World Fuel Services 2012 Annual Report Download - page 100

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Other Matters
In addition to the environmental and other legal matters discussed above, we are a party to various
claims, complaints and proceedings arising in the ordinary course of our business including, but not
limited to, commercial and governmental contract claims, such as property damage, demurrage, billing
and fuel quality claims, as well as bankruptcy preference claims. We have established loss provisions for
these ordinary course claims as well as other matters in which losses are probable and can be
reasonably estimated. As of December 31, 2012, we had recorded certain reserves which were not
significant. For those matters where a reserve has not been established and for which we believe a loss
is reasonably possible, as well as for matters where a reserve has been recorded but for which an
exposure to loss in excess of the amount accrued is reasonably possible, we believe that such losses
will not have a material adverse effect on our business or financial condition. However, any adverse
resolution of one or more such claims, complaints or proceedings during a particular period could have a
material adverse effect on our results of operations or cash flow for that period.
Our estimates regarding potential losses and materiality are based on our judgment and assessment of
the claims utilizing currently available information. Although we will continue to reassess our reserves
and estimates based on future developments, our objective assessment of the legal merits of such
claims may not always be predictive of the outcome and actual results may vary from our current
estimates.
10. Fair Value Measurements
The carrying amounts of cash and cash equivalents, accounts receivable, net, accounts payable and
accrued expenses and other current liabilities approximate fair value based on the short-term maturities
of these instruments. We believe the carrying values of our debt and notes receivable approximate fair
value since these instruments bear interest either at variable rates or fixed rates which are not
significantly different than market rates. Based on the fair value hierarchy, our debt of $380.3 million as
of December 31, 2012 and $287.1 million as of December 31, 2011 and our notes receivable of
$12.7 million as of December 31, 2012 and $6.8 million as of December 31, 2011 are categorized in
Level 3.
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