World Fuel Services 2011 Annual Report Download - page 59

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As of December 31, 2011, our derivative instruments were as follows (in thousands, except
mark-to-market prices):
Mark-to-
Settlement Market Mark-to-
Hedge Strategy Period Derivative Instrument Notional Unit Prices Market
Fair Value Hedge 2012 Commodity contracts for firm commitment hedging (long) 778 GAL 0.01 $ 11
2012 Commodity contracts for firm commitment hedging (short) 1,848 GAL (0.12) (219)
2012 Commodity contracts for inventory hedging (short) 54,264 GAL (0.01) (552)
2012 Commodity contracts for firm commitment hedging (long) 1 MT 11.00 11
2012 Commodity contracts for inventory hedging (short) 75 MT (3.19) (239)
$ (988)
Non-Designated 2012 Commodity contracts (long) 95,925 GAL 0.02 $ 2,238
2012 Commodity contracts (short) 156,443 GAL 0.00 555
2012 Commodity contracts (long) 4,915 MT 4.11 20,196
2012 Commodity contracts (short) 3,598 MT (4.10) (14,750)
2013 Commodity contracts (long) 3,385 GAL 0.11 380
2013 Commodity contracts (short) 7,157 GAL 0.10 720
2013 Commodity contracts (long) 68 MT (13.93) (947)
2013 Commodity contracts (short) 19 MT 32.16 611
2014 Commodity contracts (long) 3 MT (45.33) (136)
2014 Commodity contracts (short) 6 MT 48.33 290
2012 Foreign currency contracts (long) 3,096 CAD 0.00 13
2012 Foreign currency contracts (short) 15,300 CAD (0.00) (57)
2012 Foreign currency contracts (long) 3,551,328 CLP (0.00) (16)
2012 Foreign currency contracts (long) 389 EUR (0.03) (12)
2012 Foreign currency contracts (short) 11,500 EUR 0.00 27
2012 Foreign currency contracts (long) 11,927 GBP (0.02) (193)
2012 Foreign currency contracts (short) 55,834 GBP 0.03 1,676
2012 Foreign currency contracts (long) 163,922 MXN (0.00) (56)
2012 Foreign currency contracts (short) 81,028 MXN 0.00 5
2012 Foreign currency contracts (long) 2,800 SGD 0.00 8
2012 Foreign currency contracts (long) 724 AUD 0.01 5
2012 Foreign currency contracts (short) 499 AUD (0.06) (29)
2012 Foreign currency contracts (long) 9,500 UYU 0.00 4
2013 Foreign currency contracts (long) 9,230 GBP (0.05) (461)
2013 Foreign currency contracts (short) 16,665 GBP 0.06 1,062
$ 11,133
Interest Rate
Borrowings under our Credit Facility and Term Loan Facility related to base rate loans or eurodollar rate
loans bear floating interest rates plus applicable margins. As of December 31, 2011, the applicable
margins for base rate loans and eurodollar rate loans were 1.0% and 2.0%, respectively. As of
December 31, 2011, we had no outstanding borrowings under our Credit Facility and borrowings of
$250.0 million under our Term Loan Facility. As of December 31, 2011, the aggregate outstanding
balance of our promissory notes issued in connection with our acquisitions was $30.6 million, which
bear interest at annual rates ranging from 1.3% to 6.0%. The remaining outstanding debt of $6.6 million
as of December 31, 2011, primarily relates to loans payable to noncontrolling shareholders of a
consolidated subsidiary and capital leases, which bear interest at annual rates ranging from 6.0% to
12.1%. A 1.0% fluctuation in the interest rate on our outstanding debt would result in a $2.5 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, 2011, 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 taxes would not be significant.
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