WORLD KINECT CORP - 10-Q filing on 2015-04-30

Derivatives (Tables)

3 Months Ended

Mar. 31, 2015

Derivatives

Schedule of fair value positions of derivative instruments


													Weighted
													Average
										Weighted			Mark-to-
		Settlement								Average			Market			Fair Value
Hedge Strategy		Period		Derivative Instrument		Notional		Unit		Fixed Price			Amount			Amount

Fair Value Hedge		2015		Commodity contracts for inventory hedging		4.4		BBL		$	56.203		$	1.500		$	6.6

Non-Designated		2015		Commodity contracts (long)		44.1		BBL		$	54.721		$	(9.880)		$	(435.7)
		2015		Commodity contracts (short)		34.9		BBL			70.043			13.169			459.6
		2016		Commodity contracts (long)		6.8		BBL			49.795			(5.382)			(36.6)
		2016		Commodity contracts (short)		4.3		BBL			69.663			5.512			23.7
		2017		Commodity contracts (long)		0.2		BBL			39.786			(5.000)			(1.0)
		2017		Commodity contracts (short)		0.2		BBL			42.019			6.000			1.2
		2018		Commodity contracts (short)		0.1		BBL			83.997			3.000			0.3
		2015		Foreign currency contracts		0.5		AUD			0.784			0.200			0.1
		2015		Foreign currency contracts		27.9		CAD			1.239			0.061			1.7
		2015		Foreign currency contracts		15.7		DKK			6.664			0.006			0.1
		2015		Foreign currency contracts		25.1		EUR			1.136			0.124			3.1
		2015		Foreign currency contracts		59.7		GBP			1.545			0.090			5.4
		2015		Foreign currency contracts		123.8		MXN			15.004			(0.002)			(0.2)
		2015		Foreign currency contracts		35.3		RON			3.943			0.017			0.6
		2015		Foreign currency contracts		53.8		ZAR			11.935			0.002			0.1
		2016		Foreign currency contracts		21.7		GBP			1.554			0.065			1.4
		2017		Foreign currency contracts		1.4		GBP			1.610			0.143			0.2
																$	24.0

Schedule of derivative instruments measured at fair value and their locations on the consolidated balance sheets


				As of
				March 31,			December 31,
		Balance Sheet Location		2015			2014
Derivative assets:
Derivatives designated as hedging instruments
Commodity contracts		Short-term derivative assets, net		$	9.0		$	18.8
Commodity contracts		Accrued expenses and other current liabilities			2.8			4.7
					11.8			23.5
Derivatives not designated as hedging instruments
Commodity contracts		Short-term derivative assets, net			355.3			399.0
Commodity contracts		Identifiable intangible and other non-current assets			14.1			12.1
Commodity contracts		Accrued expenses and other current liabilities			198.8			234.1
Commodity contracts		Other long-term liabilities			6.0			4.8
Foreign currency contracts		Short-term derivative assets, net			16.6			21.3
Foreign currency contracts		Identifiable intangible and other non-current assets			1.0			0.5
					591.8			671.8
				$	603.6		$	695.3

Derivative liabilities:
Derivatives designated as hedging instruments
Commodity contracts		Short-term derivative assets, net		$	4.8		$	1.0
Commodity contracts		Accrued expenses and other current liabilities			0.4			0.7
					5.2			1.7
Derivatives not designated as hedging instruments
Commodity contracts		Short-term derivative assets, net			106.1			76.0
Commodity contracts		Identifiable intangible and other non-current assets			0.5			0.6
Commodity contracts		Accrued expenses and other current liabilities			439.0			530.0
Commodity contracts		Other long-term liabilities			17.1			29.3
Foreign currency contracts		Short-term derivative assets, net			5.1			12.0
					567.8			647.9
				$	573.0		$	649.6

Impact of derivatives designated as fair value hedges on the consolidated statements of income and comprehensive income


				Realized and Unrealized										Realized and Unrealized
Derivative Instruments		Location		Gain						Hedged Items		Location		Loss
				2015			2014							2015			2014
Three months ended March 31,
Commodity contracts		Cost of revenue		$	4.0		$	0.4		Inventories		Cost of revenue		$	(0.5)		$	(7.6)

Impact of derivatives not designated as hedges on the consolidated statements of income and comprehensive income


				Realized and Unrealized
Derivatives		Location		Gain (Loss)
				2015			2014

Three months ended March 31,
Commodity contracts		Revenue		$	20.6		$	6.9
Commodity contracts		Cost of revenue			(11.7)			9.6
Foreign currency contracts		Revenue			3.9			(0.3)
Foreign currency contracts		Other income, net			9.2			(0.7)
				$	22.0		$	15.5