World Fuel Services 2014 Annual Report Download - page 74

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in the incident, as well as legal and other costs incurred in connection with the incident, which we believe are probable and
for which a reasonable estimate can be made, we have recorded total liabilities of $40.9 million. We believe that a
substantial portion of these liabilities are covered by insurance and have recorded total receivables of $38.6 million. As of
December 31, 2014, the remaining unpaid liabilities of $14.8 million are included primarily in accrued expenses and other
current liabilities and the remaining uncollected receivable of $28.9 million is included in other current assets in the
accompanying consolidated balance sheets.
Other Matters
In connection with a theft of fuel product valued at approximately $18.0 million, we recorded an insurance receivable for the
full amount of the loss, which is included in other current assets in the accompanying consolidated balance sheets. On
July 31, 2014, our insurer, AGCS Marine Insurance Company (“AGCS”), filed a declaratory judgment action against us in
the United States District Court for the Southern District of New York seeking a court ruling that the loss is not covered
under our policy. During the quarter ended December 31, 2014, we filed an answer to the AGCS complaint and
counterclaims against AGCS for declaratory judgment and breach of contract seeking a court ruling that the loss is covered
under the policy, an award of damages equal to the full amount of our loss plus interest, as well as fees and costs. We
believe AGCS’ position is without merit and we intend to vigorously pursue our rights. However, due to the complexities
and uncertainties inherent in litigation, we can provide no assurance that we will recover the full amount of the loss.
We are a party to various claims, complaints and proceedings arising in the ordinary course of our business including, but
not limited to, environmental claims, commercial and governmental contract claims, such as property damage, demurrage,
billing and fuel quality claims, as well as bankruptcy preference claims and tax and administrative claims. We have
established loss provisions for these ordinary course claims as well as other matters in which losses are probable and can
be reasonably estimated. As of December 31, 2014, we had recorded certain reserves which were not significant. For those
matters where a reserve has not been established and for which we believe a loss is reasonably possible, as well as for
matters where a reserve has been recorded but for which an exposure to loss in excess of the amount accrued is reasonably
possible, we believe that such losses will not have a material adverse effect on our consolidated financial statements.
However, any adverse resolution of one or more such claims, complaints or proceedings during a particular period could
have a material adverse effect on our consolidated financial statements or disclosures for that period.
Our estimates regarding potential losses and materiality are based on our judgment and assessment of the claims utilizing
currently available information. Although we will continue to reassess our reserves and estimates based on future
developments, our objective assessment of the legal merits of such claims may not always be predictive of the outcome
and actual results may vary from our current estimates.
8. Shareholders’ Equity
Dividends
We declared cash dividends of $0.15 per share of common stock for each of 2014, 2013 and 2012. Our Credit Facility and
Term Loans have restrictions regarding the maximum amount of cash dividends allowed to be paid. The payment of the
above-referenced cash dividends was in compliance with the Credit Facility and Term Loans.