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WORLD FUEL SERVICES CORPORATION 2010 ANNUAL REPORT

Table of contents

  • Page 1
    WORLD FUEL SERVICES CORPORATION 2010 ANNUAL REPORT

  • Page 2
    AVIATION TABLE OF CONTENTS MARINE 1 2 6 8 10 12 15 16 17 18 Financial Highlights To Our Shareholders Business Segments Aviation Marine Land Leadership Financial Overview Locations Corporate Information LAND

  • Page 3
    ... aviation, marine, and land fuel products and related services. Fueling Relationships Around the Worldâ„¢ at more than 6,000 locations in 200 countries and territories, our customers value single supplier convenience, competitive pricing, trade credit, price risk management, logistical support, fuel...

  • Page 4
    ... 2010 was a transformational year for World Fuel. Disciplined risk management, strategic focus and strong cross-functional execution ...company and is the source of continuous learning and innovation. It is clear that a strong collaborative culture is, and always will be, a mainstay of this company...

  • Page 5
    ...international markets. And after years of building out our global platform, protecting our balance sheet and refining our business model we are uniquely positioned to add value in the supply... all our shareholders for their continued support. Paul H. Stebbins Chairman and Chief Executive Officer 3

  • Page 6
    ... Nordic Camp Supply (NCS Fuel) which leverages our current activities with government customers as well as future growth opportunities in the fuel logistics marketplace. 2010 Acquisition Announcements April 7 Lakeside Oil August 23 Western Petroleum December 16 The Hiller Group December 20 NCS...

  • Page 7
    ...thank our global World Fuel team for their personal commitment and effort in making 2010 another successful year for our company. We are confident our financial strength combined with strategic execution will continue to create value for our customers, suppliers, business partners and shareholders...

  • Page 8
    ... Fleets Private Aircraft Regional Carriers Market Advantage 24/ 7 Dispatch Competitive Supply Charge Card Services Credit Solutions FBO Marketing Expertise Flight Planning & Services Fuel Management Global Footprint Local Knowledge Logistics and Services Price Risk Management Major Customer...

  • Page 9
    ... Support Price Risk Management Technical Quality Control Major Customer Sectors Agriculture Commercial Government Organizations Industrial Municipalities Petroleum Distributors Railroads Retail Petroleum Operators Truck Fleets Market Advantage Alternative Fuels Bulk Supply Credit Solutions Fuel...

  • Page 10
    ...opportunities for self-supply. Our government business remained an important contributor as well. The most dramatic story is one of transformation in our business aviation segment. With the acquisitions of Western Petroleum and The Hiller Group, World Fuel became one of the largest suppliers to FBOs...

  • Page 11
    ... in aviation. " Michael S. Clementi President, Aviation Segment "The World Fuel offering is a comprehensive set of solutions addressing the needs of all business aviation sectors. We're effectively revolutionizing the industry. " Martin H. Hiller Executive Vice President, Business Aviation "Our...

  • Page 12
    ... growth of our land and aviation segments. Marine pioneered the concept of global teamwork in the fuel logistics industry, and successfully integrated six competing companies across the world into one global company with a powerful culture and a standard and consistency of service that remains...

  • Page 13
    ... are in the midst of one of the world's biggest energy, financial and economic events, yet we continue to take these market challenges and identify ways to generate value-added service for customers and suppliers. " Francis X. Shea Executive Vice President and Chief Risk and Administrative Officer...

  • Page 14
    LAND LAND SEGMENT World Fuel Services supplies the land transportation industry in the United States, Brazil, and the United Kingdom with refined petroleum products, alternative fuels and related services. Our primary customers include unbranded distributors, branded dealers, and commercial, ...

  • Page 15
    ..., Western Petroleum "World Fuel's commitment to transparency and strong corporate governance is closely aligned with our strategic priority of being a reliable counterparty for our customers and suppliers-and continues to be a significant competitive differentiator. " R. Alexander Lake, Jr. Senior...

  • Page 16
    14

  • Page 17
    ... Birns Executive Vice President and Chief Financial Officer Michael S. Clementi President, Aviation Segment Francis X. Shea Executive Vice President and Chief Risk and Administrative Officer R. Alexander Lake, Jr. Senior Vice President, General Counsel and Corporate Secretary Paul M. Nobel Senior...

  • Page 18
    ... position by amending and extending our now $800 million bank facility, and we raised approximately $219 million of net proceeds through a secondary equity offering and again delivered a superior return to our shareholders. " Ira M. Birns Executive Vice President and Chief Financial Officer 16

  • Page 19
    WORLD FUEL SERVICES 2010 FORM 10-K

  • Page 20

  • Page 21
    ... _____ COMMISSION FILE NUMBER 1-9533 WORLD FUEL SERVICES CORPORATION (Exact name of registrant as specified in its charter) Florida (State or other jurisdiction of incorporation or organization) 9800 Northwest 41st Street, Suite 400 Miami, Florida (Address of principal executive offices) 59-2459427...

  • Page 22

  • Page 23
    ... with Accountants on Accounting and Financial Disclosure Controls and Procedures Other Information 18 22 23 37 38 39 39 40 Directors, Executive Officers and Corporate Governance Executive Compensation Security Ownership of Certain Beneficial Owners and Management and Related Shareholder...

  • Page 24

  • Page 25
    ..., the United Kingdom, Denmark, Norway, the Netherlands, Germany, Greece, Turkey, the United Arab Emirates, Russia, Taiwan, South Korea, Singapore, Japan, Hong Kong, Costa Rica, Brazil, Chile, Argentina, Mexico, Colombia, Canada, South Africa and Gibraltar. See "Item 2 - Properties" for a list of...

  • Page 26
    ..., providing global dispatch services 24 hours a day, seven days of the week, and arranging and providing international trip planning, including flight plans, weather reports and overflight permits. In addition, we offer a private label charge card to customers in the general aviation industry. Our...

  • Page 27
    ...risk management. We provide land fuel and related services throughout most of the United States as well as parts of Brazil and the United Kingdom. We act as a reseller, where we purchase fuel from a supplier, mark it up and contemporaneously resell it to our customers through spot sales and contract...

  • Page 28
    ...operations, earnings and competitive position. Forward-Looking Statements Certain statements made in this report and the information incorporated by reference in it, or made by us in other reports, filings with the Securities and Exchange Commission ("SEC"), press releases, teleconferences, industry...

  • Page 29
    ... to integrate acquired businesses; • material disruptions in the availability or supply of fuel; • uninsured losses; • the impact of natural disasters, such as hurricanes; • our failure to comply with restrictions and covenants in our senior revolving credit facility ("Credit Facility...

  • Page 30
    ... or post letters of credit with other suppliers of fuel and related services. While no single customer represents more than 10% of our total consolidated revenue, diversification of credit risk is limited because we sell primarily within the aviation, marine and land transportation industries. Our...

  • Page 31
    ... our customers' respective businesses, financial conditions and results of operations. We are exposed to various risks in connection with our use of derivatives. We enter into financial derivative contracts in order to mitigate the risk of market price fluctuations in aviation, marine and land fuel...

  • Page 32
    ... increase, our own credit limits could prevent us from purchasing enough fuel from our suppliers to meet our customers' demands or could require us to use so much cash for fuel purchases as to impair our liquidity. We maintain fuel inventories for competitive reasons. Because fuel is a commodity, we...

  • Page 33
    ...related services to our customers. Our business would be adversely affected to the extent that political instability, natural disasters, terrorist activity, military action or other conditions disrupt the availability or supply of fuel. In addition, we rely on a single or limited number of suppliers...

  • Page 34
    ..., flight operations or land transportation will adversely affect our customers and may reduce the demand for our products and services. Our business could also be adversely affected by increased merger activity in the aviation, marine or land transportation industries, which may reduce the number of...

  • Page 35
    ... purchased the Hiller Group Incorporated and certain affiliates ("Hiller"), Shell Company of Gibraltar Limited ("Gib Oil"), Western Petroleum Company ("Western"), certain assets of Lakeside Oil Company, Inc. (the "Lakeside business") and Falmouth Oil Services Limited (the "FOS business") in 2010. We...

  • Page 36
    ...investments in companies that do business with sanctioned countries, which could adversely affect the market for our securities. On April 19, 2009, we received an administrative subpoena from OFAC requesting information regarding transactions that the Company has conducted involving Cuba since April...

  • Page 37
    ... claims by customers, employees or others who may have been injured, or whose property may have been damaged. These liabilities, to the extent not covered by insurance, could have a material adverse effect on our business, financial condition and results of operations. Some environmental laws impose...

  • Page 38
    ... 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...

  • Page 39
    ...generally, including yield-based equity investments such as publicly traded corporate interests. Reduced demand for our common stock ...our convenience stores. A violation or change of these laws could adversely affect our business, financial condition and results of operations because state and local ...

  • Page 40
    ... in 2011 in any material respect. WORLD FUEL SERVICES CORPORATION and SUBSIDIARIES PROPERTIES Location 9800 Northwest 41st Street, Suite 400 Miami, FL 33178, USA Principal Use Executive, administrative, operations and sales office for corporate, aviation, marine and land segments Administrative...

  • Page 41
    ... Litigation One of our subsidiaries, World Fuel Services, Inc. ("WFSI") is involved in a dispute with Brendan Airways, LLC ("Brendan"), an aviation fuel customer, with respect to certain amounts Brendan claims to have been overcharged in connection with fuel sale transactions from 2003 to 2006...

  • Page 42
    ... net proceeds of all equity issuances made after the closing of the Credit Facility. For additional information regarding our Credit Facility, see Note 7 to the accompanying consolidated financial statements, included herein, and "Liquidity and Capital Resources" in "Item 7 - Management's Discussion...

  • Page 43
    ... stock with the total return on the Russell 2000 Index and the S&P Energy Index for the five-year period from December 31, 2005 through December 31, 2010. The cumulative return includes reinvestment of dividends. Comparison of 5 Year Cumulative Total Return* Among World Fuel Services Corporation...

  • Page 44
    ... .31 (c) Number of securities remaining available for future issuance under equity compensation plans (excluding securities reï¬,ected in column (a)) 4,785 - 4,785 There are no outstanding warrants to purchase our common stock. Recent Sales of Unregistered Securities On October 1, 2010, we issued...

  • Page 45
    ...Number of Shares Average Price Purchased (1) Per Share Paid 410 - - 410 $26.72 - - $26.72 (1)These shares relate to the purchase of stock tendered by employees... law and other legal requirements and other factors. For information on repurchases of common stock for the first three quarters of 2010,...

  • Page 46
    ...financial information presented has been prepared in U.S. dollars and in accordance with accounting principles generally accepted in the United States. WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES SELECTED FINANCIAL DATA (In thousands, except earnings and dividends... December 31, 2010 (1) Cash, ...

  • Page 47
    ... our customers value-added benefits, including single-supplier convenience, competitive pricing, the availability of trade credit, price risk management, logistical support, fuel quality control and fuel procurement outsourcing. We have three reportable operating business segments: aviation, marine...

  • Page 48
    ...: aviation, marine and land. Corporate expenses are allocated to the segment based on usage, where possible, or on other factors according to the nature of the activity. We evaluate and manage our business segments using the performance measurement of income from operations. Financial information...

  • Page 49
    ...dividends of World Fuel over the period that is equivalent to the award's expected life, as adjusted for stock splits. The estimated fair value of common stock, restricted stock and restricted stock units is based on the grant-date market value of our common stock, as defined in the respective plans...

  • Page 50
    ..., changes in the estimated fair market values. Derivatives We enter into financial derivative contracts in order to mitigate the risk of market price fluctuations in aviation, marine and land fuel, to offer our customers fuel pricing alternatives to meet their needs and to mitigate the risk of...

  • Page 51
    ... of i) Hiller (aviation segment) prior to December 31, 2010, ii) Gib Oil (aviation, marine and land segments) prior to December 1, 2010, iii) Western (aviation and land segments) prior to October 1, 2010, iv) the Lakeside business (land segment) prior to July 1, 2010, v) the FOS business (marine...

  • Page 52
    ...full years results in 2010 from the businesses acquired in 2009. Additionally, sales volume increased to both new and existing customers. The remaining increase of $453.8 million was due to an increase in the average price per gallon sold as a result of higher world oil prices in 2010 as compared to...

  • Page 53
    .... The increase in compensation and employee benefits was primarily due to the inclusion of acquired businesses, salaries related to new hires to support our growing global business and increased incentive compensation and share-based compensation. The increase in general and administrative expenses...

  • Page 54
    ...the new credit facility, during 2010 as compared to the corresponding period of 2009. Taxes. For 2010, our ...financial measures exclude costs associated with share-based compensation and amortization of acquired intangible assets, primarily because we do not believe they are reflective of the Company...

  • Page 55
    ...as a result of lower world oil prices in 2009. Offsetting this decrease was $254.8 million primarily due to increased sales volume attributable to incremental sales due to the inclusion of the results of the Texor business for all of 2009 and Henty and the TGS business since April 2009. Gross Profit...

  • Page 56
    ... administrative expenses. The decrease in compensation and employee benefits was primarily due to a reduction in incentive based compensation offset by salaries for new hires to support our growing global business and salaries related to employees of acquired businesses. The lower provision for bad...

  • Page 57
    ...as compared to 2008. The decrease in corporate overhead costs not charged to the business segments was attributable to decreases in compensation and employee benefits, primarily as a result of a larger amount of bonuses and stock compensation, including a special bonus award of $5.0 million, in 2008...

  • Page 58
    ... cash flows for 2010, 2009 and 2008. For additional details, please see the consolidated statements of cash flows in the consolidated financial statements. 2010 $(35,698)...and world oil prices as compared to 2009, which were partially offset by increased net income. Investing Activities. For 2010, net...

  • Page 59
    ... and cash equivalents and availability under the Credit Facility fluctuate based on a number of factors, including the timing of receipts from our customers and payments to our suppliers as well as commodity prices. Our Credit Facility contains certain financial covenants with which we are required...

  • Page 60
    ... credit lines. For additional information on our Credit Facility and credit lines, see the discussion thereof in "Liquidity and Capital Resources" above. Surety Bonds. In the normal course of business, we are required to post bid, performance and garnishment bonds, primarily in our aviation and land...

  • Page 61
    ...associated with our inventory and certain firm commitments relating to fixed price purchase and sale contracts. As of December 31, 2010 and 2009, we recorded an ...in order to mitigate the risk of market price fluctuations in aviation, marine and land fuel in the form of swaps as well as fixed price ...

  • Page 62
    ...as of December 31, 2010, primarily relates to loans payable to noncontrolling shareholders of a consolidated subsidiary, which bears interest at annual rates ranging from 3.5% to 7 .0%. Item 8. Financial Statements and Supplementary Data The financial statements, together with the report thereon of...

  • Page 63
    ... over financial reporting was effective as of December 31, 2010. Management has excluded Hiller, Gib Oil, Western and the Lakeside business (the "Excluded Companies") from its assessment of internal control over financial reporting as of December 31, 2010 because the companies were acquired in...

  • Page 64
    ...internal control over financial reporting as of December 31, 2010 has been audited by PricewaterhouseCoopers LLP , an independent registered certified public accounting firm, as stated in their report appearing herein. Changes in Internal Control over Financial Reporting... inherent limitations of ...

  • Page 65
    ... officers and corporate governance is incorporated herein by reference from our Definitive Proxy Statement for the 2011 Annual Meeting of Shareholders to be filed pursuant to Regulation 14A within 120 days after the close of the fiscal year ended December 31, 2010. Item 11. Executive Compensation...

  • Page 66
    ... Description Asset Purchase Agreement by and among World Fuel Services Corporation, World Fuel Services, Inc., Texor Petroleum Company, Inc., Thomas E. Gleitsman and Anthony E. Speiser, dated March 28, 2008 (incorporated by reference herein to our Quarterly Report on Form 10-Q for the quarter ended...

  • Page 67
    ...Fuel Services Corporation 2008 Executive Incentive Plan, effective December 19, 2008 (incorporated by reference herein to Exhibit 10.12 to our Annual Report on Form 10-K for the fiscal year ended December 31, 2008, filed on February 26, 2009). * Form of Restricted Stock Grant Agreement in connection...

  • Page 68
    ... Current Report on Form 8-K filed on November 7 , 2006). * Third Amended and Restated Credit Agreement, dated as of September 8, 2010, among World Fuel Services Corporation, World Fuel Services Europe, Ltd. and World Fuel Services (Singapore) Pte Ltd, as borrowers, the financial institutions named...

  • Page 69
    ... on these financial statements and on the Company's internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform...

  • Page 70
    ...Report on Internal Control over Financial Reporting, management has excluded Hiller, Gib Oil, Western and the Lakeside business (the "Excluded Companies") from its assessment of internal control over financial reporting as of December 31, 2010 because the companies were acquired in purchase business...

  • Page 71
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) As of December 31, 2010 2009 Assets: Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses Transaction taxes receivable ...

  • Page 72
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except earnings per share data) For the Year ended December 31, 2010 2009 2008 Revenue Cost of revenue Gross profit Operating expenses: Compensation and employee benefits Provision for bad debt General ...

  • Page 73
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME (In thousands) Common Stock... shares related to share-based payment awards Purchases of stock tendered by employees to satisfy the required withholding taxes related to share-based...

  • Page 74
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME -(CONTINUED) (In thousands) Common Stock Shares Amount Capital in Excess of Par Value Accumulated Other Retained Comprehensive Earnings Income World Fuel Shareholders' Equity ...

  • Page 75
    ...senior revolving credit facility loan costs Borrowings of debt other than senior revolving credit facility Repayments of debt other than senior revolving credit facility Proceeds from exercise of stock options Federal and state tax benefits resulting from tax deductions in excess of the compensation...

  • Page 76
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS - (CONTINUED) (In thousands) For the Year ended December 31, 2010 Effect of exchange rate changes on cash and cash equivalents Net (decrease) increase in cash and cash equivalents Cash and cash equivalents, at ...

  • Page 77
    WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS - (CONTINUED) (In thousands) In connection with our acquisitions for the periods presented, the following table presents the assets acquired, net of cash and liabilities assumed: For the Year ended December 31, ...

  • Page 78
    ... 2010, we completed the acquisition of certain assets of Falmouth Oil Services Limited (the "FOS business"). The FOS business is primarily a marine oil terminal for fuel oil and diesel strategically located in the United Kingdom, which we used for fuel storage prior to the acquisition. The financial...

  • Page 79
    ... flight departments. The financial position and results of operations of Hiller have been included in our consolidated financial statements since its acquisition date. The estimated aggregate purchase price for the acquisitions of the FOS business, the Lakeside business, Western, Gib Oil and Hiller...

  • Page 80
    ... Shipping Services Limited (collectively, "Henty") and completed the acquisition of certain assets of TGS Petroleum, Inc., including the assets comprising its wholesale motor fuel distribution business (the "TGS business"). Henty is a provider of marine and land based fuels in the United Kingdom and...

  • Page 81
    ... and diesel fuel to retail petroleum operators and industrial, commercial and government customers and operates a small number of retail gasoline stations. The financial position and results of operations of the Texor business have been included in our consolidated financial statements since June...

  • Page 82
    ...reporting...liabilities. Fair Value of Financial Instruments The carrying amounts of... developed based on the best information available under the circumstances. The...quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. We perform annual...

  • Page 83
    ... overall quality of the credit portfolio. We perform ongoing credit evaluations of our customers and adjust credit limits based upon payment history and the customer's current creditworthiness, as determined by our review of our customer's credit information. We extend credit on an unsecured basis...

  • Page 84
    ...financial derivative contracts in order to mitigate the risk of market price fluctuations in aviation, marine and land fuel, to offer our customers fuel...are recorded in our consolidated financial statements when physical settlement of the...until the fuel is sold. For more information on our...credited 60

  • Page 85
    ... is when the delivery of fuel is made to our customer directly from us, the supplier or a third party subcontractor. Our fuel sales are generated as a fuel reseller as well as from on hand inventory supply. When acting as a fuel reseller, we generally purchase fuel from the supplier, mark it up, and...

  • Page 86
    ... rebate terms of the customer agreements are generally similar to those of the vendor agreements. From time to time, in our land segment, we also receive branding allowances from fuel suppliers to defray the costs of branding and enhancing certain of our customer locations. The branding allowances...

  • Page 87
    ... per share is computed by dividing net income attributable to World Fuel and available to common shareholders by the sum of the weighted average number of shares of common stock, stock units, restricted stock entitled to dividends not subject to forfeiture and vested RSUs outstanding during the...

  • Page 88
    ... Forma Information for Business Combinations. In December 2010, the Financial Accounting Standards Board ("FASB") issued an accounting standard update ("ASU") to clarify the acquisition date that should be used for reporting pro forma financial information when comparative financial statements are...

  • Page 89
    ... material impact on our consolidated financial statements. Variable Interest Entities. In the first quarter of 2010, we adopted an ASU regarding...of December 31, 2010 and 2009, respectively. Accounts receivable are written-off when it becomes apparent based upon age or customer circumstances that such...

  • Page 90
    business, we utilize Signature and Aircraft Service International Group ("ASIG"), a sister company of Signature, as subcontractors to provide various services to customers, including into-plane fueling at airports, and transportation and storage of fuel and fuel... in aviation, marine and land fuel in ...

  • Page 91
    ... of December 31, 2010, our derivative instruments, at their respective fair value positions were as follows (in thousands, except mark-to-market prices): Settlement Hedge Strategy Period Derivative Instrument Fair Value Hedge 2011 2011 2011 2011 2011 Commodity contracts for firm commitment hedging...

  • Page 92
    The following table presents information about our derivative instruments measured at fair value and their locations on the consolidated balance sheet (in thousands): As of December 31, 2010 2009 Balance Sheet Location Derivative assets: Derivatives designated as hedging instruments Commodity ...

  • Page 93
    ...For the Year ended December 31, 2010 2009 Firm commitments Revenue $(7 ,494) $(14,227) Firm commitments Cost of revenue (797) 12...2010 and 2009 that were excluded from the assessment of the effectiveness of our fair value hedges. The following table presents the effect and financial statement location...

  • Page 94
    ... presents the effect and financial statement location of our derivative instruments not designated as hedging instruments on our consolidated statements of income (in thousands): Derivatives Location Realized and Unrealized Gain (Loss) For the Year ended December 31, 2010 2009 $4,385 $3,590 (1,001...

  • Page 95
    ... Assets The following table provides information about our identifiable intangible assets for each of the following years (in thousands): As of December 31, 2010 Gross Carrying Amount Intangible assets subject to amortization: Customer relationships Supplier agreements Non-compete agreements Others...

  • Page 96
    ... Facility and the unsecured credit lines were provided to suppliers in the normal course of business and generally expire within one year of issuance. Expired letters of credit and bank guarantees are renewed as needed. Our debt consisted of the following (in thousands): As of December 31, 2010...

  • Page 97
    ...) 100% of the net proceeds of all equity issuances made after the closing of the Credit Facility. The payment of the above-referenced dividends were in compliance with the Credit Facility. Issuance of Common Stock In September 2010, we completed a public offering of 9.2 million shares of our common...

  • Page 98
    ... of our common stock. The goal is to promote the long-term financial interest of World Fuel and its subsidiaries, including the growth in value of our equity and enhancement of long-term shareholder return. The persons eligible to receive awards under the 2006 Plan are our employees, officers, and...

  • Page 99
    ... 31, 2010, the outstanding Option Awards will expire between June 2011 and December 2015, unvested restricted stock will vest between March 2011 and March 2013 and unvested RSUs will vest between March 2011 and December 2015. RSUs granted to non-employee directors under the 2006 Plan will vest...

  • Page 100
    ...Dividend yields Risk-free interest rates Restricted Stock Awards The following table summarizes the status of our unvested restricted stock...2.2 11,245 1.7 $13,991 0.6 The aggregate value of restricted stock which vested during 2010, 2009 and 2008 was $1.0 million, $3.6 million and $1.6 million,...

  • Page 101
    ... member of our Board of Directors. Common Stock Awards As partial settlement of a special bonus award recorded in 2008 (see Note 10), we issued $4.5 million, or 162,338 shares, of our common stock in March 2009. Unrecognized Compensation Cost As of December 31, 2010, there was $12.6 million of total...

  • Page 102
    ...United States Foreign 2010 $(2,886) 180,416 $177 ,530 2009 $3,916 145,993 $149,909 2008 $(1,132) 138,707 $137 ,575 The income tax provision (benefit... expense are tax expense resulting from allocating the tax benefit for stock based compensation to shareholder's equity of $3.9 million for 2008 as...

  • Page 103
    ... for financial reporting. As of December 31, 2010, there were no FTC carryforwards. As of December 31, 2009, we had $7 .9 million of FTC carryforwards related to the excess stock compensation deductions that resulted in a tax deduction or credit before the realization of the tax benefit from...

  • Page 104
    ...been realized. As of December 31, 2010, 2009 and 2008, our APIC pool of windfall tax benefits related to employee compensation was estimated to be $10.4 million, $3.1 million and $8.5 million, respectively. We operate under a special tax concession in Singapore which is effective through 2012 and is...

  • Page 105
    ... Singapore United Kingdom Brazil Examination in progress None None None None 10. Commitments and Contingencies Surety Bonds In the normal course of business, we are required to post bid, performance and garnishment bonds. The majority of the surety bonds posted relate to our aviation and land...

  • Page 106
    ... by our fuel suppliers. Many of the agreements require repayment of all or a portion of the amount received if we (or our customers, typically branded dealers in our land segment) elect to discontinue selling the specified brand of fuel at certain locations. As of December 31, 2010, the estimated...

  • Page 107
    ... Ended December 31, 2011 2012 2013 $6,674 5,425 4,715 $16,814 Named Executive Officer Annual Incentive Awards and Special Bonus Awards Our CEO, COO, Chief Financial Officer ("CFO"), Chief Risk and Administrative Officer ("CRAO") and Aviation Segment President ("Aviation President"), referred to...

  • Page 108
    ... by a fuel spill or other accident. In addition, we may be held liable for damages to the environment arising out of such events. Although we generally require our subcontractors to carry liability insurance, not all subcontractors carry adequate insurance. Our marine and land businesses do not...

  • Page 109
    ... Litigation One of our subsidiaries, World Fuel Services, Inc. ("WFSI") is involved in a dispute with Brendan Airways, LLC ("Brendan"), an aviation fuel customer, with respect to certain amounts Brendan claims to have been overcharged in connection with fuel sale transactions from 2003 to 2006...

  • Page 110
    11. Fair Value Measurements The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2010 and 2009, respectively (in thousands): Level 1 2010 Assets: Cash equivalents Commodity contracts Foreign exchange ...

  • Page 111
    ... interest rates, credit risk ratings,...derivative related positions executed with the ...as of December 31, 2010 and 2009. There were... The following table presents information about our assets and ... 1, 2 or 3 as of the beginning of the reporting period in which the event or change in circumstances caused ...

  • Page 112
    ... Segments, Geographic Information, and Major Customers Business Segments Based on the nature of operations and quantitative thresholds pursuant to the accounting guidance on segment reporting, we have three reportable operating business segments: aviation, marine and land. Corporate expenses are...

  • Page 113
    ...$16,137 55,714 81,990 $153,841 Identifiable intangible assets, net Aviation segment Marine segment Land segment $44,799 10,498 62,429 $117 ,726 $19,679 10,449 42,677 $72,805 Total assets: Aviation segment Marine segment Land segment Corporate $740,563 1,000,042 524,592 301,253 $2,566,450 $391...

  • Page 114
    ...49,281 20,929 $280,048 Total assets: United States Singapore United Kingdom Other foreign countries $1,167 ,793 590,250 540,348 268,059 $2,566,450 $643,358 572,062 340,718 191,857 $1,747 ,995 Major Customers During each of the years presented on the consolidated statements of income, none of our...

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    .... (2) Includes the Lakeside business operations since July 1, 2010 as a result of the acquisition. (3) Includes the Western business operations since October 1, 2010, the Gib Oil business operations since December 1, 2010 and the Hiller business operations since December 31, 2010 as a result of...

  • Page 116
    ...-K to be signed on its behalf by the undersigned, thereunto duly authorized, on the 24th day of February 2011. WORLD FUEL SERVICES CORPORATION /s/ PAUL H. STEBBINS Paul H. Stebbins Chairman and Chief Executive Officer /s/ IRA M. BIRNS Ira M. Birns Executive Vice President and Chief Financial Officer...

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    ... OF THE CHIEF EXECUTIVE OFFICER pursuant to Rule 13a-14(a) or Rule 15d-14(a) I, Paul H. Stebbins, certify that: 1. I have reviewed this Annual Report on Form 10-K of World Fuel Services Corporation; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact...

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    ... OF THE CHIEF FINANCIAL OFFICER pursuant to Rule 13a-14(a) or Rule 15d-14(a) I, Ira M. Birns, certify that: 1. I have reviewed this Annual Report on Form 10-K of World Fuel Services Corporation; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact...

  • Page 119
    ... Officer of World Fuel Services Corporation (the "Company"), and Ira M. Birns, Executive Vice-President and Chief Financial Officer of the Company, certify for the purposes of Section 1350 of Chapter 63 of Title 18 of the United States Code that, to the best of our knowledge, (i) the Annual Report...

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    ... Mumbai Japan Tokyo Netherlands Rotterdam Norway Oslo Singapore South Africa Cape Town South Korea Seoul Taiwan Taipei United Arab Emirates Dubai United Kingdom Falmouth Hull Liverpool London United States Greenwich, CT Miami, FL Red Bank, NJ San Rafael, CA LAND Brazil Rio de Janeiro Canada Calgary...

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    ... electronically filed by the Company, such as reports, proxy and information statements, and other information, at www.sec.gov. Corporate Headquarters World Fuel Services Corporation 9800 N.W. 41st Street, Suite 400 Miami, FL 33178 Telephone 305 428 8000 Fax: 305 392 5621 Website: www.wfscorp.com...

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    OUR MISSION To create value for our business partners in energy and transportation by delivering innovative solutions and logistics through a global team of local professionals. OUR VISION Become the world's leading provider of credit, finance, services, and logistics to the energy and ...

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    World Fuel Services Corporation 9800 NW 41st Street Suite 400 Miami, FL 33178 800 345 3818 www.wfscorp.com