World Fuel Services 2007 Annual Report Download - page 77

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64435 TX 69WORLD FUEL SERVICES
ANNUAL REPORT
28-Feb-2008 00:13 EST
CLN PSTAM
RR Donnelley ProFile SER kirkw0cm 7*
PMT 2C
CHMFBUAC350855
9.9.26
WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the year:
2007
Unrecognized tax benefit—opening balance ...................................... $16,388
Gross decreases—tax positions in prior period .................................... (472)
Gross increases—tax positions in current period ................................... 3,841
Gross decreases—tax positions in current period .................................. (2,016)
Gross increases—acquired entities ............................................. 397
Settlements ................................................................ —
Lapse of statute of limitations ................................................. (252)
Unrecognized tax benefit—ending balance ....................................... $17,886
If our uncertain tax positions as of December 31, 2007 are sustained by the taxing authorities in our favor,
approximately $14.0 million would reduce our income tax expense in the period the matter is considered settled
in accordance with FIN 48. As of December 31, 2007, it does not appear that the total amount of our
unrecognized tax benefits will significantly increase or decrease within the next 12 months.
We record accrued interest and penalties related to unrecognized tax benefits as income tax expense.
Related to the uncertain tax benefits noted above, during 2007, we recorded accrued interest and penalties of $1.2
million and $0.7 million, respectively. As of December 31, 2007, we had recognized liabilities for interest and
penalties of $3.6 million and $4.0 million, respectively. In addition, included in the aggregate total for interest
and penalties are interest and penalties of $0.2 million and $0.5 million, respectively, related to the AVCARD
acquisition.
In many cases, our uncertain tax positions are related to tax years that remain subject to examination by the
relevant tax authorities. The following table summarizes these open tax years by jurisdiction with major
uncertain tax positions:
Open Tax Year
Jurisdiction
Examination in
progress
Examination not
yet initiated
United States ............................................ None 2004 - 2007
Chile .................................................. None 2001 - 2007
Colombia ............................................... None 2002 - 2007
Ecuador ................................................ None 2001 - 2007
Mexico ................................................. None 2001 - 2007
Puerto Rico ............................................. None 2001 - 2007
Singapore ............................................... None 2002 - 2007
United Kingdom ......................................... None 2003 - 2007
8. Shareholders’ Equity
Dividends
We declared cash dividends of $0.15 per share for 2007, 2006 and 2005. Our Credit Facility agreement
restricts the payment of cash dividends to a maximum of 50% of our net income for the four quarters preceding
the date of the dividend. The payments of the above dividends were in compliance with the Credit Facility
agreement.
69