World Fuel Services 2011 Annual Report Download - page 35

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indebtedness and other expenses or potentially dilutive issuances of equity securities and may affect the
market price of our common stock, inhibit our ability to pay dividends or restrict our operations. We have
also entered into joint venture arrangements intended to complement or expand our business and may
continue to do so in the future. These joint ventures are subject to substantial risks and liabilities
associated with their operations, as well as the risk that our relationships with our joint venture partners
do not succeed in the manner that we anticipate.
These investments could expose us to additional business and operating risks and uncertainties,
including:
• the ability to effectively integrate and manage acquired businesses or strategic investments, while
maintaining uniform standards and controls;
• the ability to realize our investment and anticipated synergies in the acquired businesses or
strategic investments;
• the diversion of management’s time and attention from other business concerns, the potentially
negative impact of changes in management on existing business relationships and other
disruptions of our business;
• the risks associated with entering markets in which we may have no or limited direct prior
experience;
• the potential loss of key employees, customers or suppliers of the acquired businesses;
• the requirement to write-down acquired assets as a result of the acquired business being worth
less than we paid for it;
• capital expenditure requirements exceeding our estimates;
• the risk that an acquisition or strategic investment could reduce our future earnings; and
• the assumption of material liabilities, exposure to unknown liabilities, and no or limited
indemnities.
Changes in U.S. or foreign tax laws could adversely affect our business and future operating
results.
We are affected by various U.S. and foreign taxes imposed on the purchase and sale of aviation, marine
and land fuel products. These taxes include sales, excise, GST, VAT, and other taxes. Changes in U.S. and
foreign tax laws or our failure to comply with those tax laws could adversely affect our business, financial
condition, results of operations and cash flows.
Our international operations require us to comply with applicable U.S and international laws
and regulations.
Doing business on a worldwide basis requires the Company and its subsidiaries to comply with the laws
and regulations of the U.S. government and various international jurisdictions. These regulations place
restrictions on our operations, trade practices and partners and investment decisions. In particular, our
international operations are subject to U.S. and foreign anti-corruption laws and regulations, such as the
Foreign Corrupt Practices Act (‘‘FCPA’’), and economic sanction programs administered by the U.S.
Treasury Department’s Office of Foreign Assets Control (‘‘OFAC’’). The FCPA prohibits us from providing
anything of value to foreign officials for the purposes of influencing official decisions or obtaining or
retaining business. As part of our business, we regularly deal with state-owned business enterprises,
the employees of which are considered foreign officials for purposes of the FCPA. In addition, some of
the international locations in which we operate lack a developed legal system and have higher than
normal levels of corruption. Economic sanctions programs restrict our business dealings with certain
countries and individuals. From time to time, certain of 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 of overflight permits and the provision of flight
support and fuel services pursuant to licenses issued by OFAC or as otherwise permitted by U.S.
sanctions regulations. As a result of the above activities, we are exposed to a heightened risk of violating
anti-corruption laws and OFAC regulations. Violations of these regulations are punishable by civil
penalties, including fines, denial of export privileges, injunctions, asset seizures, debarment from
government contracts and revocations or restrictions of licenses, as well as criminal fines and
imprisonment.
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