World Fuel Services 2012 Annual Report Download - page 85

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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 and comprehensive
income (in thousands):
Derivatives Location Realized and Unrealized Gain (Loss)
For the Year ended December 31,
2011 2010
Commodity contracts Revenue $14,967 $14,283 $ 4,385
Commodity contracts Cost of revenue 3,333 3,137 (1,001)
Foreign currency contracts Revenue (2,384) 1,653 —
Foreign currency contracts Other income (expense), net (2,271) (386) 2,536
$13,645 $18,687 $ 5,920
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, 2012.
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
2011 Useful Lives
Land $ 4,653 $ 5,008 Indefinite
Buildings and leasehold improvements 21,081 14,640 3 - 15 years
Office equipment, furniture and fixtures 8,415 6,467 3 - 7 years
Computer equipment and software costs 80,233 67,498 3 - 9 years
Machinery, equipment and vehicles 66,122 48,318 3 - 30 years
180,504 141,931
Accumulated depreciation and amortization 67,979 51,221
$112,525 $ 90,710
For 2012, 2011 and 2010, we recorded depreciation expense of $18.6 million, $15.5 million and
$9.3 million, respectively.
The amount of computer software costs, including capitalized internally developed software costs are as
follows (in thousands):
As of December 31,
2011
Computer software costs $60,465 $50,592
Accumulated amortization 27,710 20,481
Computer software costs, net $32,755 $30,111
Included in capitalized computer software costs are costs incurred in connection with software
development in progress of $3.0 million and $7.7 million as of December 31, 2012 and 2011,
respectively. For 2012, 2011 and 2010, we recorded amortization expense related to computer software
costs of $7.2 million, $6.1 million and $4.2 million, respectively.
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