World Fuel Services 2012 Annual Report Download - page 56

annual rates ranging from 1.4% to 6.0%. The remaining outstanding debt of $6.4 million as of
December 31, 2012, primarily relates to loans payable to noncontrolling shareholders of a consolidated
subsidiary and capital leases, which bear interest at annual rates ranging from 2.3% to 6.3%. The
weighted average interest rate on our short-term debt was 2.4% and 2.5% as of December 31, 2012 and
2011, respectively. A 1.0% fluctuation in the interest rate on our outstanding debt would result in a
$2.7 million change in interest expense during the next twelve months.
Foreign Currency
We analyzed our assets and liabilities denominated in currencies other than their respective functional
currencies to identify consolidated currency exposures as of December 31, 2012, including derivatives
utilized to hedge such exposures. For these assets and liabilities, we then assessed the effect of a
hypothetical uniform 10% strengthening in the value of the U.S. dollar relative to these other currencies.
This analysis indicated that the effect on our income before income taxes would not be significant.
Item 8. Financial Statements and Supplementary Data
The financial statements, together with the report thereon of PricewaterhouseCoopers LLP dated
February 21, 2013, and the Selected Quarterly Financial Data (Unaudited), are set forth in Item 15 of this
2012 10-K Report.
Item 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
Management’s Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure that information required to
be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the SEC’s rules and forms, and that such
information is accumulated and communicated to our management, including our CEO and CFO, as
appropriate, to allow timely decisions regarding required financial disclosure.
As of the end of the period covered by this report, we evaluated, under the supervision and with the
participation of our CEO and CFO, the effectiveness of the design and operation of our disclosure
controls and procedures pursuant to Exchange Act Rule 13a-15(e). Based upon this evaluation, the CEO
and CFO concluded that our disclosure controls and procedures were effective at a reasonable
assurance level as of December 31, 2012.
Management’s Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial
reporting, as such term is defined in Exchange Act Rule 13a-15(f). Our internal control over financial
reporting is a process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles in the United States of America. Our internal control over financial
reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (ii) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles in the United States of America,
and that receipts and expenditures are being made only in accordance with authorizations of
management and our directors; and (iii) provide reasonable assurance regarding prevention or timely
detection of the unauthorized acquisition, use or disposition of assets that could have a material effect
on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the
risk that controls may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
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