inventories
—
22.9
—
22.9
—
22.9
Total
$ 306.4
$ 364.8
$ 1.3
$ 672.5
$ (607.6)
$ 64.9
The cash surrender value of life insurance is in connection with the NQDC plan and was included in identifiable intangible
and other non-current assets in the accompanying consolidated balance sheets.
Nonrecurring Fair Value Measurements. In connection with the acquisition of all of the outstanding stock of Pester, we
committed to a plan to sell certain assets and liabilities of Pester’s fuel retail business. The fair value of the assets and
liabilities held for sale were measured using a discounted cash flow valuation methodology. In accordance with the
applicable accounting guidance, the long-lived assets held for sale were recorded at fair value less cost to sell at the
acquisition date. The carrying amounts of the current assets and liabilities held for sale approximate fair value based on
the short-term maturities of these instruments. Based on the fair value hierarchy, as of December 31, 2015, the fair value
of the asset disposal group (excluding inventories) of $37.8 million and the liability disposal group of $10.6 million were
categorized as Level 3, as significant unobservable inputs were used in the valuation of such assets and liabilities. The
inventories of $4.2 million as of December 31, 2015 were categorized as Level 2 as they were valued based on the price to
retailers in a wholesale market.