World Fuel Services 2013 Annual Report Download - page 39

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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. As of December 31, 2013, there were no outstanding cash flow hedges. As of December 31, 2012, we
recorded a net gain of $0.1 million associated with our outstanding cash flow hedges.
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, 2013 and 2012, we recorded net gains of
$0.7 million and $1.0 million, respectively, 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, 2013 and 2012, we recorded net gains of $2.9 million and $9.8 million, respectively, associated with our outstanding
non-designated derivatives.
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