World Fuel Services 2011 Annual Report Download - page 38

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operations and cash flows could be adversely affected if a judgment, penalty or fine is not fully covered
by insurance.
We are exposed to risks from legislation requiring companies to have adequate internal
controls over financial reporting and to evaluate those internal controls.
Section 404 of the Sarbanes-Oxley Act of 2002 requires our management to assess, and our
independent registered public accounting firm to attest to, the effectiveness of our internal control
structure and procedures for financial reporting. We completed an evaluation of the effectiveness of our
internal control over financial reporting as of December 31, 2011, and we have an ongoing program to
perform the system and process evaluation and testing necessary to continue to comply with these
requirements. Our expansive international operations and integration of acquired companies exacerbate
the risks associated with the need to maintain effective internal controls. Accordingly, we expect to
continue to incur 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 under Section 404, investor perceptions and our reputation may be adversely affected and the
market price of our stock could decline. Moreover, even if we and our auditors do not identify any
deficiencies in our internal control system, it may not prevent all potential errors or fraud.
An increase in interest rates may cause the market price of our common stock to decline.
Like all equity investments, an investment in our common stock is subject to certain risks. In exchange
for accepting these risks, investors may expect to receive a higher rate of return than would otherwise
be obtainable from lower-risk investments. Accordingly, as interest rates rise, the ability of investors to
obtain higher risk-adjusted rates of return by purchasing government-backed debt securities may cause
a corresponding decline in demand for riskier investments generally, including yield-based equity
investments such as publicly traded corporate interests. Reduced demand for our common stock
resulting from investors seeking other more favorable investment opportunities may cause the trading
price of our common stock to decline.
Item 1B. Unresolved Staff Comments
None.
14