World Fuel Services 2012 Annual Report Download - page 54

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Surety Bonds. In the normal course of business, we are required to post bid, performance and
garnishment bonds, primarily in our aviation and land segments. As of December 31, 2012, we had
$34.3 million in outstanding bonds that were arranged in order to satisfy various security requirements.
Recent Accounting Pronouncements
Information regarding recent accounting pronouncements is included in Note 1 to the accompanying
consolidated financial statements included in this 2012 10-K Report.
Item 7A. Quantitative and Qualitative Disclosures About
Market Risk
Derivatives
The following describes our derivative classifications:
Cash Flow Hedges. Includes certain of our foreign currency forward contracts we enter into in order to
mitigate the risk of currency exchange rate fluctuations. We recorded an unrealized net gain of
$0.1 million as of December 31, 2012 and there were no outstanding cash flow hedges as of
December 31, 2011.
Fair Value Hedges. Includes derivatives we enter into in order to hedge price risk associated with our
inventory and certain firm commitments relating to fixed price purchase and sale contracts. As of
December 31, 2012 and 2011, we recorded unrealized net gains of $1.0 million and $2.4 million related
to the ineffectiveness between our derivative hedging instruments and hedged items on the respective
dates.
Non-designated Derivatives. Includes derivatives we primarily enter into in order to mitigate the risk of
market price fluctuations in aviation, marine and land fuel in the form of swaps or futures as well as
certain fixed price purchase and sale contracts and proprietary trading. In addition, non-designated
derivatives are also entered into to hedge the risk of currency rate fluctuations. As of December 31, 2012
and 2011, we recorded unrealized net gains of $9.8 million and $11.1 million respectively, related to our
non-designated derivative positions.
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