World Fuel Services 2008 Annual Report Download - page 87

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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 to our aviation segment. As of December 31, 2008 and 2007, we had
outstanding bonds that were arranged in order to satisfy various security requirements of $27.6 million and $19.2
million, respectively. Most of these bonds provide financial security for obligations which have already been
recorded as liabilities.
Lease Commitments
As of December 31, 2008, our future minimum lease payments under non-cancelable operating leases were
as follows (in thousands):
Year Ended December 31,
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,233
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,008
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,458
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,571
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,008
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,231
$37,509
We incurred rental expense for all properties and equipment of $8.8 million, $5.3 million and $4.6 million
for 2008, 2007 and 2006, respectively.
In the normal course of business, we may enter into service contracts with minimum service fee
commitments for telecommunication and computer software services. As of December 31, 2008, we had $3.0
million of such contract commitments over the next three years. All other service contracts had insignificant
minimum service fee commitments.
Sales and Purchase Commitments
As of December 31, 2008, fixed sales and purchase commitments under our derivative programs amounted
to approximately $75.8 million and $86.8 million, respectively.
Additionally, as of December 31, 2008, we had entered into certain other fixed price purchase commitments
with corresponding fixed price sales commitments, the majority of which were satisfied within a two-week
period. These purchase and sales commitments were made in the normal course of business.
Vendor and Customer Rebate and Branding Allowances
We receive rebates and branding allowances from a number of our fuel suppliers. Typically, a portion of the
rebates and allowances is passed on to our customers under the same terms as required by our fuel suppliers.
Many of the agreements require repayment of all or a portion of the amount received if we (or our customers,
typically branded dealers in our land segment) elect to discontinue selling the specified brand of fuel at certain
locations. As of December 31, 2008, the estimated amount of fuel rebates and branding allowances that would
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