World Fuel Services 2008 Annual Report Download

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Table of contents

  • Page 1

  • Page 2
    ...outstanding job in 2008 on every metric of success and we believe we are well positioned to respond to whatever the market may bring our way in 2009. Our recent acquisition of the Henty Oil Group of Companies, a leading independent provider of marine and land based fuels in the United Kingdom, again...

  • Page 3
    ..., services and logistics. For World Fuel, 2008 was a remarkable year. We successfully launched our new ERP system, achieved new milestones in organizational maturity, effectively managed risk in a wildly volatile market and delivered record financial performance. In the most recent Fortune 500...

  • Page 4
    WHO WE ARE Headquartered in Miami, Florida, World Fuel Services is a global leader in the marketing and sale of marine, aviation and land fuel products, as well as related services. World Fuel Services sells fuel and delivers services to its clients at more than 6,000 locations in more than 190 ...

  • Page 5
    FINANCIAL HIGHLIGHTS As of, and for the year ended December 31: (In thousands, except diluted earnings per share) 2006 2007 2008 Income Statement Data Revenue Gross Profit Income from Operations Net Income Diluted Earnings Per Share Diluted Weighted Average Shares $ 10,785,136 214,069 76,646 ...

  • Page 6
    ... Kasbar President and Chief Operating Officer Ira M. Birns Executive Vice President and 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...

  • Page 7
    ...9533 WORLD FUEL SERVICES CORPORATION (Exact name of registrant as specified in its charter) Florida (State or other jurisdiction of incorporation or organization) 59-2459427 (I.R.S. Employer Identification No.) 9800 Northwest 41st Street, Suite 400 Miami, Florida (Address of principal executive...

  • Page 8
    ... ...Executive Compensation ...Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters ...Certain Relationships and Related Transactions, and Director Independence ...Principal Accounting Fees and Services ...40 40 40 40 40 Market for Registrant's Common...

  • Page 9
    ... operates a small number of retail gasoline stations. We have offices located in the United States, the 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, Argentina...

  • Page 10
    ... marine fuel and related services throughout most of the world under the following trade names: World Fuel, Trans-Tec, Bunkerfuels, Oil Shipping, Marine Energy, Norse Bunker, Casa Petro and Tramp Oil. Through our extensive network of offices, we provide our customers global market intelligence...

  • Page 11
    ... fuel and related services throughout most of the world under the following trade names: World Fuel, PetroServicios de Mexico, Tramp Oil, PetroServicios de Costa Rica, Baseops, Airdata and AVCARD. In general, the aviation industry is capital intensive and highly leveraged. Recognizing the financial...

  • Page 12
    ... 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 markets of marine, aviation and land fuel are numerous, ranging from large multinational corporations...

  • Page 13
    ... fuel; changes in political, economic or regulatory conditions generally and in the markets in which we operate; our failure to effectively hedge certain financial risks associated with the use of derivatives; non-performance by counterparties or customers on derivatives contracts; changes in credit...

  • Page 14
    ... prepay or post letters of credit with their suppliers of fuel and related services. While no single customer generates more than 10% of our total consolidated revenue, diversification of credit risk is limited because we sell primarily within the marine, aviation and land transportation industries...

  • Page 15
    ... consolidated income statement. Our efforts to hedge our exposure to fuel price fluctuations could be ineffective. For example, there currently is no market for aviation jet fuel futures so we enter into hedging transactions with respect to our aviation business by trading in heating oil futures. To...

  • Page 16
    ..., we operate in emerging markets, such as Russia and certain countries in Asia and Latin America, which have...reported results. The majority of our business transactions are denominated in U.S. dollars. However, in certain markets, payments to some of our fuel suppliers and from some of our customers...

  • Page 17
    ... and land transportation industries may have an adverse effect on our business. Our business is focused on the marketing of fuel and fuel-related services to the marine, aviation and land transportation industries. Therefore, any adverse economic conditions in these industries may have an adverse...

  • Page 18
    ... with the restrictions of our Credit Facility could adversely affect our operating flexibility. We borrow money pursuant to a Credit Facility that imposes certain operating and financial covenants on us, such as limiting or prohibiting our ability to pay dividends incur additional debt, create liens...

  • Page 19
    ... strategy, we have been acquisitive and intend to continue to explore acquisition opportunities of fuel resellers and other related service businesses. For example, we purchased the Texor business in 2008 and AVCARD in 2007. We cannot assure you, however, that we will find attractive acquisition...

  • Page 20
    ...of increased competition from the larger oil companies, who may choose to directly market to smaller airlines, shipping companies and petroleum distributors operating in the land transportation market, or to provide less advantageous price and credit terms to us than to our fuel reseller competitors...

  • Page 21
    ...executive officer, chief financial officer or independent registered public accounting firm determines that our internal control over financial reporting is not effective as defined under Section 404, investor perceptions and our reputation may be adversely affected and the market price of our stock...

  • Page 22
    ...Credit Facility or may not achieve sufficient earnings to pay some or any dividends... rates may cause the market price of our common ...corporate interests. Reduced demand for our common shares resulting from investors...laws could adversely affect our business, financial condition and results of operations...

  • Page 23
    ... Hon-Cho, Chuo-Ku Tokyo 103-0023, Japan The Fairmont Dubai Hotel Building, Office 1701, Sheikh Zayed Road Dubai, United Arab Emirates The Foundry, 4th Floor, Unit 1, Cardiff Rd Green Point, South Africa 8001 Av. Rio Branco 181/3004 Rio de Janeiro, Brazil 20040 007 Calle Francisco Sarabia No. 34...

  • Page 24
    ... Litigation One of our subsidiaries, World Fuel Services, Inc. ("WFSI"), is involved in a dispute 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...

  • Page 25
    ...CLG's complaint against AVCARD without prejudice. Other Matters As of December 31, 2008, we had recorded certain reserves related to the proceedings ... proceedings could have a material adverse effect on our financial condition, results of operations or cash flows. In addition to the matters described...

  • Page 26
    ... four quarters preceding the date of the dividend. The payments of the above dividends were in compliance with the Credit Facility. For additional information regarding our Credit Facility, see Note 7 to the accompanying consolidated financial statements, included herein, and "Liquidity and Capital...

  • Page 27
    ... stock with the total return on the Russell 2000 Index and the S&P Energy Index for the five-year period from December 31, 2003 through December 31, 2008. The cumulative return includes reinvestment of dividends. COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among World Fuel Services Corporation...

  • Page 28
    ... issuance related to outstanding stock options and stock-settled stock appreciation rights, which are referred to collectively as "Option Awards" and restricted stock units ("RSUs") under our various equity compensation plans (which were all approved by our shareholders) as of December 31, 2008 (in...

  • Page 29
    .... All financial information presented has been prepared in U.S. dollars and in accordance with accounting principles generally accepted in the United States. WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES SELECTED FINANCIAL DATA (In thousands, except earnings and dividends per share data) 2008...

  • Page 30
    ... three reportable operating business segments: marine, aviation and land. In our marine segment, we offer fuel and related services to a broad base of maritime customers, including international container and tanker fleets, commercial cruise lines and time-charter operators, as well as to the United...

  • Page 31
    ... and instability in the Middle East, Asia and Latin America, as well as potential future terrorist activities and possible military retaliation. In addition, because fuel costs represent a significant part of our customers' operating expenses, volatile and/or high fuel prices can adversely affect...

  • Page 32
    ... on the historical dividends of World Fuel over the period that is equivalent to the award's expected life, as adjusted for stock splits. The estimated fair value of common stock, restricted stock and restricted stock units is based on the grantdate market value of our common stock, as defined in...

  • Page 33
    Derivatives We enter into derivative contracts in order to mitigate 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 ...

  • Page 34
    ... in marine segment revenue, $1.9 billion was due to an increase in the average price per metric ton sold as a result of higher world oil prices in 2008. The remaining increase of approximately $373.6 million was due to increased sales volume to both new and existing customers. Our aviation segment...

  • Page 35
    ... Officer, CFO and Chief Risk and Administrative Officer as a result of our strong financial performance in 2008, new hires to support our continued growing global business, and the incremental compensation and employee benefits costs related to the acquisitions of AVCARD and the Texor business...

  • Page 36
    ... expenses of $35.7 million. The increase in aviation segment operating expenses, which includes an increase in allocated corporate expenses and AVCARD's incremental operating expenses, was attributable to increases in compensation and employee benefits, provision for bad debt and general and...

  • Page 37
    ... volume from 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...

  • Page 38
    ...$1.5 million in executive severance costs incurred during 2006. The increase in compensation and employee benefits was primarily due to 2007 new hires to support our continued growing global business and the full-year effect on compensation and employee benefits relating to 2006 new hires, partially...

  • Page 39
    ... expenses of $1.8 million. The increase in land segment operating expenses, which includes an increase in allocated corporate expenses, was attributable to increases in compensation and employee benefits and general and administrative expenses, partially offset by a decrease in provision for...

  • Page 40
    ... a party and impair our ability to obtain working capital advances and letters of credit, which would have a material adverse effect on our business, financial condition and results of operations. As of December 31, 2008, we were in compliance with all covenants contained in our Credit Facility. 32

  • Page 41
    ...our Credit Facility. As of December 31, 2008, no accounts receivable had been sold under our Receivable Facility. We are also closely monitoring the potential impact of changes in the financial conditions of our customers, which to date have not had a material adverse impact on our operating results...

  • Page 42
    ... Credit Facility offset by borrowings under our BA Facility of $14.5 million, a net increase of $10.0 million resulting from the payment of restricted cash held as collateral from a customer and $5.8 million in federal and state tax benefits resulting from a tax deduction in excess of compensation...

  • Page 43
    ... consolidated financial statements included in this Form 10-K. Item 7A. Quantitative and Qualitative Disclosures About Market Risk We enter into derivative contracts in order to mitigate the risk of market price fluctuations in marine, aviation and land fuel, and to offer our customers fuel pricing...

  • Page 44
    ... statements of income. Non-designated Derivatives. Our non-designated derivatives are primarily entered into in order to mitigate the risk of market price fluctuations in marine, aviation and land fuel in the form of swaps as well as fixed price purchase and sale contracts and to offer our customers...

  • Page 45
    ... annual rate of 5%. As of December 31, 2008, we did not have any outstanding interest rate derivatives. Foreign Currency The majority of our business transactions are denominated in U.S. dollars. However, in certain markets, payments to our fuel suppliers and receipts from some of our customers are...

  • Page 46
    ... 13a-15(e). Based upon this evaluation, the CEO and CFO concluded that our disclosure controls and procedures were effective at a reasonable assurance level as of December 31, 2008. Management's Report on Internal Control over Financial Reporting Our management is responsible for establishing and...

  • Page 47
    ... motor fuel distribution business and the Texor Petroleum trade name (collectively, the "Texor business"), from its assessment of internal control over financial reporting as of December 31, 2008 because the assets were acquired in a purchase business combination in June 2008. The Texor business...

  • Page 48
    ... and corporate governance is incorporated herein by reference from our Definitive Proxy Statement for the 2009 Annual Meeting of Shareholders to be filed pursuant to Regulation 14A within 120 days after the close of the fiscal year ended December 31, 2008. Item 11. Executive Compensation Information...

  • Page 49
    ... 20, 2008). * Agreement between World Fuel Services Corporation and Michael J. Kasbar, dated March 14, 2008 (incorporated by reference herein to Exhibit 10.2 to our Current Report on Form 8-K filed on March 20, 2008). * Executive Severance Agreement between World Fuel Services Corporation and Ira...

  • Page 50
    ... Report on Form 8-K filed on November 7, 2006). * Limited Consent and Amendment No. 2 to Second Amended and Restated Credit Agreement by and among World Fuel Services Corporation, World Fuel Services Europe, Ltd. and World Fuel Services (Singapore) Pte. Ltd., as borrowers, the financial institutions...

  • Page 51
    ..., Inc., principally the assets comprising its wholesale motor fuel distribution business and the Texor Petroleum trade name (collectively, the "Texor business"), from its assessment of internal control over financial reporting as of December 31, 2008 because the assets were acquired in a purchase...

  • Page 52
    Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of ...the degree of compliance with the policies or procedures may deteriorate. /s/ PricewaterhouseCoopers LLP Miami, Florida February 26, 2009 44

  • Page 53
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) As of December 31, 2008 ... compensation and other long-term liabilities ...Total liabilities ...Commitments and contingencies Shareholders' Equity: Preferred stock...financial statements. 45

  • Page 54
    ... STATEMENTS OF INCOME (In thousands, except earnings per share data) For the Year ended December 31, 2008 2007 2006 Revenue ...$18,509,403 $13,729,555 $10,785,136 Cost of sales ...18,114,020 13,484,283 10,571,067 Gross profit ...Operating expenses: Compensation and employee benefits ...Executive...

  • Page 55
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In thousands) Capital in Excess of Par Value Accumulated Other Comprehensive Income $ 143 - - - - - Common Stock Shares Amount Balance at December 31, 2005 ...Net income ...Cash dividends declared ......

  • Page 56
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) For the Year ended December 31, 2008 2007 2006 Cash flows from operating activities: Net income ...Adjustments to reconcile net income to net cash provided by (used in) operating activities ...

  • Page 57
    ... consolidated financial statements for additional information on the promissory note. In June 2008, we issued a promissory note of $14.0 million and 410,088 shares of our common stock with an estimated fair value of $9.9 million in connection with our acquisition of certain assets of Texor Petroleum...

  • Page 58
    ... the land fuel and related services business. We are engaged in the marketing and sale of marine, aviation and land fuel products and related services on a worldwide basis. We compete by providing our customers value-added benefits, including single-supplier convenience, competitive pricing, the...

  • Page 59
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) The identified intangible assets and their estimated lives are as follows (in thousands): Amount Estimated Lives Customer relationships (dealer and commercial customers) ...Supplier ...

  • Page 60
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) The identified intangible assets and their estimated lives are as follows (in thousands): Estimated Lives Amount Customer relationships (charge cardholder, merchant and government) ...Non ...

  • Page 61
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) 2006 Acquisition In March 2006, we acquired the remaining 33% of the outstanding equity interest of Tramp Oil (Brasil) Limitada ("Tramp Oil Brazil") from the minority owners...adjustment related ...

  • Page 62
    ... BVI. Accordingly, the financial position and operations of ME Dubai have been included in our consolidated financial statements. 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 is...

  • Page 63
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) statements and the reported amounts of revenue and expenses during the reporting period. Accordingly, actual results could materially differ from estimated amounts. We evaluate our estimated ...

  • Page 64
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Derivatives We enter into derivative contracts in order to mitigate the risk of market price fluctuations in marine, aviation and land fuel, and to offer our customers fuel pricing ...

  • Page 65
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) loss is credited or charged to income. Long-lived assets held and used by us are reviewed based on market factors and operational considerations for impairment whenever events or changes in ...

  • Page 66
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Revenue from fuel-related services is recognized when services are performed, the sales price is fixed or determinable and collectability is reasonably assured. We record the gross sale of ...

  • Page 67
    ... are based on the historical dividends of World Fuel over the period that is equivalent to the award's expected life, as adjusted for stock splits. The estimated fair value of common stock, restricted stock and restricted stock units ("RSUs") is based on the grant-date market value of our common...

  • Page 68
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) ...per share is computed by dividing net income by the weighted average number of shares of common stock, stock units and vested RSUs outstanding. Diluted earnings per share is computed by ...

  • Page 69
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Reclassifications Certain amounts in prior years have been reclassified to conform to current year's presentation. Recent Accounting Pronouncements Disclosures about Credit Derivatives and ...

  • Page 70
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Effective Date of FASB Statement No. 157. In February 2008, the FASB released FSP No. FAS 157-2, "Effective Date of FASB Statement No. 157," which delayed the effective date of FAS No. 157 for...

  • Page 71
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) In April 2008, the commercial paper issuer was placed into receivership. The commercial paper is no longer highly liquid and an observable market does not exist, therefore a readily ...

  • Page 72
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) In September 2008, we entered into a Master Accounts Receivable Purchase Agreement with a syndicate of financial institutions establishing a facility (the "Receivable Facility") to sell an ...

  • Page 73
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) As of December 31, 2008, our commodity related derivative instruments and their respective fair value position were as follows (in thousands, except average underlying prices): Settlement ...

  • Page 74
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) 5. Property and Equipment The amount of property and equipment and their respective estimated useful lives are as follows (in thousands, except estimated useful lives): As of December 31, 2008...

  • Page 75
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Identifiable Intangible Assets The following table provides information about our identifiable intangible assets for each of the following years (in thousands): As of December 31, 2008 Gross ...

  • Page 76
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Borrowings under our Credit Facility bear interest at market rates plus applicable margins ranging from zero percent to 1.5% for U.S. Prime Rate loans and 1.00% to 2.50% for LIBOR Rate loans. ...

  • Page 77
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) The promissory note payable in three equal annual installments starting in June 2009 of $14.0 million bears interest at an annual rate equal to LIBOR plus 2.0% percent, with a provision for a ...

  • Page 78
    ... (ii) the total number of stock units credited to his or her account as of the close of business on the record date applicable to such dividend payment date, by (b) the fair market value of one share of common stock on such dividend payment date. Upon the participant's termination of service as our...

  • Page 79
    ... that are competitive with those of other similar companies; and (iv) further align participants' interests with those of World Fuel's other shareholders through compensation that is based on the value of our common stock. The goal is to promote the long-term financial interest of World Fuel and its...

  • Page 80
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Options Awards The following table summarizes the status of our Option Awards outstanding and exercisable, and related transactions for each of the following years (in thousands, except ...

  • Page 81
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Restricted Stock Awards The following table summarizes the status of our unvested restricted stock outstanding and related transactions for each of the following years (in thousands, except ...

  • Page 82
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) RSU Awards The following table summarizes the status of our RSUs and related transactions for each of the following years (in thousands, except for weighted average grant-date fair value data...

  • Page 83
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) The unrecognized compensation cost at December 31, 2008 is expected to be recognized as compensation expense over a weighted average period of 1.2 years as follows (in thousands): Year Ended ...

  • Page 84
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) For 2008, our effective tax rate was 23.5%, for an income tax provision of $32.4 million, as compared to an effective tax rate of 24.5% and $21.2 ...

  • Page 85
    ...no material financial impact related to this change. As of December 31, 2008 and 2007, our APIC pool of windfall tax benefits related to employee compensation was estimated to be $ 8.6 million and $ 15.4 million, respectively. We operate under a special tax concession in Singapore which is effective...

  • Page 86
    ...Examination not progress yet initiated Jurisdiction United States ...Chile ...Colombia ...Ecuador ...Mexico ...Puerto Rico ...Singapore ...United Kingdom ... None None None None None None None None 2005 - 2008 2001 - 2008 2003 - 2008 2001 - 2008 2002 - 2008 2001 - 2008 2002 - 2008 2003 - 2008 78

  • Page 87
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) 10. Commitments and Contingencies Surety Bonds In the normal course of business, we are required to post bid, performance and garnishment bonds. The majority of the surety bonds posted relate ...

  • Page 88
    ... which would become payable upon debranding. Agreements with Executive Officers and Key Employees In March 2008, we entered into new agreements with both our Chairman and Chief Executive Officer ("CEO") and President and Chief Operating Officer ("COO") containing identical terms, which, among other...

  • Page 89
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) As of December 31, 2008, the approximate future minimum commitments under these agreements, excluding discretionary and performance bonuses, are as follows (in thousands): Year Ended December ...

  • Page 90
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) We maintain a 401(k) defined contribution plan which covers all U.S. employees who meet minimum requirements and elect to participate. Participants may contribute up to 15% of their ...

  • Page 91
    ... Litigation One of our subsidiaries, World Fuel Services, Inc. ("WFSI"), is involved in a dispute 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...

  • Page 92
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) the matters disputed by Brendan. In October 2007, Brendan filed a counterclaim against WFSI in which Brendan asserted various causes of action, including breach of contract, fraud, and other ...

  • Page 93
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Effective January 1, 2008, we also adopted FSP No. FIN 39-1, "Amendment of FASB Interpretation No. 39," which amends FIN 39, "Offsetting of Amounts Related to Certain Contracts." FSP No. FIN ...

  • Page 94
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS... that a market participant is willing to pay and ask prices reflect the lowest price that a market participant is willing...FAS No. 157, the impact of our credit risk rating is also considered when measuring ...

  • Page 95
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) The following table presents additional information about our financial instruments measured at fair value on a recurring basis that utilized Level 3 inputs for 2008 (in thousands): Change in ...

  • Page 96
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Information concerning our revenue, income from operations, depreciation and amortization and capital expenditures by segment is as follows (in thousands): For the Year ended December 31, 2008...

  • Page 97
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Information concerning our accounts receivable, goodwill, identifiable intangible assets, net and total assets by segment is as follows (in thousands): As of December 31, 2008 2007 Accounts ...

  • Page 98
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Geographic Information Information concerning our revenue, income from operations, non-current and total assets, as segregated between U.S. and foreign, is presented as follows, based on the ...

  • Page 99
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued) 13. Summary Quarterly Information (Unaudited) The following is a summary of the unaudited quarterly results for 2008 and 2007 (in thousands, except earnings per share data): March 31, 2008 ...

  • Page 100
    ... Financial Officer) Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) Director /s/ PAUL M. NOBEL Paul M. Nobel /s/ KEN BAKSHI Ken Bakshi /s/ JOACHIM HEEL Joachim Heel Director /s/ RICHARD A. KASSAR Richard A. Kassar Director /s/ MYLES KLEIN Myles Klein...

  • Page 101
    ... 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 statement of a material...

  • Page 102
    Exhibit 31.2 CERTIFICATION 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 ...

  • Page 103
    ....3 CERTIFICATION OF THE CHIEF FINANCIAL OFFICER pursuant to Rule 13a-14(a) or Rule 15d-14(a) I, Ira M. Birns, 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...

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    ... Fuel Services Corporation (the "Company"), Michael J. Kasbar, 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...

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    MARINE FUEL SERVICES DIRECTORY OF OFFICES United States 9800 N.W. 41st Street, Suite 400 Miami, Florida 33178 Telephone: (305) 428-8000 Fax: (305) 392-5621 Raritan Plaza III 105 Fieldcrest Avenue, Suite 203 Edison, New Jersey 08837 Telephone: (732) 623-2400 Fax: (732) 623-2401 2 Greenwich Office ...

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    AVIATION FUEL SERVICES DIRECTORY OF OFFICES United States 9800 N.W. 41st Street, Suite 400 Miami, Florida 33178 Telephone: (305) 428-8000 Fax: (305) 392-5621 333 Cypress Run, Suite 200 Houston, Texas 77094 Telephone: (281) 556-2400 Fax: (281) 556-2557 4995 East Anderson Avenue Fresno, California ...

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    ..., Akerman Senterfitt (Law Firm) Corporate Headquarters World Fuel Services Corporation 9800 N.W. 41st Street, Suite 400 Miami, Florida 33178 Telephone: 305.428.8000 Fax: 305.392.5621 Website: www.wfscorp.com Transfer Agent and Registrar For change of address, lost stock certificates and other...

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