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World Fuel Services Corporation 2011 Annual Report

Table of contents

  • Page 1
    World Fuel Services Corporation 2011 Annual Report

  • Page 2
    Table of Contents 2 6 8 10 12 14 15 16 To Our Shareholders Aviation Marine Land Our Leadership Financial Overview Locations Corporate Information

  • Page 3
    ...in the marketing, sale and distribution of aviation, marine, and land fuel products and related services. Fueling Relationships Around the Worldâ„¢ at 6,000 locations in more than 200 countries and territories, our customers value single supplier convenience, competitive pricing, trade credit, price...

  • Page 4
    ...2010 2011 $154 $181 $257 2009 2010 2011 $117 $147 $194 Gross Profit 5-Year Compound Annual Growth Rate (2006-2011) Income from Operations 5-Year Compound Annual Growth Rate (2006-2011) Net Income 5-Year Compound Annual Growth Rate (2006-2011) 24.3% 2006 2011 2006 27 .4% 2011 2006 24.9% 2011

  • Page 5
    ... Supply Charge Card Services Claims Management Competitive Supply Credit Solutions De-icing Products and Services FBO Marketing and Network Flight Planning and Services Fuel Management Global Footprint Global Market Intelligence Global Supply Network Local Knowledge Logistics and Services Lubricants...

  • Page 6

  • Page 7
    .... Paul H. Stebbins Executive Chairman Our Mission To create value for our business partners in energy and transportation by delivering innovative solutions and logistics through a global team of local professionals. Our Vision Become the world's leading provider of credit, finance, services...

  • Page 8

  • Page 9
    ... about our future and believe in the enduring and growing value of our business. It is my honor to lead this team as we progress to the next level of growth. Thank you for believing in World Fuel and thank you for your continued support. Michael J. Kasbar President and Chief Executive Officer 5

  • Page 10
    Aviation

  • Page 11
    ...of Ascent Aviation, a leading distributor of aviation fuel and deicing fluids to more than 450 FBOs throughout North America. Combined with the prior acquisitions of Western Petroleum and The Hiller Group, WFS has quickly established a leading market position at FBOs in the United States. Our market...

  • Page 12
    Marine

  • Page 13
    ... markets in Europe and Asia and further expanded our presence in the specialized mega yacht industry. Our global supply team expanded our capabilities in fuel sourcing, self-supply, marine lubricants and offshore logistics. Marine remains committed to providing value by delivering financial strength...

  • Page 14
    Land

  • Page 15
    Fueling Land Relationships World Fuel Services (WFS) supplies the land transportation industry in the United States, Brazil, and the United Kingdom with refined petroleum products, alternative fuels and related services. Through 800 distribution locations, WFS provides more than 2 billion gallons of...

  • Page 16
    Our Leadership Paul H. Stebbins Michael J. Kasbar Ken Bakshi John L. Manley J. Thomas Presby Myles Klein Abby F . Kohnstamm Stephen K. Roddenberry Richard A. Kassar

  • Page 17
    ... Michael J. Kasbar President and Chief Executive Officer Ira M. Birns Executive Vice President and Chief Financial Officer Francis X. Shea Executive Vice President R. Alexander Lake, Jr. Senior Vice President, General Counsel and Corporate Secretary Paul M. Nobel Senior Vice President and Chief...

  • Page 18
    ...we again delivered above average returns to our shareholders. We continue to focus on our strategy and core competencies and while many of the markets we serve remain volatile, we are excited about the opportunities that lie ahead. " Ira M. Birns Executive Vice President and Chief Financial Officer

  • Page 19
    WORLD FUEL SERVICES CORPORATION 2011 FORM 10-K

  • Page 20

  • Page 21
    ... incorporation or organization) 9800 Northwest 41st Street, Suite 400 Miami, Florida (Address of principal executive offices) 59-2459427 (I.R.S. Employer Identification No.) 33178 (Zip Code) Registrant's telephone number, including area code: (305) 428-8000 Securities registered pursuant to Section...

  • Page 22

  • Page 23
    ... About Market Risk Financial Statements and Supplementary Data Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Controls and Procedures Other Information 17 20 21 34 36 36 36 37 Directors, Executive Officers and Corporate Governance Executive Compensation...

  • Page 24

  • Page 25
    ... areas of our business is provided in Note 11 to the accompanying consolidated financial statements included in this 2011 10-K Report. Our principal executive offices are located at 9800 Northwest 41st Street, Suite 400, Miami, Florida 33178 and our telephone number at this address is (305) 428...

  • Page 26
    .... Our cost of fuel is generally tied to market-based formulas or is government controlled and our suppliers typically extend unsecured trade credit to us. We may prepay our fuel purchases when limited by the amount of credit extended to us by suppliers or as required to transact business in certain...

  • Page 27
    ...Our competitors within the highly fragmented world-wide downstream markets of aviation, marine and land fuel are numerous, ranging from large multinational corporations, principally major oil producers, which have significantly greater capital resources, to relatively small and specialized firms. We...

  • Page 28
    ... other reports, filings with the SEC, press releases, teleconferences, industry conferences or otherwise, are ''forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, without limitation, any statement that may...

  • Page 29
    ... or post letters of credit with other suppliers of fuel and related services. While no single customer represents more than 10% of our total consolidated revenue, diversification of credit risk is limited because we sell primarily within the aviation, marine and land transportation industries. Our...

  • Page 30
    ..., which include customers, suppliers and financial institutions, could adversely affect us. We operate in the aviation, marine and land fuel industries and as a result, we have exposure to our customers and suppliers in those industries. As part of our price risk management services, we offer our...

  • Page 31
    ... 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 32
    ... suffer future losses of employees or subcontractors. Fluctuations in foreign exchange rates could materially affect our 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...

  • Page 33
    ...conditions in the aviation, marine 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 aviation, marine and land transportation industries. These industries are generally affected by economic...

  • Page 34
    ...continue to explore acquisition opportunities of fuel resellers and other related service businesses. For example, we acquired all of the outstanding stock of Ascent Aviation Group, Inc. (''Ascent'') and Nordic Camp Supply ApS and certain affiliates (''NCS'') in 2011. We cannot provide any assurance...

  • Page 35
    ...our subsidiaries have had limited business dealings in countries subject to comprehensive OFAC-administered sanctions, specifically Cuba, Iran, Syria and Sudan. These business dealings, which represent an insignificant amount of our consolidated revenues and income, generally consist of the purchase...

  • Page 36
    ...investments in companies that do business with sanctioned countries, which could adversely affect the market for our securities. On April 19, 2009, we received an administrative subpoena from OFAC requesting information regarding transactions that the Company has conducted involving Cuba since April...

  • Page 37
    ... and possible settlement, judgment, penalty or fine. Although insurance is maintained to mitigate these costs, there can be no assurance that costs associated with lawsuits or other legal proceedings will not exceed the limits of insurance policies. Our business, financial condition, results of 13

  • Page 38
    ...increased expense and to devote additional management resources to Section 404 compliance. In the event that our chief executive officer, chief financial officer or independent registered public accounting firm determines that our internal control over financial reporting is not effective as defined...

  • Page 39
    .... WORLD FUEL SERVICES CORPORATION and SUBSIDIARIES PROPERTIES Location 9800 Northwest 41st Street, Suite 400 Miami, FL 33178, USA 3340 S. Harlem Avenue Riverside, IL 60546, USA Portland House 10th and 13th Floor Bressenden Place London, UK SW1E 5BH Kingfisher House North Park Gatwick Road Crawley...

  • Page 40
    ...3. Legal Proceedings Brendan Airways Litigation One of our subsidiaries, World Fuel Services, Inc. (''WFSI'') was involved in a dispute with Brendan Airways, LLC (''Brendan''), an aviation fuel customer, with respect to certain amounts Brendan claimed to have been overcharged in connection with fuel...

  • Page 41
    ...Facility and Term Loan Facility. For additional information regarding our Credit Facility and Term Loan Facility, see Note 6 to the accompanying consolidated financial statements, included herein, and ''Liquidity and Capital Resources'' in ''Item 7 - Management's Discussion and Analysis of Financial...

  • Page 42
    ...2011. The cumulative return includes reinvestment of dividends. Comparison of 5 Year Cumulative Total Return* Among World Fuel Services Corporation...dividends. Fiscal year ending December 31st. Copyright஽ 2012 S&P, a division of The McGraw-Hill Companies Inc. All rights reserved. Equity Compensation...

  • Page 43
    ... of 1933, as amended, for an exemption from registration of these shares. On October 1, 2010, we issued 388,199 shares of unregistered common stock with an estimated fair value of $10.0 million to the sellers of Western Petroleum Company (''Western'') in connection with our acquisition of all of the...

  • Page 44
    ... have been included in our consolidated financial statements since their respective acquisition dates. (2) In 2010, we acquired i) certain assets of Falmouth Oil Services Limited (the ''FOS business'') on January 1st, ii) certain assets of Lakeside Oil Company, Inc., including the assets comprising...

  • Page 45
    ... value-added benefits, including single-supplier convenience, competitive pricing, the availability of trade credit, price risk management, logistical support, fuel quality control and fuel procurement outsourcing. We have three reportable operating business segments: aviation, marine, and land. We...

  • Page 46
    ... 2011 10-K Report. Reportable Segments We have three reportable operating segments: aviation, marine and land. Corporate expenses are allocated to each segment based on usage, where possible, or on other factors according to the nature of the activity. We evaluate and manage our business segments...

  • Page 47
    ... adversely affected. For additional information on the credit risks inherent in our business, see ''Item 1A - Risk Factors'' in this 2011 10-K Report. Inventories Inventories are valued using the average cost methodology and are stated at the lower of average cost or market. Components of inventory...

  • Page 48
    ... the following: (i) macroeconomic conditions, (ii) industry and market considerations, (iii) earnings quality/sustainability, (iv) overall financial performance, (v) events affecting a reporting unit, (vi) share price and (vii) recent fair value calculation for our reporting units, if available. 24

  • Page 49
    ...) NCS (aviation segment) commencing on March 1, 2011, (iii) Hiller (aviation segment) commencing on December 31, 2010, (iv) Gib Oil (aviation, marine and land segments) commencing on December 1, 2010, (v) Western (aviation and land segments) commencing on October 1, 2010, (vi) the Lakeside business...

  • Page 50
    ... sales derived from the NCS, Ascent, Hiller and Western acquisitions as well as increased sales volume in our organic business to both new and existing customers. Our marine segment gross profit for 2011 was $195.1 million, an increase of $29.8 million, or 18.0%, as compared to 2010. The increase in...

  • Page 51
    ... in land segment operating expenses was due to higher compensation and employee benefits, provision for bad debt and general and administrative expenses primarily attributable to the inclusion of a full year of the operations of the Western and Lakeside business acquisitions. Corporate overhead...

  • Page 52
    ... GAAP financial measure. 2010 compared to 2009 Revenue. Our revenue for 2010 was $19.1 billion, an increase of $7.8 billion, or 69.4%, as compared to 2009. Our revenue during these periods was attributable to the following segments (in thousands): 2010 Aviation segment Marine segment Land segment...

  • Page 53
    ... increase in compensation and employee benefits was primarily due to the inclusion of acquired businesses, salaries related to new hires to support our growing global business and increased incentive-based compensation and sharebased compensation. The increase in general and administrative expenses...

  • Page 54
    .... The increase in marine segment operating expenses was attributable to higher compensation and employee benefits and general and administrative expenses which were partially offset by a lower provision for bad debt. Our land segment income from operations was $15.9 million for 2010, an increase of...

  • Page 55
    ...due to changes in net operating assets and liabilities, primarily net working capital, driven by increased sales volume and higher world oil prices as compared to 2010, which were partially offset by increased net income. Investing Activities. For 2011, net cash used in investing activities was $144...

  • Page 56
    ... 31, 2011 and 2010. Our issued letters of credit under the Credit Facility totaled $45.3 million and $72.0 million as of December 31, 2011 and 2010, respectively. During 2011, we received a $250.0 million Term Loan Facility with principal payments as follows: $2.5 million in 2012, $7.5 million...

  • Page 57
    ... of letters of credit, bank guarantees and bankers' acceptances. These credit lines are renewable on an annual basis and are subject to fees at market rates. As of December 31, 2011 and 2010, our outstanding letters of credit and bank guarantees under these credit lines totaled $122.3 million...

  • Page 58
    ... in aviation, marine and land fuel in the form of swaps or futures as well as certain fixed price purchase and sale contracts and proprietary trading. In addition, non-designated derivatives are also entered into to hedge the risk of currency rate fluctuations. As of December 31, 2011 and 2010, we...

  • Page 59
    ... borrowings under our Credit Facility and borrowings of $250.0 million under our Term Loan Facility. As of December 31, 2011, the aggregate outstanding balance of our promissory notes issued in connection with our acquisitions was $30.6 million, which bear interest at annual rates ranging from...

  • Page 60
    ... was effective as of December 31, 2011. Management has excluded NCS and Ascent, (the ''Excluded Companies'') from its assessment of internal control over financial reporting as of December 31, 2011 because the Excluded Companies were acquired during 2011. The total assets, including goodwill and...

  • Page 61
    ...firm, as stated in their report appearing herein. Changes in Internal Control over Financial Reporting As of December 31, 2011, we have included the Lakeside business, Western, Gib Oil and Hiller, which were acquired in 2010...of future events. Because of these and other inherent limitations of control...

  • Page 62
    ... officers and corporate governance is incorporated herein by reference from our Definitive Proxy Statement for the 2012 Annual Meeting of Shareholders to be filed pursuant to Regulation 14A within 120 days after the close of the fiscal year ended December 31, 2011. Item 11. Executive Compensation...

  • Page 63
    ...1, dated August 26, 2011, to Agreement between World Fuel Services Corporation and Michael J. Kasbar (incorporated by reference herein to Exhibit 10.1 to our Current Report on Form 8-K filed on August 29, 2011). * Executive Severance Agreement between World Fuel Services Corporation and Ira M. Birns...

  • Page 64
    ... to Employment Agreement between World Fuel Services, Inc. and Michael S. Clementi, dated May 20, 2011 (incorporated by reference herein to Exhibit 10.1 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2011 filed on August 2, 2011). * 1993 Non-Employee Directors Stock Option Plan...

  • Page 65
    ... Europe, Ltd., World Fuel Services (Singapore) Pte Ltd, World Fuel Services Trading DMCC, World Fuel Services Aviation Limited as the sellers, World Fuel Services Corporation, as the parent, and Wells Fargo Bank, National Association, dated as of December 28, 2011. Subsidiaries of the Registrant...

  • Page 66
    ... Financial Reporting, management has excluded both Nordic Camp Supply ApS and certain affiliates (''NCS'') and Ascent Aviation Group, Inc. (''Ascent'') from its assessment of internal control over financial reporting as of December 31, 2011 because the companies were acquired in purchase business...

  • Page 67
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) As of December 31, 2010 2011 Assets: Current assets: Cash and cash ... 1,126,564 $2,566,450 The accompanying notes are an integral part of these consolidated financial statements. 43

  • Page 68
    ... Year ended December 31, 2010 2009 2011 $34,622,854 $19,131,147 $11,295,177 33,987,851 18,689,006 10,919,586 635,003 442,141 375,591 Revenue Cost of revenue Gross profit Operating expenses: Compensation and employee benefits Provision for bad debt General and administrative Income from operations...

  • Page 69
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME (In thousands) Accumulated Noncontrolling Other World Fuel Interest Retained Comprehensive Shareholders' Equity Earnings (Loss) Income Equity (Deficit) Common Stock Shares ...

  • Page 70
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME - (CONTINUED) (In thousands) Common Stock Shares Amount Capital in Excess of Par Value Accumulated Noncontrolling Other World Fuel Interest Retained Comprehensive Shareholders' ...

  • Page 71
    ... Repayments of other debt Payment of senior revolving credit facility and senior term loan facility loan costs Proceeds from sale of common stock, net of expenses Proceeds from exercise of stock options Dividends paid on common stock Federal and state tax benefits resulting from tax deductions in...

  • Page 72
    ....5 million and $21.1 million in 2011 and 2010, respectively. During 2011, we recorded a $1.4 million reduction to our promissory note payable to the sellers of Hiller related to a purchase price adjustment. In 2010, in connection with our acquisition of the FOS business (see Note 1), we extinguished...

  • Page 73
    ... of the outstanding stock of Nordic Camp Supply ApS and certain affiliates (''NCS'') based in Aalborg, Denmark. NCS is a full-service supplier of aviation fuel and related logistics solutions supporting NATO, U.S. and other European armed forces operations in Iraq and Afghanistan. In addition to the...

  • Page 74
    ... for 2011 and 2010 as if our 2011 acquisitions had been completed on January 1, 2010, respectively (in thousands, except per share data): 2011 (pro forma) $34,743,371 $ 202,417 $ $ 2.86 2.83 2010 (pro forma) $19,534,970 $ 152,162 $ $ 2.42 2.37 Revenue Net income attributable to World Fuel Earnings...

  • Page 75
    ... of certain assets of Falmouth Oil Services Limited (the ''FOS business''). The FOS business is primarily a marine oil terminal for fuel oil and diesel strategically located in the United Kingdom, which we used for fuel storage prior to the acquisition. On July 1, 2010, we completed the acquisition...

  • Page 76
    ... Shipping Services Limited (collectively, ''Henty'') and completed the acquisition of certain assets of TGS Petroleum, Inc., including the assets comprising its wholesale motor fuel distribution business (the ''TGS business''). Henty is a provider of marine and land based fuels in the United Kingdom...

  • Page 77
    .... Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent...

  • Page 78
    ..., and managing the overall quality of the credit portfolio. We perform ongoing credit evaluations of our customers and adjust credit limits based upon payment history and the customer's current creditworthiness, as determined by our review of our customer's credit information. We extend credit on an...

  • Page 79
    ...market values. Derivatives We enter into financial derivative contracts in order to mitigate the risk of market price fluctuations in aviation, marine and land fuel, to offer our customers fuel... rather are recorded in our consolidated financial statements when physical settlement of the contracts ...

  • Page 80
    ...(i) macroeconomic conditions, (ii) industry and market considerations, (iii) earnings quality/sustainability, (iv) overall financial performance, (v) events affecting a reporting unit, (vi) share price and (vii) recent fair value calculation for our reporting units, if available. After assessing the...

  • Page 81
    ... of the customer agreements are generally similar to those of the vendor agreements. From time to time, in our land segment, we also receive branding allowances from fuel suppliers to defray the costs of branding and enhancing certain of our customer locations. The branding allowances received are...

  • Page 82
    ... flows. These excess income tax benefits were credited to capital in excess of par value. Foreign Currency The functional currency of our U.S. and foreign subsidiaries is the U.S. dollar, except for two subsidiaries in Brazil and a subsidiary in the United Kingdom, which utilize the Brazilian Real...

  • Page 83
    ... common share is computed by dividing net income attributable to World Fuel and available to common shareholders by the sum of the weighted average number of shares of common stock, stock units, restricted stock entitled to dividends not subject to forfeiture and vested RSUs outstanding during the...

  • Page 84
    ...test for reporting units with zero or negative carrying amounts. The adoption of this ASU did not have a material impact on our consolidated financial statements and disclosures. Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses. In July 2010, the FASB...

  • Page 85
    ... in aviation, marine and land fuel in the form of swaps or futures as well as certain fixed price purchase and sale contracts and proprietary trading. In addition, non-designated derivatives are also entered into to hedge the risk of currency rate fluctuations. As of December 31, 2011 and 2010, we...

  • Page 86
    ... (short) firm commitment hedging (long) inventory hedging (short) Mark-to- Mark-toNotional Unit Market Prices Market 778 1,848 54,264 1 75 GAL GAL GAL MT MT 0.01 $ (0.12) (0.01) 11.00 (3.19) $ 11 (219) (552) 11 (239) (988) Hedge Strategy Fair Value Hedge Non-Designated 2012 2012 2012 2012 2013...

  • Page 87
    The following table presents information about our derivative instruments measured at fair value and their locations on the consolidated balance sheet (in thousands): As of December 31, 2010 2011 Balance Sheet Location Derivative assets: Derivatives designated as hedging instruments Commodity ...

  • Page 88
    ...the year ended December 31, 2011, 2010 and 2009 that were excluded from the assessment of the effectiveness of our fair value hedges. There were no cash flow hedge transactions during 2011. The following table presents the effect and financial statement location of our derivative instruments in cash...

  • Page 89
    ... the effect and financial statement location of our derivative instruments not designated as hedging instruments on our consolidated statements of income (in thousands): Derivatives Location Realized and Unrealized Gain (Loss) For the year ended December 31, 2010 2009 2011 Commodity contracts...

  • Page 90
    .... Goodwill The following table provides information regarding changes in goodwill (in thousands): Aviation Segment As of December 31, 2009 2010 Acquisitions Foreign currency translation of Brazil subsidiary goodwill As of December 31, 2010 2011 Acquisitions Adjustment of purchase price allocations...

  • Page 91
    ... of our Credit Facility we have other unsecured credit lines aggregating $149.5 million for the issuance of letters of credit, bank guarantees and bankers' acceptances. These credit lines are renewable on an annual basis and are subject to fees at market rates. As of December 31, 2011 and 2010, our...

  • Page 92
    ... $ 714 (5,459) $(4,745) 2009 $ 1,216 (4,879) $(3,663) 7. Shareholders' Equity Dividends We declared cash dividends of $0.15 per common share for 2011, 2010 and 2009. Our Credit Facility and Term Loan Facility restrict the payment of cash dividends to a maximum of the sum of (i) $50 million plus (ii...

  • Page 93
    ... on such date and (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...

  • Page 94
    ... SSAR Awards granted to employees and non-employee directors. The aggregate intrinsic value of SSAR Awards exercised during 2011, 2010 and 2009 was $10.2 million, $13.2 million and $16.1 million, respectively, based on the difference between the average of the high and low market price of our common...

  • Page 95
    ...2010 Weighted average fair value of SSAR Awards Expected term (in years) Volatility Dividend yields Risk-free interest rates There were no SSAR Awards issued in 2011...during 2011, 2010 and 2009 was $10.6 million, $1.0 million and $3.6 million, respectively, based on the average high and low market ...

  • Page 96
    ... in the accompanying consolidated balance sheet. The unrecognized compensation cost at December 31, 2011 is expected to be recognized as compensation expense over a weighted average period of 1.6 years as follows (in thousands): Year Ended December 31, 2012 2013 2014 2015 2016 $ 8,843 7,036 4,281...

  • Page 97
    ...): 2011 United States Foreign $ 56,836 181,367 $238,203 2010 $ (2,886) 180,416 $177,530 $ 2009 3,916 145,993 $149,909 The income tax provision (benefit)... business operations. Therefore, no tax liability has been accrued for these earnings. Because of the availability of U.S. foreign tax credits, ...

  • Page 98
    ... in excess of compensation recognized for financial reporting. As of December 31, 2011 and 2010, we had no foreign tax credits related to the excess stock compensation deductions that resulted in a tax deduction or credit before the realization of the tax benefit from the deduction or credit. We use...

  • Page 99
    ... positions: Open Tax Year Jurisdiction United States Singapore United Kingdom Brazil South Korea Netherlands Chile Denmark Examination in progress 2008 None None None None None None None Examination not yet initiated 2009-2011 2008-2011 2005-2011 2007-2011 2006-2011 2007-2011 2005-2011 2005-2011 75

  • Page 100
    ... with Executive Officers and Key Employees In March 2008, we entered into agreements with Paul H. Stebbins and Michael J. Kasbar for their continued employment with the company. In August 2011, each of the agreements was amended to reflect the transition of Mr. Kasbar from President and Chief...

  • Page 101
    ...in the event that any amount or benefit payable under the agreements, taken together with any amounts or benefits otherwise payable to the executive by us or any affiliated company, are subject to excise tax payments or parachute payments under Section 4999 of the Internal Revenue Code, such amounts...

  • Page 102
    ... $ 6,598 6,109 1,661 $14,368 Named Executive Officer Annual Incentive Awards In 2011, Paul H. Stebbins, Michael J. Kasbar, Ira M. Birns, Francis X. Shea and Michael S. Clementi, referred to collectively in this 2011 10-K Report as the Named Executive Officers (or ''NEOs''), were eligible to receive...

  • Page 103
    ... or under-insured claim arising out of our activities, if successful and of sufficient magnitude, will have a material adverse effect on our financial position, results of operations and cash flows. Legal Matters Brendan Airways Litigation One of our subsidiaries, World Fuel Services, Inc. (''WFSI...

  • Page 104
    ... course of our business. In the opinion of management, our liability, if any, under any other pending litigation or administrative proceedings, even if determined adversely, would not materially affect our financial condition, results of operations or cash flows. As of December 31, 2011, we had...

  • Page 105
    ...event of counterparty default. We net fair value cash collateral paid or received against fair value amounts recognized for net derivative related positions executed with the same counterparty under the same master netting or offset agreement. As of December 31, 2011...31, 2010, there... information about...

  • Page 106
    ... Segments, Geographic Information, and Major Customers Business Segments Based on the nature of operations and quantitative thresholds pursuant to the accounting guidance on segment reporting, we have three reportable operating business segments: aviation, marine and land. Corporate expenses are...

  • Page 107
    ... As of December 31, 2010 2011 Accounts receivable, net: Aviation segment, net of allowance for bad debt of $8,441 and $7,363 at December 31, 2011 and 2010, respectively Marine segment, net of allowance for bad debt of $9,495 and $7,761 at December 31, 2011 and 2010, respectively Land segment, net of...

  • Page 108
    ...between the Americas, EMEA (Europe, Middle East and Africa) and the Asia/Pacific regions, is presented as follows, based on the country of incorporation of the relevant subsidiary (in thousands): For the Year ended December 31, 2010 2009 2011 Revenue: Americas (1) EMEA Asia/Pacific Total Income from...

  • Page 109
    ... acquisition. (3) Includes the Lakeside business operations since July 1, 2010 as a result of the acquisition. (4) Includes Western business operations since October 1, 2010, Gib Oil business operations since December 1, 2010 and Hiller business operations since December 31, 2010 as a result of the...

  • Page 110
    ...to be signed on its behalf by the undersigned, thereunto duly authorized, on the 23rd day of February 2012. WORLD FUEL SERVICES CORPORATION /s/ MICHAEL J. KASBAR Michael J. Kasbar President and Chief Executive Officer /s/ IRA M. BIRNS Ira M. Birns Executive Vice President and Chief Financial Officer...

  • Page 111
    ... information; and b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 23, 2012 /s/ MICHAEL J. KASBAR Michael J. Kasbar President and Chief Executive Officer

  • Page 112
    ... information; and b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 23, 2012 /s/ IRA M. BIRNS Ira M. Birns Executive Vice-President and Chief Financial Officer

  • Page 113
    ... Michael J. Kasbar, the President and Chief Executive Officer of World Fuel Services Corporation (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 that...

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    ...Athens Hong Kong India Mumbai Japan Tokyo Netherlands Rotterdam Norway Oslo Singapore South Africa Cape Town South Korea Seoul Taiwan Taipei United Arab Emirates Dubai United Kingdom Falmouth Hull Liverpool London United States Greenwich, CT Miami, FL Red Bank, NJ San Rafael, CA Marine Brazil Rio...

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    ... filed by the Company, such as reports, proxy and information statements, and other information, at www.sec.gov. Corporate Headquarters World Fuel Services Corporation 9800 N.W. 41st Street, Suite 400 Miami, FL 33178 Telephone 305 428 8000 Website: www.wfscorp.com Sarbanes-Oxley and NYSE Officer...

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    World Fuel Services Corporation 9800 NW 41st Street Suite 400 Miami, FL 33178 800 345 3818 www.wfscorp.com © 2012 World Fuel Services Corporation