World Fuel Services 2005 Annual Report Download - page 44

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at any given time, only a portion of such risk may be hedged. As of December 31, 2005, we had the following
foreign currency purchase contracts (in thousands):
Settlement
Period Hedge Strategy
Foreign
Currency
Amount
United States
Currency
Amount
Fair Value
Asset
(Liability)
January 2006 Non-designated CLP 2,674,070 $5,213 $ 1
Non-designated EUR 55 66 —
$1
Item 8. Financial Statements and Supplementary Data
The financial statements, together with the report thereon of PricewaterhouseCoopers LLP dated March 16,
2006, and the Selected Quarterly Financial Data (Unaudited), are set forth in Item 15 of this Form 10-K.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
There were no disagreements with accountants on any matter of accounting principles, accounting practices,
or financial statement disclosure which have been reported on a Form 8-K within the twenty-four months prior to
the date of the most recent financial statements.
Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure that information required to be
disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and
reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated
and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as
appropriate, to allow timely decisions regarding required financial disclosure.
As of the end of the period covered by this report, we evaluated, under the supervision and with the
participation of our Chief Executive Officer and Chief Financial Officer, the effectiveness of the design and
operation of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(e). Based upon this
evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and
procedures were not effective, because of the existence of the material weakness discussed below as of
December 31, 2005. However, we believe that the financial statements included in this report fairly present in all
material respects our financial condition, results of operations and cash flows for the periods presented.
Management’s Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial
reporting, as such term is defined in Exchange Act Rule 13a-15(f). Our internal control over financial reporting is
a process designed to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. Our internal control over financial reporting includes those policies and procedures that (i) pertain to
the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of our assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting principles, and that receipts
and expenditures are being made only in accordance with authorizations of management and our directors; and
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