World Fuel Services 2011 Annual Report Download - page 89

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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 (in thousands):
Derivatives Location Realized and Unrealized Gain (Loss)
For the year ended December 31,
2010 2009
Commodity contracts Revenue $14,283 $ 4,385 $3,590
Commodity contracts Cost of revenue 3,137 (1,001) 2,087
Foreign currency contracts Revenue 1,653 — —
Foreign currency contracts Other (expense) income, net (386) 2,536 1,583
$18,687 $ 5,920 $7,260
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. The net liability position for such contracts, the collateral posted and the amount of assets
required to be posted and or to settle the positions should a contingent feature be triggered is not
significant as of December 31, 2011.
4. Property and Equipment
The amount of property and equipment and their respective estimated useful lives are as follows (in
thousands, except estimated useful lives):
As of December 31, Estimated
2010 Useful Lives
Land $ 5,008 $ 5,231 Indefinite
Leasehold improvements 14,640 10,914 5 - 10 years
Office equipment, furniture and fixtures 6,467 6,151 3 - 7 years
Computer equipment and software costs 67,498 63,441 3 - 9 years
Machinery, equipment and vehicles 48,318 18,593 3 - 45 years
141,931 104,330
Accumulated depreciation and amortization 51,221 40,224
$ 90,710 $ 64,106
For 2011, 2010 and 2009, we recorded depreciation expense of $15.5 million, $9.3 million and
$8.6 million, respectively. As of December 31, 2011 and 2010, computer software costs, including
capitalized internally developed software costs, amounted to $30.1 million and $28.4 million, net of
accumulated amortization of $20.5 million and $16.2 million, respectively. Included in capitalized
computer software costs are costs incurred in connection with software development in progress of
$7.7 million and $9.4 million as of December 31, 2011 and 2010, respectively. For 2011, 2010 and 2009,
we recorded amortization expense related to computer software costs of $6.1 million, $4.2 million and
$4.0 million, respectively. As of December 31, 2011 the cost and accumulated amortization of assets
recorded under capital leases were $4.2 million and $0.7 million, respectively. As of December 31, 2010
the cost and accumulated amortization of assets recorded under capital leases were not significant.
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2011
2011