World Fuel Services 2007 Annual Report Download

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Innovative Solutions and Logistics
Through a Global Team of Local Professionals
2007 Annual Report

Table of contents

  • Page 1
    Innovative Solutions and Logistics Through a Global Team of Local Professionals 2007 Annual Report

  • Page 2
    ..., accountability and citizenship. To support our continuing efforts in talent development, we launched World Fuel Services University this year which now offers over 100 on-line courses and conducts a series of intensive on-site training programs throughout the year to develop our next generation of...

  • Page 3
    ... determination, hard work and intense focus, World Fuel has become the most successful fuel services, logistics and finance company in the world. Our supply and transportation customers benefit from our extensive global presence; localized domain expertise in multiple markets; robust technical...

  • Page 4
    ... 2006 separation agreement between the Company and our former Chief Financial Officer. Includes an after-tax benefit of approximately $1.0 million, or $0.03 per diluted share, related to a $1.5 million settlement of certain claims made against the former owners of Tramp Oil. (b) (c) Includes an...

  • Page 5
    ... Land business segments, World Fuel Services provides fuel and services to commercial and corporate aircraft, petroleum distributors and ships at more than 2,500 locations in 190 countries around the world. Number of Employees Volume Sold 900 Number of Customers 6,500 Number of Suppliers Marine...

  • Page 6
    ... Chief Financial Officer Francis X. Shea Executive Vice President and Chief Risk and Administrative Officer Michael S. Clementi President and Chief Operating Officer World Fuel Services, Inc. Paul M. Nobel Senior Vice President and Chief Accounting Officer R. Alexander Lake, Jr. General Counsel...

  • Page 7
    ... YEAR ENDED DECEMBER 31, 2007 OR ' TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-9533 WORLD FUEL SERVICES CORPORATION (Exact name of registrant as specified in its charter) Florida (State or other...

  • Page 8
    ...ÇŠ1KGX9SH6BBQHLGW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile START PAGE...Financial Disclosure ...Controls and Procedures ...Other Information ...Directors, Executive Officers and Corporate Governance ...Executive Compensation ...Security Ownership of Certain Beneficial Owners...

  • Page 9
    ... support, fuel quality control and fuel procurement outsourcing. We have offices located in the United States, United Kingdom, Denmark, Norway, the Netherlands, Germany, Greece, Turkey, the United Arab Emirates, Russia, Taiwan, South Korea, Singapore, Japan, Hong Kong, Costa Rica, Brazil, Chile...

  • Page 10
    ... 1KGX9SH69SWFNVW WORLD FUEL SERVICES ANNUAL REPORT Marine Segment RR Donnelley ProFile CHMFBUAC350606 9.9.26 SER scheg0cm TAM 26-Feb-2008 22:13 EST CLN 64435 TX 2 3* PS PMT 2C We market fuel and related services to a broad base of customers, including international container and tanker fleets...

  • Page 11
    .... Most of our business is generated from our offices in California, Texas and Florida, which provide the appropriate network to enable us to provide land fuel and related services throughout most of the United States. We also have operations in Brazil and the United Kingdom. In our land segment, we...

  • Page 12
    ... presented in the accompanying consolidated statements of income, none of our land customers accounted for more than 10% of total consolidated revenue. Competitors Our competitors within the highly fragmented world-wide downstream market of marine, aviation and land fuel are numerous, ranging from...

  • Page 13
    ... WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350606 9.9.26 SER scheg0cm TAM 26-Feb-2008 22:13 EST CLN 64435 TX 5 3* PS PMT 1C Examples of forward-looking statements in this report include, but are not limited to, our expectations regarding our business strategy, business...

  • Page 14
    ...services. While no single customer represents more than 10% of total consolidated revenue, diversification of credit risk is limited because we sell primarily within the marine, aviation and land transportation industries. Credit losses may be influenced by factors other than the financial condition...

  • Page 15
    ... exchange rates could materially affect our reported results. The majority of our business transactions are denominated in U.S. dollars. However, in certain markets, primarily in Mexico, Colombia, Brazil and the United Kingdom, payments to some of our fuel suppliers and from some of our customers...

  • Page 16
    ˆ1KGX9SH68ZKMT3WcŠ1KGX9SH68ZKMT3W WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350963 9.9.26 SER ridds0cm TAM 26-Feb-2008 20:45 EST CLN 64435 TX 8 2* PS PMT 2C Non-performance of suppliers on their sale commitments and customers on their purchase commitments. We enter ...

  • Page 17
    ... on our business, financial condition and results of operations. Changes in U.S. or foreign tax laws could adversely affect our business and future operating results. We are affected by various U.S. and foreign taxes imposed on the purchase and sale of marine, aviation and land fuel products. These...

  • Page 18
    ...=1WvÅ 1KGX9SH6S4Z4=1W WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile TX8724AC351073 9.9.26 SER willj0da TAM 28-Feb-2008 11:39 EST CLN 64435 TX 10 5* PS PMT 2C We face intense competition and, if we are not able to effectively compete in our markets, our revenues and profits may...

  • Page 19
    ...:Å 1KGX9SH69T3V6LW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350606 9.9.26 SER scheg0cm TAM 26-Feb-2008 22:14 EST CLN 64435 TX 11 3* PS PMT 2C We are exposed to risks from legislation requiring companies to have adequate internal controls over financial reporting and to...

  • Page 20
    ... Edison, NJ 08837, USA 2 Greenwich Office Park Greenwich, CT 06830, USA 1101 Fifth Avenue, Suite 280 San Rafael, CA 94901, USA 238A Thompson Road #17-08 Novena Square Tower A Singapore 307684 9 F/L., Dongwon-Bldg., 128-27 Dangju-Dong, Chongno-Ku Seoul, 110-759, South Korea 4th floor, Tozan Building...

  • Page 21
    ..., Edificio #7, Piso 2, San Jose, Costa Rica Av. Rio Branco 181/3004 Rio de Janeiro, Brazil 20040 007 Avenida Libertad 798, Suite 301 Vina del Mar, Chile Tucuman 373 Pis 3, 1049 CF Buenos Aires, Argentina Aviation Segment 9800 Northwest 41st Street, Suite 400 Miami, FL 33178, USA 4 North Park Drive...

  • Page 22
    ... Miami, FL 33178, USA 333 Cypress Run #200 Houston, Texas 77094, USA 1101 Fifth Avenue, Suite 280 San Rafael, CA 94901, USA 15-17 Elmfield Road Bromley, Kent BR1 1LT, United Kingdom Av. Rio Branco 181/3004 Rio de Janeiro, Brazil 20040 007 Administrative, operations and sales office Administrative...

  • Page 23
    ...with Brendan Airways, LLC ("Brendan"), an aviation fuel customer, with respect to certain amounts Brendan claims to have been overcharged in connection with fuel sale transactions from 2003 to 2006. In August 2007, WFSI filed an action in the state circuit court in and for Miami-Dade County, Florida...

  • Page 24
    ˆ1KGX9SH69T7N8VWEŠ1KGX9SH69T7N8VW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350606 9.9.26 SER scheg0cm TAM 26-Feb-2008 22:16 EST CLN 64435 TX 16 3* PS PMT 2C As of December 31, 2007, we had recorded certain reserves related to the foregoing proceedings which were not ...

  • Page 25
    ... FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile START PAGE CHMFBUAC350606 9.9.26 SER scheg0cm TAM PART II 26-Feb-2008 22:16 EST CLN 64435 TX 17 3* PS PMT 2C Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities Our common stock...

  • Page 26
    ...FUEL SERVICES ANNUAL REPORT Stock Performance RR Donnelley ProFile TX8724AC351002 9.9.26 SER raynj0da TAM 28-Feb-2008 16:52 EST CLN g21w09-5.0 64435 TX 18 9* PS PMT 2C COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among World Fuel Services Corporation, The Russell 2000 Index And The S&P Energy...

  • Page 27
    ˆ1KGX9SH6FF2C=ZWSŠ1KGX9SH6FF2C=ZW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350646 9.9.26 SER cobbr0cm TAM 27-Feb-2008 07:42 EST CLN 64435 TX 19 4* PS PMT 2C Equity Compensation Plans The following table summarizes securities authorized for issuance under our various ...

  • Page 28
    ...SERVICES ANNUAL REPORT RR Donnelley ProFile START PAGE CHMFBUAC350708 9.9.26 SER davij0cm TAM 27-Feb-2008 23:12 EST CLN 64435 TX 20 6* PS PMT 2C Item 6. Selected Financial Data WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES SELECTED FINANCIAL DATA (In thousands, except earnings and dividends...

  • Page 29
    ... card and sells aviation fuel and related services to the general aviation industry. In our land segment, we offer fuel and related services to petroleum distributors operating in the land transportation market. We compete by providing our customers value-added benefits including single-supplier...

  • Page 30
    ...or high fuel prices can adversely affect our customers' businesses, and consequently the demand for our services and our results of operations. See "Item 1A-Risk Factors" of this Form 10-K. Reportable Segments We have three reportable operating business segments: marine, aviation and land. Corporate...

  • Page 31
    ...WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350606 9.9.26 SER scheg0cm TAM 26-Feb-2008 23:30 EST CLN 64435 TX 23 4* PS PMT 2C Revenue from charge card transactions is recognized at the time the purchase is made by the customer using the charge card. Revenue from charge card...

  • Page 32
    ˆ1KGX9SH6FF9MYVWIŠ1KGX9SH6FF9MYVW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350646 9.9.26 SER cobbr0cm TAM 27-Feb-2008 07:44 EST CLN 64435 TX 24 5* PS PMT 2C information. If the derivative does not qualify as a hedge under Statement of Financial Accounting Standard ("...

  • Page 33
    ... the AVCARD acquisition in December 2007. The remaining increase of $414.5 million was primarily due to an increase in the average price per gallon sold as a result of higher world oil prices in 2007 and to, a small degree, increased revenue related to aviation services. Our land segment contributed...

  • Page 34
    ... employee benefits relating to 2006 new hires, partially offset by a decrease in incentive compensation. Included in general and administrative expenses for 2007 was an impairment charge of $2.4 million during the fourth of 2007 for internally developed computer software costs related to an aviation...

  • Page 35
    ...Å 1KGX9SH6B7SCHRW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350606 9.9.26 SER scheg0cm TAM 26-Feb-2008 23:30 EST CLN 64435 TX 27 4* PS PMT 2C in allocated corporate expenses, was attributable to increases in compensation and employee benefits and general and...

  • Page 36
    ... expenses, $9.0 million was related to compensation and employee benefits, $9.7 million to general and administrative expenses and $1.5 million was due to executive severance costs related to the departure of our former Chief Financial Officer. Partially offsetting these increases was a $4.8 million...

  • Page 37
    ...million. The increase in land segment operating expenses was attributable to increased compensation and employee benefits and general and administrative expenses, partially offset by lower provision for bad debt. Our corporate overhead costs not charged to the business segments totaled $25.4 million...

  • Page 38
    ... assets for our businesses as we subcontract fueling services and maintain inventory at third party storage facilities. However, we are currently in the postimplementation phase of an enterprise integration project, which consists of a company-wide financial and commercial information system upgrade...

  • Page 39
    ... 1KGX9SH6M9651SW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:01 EST CLN 64435 TX 31 6* PS PMT 1C These interest rate protection arrangements expire in March and April 2008. As of December 31, 2007, our weighted average interest...

  • Page 40
    ˆ1KGX9SH6S4KP62WmŠ1KGX9SH6S4KP62W WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile TX8724AC350610 9.9.26 SER carrp0da TAM 28-Feb-2008 11:39 EST CLN 64435 TX 32 6* PS PMT 2C Shareholders' equity was $483.9 million at December 31, 2007, as compared to $426.0 million at December 31, ...

  • Page 41
    ˆ1KGX9SH6M1PKH1W"Š1KGX9SH6M1PKH1W WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350646 9.9.26 SER pattj0cm TAM 27-Feb-2008 23:25 EST CLN 64435 TX 33 5* PS PMT 2C Derivatives obligations. See Item 7A-"Quantitative and Qualitative Disclosures About Market Risk" included in ...

  • Page 42
    ... the risk of market price fluctuations in marine, aviation and land fuel, and to offer our customers fuel pricing alternatives to meet their needs. We also enter into derivatives in order to mitigate the risk of fluctuation in interest rates and foreign currency exchange rates. All derivatives...

  • Page 43
    ...=QH8W;Å 1KGX9SH6B7=QH8W WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350606 9.9.26 SER scheg0cm TAM 26-Feb-2008 23:31 EST CLN 64435 TX 35 4* PS PMT 1C recognized in the same line item as a component of either revenue or cost of sales in the statement of income. For...

  • Page 44
    ˆ1KGX9SH6B80KZ5W.Š1KGX9SH6B80KZ5W WORLD FUEL SERVICES ANNUAL REPORT Commodity RR Donnelley ProFile CHMFBUAC350606 9.9.26 SER scheg0cm TAM 26-Feb-2008 23:31 EST CLN 64435 TX 36 4* PS PMT 2C As of December 31, 2007, our commodity related derivative instruments and their respective fair value...

  • Page 45
    ... dollars. However, in certain markets, primarily Mexico, Colombia, Chile, Brazil, Singapore, Canada and the United Kingdom, payments to our aviation fuel suppliers and from some of our customers are denominated in local currencies. This subjects us to foreign currency exchange risk. Although we use...

  • Page 46
    ... WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile TX8724AC351002 9.9.26 SER raynj0da TAM 28-Feb-2008 10:26 EST CLN 64435 TX 38 8* PS PMT 2C Management's Report on Internal Control over Financial Reporting Our management is responsible for establishing and maintaining adequate internal...

  • Page 47
    ...Code of Corporate Conduct and Ethics which is posted in the corporate governance section of our website, which can be found at http://ir.wfscorp.com. On June 4, 2007, we submitted to the NYSE, the Annual CEO Certification regarding World Fuel's compliance with the NYSE's Corporate Governance listing...

  • Page 48
    ...1KGX9SH6MBRZ2BW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile START PAGE CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:11 EST CLN 64435 TX 40 7* PS PMT 2C PART IV Item 15. Exhibits, Financial Statement Schedules (a)(1) The following consolidated financial statements are filed...

  • Page 49
    ... 16, 2007. 2003 Executive Incentive Plan is incorporated by reference to our Schedule 14A filed April 23, 2004. Second Amended and Restated Credit Agreement, dated as of December 21, 2007, among World Fuel Services Corporation, World Fuel Services Europe, Ltd. and World Fuel Services (Singapore) Pte...

  • Page 50
    ... Kropp Holdings Inc., ("AVCARD") from its assessment of internal control over financial reporting as of December 31, 2007 because it was acquired by the Company in a purchase business combination in December 2007. AVCARD is a wholly owned subsidiary whose total assets and total revenues represent...

  • Page 51
    ˆ1KGX9SH6MBSB8ZWSŠ1KGX9SH6MBSB8ZW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:11 EST CLN 64435 TX 43 3* PS PMT 1C Because of its inherent limitations, internal control over financial reporting may not prevent or detect ...

  • Page 52
    ˆ1KGX9SH6MBSXLXW@Š1KGX9SH6MBSXLXW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile START PAGE CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:11 EST CLN 64435 TX 44 8* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except ...

  • Page 53
    ...PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except earnings per share data) For the Year ended December 31, 2007 2006 2005 Revenue ...Cost of sales ...Gross profit ...Operating expenses: Compensation and employee benefits ...Executive...

  • Page 54
    ... ANNUAL REPORT RR Donnelley ProFile START PAGE TX8724AC350610 9.9.26 SER carrp0da TAM 28-Feb-2008 12:06 EST CLN 64435 TX 46 7* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In thousands) Capital in Excess of Par Value Common Stock...

  • Page 55
    ˆ1KGX9SH6TVF1J5WÊ1KGX9SH6TVF1J5W WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile START PAGE TX8724AC351073 9.9.26 SER willj0da TAM 28-Feb-2008 15:15 EST CLN 64435 TX 47 12* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In ...

  • Page 56
    ... 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued) (In thousands) We acquired Kropp Holdings, Inc., which does business under the brand name of AVCARD in December 2007 and the remaining 33% of the outstanding equity interest of Tramp Oil (Brasil...

  • Page 57
    ... label charge card in the general aviation industry. In our land segment, we offer fuel and related services to petroleum distributors operating in the land transportation market. We compete by providing our customers value-added benefits including single-supplier convenience, competitive pricing...

  • Page 58
    ˆ1KGX9SH6MBXJKVWtŠ1KGX9SH6MBXJKVW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:12 EST CLN 64435 TX 50 8* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) The...

  • Page 59
    ... TX 51 9* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Our wholly-owned subsidiary, World Fuel Services, Inc., a Texas corporation, owns 50% of Page Avjet Fuel Co. LLC ("PAFCO"), a Delaware limited liability company. PAFCO...

  • Page 60
    ...=WMÅ 1KGX9SH6MBZ4F=W WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:12 EST CLN 64435 TX 52 7* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) The commercial...

  • Page 61
    ...1KGX9SH6MBZQRYW.Å 1KGX9SH6MBZQRYW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:12 EST CLN 64435 TX 53 7* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) cash...

  • Page 62
    ... 1KGX9SH6MB=D3JW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:12 EST CLN 64435 TX 54 9* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) In connection with our...

  • Page 63
    ... TX 55 7* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) of complex and subjective variables. These variables include our expected stock price volatility over the term of the awards, actual and projected employee stock option...

  • Page 64
    ...WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile TX8724AC351073 9.9.26 SER willj0da TAM 28-Feb-2008 12:09 EST CLN 64435 TX 56 8* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS...average number of shares of common stock, stock units ...

  • Page 65
    ...=WyÅ 1KGX9SH6MC162=W WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:12 EST CLN 64435 TX 57 6* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Shares used...

  • Page 66
    ...PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) the assets acquired and liabilities assumed in a transaction at the acquisition date fair value with limited exceptions. SFAS No. 141(R) includes a substantial number of new disclosure...

  • Page 67
    ˆ1KGX9SH6MC24MKW%Š1KGX9SH6MC24MKW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:13 EST CLN 64435 TX 59 6* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) No....

  • Page 68
    ...1KGX9SH6MC2MWVWjÅ 1KGX9SH6MC2MWVW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:13 EST CLN 64435 TX 60 6* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Fair...

  • Page 69
    ˆ1KGX9SH6MC3HBRW%Š1KGX9SH6MC3HBRW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:13 EST CLN 64435 TX 61 5* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) As ...

  • Page 70
    ...1KGX9SH6TVG00RW[Å 1KGX9SH6TVG00RW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile TX8724AC351073 9.9.26 SER willj0da TAM 28-Feb-2008 15:15 EST CLN 64435 TX 62 8* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) sales...

  • Page 71
    ˆ1KGX9SH6MC4MZMW)Š1KGX9SH6MC4MZMW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:13 EST CLN 64435 TX 63 6* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) ...

  • Page 72
    ... Fuel Services Europe, Ltd. and World Fuel Services (Singapore) Pte. Ltd. In addition, the Credit Facility is secured by a pledge of the capital stock of certain of our subsidiaries. This recent amendment extends the expiration date of our Credit Facility agreement to December 21, 2012. Our Credit...

  • Page 73
    ... PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Our debt consisted of the following (in thousands): As of December 31, 2007 2006 Borrowings under Credit Facility ...5.0% promissory note issued in connection with acquired business...

  • Page 74
    ˆ1KGX9SH6MC64T3W*Š1KGX9SH6MC64T3W WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:13 EST CLN 64435 TX 66 7* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) The...

  • Page 75
    ˆ1KGX9SH6TVWKCYWpŠ1KGX9SH6TVWKCYW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile TX8724AC351073 9.9.26 SER willj0da TAM 28-Feb-2008 15:18 EST CLN 64435 TX 67 9* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) ...

  • Page 76
    ... ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:13 EST CLN 64435 TX 68 9* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) directly from tax deductions related to equity compensation...

  • Page 77
    ... not yet initiated United States ...Chile ...Colombia ...Ecuador ...Mexico ...Puerto Rico ...Singapore ...United Kingdom ...8. Shareholders' Equity Dividends None None None None None None None None 2004 - 2007 2001 - 2007 2002 - 2007 2001 - 2007 2001 - 2007 2001 - 2007 2002 - 2007 2003 - 2007 We...

  • Page 78
    ...1KGX9SH6MCBK59W WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:13 EST CLN 64435 TX 70 7* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Issuance of Common Stock...

  • Page 79
    ... SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:13 EST CLN 64435 TX 71 6* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) The estimated fair value of stock and stock units...

  • Page 80
    ... EST CLN 64435 TX 72 7* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) The provisions of the 2006 Plan authorize the grant of stock options which can be "qualified" or "nonqualified" under the Internal Revenue Code of 1986, as...

  • Page 81
    ... ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:14 EST CLN 64435 TX 73 7* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) The following table summarizes the status of our stock...

  • Page 82
    ˆ1KGX9SH6MCFHSNWfŠ1KGX9SH6MCFHSNW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:14 EST CLN 64435 TX 74 7* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) As ...

  • Page 83
    ... REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:14 EST CLN 64435 TX 75 7* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) The following table summarizes the status of our restricted stock...

  • Page 84
    ˆ1KGX9SH6RFFBDMWfŠ1KGX9SH6RFFBDMW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile TX8724AC351002 9.9.26 SER raynj0da TAM 28-Feb-2008 10:13 EST CLN 64435 TX 76 9* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) 9. ...

  • Page 85
    .... The five senior executives participating in the Executive Incentive Plan are: 1) CEO, 2) COO, 3) Chief Financial Officer ("CFO"), 4) Chief Risk and Administrative Officer ("CRAO") and 5) Aviation Segment President ("Aviation President"). The bonus performance targets are generally based on net...

  • Page 86
    ...Å 1KGX9SH6S4SV29W WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile TX8724AC350610 9.9.26 SER carrp0da TAM 28-Feb-2008 11:39 EST CLN 64435 TX 78 6* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Executive Severance...

  • Page 87
    ...=WW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:14 EST CLN 64435 TX 79 6* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Legal Matters Miami Airport...

  • Page 88
    ...with Brendan Airways, LLC ("Brendan"), an aviation fuel customer, with respect to certain amounts Brendan claims to have been overcharged in connection with fuel sale transactions from 2003 to 2006. In August 2007, WFSI filed an action in the state circuit court in and for Miami-Dade County, Florida...

  • Page 89
    ...=W WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:14 EST CLN 64435 TX 81 6* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Information concerning our revenue...

  • Page 90
    ... 1KGX9SH6MCN5DLW WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:14 EST CLN 64435 TX 82 7* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Information concerning...

  • Page 91
    ... ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:14 EST CLN 64435 TX 83 6* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Geographic Information Information concerning our revenue...

  • Page 92
    ... WORLD FUEL SERVICES ANNUAL REPORT RR Donnelley ProFile CHMFBUAC350855 9.9.26 SER kirkw0cm TAM 28-Feb-2008 00:14 EST CLN 64435 TX 84 5* PS PMT 2C WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) 7. Summary Quarterly Information...

  • Page 93
    ... MICHAEL J. KASBAR Michael J. Kasbar /s/ IRA M. BIRNS Ira M. Birns Executive Vice President and Chief Financial Officer (Principal Financial Officer) Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) Director /s/ PAUL M. NOBEL Paul M. Nobel /s/ KEN BAKSHI Ken...

  • Page 94
    ... Fuel Singapore Holding Company II Pte. Ltd., a Singapore corporation -World Fuel Services (Singapore) Pte. Ltd., a Singapore corporation -Trans-Tec Services (Japan) Co., K.K., a Japan corporation -Tramp Oil and Marine (Far East) Pte. Ltd., a Singapore corporation (1) -Norse Bunkers AS, a Norway...

  • Page 95
    ... by Registrant. (9) This corporation is owned 65% by Tramp Group Limited, 34% by World Fuel Services Europe, Ltd. and 1% by World Fuel European Holding Company I, Ltd. (10) This corporation is owned 99% by Tramp Oil & Marine (Chile) S.A. and 1% by WFS Agencia de Naves SA. (11) This corporation is...

  • Page 96
    ... PMT 2C Exhibit 31.1 CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER pursuant to Rule 13a-14(a) or Rule 15d-14(a) I, Paul H. Stebbins, certify that: 1. 2. I have reviewed this Annual Report on Form 10-K of World Fuel Services Corporation; Based on my knowledge, this report does not contain any untrue...

  • Page 97
    ... OF THE CHIEF OPERATING OFFICER pursuant to Rule 13a-14(a) or Rule 15d-14(a) I, Michael J. Kasbar, certify that: 1. 2. I have reviewed this Annual Report on Form 10-K of World Fuel Services Corporation; Based on my knowledge, this report does not contain any untrue statement of a material...

  • Page 98
    ..., the President and Chief Operating Officer of the Company and Ira M. Birns, Executive Vice-President and Chief Financial Officer of the Company, certify for the purposes of Section 1350 of Chapter 63 of Title 18 of the United States Code that, to the best of our knowledge, (i) the Annual Report on...

  • Page 99
    ... Stock Listing The Company's Common Stock is traded on the New York Stock Exchange under the symbol: INT Corporate Headquarters Designed and produced by R.R. Donnelley, Tampa, FL World Fuel Services Corporation 9800 N.W. 41st Street, Suite 400 Miami, Florida 33178 Telephone: 305.428.8000 Fax...

  • Page 100
    9800 N.W. 41st Street • Suite 400 • Miami, Florida 33178 (305) 428-8000 • (305) 392-5621 Fax www.wfscorp.com • (NYSE: INT)