World Fuel Services 2011 Annual Report Download - page 57

flows. As of December 31, 2011, we were in compliance with all financial covenants contained in our
Credit Facility and our Term Loan Facility.
Other Credit Lines. Additionally, 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 outstanding letters of credit and bank guarantees under these credit lines totaled
$122.3 million and $44.0 million, respectively. We also have a Receivables Purchase Agreement (‘‘RPA’’)
to allow for the sale of up to $125.0 million of our accounts receivable. As of December 31, 2011, we had
sold accounts receivable of $42.0 million and recorded a retained beneficial interest of $3.2 million under
the RPA.
Short-Term Debt. As of December 31, 2011, our short-term debt of $17.8 million represents the current
maturities (within the next twelve months) of certain promissory notes related to acquisitions, loans
payable to noncontrolling shareholders of a consolidated subsidiary, borrowings under the Term Loan
Facility and capital lease obligations.
We believe that available funds from existing cash and cash equivalents and our Credit Facility, together
with cash flows generated by operations, remain sufficient to fund our working capital and capital
expenditure requirements for at least the next twelve months. In addition, to further enhance our
liquidity profile, we may choose to raise additional funds which may or may not be needed for additional
working capital, capital expenditures or other strategic investments. Our opinions concerning liquidity
are based on currently available information. To the extent this information proves to be inaccurate, or if
circumstances change, future availability of trade credit or other sources of financing may be reduced
and our liquidity would be adversely affected. Factors that may affect the availability of trade credit or
other forms of financing include our performance (as measured by various factors, including cash
provided from operating activities), the state of worldwide credit markets, and our levels of outstanding
debt. Depending on the severity and direct impact of these factors on us, financing may be limited or
unavailable when needed or desired on terms that are favorable to us.
Contractual Obligations and Off-Balance Sheet Arrangements
Our significant contractual obligations and off-balance sheet arrangements are set forth below. For
additional information on any of the following and other contractual obligations and off-balance sheet
arrangements, see Notes 6 and 9 in the notes to the consolidated financial statements in Item 15 of this
2011 10-K Report.
Contractual Obligations
As of December 31, 2011, our contractual obligations were as follows (in thousands):
Total < 1 year 1-3 years 3-5 years > 5 years
Debt and interest obligations $314,199 $ 25,396 $52,176 $236,627 $ —
Operating lease obligations 122,441 21,045 36,507 29,571 35,318
Employment agreement obligations 14,368 6,598 7,770 — —
Derivatives obligations 13,736 13,327 409 — —
Purchase commitment obligations 65,270 65,270 — — —
Other obligations 4,647 1,626 2,648 373 —
Total $534,661 $133,262 $99,510 $266,571 $35,318
Debt and Interest Obligations. These obligations include principal and interest payments on fixed-rate
and variable-rate, fixed-term debt based on the expected payment dates.
Other Obligations. These obligations consist of deferred compensation arrangements.
Unrecognized Tax Liabilities. As of December 31, 2011, our liabilities for unrecognized tax benefits
(‘‘Unrecognized Tax Liabilities’’) were $38.4 million. The timing of any settlement of our Unrecognized
Tax Liabilities with the respective taxing authority cannot be reasonably estimated.
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