World Fuel Services 2012 Annual Report Download - page 101

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The following table presents information about our assets and liabilities that are measured at fair value
on a recurring basis as of December 31, 2012 and 2011 (in thousands):
Netting
and
Level 1 Level 2 Level 3 Sub-Total Collateral Total
Assets:
Commodity contracts $18,087 $57,682 $ — $75,769 $(56,115) $19,654
Foreign currency contracts — 2,434 — 2,434 (2,289) 145
Hedged item inventories — 818 — 818 — 818
$18,087 $60,934 $ — $79,021 $(58,404) $20,617
Liabilities:
Commodity contracts $20,970 $44,732 $ — $65,702 $(49,562) $16,140
Foreign currency contracts — 3,845 — 3,845 (2,289) 1,556
Hedged item inventories — 525 — 525 — 525
$20,970 $49,102 $ — $70,072 $(51,851) $18,221
2011
Assets:
Commodity contracts $14,038 $51,033 $ — $65,071 $(43,275) $21,796
Foreign currency contracts — 2,994 — 2,994 (893) 2,101
Hedged item inventories — 3,216 — 3,216 — 3,216
Hedged item commitments — 206 — 206 — 206
$14,038 $57,449 $ — $71,487 $(44,168) $27,319
Liabilities:
Commodity contracts $10,148 $46,754 $ — $56,902 $(43,291) $13,611
Foreign currency contracts — 1,018 — 1,018 (893) 125
Hedged item commitments — 24 — 24 — 24
Earn-out — — 4,194 4,194 — 4,194
$10,148 $47,796 $ 4,194 $62,138 $(44,184) $17,954
For our derivative contracts, we may enter into master netting, collateral and offset agreements with
counterparties. These agreements provide us the ability to offset a counterparty’s rights and obligations,
request additional collateral when necessary or liquidate the collateral in the event of counterparty
default. We net fair value of cash collateral paid or received against fair value amounts recognized for net
derivative positions executed with the same counterparty under the same master netting or offset
agreement.
As of December 31, 2012, we had $22.9 million of cash collateral deposits held by financial
counterparties included in other current assets in the accompanying consolidated balance sheets. In
addition, as of December 31, 2012, we have offset $6.6 million of cash collateral received from
customers against the total amount of commodity fair value assets in the above table. As of
December 31, 2011, we had $11.8 million of cash collateral deposits held by financial counterparties and
there were no significant amounts of cash collateral that were offset against the total commodity fair
value assets and liabilities in the above table.
82
2012