World Fuel Services 2014 Annual Report Download - page 64

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59
and disclosures.
2. Accounts Receivable
We had accounts receivable of $2.3 billion and $2.5 billion, net of an allowance for bad debt of $25.7 million and
$29.2 million, as of December 31, 2014 and 2013, respectively. Accounts receivable are written-off when it becomes
apparent based upon age or customer circumstances that such amounts will not be collected.
The following table sets forth activities in our allowance for bad debt (in thousands):
2014 2013 2012
Balance as of beginning of period $ 29,188 $ 23,719 $ 24,301
Charges to provision for bad debt 3,757 11,745 4,790
Write-off of uncollectible accounts receivable (8,074) (6,940) (6,025)
Recoveries of bad debt 821 664 653
Balance as of end of period $ 25,692 $ 29,188 $ 23,719
Included in accounts receivable is a retained beneficial interest related to accounts receivable sold under our receivables
purchase agreements. The retained beneficial interest was not significant as of December 31, 2014 and 2013.
3. 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.
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.
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.
For additional information on our derivatives accounting policy, see Note 1.