World Fuel Services 2011 Annual Report Download - page 102

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As of December 31, 2011, the approximate future minimum commitments under these agreements,
excluding discretionary and performance bonuses, are as follows (in thousands):
Year Ended December 31,
2012 $ 6,598
2013 6,109
2014 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 annual cash incentive awards (the ‘‘cash awards’’) and annual share-based incentive
awards (the ‘‘share-based awards’’), which are specified as dollar amounts, upon the achievement of
certain annual performance targets. The performance targets for the NEOs were generally based on the
growth of our net income except that the performance targets for Mr. Clementi were generally based on
achieving certain levels of aviation net operating income.
Earned cash awards are generally paid in the year immediately following the performance year, and we
would record the earned cash awards as compensation expense during the performance year. Earned
share-based awards will be converted to the appropriate number of equity shares (in the form of RSUs)
at the prevailing fair value amount on the grant date, which will occur in the year following the
performance year. The equity shares will be granted under our 2006 Plan and will fully vest between
3-5 years. For accounting purposes, the share-based awards are accounted for as liability awards during
the performance year until granted, when the share-based payment awards will be accounted for as
equity awards. We would record compensation expense for the share-based awards proportionately at
the start of the performance period until the end of the equity grant’s service vesting period, and we
would record a corresponding liability amount until the equity shares are granted. When the equity
shares are granted, we will reclassify the outstanding liability amount to capital in excess of par value and
record the amortization of the equity shares to capital in excess of par value.
Based on the achievement of certain 2011 performance targets, in the aggregate, our NEOs earned
$9.3 million of cash awards and $9.6 million of share-based awards, subject to future service vesting
terms. During 2011, in the aggregate, we recorded compensation expense of $11.5 million for these
awards and the remaining compensation expense will be recorded in future periods corresponding with
the awards’ vesting terms. For 2010, based on the achievement of certain performance targets, in the
aggregate, our NEOs earned $7.3 million of cash awards and $5.9 million of share-based awards. During
2010, in the aggregate, we recorded compensation expense of $8.7 million for these awards and the
remaining compensation expense will be recorded in future periods corresponding with the awards’
vesting terms. For 2009, based on the achievement of certain performance targets, in the aggregate, our
NEOs earned $2.8 million of cash awards. In 2009, the only NEO who earned a share-based award was
our Aviation President, who earned $622 thousand. During 2009, in the aggregate, we recorded
compensation expense of $2.9 million for these awards.
Deferred Compensation Plans
We maintain long-term service programs under which certain key employees receive cash awards for
long-term service. As of December 31, 2011 and 2010, our liabilities under these programs were
$1.5 million and $1.1 million, respectively.
As of December 31, 2011 and 2010, deferred sales bonus of $0.5 million and $0.9 million, respectively,
was accrued in deferred compensation and other long-term liabilities in the accompanying balance
sheets.
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 60% of their compensation,
subject to certain limitations. During 2011, 2010 and 2009, we made matching contributions of 50% for
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