World Fuel Services 2012 Annual Report Download - page 98

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As of December 31, 2012, the approximate future minimum commitments under these agreements,
excluding discretionary and performance bonuses, are as follows (in thousands):
Year Ended December 31,
2013 $ 3,463
2014 2,265
2015 1,825
2016 1,825
$ 9,378
Named Executive Officer Annual Incentive Awards
In 2012, Paul H. Stebbins, Michael J. Kasbar, Ira M. Birns and Michael S. Clementi, referred to
collectively in this 2012 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.
The following table sets forth the cash and share-based awards earned by our NEOs, subject to future
vesting terms, and the compensation expense recorded for these awards for the periods presented (in
thousands):
2011 2010
Cash awards earned $ 9,275 $ 7,306
Share-based awards earned 9,604 5,913
Total earned $18,879 $13,219
Compensation expense recorded** $11,535 $ 8,651
** The remaining compensation expense will be recorded in future periods corresponding with the
share-based awards’ vesting terms.
There were no cash or share-based awards earned by our NEOs in 2012. Cash and share-based awards
earned by our former Chief Risk and Administration Officer, an NEO during 2011 and 2010, are included
in the above table.
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, 2012 and 2011, our liabilities under these programs were
$2.4 million and $1.5 million, respectively.
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