World Fuel Services 2008 Annual Report Download - page 86

Download and view the complete annual report

Please find page 86 of the 2008 World Fuel Services annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
We recorded an increase of $4.8 million and $0.9 million to our FIN 48 liabilities and FIN 48 assets during
2008. In addition, during 2008, we recorded a decrease of $1.1 million to our FIN 48 liabilities related to a
foreign currency translation expense, which is included in other expense, net, in the accompanying consolidated
statements of income. As of December 31, 2008, our FIN 48 liabilities were $30.5 million and our FIN 48 assets
were $5.1 million.
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the year:
2008 2007
Unrecognized tax benefit—opening balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,886 $16,388
Gross decreases—tax positions in prior period . . . . . . . . . . . . . . . . . . . . . . . . . . . (30) (472)
Gross increases—tax positions in current period . . . . . . . . . . . . . . . . . . . . . . . . . 4,476 3,841
Gross decreases—tax positions in current period . . . . . . . . . . . . . . . . . . . . . . . . . (62) (2,016)
Gross increases—acquired entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 397
Settlements ...................................................... — —
Lapse of statute of limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (646) (252)
Unrecognized tax benefit—ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21,624 $17,886
If our uncertain tax positions as of December 31, 2008 are sustained by the taxing authorities in our favor,
our income tax expense would be reduced by approximately $16.8 million in the period the matter is considered
settled in accordance with FIN 48. As of December 31, 2008, 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 2008, we recorded accrued interest and penalties of $0.7
million and $0.3 million, respectively. As of December 31, 2008, we had recognized liabilities for interest and
penalties of $4.5 million and $4.4 million, respectively.
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 2005 - 2008
Chile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None 2001 - 2008
Colombia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None 2003 - 2008
Ecuador . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None 2001 - 2008
Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None 2002 - 2008
Puerto Rico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None 2001 - 2008
Singapore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None 2002 - 2008
UnitedKingdom ......................................... None 2003-2008
78