World Fuel Services 2011 Annual Report Download - page 88

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The following tables present the effect of and financial statement location of our derivative instruments
and related hedged items in fair value hedging relationships on our consolidated statements of income
(in thousands):
Derivatives Location Realized and Unrealized Gain (Loss)
For the year ended December 31,
2010 2009
Commodity contracts Revenue $ 11,608 $ 10,040 $ 14,117
Commodity contracts Cost of revenue (6,926) (739) (13,162)
Commodity contracts Cost of revenue (26,039) (12,563) (19,269)
$(21,357) $ (3,262) $(18,314)
Hedged Items Location Realized and Unrealized Gain (Loss)
For the year ended December 31,
2010 2009
Firm commitments Revenue $(12,973) $(7,494) $(14,227)
Firm commitments Cost of revenue 7,771 (797) 12,193
Inventories Cost of revenue 38,377 21,419 23,105
$ 33,175 $13,128 $ 21,071
There were no gains or losses for the year ended December 31, 2011, 2010 and 2009 that were
excluded from the assessment of the effectiveness of our fair value hedges.
There were no cash flow hedge transactions during 2011. 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 for 2010 and 2009
(in thousands):
Unrealized
Gain (Loss)
Recorded in
Accumulated Other Realized Gain
Comprehensive Location of Realized (Loss)
Income Gain (Loss) (Effective
Derivatives (Effective Portion) (Effective Portion) Portion)
For the year ended December 31, For the year ended December 31,
2010 2009 2010 2009
Foreign currency contracts $1,799 $ (39) Revenue $1,107 $(38)
Foreign currency contracts — 631 Cost of revenue — 131
Foreign currency contracts (81) 1,022 Other (expense) income, net (81) 47
$1,718 $1,614 $1,026 $140
In the event forecasted foreign currency cash outflows are less than the hedged amounts, a portion or all
of the gains or losses recorded in accumulated other comprehensive income would be reclassified to the
consolidated statement of income. During the year ended December 31, 2010, we de-designated a cash
flow hedge due to the hedged forecasted foreign currency cash outflows no longer being probable
which resulted in a realized net gain of $0.7 million being reclassified from accumulated other
comprehensive income to other income (expense), net in the consolidated statements of income.
During the year ended 2010 and 2009, there were no amounts recognized in the consolidated
statements of income related to the ineffective portion of our cash flow hedges or amounts excluded
from the assessment of our cash flow hedge effectiveness.
64
2011
2011