10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2012

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM                    TO                    

COMMISSION FILE NUMBER 1-9533

WORLD FUEL SERVICES CORPORATION

(Exact name of registrant as specified in its charter)

Florida	59-2459427
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
9800 N.W. 41st Street, Suite 400 Miami, Florida	33178
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s Telephone Number, including area code: (305) 428-8000

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x  No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x	Accelerated filer o
Non-accelerated filer o	Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o  No x

The registrant had a total of 72,063,000 shares of common stock, par value $0.01 per share, issued and outstanding as of July 25, 2012.

Table of Contents

Part I.	Financial Information
	General		1
	Item 1.	Financial Statements (Unaudited)
		Consolidated Balance Sheets as of June 30, 2012 and December 31, 2011	2
		Consolidated Statements of Income and Comprehensive Income for the Three and Six Months ended June 30, 2012 and 2011	3
		Consolidated Statements of Shareholders’ Equity for the Six Months ended June 30, 2012 and 2011	4
		Consolidated Statements of Cash Flows for the Six Months ended June 30, 2012 and 2011	5
		Notes to the Consolidated Financial Statements	7
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
	Item 4.	Controls and Procedures	29
Part II.	Other Information
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
	Item 6.	Exhibits	30
Signatures

Part I — Financial Information

General

The following unaudited consolidated financial statements and notes thereto of World Fuel Services Corporation and its subsidiaries have been prepared in accordance with the instructions to Quarterly Reports on Form 10-Q and, therefore, omit or condense certain footnotes and other information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States. In the opinion of management, all adjustments necessary for a fair presentation of the financial information, which are of a normal and recurring nature, have been made for the interim periods reported. Results of operations for the three and six months ended June 30, 2012 are not necessarily indicative of the results for the entire fiscal year. The unaudited consolidated financial statements and notes thereto included in this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012 (“10-Q Report”) should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011 (“2011 10-K Report”). World Fuel Services Corporation (“World Fuel” or the “Company”) and its subsidiaries are collectively referred to in this 10-Q Report as “we,” “our” and “us.”

1

Item 1.        Financial Statements

World Fuel Services Corporation and Subsidiaries

Consolidated Balance Sheets

(Unaudited - In thousands, except per share data)

	As of
	June 30,			December 31,
	2012			2011
Assets:
Current assets:
Cash and cash equivalents	$	136,676		$	205,415
Accounts receivable, net	2,124,645			2,160,561
Inventories	557,390			472,584
Prepaid expenses	158,239			109,297
Other current assets	319,895			174,370
Total current assets	3,296,845			3,122,227
Property and equipment, net	92,597			90,710
Goodwill	353,547			346,246
Identifiable intangible assets, net	103,739			107,620
Non-current other assets	41,166			30,443
Total assets	$	3,887,894		$	3,697,246
Liabilities:
Current liabilities:
Short-term debt	$	23,780		$	17,800
Accounts payable	1,774,508			1,739,678
Customer deposits	98,478			105,554
Accrued expenses and other current liabilities	190,978			163,110
Total current liabilities	2,087,744			2,026,142
Long-term debt	308,212			269,348
Non-current income tax liabilities, net	43,013			47,703
Other long-term liabilities	9,857			7,335
Total liabilities	2,448,826			2,350,528
Commitments and contingencies
Equity:
World Fuel shareholders’ equity:
Preferred stock, $1.00 par value; 100 shares authorized, none issued	—			—
Common stock, $0.01 par value; 100,000 shares authorized, 72,058 and 71,154 issued and outstanding as of June 30, 2012 and December 31, 2011, respectively	721			712
Capital in excess of par value	506,213			502,551
Retained earnings	925,887			836,222
Accumulated other comprehensive loss	(14,603		)	(6,524		)
Total World Fuel shareholders’ equity	1,418,218			1,332,961
Noncontrolling interest equity	20,850			13,757
Total equity	1,439,068			1,346,718
Total liabilities and equity	$	3,887,894		$	3,697,246

The accompanying notes are an integral part of these unaudited consolidated financial statements.

2

World Fuel Services Corporation and Subsidiaries

Consolidated Statements of Income and Comprehensive Income

(Unaudited - In thousands, except per share data)

	For the Three Months						For the Six Months
	ended June 30,						ended June 30,
	2012			2011			2012			2011
Revenue	$	9,618,797		$	8,708,709		$	19,097,852		$	15,788,115
Cost of revenue	9,446,674			8,543,607			18,768,494			15,486,245
Gross profit	172,123			165,102			329,358			301,870
Operating expenses:
Compensation and employee benefits	56,183			54,877			110,710			101,946
Provision for bad debt	641			3,531			782			4,327
General and administrative	42,941			40,591			86,252			73,969
	99,765			98,999			197,744			180,242
Income from operations	72,358			66,103			131,614			121,628
Non-operating expenses, net:
Interest expense and other financing costs, net	(5,437		)	(4,298		)	(10,098		)	(6,823		)
Other (expense) income, net	(88		)	(83		)	478			(1,011		)
	(5,525		)	(4,381		)	(9,620		)	(7,834		)
Income before income taxes	66,833			61,722			121,994			113,794
Provision for income taxes	11,951			11,049			18,566			21,464
Net income including noncontrolling interest	54,882			50,673			103,428			92,330
Net income attributable to noncontrolling interest	6,282			470			8,413			1,018
Net income attributable to World Fuel	$	48,600		$	50,203		$	95,015		$	91,312
Basic earnings per common share	$	0.68		$	0.71		$	1.34		$	1.30
Basic weighted average common shares	71,173			70,856			71,083			70,400
Diluted earnings per common share	$	0.68		$	0.70		$	1.32		$	1.28
Diluted weighted average common shares	71,767			71,558			71,773			71,299
Comprehensive income:
Net income including noncontrolling interest	$	54,882		$	50,673		$	103,428		$	92,330
Other comprehensive (loss) income:
Foreign currency translation adjustment	(10,886		)	440			(8,079		)	1,141
Comprehensive income including noncontrolling interest	43,996			51,113			95,349			93,471
Comprehensive income attributable to noncontrolling interest	6,282			470			8,413			1,018
Comprehensive income attributable to World Fuel	$	37,714		$	50,643		$	86,936		$	92,453

The accompanying notes are an integral part of these unaudited consolidated financial statements.

3

World Fuel Services Corporation and Subsidiaries

Consolidated Statements of Shareholders’ Equity

(Unaudited - In thousands)

											Accumulated
					Capital in						Other			World Fuel			Noncontrolling
	Common Stock				Excess of			Retained			Comprehensive			Shareholders’			Interest
	Shares		Amount		Par Value			Earnings			Loss			Equity			Equity			Total
Balance as of December 31, 2011	71,154		$	712	$	502,551		$	836,222		$	(6,524	)	$	1,332,961		$	13,757		$	1,346,718
Net income	—		—		—			95,015			—			95,015			8,413			103,428
Distribution of noncontrolling interest	—		—		—			—			—			—			(1,320		)	(1,320		)
Cash dividends declared	—		—		—			(5,350		)	—			(5,350		)	—			(5,350		)
Amortization of share-based payment awards	—		—		5,487			—			—			5,487			—			5,487
Issuance of common stock related to share-based payment awards	938		9		2,721			—			—			2,730			—			2,730
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards	(34	)	—		(4,546		)	—			—			(4,546		)	—			(4,546		)
Other comprehensive loss	—		—		—			—			(8,079		)	(8,079		)	—			(8,079		)
Balance as of June 30, 2012	72,058		$	721	$	506,213		$	925,887		$	(14,603	)	$	1,418,218		$	20,850		$	1,439,068

												Accumulated					Noncontrolling
						Capital in						Other		World Fuel			Interest
	Common Stock					Excess of			Retained			Comprehensive		Shareholders’			(Deficit)
	Shares		Amount			Par Value			Earnings			Income		Equity			Equity			Total
Balance as of December 31, 2010	69,602		$	696		$	468,963		$	652,796		$	4,753	$	1,127,208		$	(644	)	$	1,126,564
Net income	—		—			—			91,312			—		91,312			1,018			92,330
Initial noncontrolling interest upon consolidation of joint venture	—		—			—			—			—		—			614			614
Capital contribution for joint ventures	—		—			—			—			—		—			10,042			10,042
Cash dividends declared	—		—			—			(5,297		)	—		(5,297		)	—			(5,297		)
Amortization of share-based payment awards	—		—			4,801			—			—		4,801			—			4,801
Issuance of common stock related to share-based payment awards including income tax benefit of $3,810	920		9			5,257			—			—		5,266			—			5,266
Issuance of common stock related to acquisition	691		7			27,484			—			—		27,491			—			27,491
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards	(78	)	(1		)	(8,654		)	—			—		(8,655		)	—			(8,655		)
Other comprehensive income	—		—			—			—			1,141		1,141			—			1,141
Balance as of June 30, 2011	71,135		$	711		$	497,851		$	738,811		$	5,894	$	1,243,267		$	11,030		$	1,254,297

The accompanying notes are an integral part of these unaudited consolidated financial statements.

4

World Fuel Services Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited - In thousands)

	For the Six Months ended June 30,
	2012			2011
Cash flows from operating activities:
Net income including noncontrolling interest	$	103,428		$	92,330
Adjustments to reconcile net income including noncontrolling interest to net cash used in operating activities:
Depreciation and amortization	17,668			18,740
Provision for bad debt	782			4,327
Share-based payment award compensation costs	5,957			5,658
Deferred income tax provision	9,855			6,564
Extinguishment of liabilities	(7,381		)	(3,166		)
Foreign currency gains, net	(4,843		)	(411		)
Other	1,346			893
Changes in assets and liabilities, net of acquisitions:
Accounts receivable, net	42,097			(535,628		)
Inventories	(76,710		)	(180,534		)
Prepaid expenses	(50,619		)	29,252
Other current assets	(126,805		)	(53,858		)
Cash collateral deposits held by financial counterparties	(128,058		)	(650		)
Non-current other assets	(6,137		)	(1,415		)
Accounts payable	39,197			481,054
Customer deposits	15,747			(14,779		)
Accrued expenses and other current liabilities	111,229			13,035
Non-current income tax, net and other long-term liabilities	(3,676		)	889
Total adjustments	(160,351		)	(230,029		)
Net cash used in operating activities	(56,923		)	(137,699		)
Cash flows from investing activities:
Acquisitions and other investments, net of cash acquired	(29,038		)	(106,013		)
Capital expenditures	(9,567		)	(7,394		)
Issuance of notes receivable	(401		)	(8,148		)
Repayment of notes receivable	401			8,148
Net cash used in investing activities	(38,605		)	(113,407		)
Cash flows from financing activities:
Borrowings under senior revolving credit facility	1,958,000			2,416,000
Repayments under senior revolving credit facility	(1,910,000		)	(2,278,000		)
Borrowings under senior term loans	50,000			—
Repayments under senior term loans	(50,000		)	—
Repayments of other debt	(6,103		)	(6,123		)
Dividends paid on common stock	(5,350		)	(5,294		)
Payment of earn-out liability	(4,304		)	—
Payment of assumed employee benefits	—			(5,421		)
Capital contribution for joint venture	—			10,000
Distribution of noncontrolling interest	(1,401		)	—
Federal and state tax benefits resulting from tax deductions in excess of the compensation cost recognized for share-based payment awards	—			3,810
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards	(4,546		)	(8,654		)
Net cash provided by financing activities	26,296			126,318
Effect of exchange rate changes on cash and cash equivalents	493			1,630
Net decrease in cash and cash equivalents	(68,739		)	(123,158		)
Cash and cash equivalents, as of beginning of period	205,415			272,893
Cash and cash equivalents, as of end of period	$	136,676		$	149,735

The accompanying notes are an integral part of these unaudited consolidated financial statements.

5

World Fuel Services Corporation and Subsidiaries

Consolidated Statements of Cash Flows — (Continued)

(Unaudited - In thousands)

Supplemental Schedule of Noncash Investing and Financing Activities:

Cash dividends declared of $0.0375 per share for the three months ended June 30, 2012 and 2011, but not yet paid, totaled $2.7 million as of June 30, 2012 and 2011, and were paid in July 2012 and 2011, respectively.

In connection with our acquisitions during the six months ended June 30, 2012, we issued promissory notes of $2.2 million.  In connection with our acquisitions during the six months ended June 30, 2011, we issued $27.5 million of common stock and a promissory note of $7.5 million.

During the six months ended June 30, 2012 and 2011, we granted equity awards to certain employees of which $2.7 million and $1.5 million, respectively, was previously recorded in accrued expenses and other current liabilities.

In connection with our acquisitions for the periods presented, the following table presents the assets acquired, net of cash and liabilities assumed:

	For the Six Months ended June 30,
	2012		2011
Assets acquired, net of cash	$	28,795	$	188,959
Liabilities assumed	$	3,157	$	47,967

The accompanying notes are an integral part of these unaudited consolidated financial statements.

6

World Fuel Services Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(Unaudited)

1.Significant Accounting Policies

Except as updated below, the significant accounting policies we use for quarterly financial reporting are the same as those disclosed in Note 1 of the “Notes to the Consolidated Financial Statements” included in our 2011 10-K Report.

Basis of Presentation

The accompanying consolidated financial statements and related notes to the consolidated financial statements include our accounts and those of our majority-owned or controlled subsidiaries, after elimination of all significant intercompany accounts, transactions, and profits.

Certain amounts in prior periods have been reclassified to conform to the current period’s presentation.

Accounts Receivable Purchase Agreement

We have a Receivables Purchase Agreement (“RPA”) to sell up to $125.0 million of certain of our accounts receivable. On our sold receivables, we are charged a discount margin equivalent to a floating market rate plus 2% and certain other fees, as applicable and we retain a beneficial interest in certain of the sold accounts receivable which is included in accounts receivable, net in the accompanying consolidated balance sheets.

As of June 30, 2012, we had sold accounts receivable of $96.1 million and retained a beneficial interest of $14.3 million.  During the three and six months ended June 30, 2012, the fees and interest paid under the receivables purchase agreement were not significant.

Goodwill

During the first six months of 2012, we recorded goodwill of $6.1 million in our aviation segment in connection with two acquisitions completed during the period, which were not material individually or in the aggregate.  In addition, based on our ongoing fair value assessment of certain of our 2011 acquisitions since December 31, 2011, we reclassified $2.9 million in goodwill from our aviation segment to our land segment and increased aviation segment goodwill by $1.8 million as a result of the reclassification of $1.1 million from identifiable intangible assets and a $0.7 million purchase price adjustment.  We had a reduction in goodwill of $0.5 million as a result of foreign currency translation adjustments of our Brazilian subsidiary in our marine segment.

Recent Accounting Pronouncements

Disclosure About Offsetting Assets and Liabilities.  In December 2011, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) which requires companies to disclose information about financial instruments that have been offset and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. Companies will be required to provide both net (offset amounts) and gross information in the notes to the financial statements for relevant assets and liabilities that are offset. This update is effective at the beginning of our 2013 fiscal year and will be applied retrospectively. We do not believe adoption of this new guidance will have a significant impact on our consolidated financial statements and disclosures.

Disclosure Relating to Comprehensive Income.  In June 2011, the FASB issued an ASU aimed at increasing the prominence of items reported in other comprehensive income in the financial statements. This update requires companies to present comprehensive income in a single statement below net income or in a separate statement of comprehensive income immediately following the income statement. This ASU became effective on a prospective basis at the beginning of our 2012 fiscal year.  In December 2011, the FASB issued an ASU to defer the effective date of the specific requirement to present items that are reclassified out of accumulated other comprehensive income to net income alongside their respective components of net income and other comprehensive income. All other provisions of this update are currently in effect.  The adoption of this ASU resulted in the inclusion of consolidated statements of comprehensive income for the periods presented below the consolidated statements of income.

7

Fair Value Measurements.  In May 2011, the FASB issued an ASU to provide a consistent definition of fair value and common requirements for measurement and disclosure of fair value between International Financial Reporting Standards and U.S. Generally Accepted Accounting Principles. This ASU changes some fair value measurement principles and enhances disclosure requirements related to activities in Level 3 of the fair value hierarchy. The guidance became effective on a prospective basis at the beginning of our 2012 fiscal year. The adoption of this ASU did not have a material impact on our consolidated financial statements and disclosures.

2.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 fluctuations in foreign currency exchange rates.  We also enter into proprietary derivative transactions, primarily intended to capitalize on arbitrage opportunities related to basis or time spreads related to fuel products we sell.  We have applied the normal purchase and normal sales exception (“NPNS”), as provided by accounting guidance for derivative instruments and hedging activities, to certain of our physical forward sales and purchase contracts.  While these contracts are considered derivative instruments under the guidance for derivative instruments and hedging activities, they are not recorded at fair value, but rather are recorded in our consolidated financial statements when physical settlement of the contracts occurs.  If it is determined that a transaction designated as NPNS no longer meets the scope of the exception, the fair value of the related contract is recorded as an asset or liability on the consolidated balance sheet and the difference between the fair value and the contract amount is immediately recognized through earnings.

The following describes our derivative classifications:

Cash Flow Hedges.  Includes certain of our foreign currency forward contracts we enter into in order to mitigate the risk of currency exchange rate fluctuations.

Fair Value Hedges.  Includes derivatives we enter into in order to hedge price risk associated with our inventory and certain firm commitments relating to fixed price purchase and sale contracts.

Non-designated Derivatives.  Includes derivatives we primarily enter into in order to mitigate the risk of market price fluctuations in aviation, marine and land fuel in the form of swaps or futures as well as certain fixed price purchase and sale contracts and proprietary trading. In addition, non-designated derivatives are also entered into to hedge the risk of currency rate fluctuations.

8

As of June 30, 2012, our derivative instruments, at their respective fair value positions were as follows (in thousands, except mark-to-market prices):

Hedge Strategy	Settlement Period	Derivative Instrument	Notional	Unit	Mark-to- Market Prices			Mark-to- Market
Fair Value Hedge	2012	Commodity contracts for inventory hedging (short)	63,331	GAL	$	(0.09	)	$	(5,551	)
	2012	Commodity contracts for inventory hedging (short)	48	MT	(34.90		)	(1,675		)
								$	(7,226	)
Non-Designated	2012	Commodity contracts (long)	222,725	GAL	$	(0.03	)	$	(6,486	)
	2012	Commodity contracts (short)	321,090	GAL	0.08			28,814
	2012	Commodity contracts (long)	4,792	MT	(19.26		)	(92,284		)
	2012	Commodity contracts (short)	3,366	MT	21.30			71,698
	2013	Commodity contracts (long)	16,298	GAL	(0.02		)	(263		)
	2013	Commodity contracts (short)	66,505	GAL	0.20			13,500
	2013	Commodity contracts (long)	1,702	MT	(28.62		)	(48,704		)
	2013	Commodity contracts (short)	600	MT	60.64			36,384
	2014	Commodity contracts (long)	3	MT	(42.00		)	(126		)
	2014	Commodity contracts (short)	6	MT	50.17			301
	2012	Foreign currency contracts (long)	13,442	CAD	0.01			110
	2012	Foreign currency contracts (short)	13,300	CAD	(0.01		)	(111		)
	2012	Foreign currency contracts (long)	1,758,457	CLP	(0.00		)	(5		)
	2012	Foreign currency contracts (short)	73,000	CLP	0.00			2
	2012	Foreign currency contracts (long)	2,069	EUR	0.01			11
	2012	Foreign currency contracts (short)	15,834	EUR	(0.00		)	(74		)
	2012	Foreign currency contracts (long)	19,812	GBP	0.00			6
	2012	Foreign currency contracts (short)	73,601	GBP	(0.00		)	(168		)
	2012	Foreign currency contracts (long)	182,641	MXN	0.00			119
	2012	Foreign currency contracts (short)	44,855	MXN	(0.00		)	(17		)
	2012	Foreign currency contracts (long)	491	AUD	0.02			8
	2012	Foreign currency contracts (short)	497	AUD	(0.02		)	(8		)
	2012	Foreign currency contracts (long)	2,336	BRL	0.01			12
	2012	Foreign currency contracts (short)	5,100	RON	(0.00		)	(17		)
	2012	Foreign currency contracts (short)	17,000	DKK	(0.00		)	(44		)
	2012	Foreign currency contracts (short)	14,200,000	COP	0.00			23
	2012	Foreign currency contracts (long)	7,000	SGD	0.00			23
	2012	Foreign currency contracts (short)	11,400	SGD	(0.01		)	(109		)
	2013	Foreign currency contracts (long)	27,715	GBP	(0.02		)	(439		)
	2013	Foreign currency contracts (short)	43,115	GBP	0.02			795
								$	2,946

9

The following table presents information about our derivative instruments measured at fair value and their locations on the consolidated balance sheets (in thousands):

		As of
		June 30,		December 31,
	Balance Sheet Location	2012		2011
Derivative assets:
Derivatives designated as hedging instruments
Commodity contracts	Other current assets	$	794	$	528
Commodity contracts	Accrued expenses and other current liabilities	—		22
		794		550
Derivatives not designated as hedging instruments
Commodity contracts	Other current assets	95,748		59,185
Commodity contracts	Non-current other assets	9,520		2,065
Commodity contracts	Accrued expenses and other current liabilities	142,035		3,231
Commodity contracts	Other long-term liabilities	29		40
Foreign currency contracts	Other current assets	1,975		1,912
Foreign currency contracts	Non-current other assets	165		1,082
Foreign currency contracts	Accrued expenses and other current liabilities	75		—
		249,547		67,515
		$	250,341	$	68,065
Derivative liabilities:
Derivatives designated as hedging instruments
Commodity contracts	Other current assets	$	834	$	1,519
Commodity contracts	Accrued expenses and other current liabilities	7,186		21
		8,020		1,540
Derivatives not designated as hedging instruments
Commodity contracts	Other current assets	12,659		37,713
Commodity contracts	Non-current other assets	214		2
Commodity contracts	Accrued expenses and other current liabilities	231,173		16,434
Commodity contracts	Other long-term liabilities	457		1,213
Foreign currency contracts	Other current assets	1,463		413
Foreign currency contracts	Non-current other assets	—		481
Foreign currency contracts	Accrued expenses and other current liabilities	463		124
Foreign currency contracts	Other long-term liabilities	172		—
		246,601		56,380
		$	254,621	$	57,920

The following table presents the effect and financial statement location of our derivative instruments and related hedged items in fair value hedging relationships on our consolidated statements of income and comprehensive income (in thousands):

		Realized and Unrealized Gain (Loss)								Realized and Unrealized Gain (Loss)
Derivatives	Location	2012			2011			Hedged Items	Location	2012			2011
Three months ended June 30,
Commodity contracts	Revenue	$	—		$	5,518		Firm commitments	Revenue	$	—		$	(5,356	)
Commodity contracts	Cost of revenue	—			(369		)	Firm commitments	Cost of revenue	—			274
Commodity contracts	Cost of revenue	36,522			6,665			Inventories	Cost of revenue	(32,847		)	(3,045		)
		$	36,522		$	11,814				$	(32,847	)	$	(8,127	)
Six months ended June 30,
Commodity contracts	Revenue	$	265		$	16,205		Firm commitments	Revenue	$	(201	)	$	(16,789	)
Commodity contracts	Cost of revenue	(1,417		)	(7,830		)	Firm commitments	Cost of revenue	739			8,311
Commodity contracts	Cost of revenue	10,193			(33,594		)	Inventories	Cost of revenue	(3,419		)	44,296
		$	9,041		$	(25,219	)			$	(2,881	)	$	35,818

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There were no gains or losses for the three and six months ended June 30, 2012 and 2011 that were excluded from the assessment of the effectiveness of our fair value hedges.

The following table presents the effect and financial statement location of our derivative instruments not designated as hedging instruments on our consolidated statements of income and comprehensive income (in thousands):

		Realized and Unrealized
		Gain (Loss)
Derivatives	Location	2012			2011
Three months ended June 30,
Commodity contracts	Revenue	$	(16,549	)	$	1,490
Commodity contracts	Cost of revenue	22,549			2,560
Foreign currency contracts	Revenue	824			—
Foreign currency contracts	Other (expense) income, net	978			(963		)
		$	7,802		$	3,087
Six months ended June 30,
Commodity contracts	Revenue	$	(16,772	)	$	3,048
Commodity contracts	Cost of revenue	29,570			3,223
Foreign currency contracts	Revenue	(728		)	—
Foreign currency contracts	Other (expense) income, net	(684		)	(2,872		)
		$	11,386		$	3,399

We enter into derivative instrument contracts which may require us to periodically post collateral. Certain of these derivative contracts contain clauses that are similar to credit-risk-related contingent features, including material adverse change, general adequate assurance and internal credit review clauses that may require additional collateral to be posted and/or settlement of the instruments in the event an aforementioned clause is triggered.  The triggering events are not a quantifiable measure; rather they are based on good faith and reasonable determination by the counterparty that the triggers have occurred. The net liability position for such contracts, the collateral posted and the amount of assets required to be posted and/or to settle the positions should a contingent feature be triggered were not significant as of June 30, 2012.

3.Debt

On April 10, 2012, we amended our senior revolving credit facility to, among other things, (i) make a $50.0 million prepayment on our senior term loan and (ii) provide for a separate $50.0 million senior term loan for one of our subsidiaries.

The following table provides additional information about our interest expense and other financing costs, net, for the periods presented (in thousands):

	For the Three Months ended						For the Six Months ended
	June 30,						June 30,
	2012			2011			2012			2011
Interest income	$	253		$	147		$	525		$	226
Interest expense and other financing costs	(5,690		)	(4,445		)	(10,623		)	(7,049		)
	$	(5,437	)	$	(4,298	)	$	(10,098	)	$	(6,823	)

4.Other Comprehensive (Loss) Income and Accumulated Other Comprehensive Loss

Our other comprehensive (loss) income consists of foreign currency translation adjustment losses or gains related to our subsidiaries that have a functional currency other than the U.S. dollar and amounted to losses of $10.9 million and $8.1 million for the three and six months ended June 30, 2012, respectively, and gains of $0.4 million and $1.1 million for the three and six months ended June 30, 2011, respectively.  The foreign currency translation adjustment losses for the three and six months ended June 30, 2012 were primarily due to the strengthening of the U.S. dollar as compared to the Brazilian Real.  As of June 30, 2012 and December 31, 2011, our accumulated other comprehensive loss amounted to $14.6 million and $6.5 million, respectively.

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5.Income Taxes

Our income tax provision for the periods presented and the respective effective tax rates for such periods are as follows (in thousands, except for tax rates):

	For the Three Months ended						For the Six Months ended
	June 30,						June 30,
	2012			2011			2012			2011
Income tax provision	$	11,951		$	11,049		$	18,566		$	21,464
Effective income tax rate	17.9		%	17.9		%	15.2		%	18.9		%

Our provision for income taxes for each of the three-month and six-month periods ended June 30, 2012 and 2011 were calculated based on the estimated annual effective tax rate for the full 2012 and 2011 fiscal years.  The provision for income taxes for the six-month period ended June 30, 2012 includes an adjustment for an income tax benefit of $3.3 million for a discrete item related to a change in estimate in an uncertain tax position which was recognized in the three-month period ended March 31, 2012.  The actual effective tax rate for the full 2012 fiscal year may be materially different as a result of differences between estimated versus actual results and the geographic tax jurisdictions in which the results are earned.

6.Earnings per Common Share

The following table sets forth the computation of basic and diluted earnings per common share for the periods presented (in thousands, except per share amounts):

	For the Three Months ended				For the Six Months ended
	June 30,				June 30,
	2012		2011		2012		2011
Numerator:
Net income attributable to World Fuel	$	48,600	$	50,203	$	95,015	$	91,312
Denominator:
Weighted average common shares for basic earnings per common share	71,173		70,856		71,083		70,400
Effect of dilutive securities	594		702		690		899
Weighted average common shares for diluted earnings per common share	71,767		71,558		71,773		71,299
Weighted average securities which are not included in the calculation of diluted earnings per common share because their impact is anti-dilutive or their performance conditions have not been met	774		124		422		70
Basic earnings per common share	$	0.68	$	0.71	$	1.34	$	1.30
Diluted earnings per common share	$	0.68	$	0.70	$	1.32	$	1.28

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7.Commitments and Contingencies

Legal Matters

On April 11, 2012, Cathay Pacific Airways Limited (“Cathay”) filed a writ in the High Court of the Republic of Singapore against one of our subsidiaries, World Fuel Services (Singapore) Pte Ltd. (“WFSS”) alleging property damage and bodily injuries arising out of the emergency landing of a Cathay aircraft in Hong Kong, which Cathay alleges was caused by contaminated fuel supplied by WFSS.  Although not specified in the writ, Cathay claims damages relating to the incident of approximately $34.0 million.  Because the outcome of litigation is inherently uncertain, we cannot estimate the possible loss or range of loss for this matter.  We intend to vigorously defend this claim, and we believe our liability in this matter (if any) should be adequately covered by insurance.  As of June 30, 2012, we have not recorded any accruals associated with this claim.

We are involved in litigation and administrative proceedings primarily arising in the normal course of our business.  We are not currently a party to any other pending litigation or administrative proceeding that is expected to have a material adverse effect on our business, financial condition, results of operations or cash flows.  As of June 30, 2012, we had recorded certain accruals which were not significant.

8.Fair Value Measurements

The carrying amounts of cash and cash equivalents, accounts receivable, net, accounts payable and accrued expenses and other current liabilities approximate fair value based on the short-term maturities of these instruments.  We believe the carrying values of our notes receivable and debt approximate fair value since these instruments bear interest either at variable rates or fixed rates which are not significantly different than market rates.  Based on the fair value hierarchy, notes receivable of $6.7 million as of June 30, 2012 and $6.8 million as of December 31, 2011 are categorized in Level 3, the debt under our senior term loans of $250.0 million as of June 30, 2012 and December 31, 2011 is categorized in Level 2 and all other debt of $82.0 million as of June 30, 2012 and $37.1 million as of December 31, 2011 is categorized in Level 3.

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The following table presents information about our assets and liabilities that are measured at estimated fair value on a recurring basis  (in thousands):

	Level 1		Level 2		Level 3		Sub-Total		Netting and Collateral			Total
As of June 30, 2012
Assets:
Commodity contracts	$	68,793	$	179,333	$	—	$	248,126	$	(177,205	)	$	70,921
Foreign currency contracts	—		2,215		—		2,215		(1,710		)	505
Hedged item inventories	—		5,642		—		5,642		—			5,642
Total	$	68,793	$	187,190	$	—	$	255,983	$	(178,915	)	$	77,068
Liabilities:
Commodity contracts	$	94,341	$	158,182	$	—	$	252,523	$	(232,694	)	$	19,829
Foreign currency contracts	—		2,098		—		2,098		(1,710		)	388
Hedged item inventories	—		608		—		608		—			608
Total	$	94,341	$	160,888	$	—	$	255,229	$	(234,404	)	$	20,825
As of December 31, 2011
Assets:
Commodity contracts	$	14,038	$	51,033	$	—	$	65,071	$	(43,275	)	$	21,796
Foreign currency contracts	—		2,994		—		2,994		(893		)	2,101
Hedged item inventories	—		3,216		—		3,216		—			3,216
Hedged item commitments	—		206		—		206		—			206
Total	$	14,038	$	57,449	$	—	$	71,487	$	(44,168	)	$	27,319
Liabilities:
Commodity contracts	$	10,148	$	46,754	$	—	$	56,902	$	(43,291	)	$	13,611
Foreign currency contracts	—		1,018		—		1,018		(893		)	125
Hedged item inventories	—		24		—		24		—			24
Earn-out	—		—		4,194		4,194		—			4,194
Total	$	10,148	$	47,796	$	4,194	$	62,138	$	(44,184	)	$	17,954

Fair value of commodity contracts and hedged item commitments is derived using forward prices that take into account commodity prices, basis differentials, interest rates, credit risk ratings, option volatility and currency rates.  Fair value of hedged item inventories is derived using spot commodity prices and basis differentials.  Fair value of foreign currency contracts is derived using forward prices that take into account interest rates, credit risk ratings and currency rates.

For our derivative contracts, we may enter into master netting, collateral and offset agreements with counterparties. These agreements provide us the ability to offset a counterparty’s rights and obligations, request additional collateral when necessary or liquidate the collateral in the event of counterparty default. We net fair value of cash collateral paid or received against fair value amounts recognized for net derivative positions executed with the same counterparty under the same master netting or offset agreement.

As of June 30, 2012, we had $139.9 million of cash collateral deposits held by financial counterparties of which $76.9 million have been offset against the total amount of commodity fair value liabilities in the above table and the remaining $63.0 million is included in other current assets in the accompanying consolidated balance sheets.  In addition, as of June 30, 2012, we have offset $21.4 million of cash collateral received from customers against the total amount of commodity fair value assets in the above table.  As of December 31, 2011, we had $11.8 million of cash collateral deposits held by financial counterparties and there were no significant amounts of cash collateral that were offset against the total commodity fair value assets and liabilities in the above table.

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The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis that utilized Level 3 inputs for the periods presented (in thousands):

	Beginning of Period, (Liabilities) Assets			Realized and Unrealized Gains (Losses) Included in Earnings			Settlements			End of Period, Liabilities			Change in Unrealized Losses Relating to Instruments Still Held at end of Period
Three months ended June 30, 2012
Earn-out	$	(4,323	)	$	19		$	4,304		$	—		$	—
Three months ended June 30, 2011
Earn-out	$	(5,151	)	$	(5	)	$	—		$	(5,156	)	$	(5	)
Six months ended June 30, 2012
Earn-out	$	(4,194	)	$	(110	)	$	4,304		$	—		$	—
Six months ended June 30, 2011
Commodity contracts, net	$	90		$	—		$	(90	)	$	—		$	—
Earn-out	(5,012		)	(144		)	—			(5,156		)	(144		)
Total	$	(4,922	)	$	(144	)	$	(90	)	$	(5,156	)	$	(144	)

Our policy is to recognize transfers between Level 1, 2 or 3 as of the beginning of the reporting period in which the event or change in circumstances caused the transfer to occur.  There were no transfers between Level 1, 2 or 3 during the periods presented.  In addition, there were no significant Level 3 purchases, sales or issuances for the periods presented.

Earn-out Relating to 2009 Acquisition

In connection with an acquisition made in 2009, we entered into an earn-out agreement with the sellers based on achieving certain operating targets over a three year period ending April 3, 2012.  The earn-out liability of $4.3 million was paid during the three months ended June 30, 2012.  The impact of the acquisition’s revenue and net income did not have a significant impact on our results for the three and six months ended June 30, 2012 and 2011.

9.Business Segments

Based on the nature of operations and quantitative thresholds pursuant to accounting guidance for segment reporting, we have three reportable operating business segments: aviation, marine and land.  Corporate expenses are allocated to the segments based on usage, where possible, or on other factors according to the nature of the activity.  The results of operations of Nordic Camp Supply ApS and certain affiliates (“NCS”) are included in our aviation segment commencing on March 1, 2011, its acquisition date, and since January 1, 2012, a portion of NCS results is now included in our land segment.  The results of operations include the results of Ascent Aviation Group, Inc. (“Ascent”) in our aviation segment commencing on April 1, 2011, its acquisition date.  The accounting policies of the reportable operating segments are the same as those described in the Summary of Significant Accounting Policies (see Note 1).

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Information concerning our revenue, gross profit and income from operations by segment is as follows (in thousands):

	For the Three Months ended				For the Six Months ended
	June 30,				June 30,
	2012		2011		2012		2011
Revenue:
Aviation segment	$	3,547,871	$	3,364,829	$	6,959,418	$	6,011,421
Marine segment	3,767,144		3,532,983		7,671,335		6,532,402
Land segment	2,303,782		1,810,897		4,467,099		3,244,292
	$	9,618,797	$	8,708,709	$	19,097,852	$	15,788,115
Gross profit:
Aviation segment	$	69,171	$	82,027	$	134,085	$	152,155
Marine segment	51,748		50,674		106,825		90,889
Land segment	51,204		32,401		88,448		58,826
	$	172,123	$	165,102	$	329,358	$	301,870
Income from operations:
Aviation segment	$	25,960	$	37,624	$	52,793	$	75,794
Marine segment	27,931		25,763		55,376		43,118
Land segment	28,352		14,026		44,552		24,689
	82,243		77,413		152,721		143,601
Corporate overhead - unallocated	9,885		11,310		21,107		21,973
	$	72,358	$	66,103	$	131,614	$	121,628

Information concerning our accounts receivable, net and total assets by segment is as follows (in thousands):

	As of
	June 30,		December 31,
	2012		2011
Accounts receivable, net:
Aviation segment, net of allowance for bad debt of $9,234 and $8,441 as of June 30, 2012 and December 31, 2011, respectively	$	630,719	$	569,086
Marine segment, net of allowance for bad debt of $8,059 and $9,495 as of June 30, 2012 and December 31, 2011, respectively	1,118,106		1,261,340
Land segment, net of allowance for bad debt of $6,526 and $6,365 as of June 30, 2012 and December 31, 2011, respectively	375,820		330,135
	$	2,124,645	$	2,160,561
Total assets:
Aviation segment	$	1,420,981	$	1,149,031
Marine segment	1,436,982		1,568,378
Land segment	896,041		816,595
Corporate	133,890		163,242
	$	3,887,894	$	3,697,246

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Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with our 2011 10-K Report and the consolidated financial statements and related notes in “Item 1 - Financial Statements” appearing elsewhere in this 10-Q Report.  The following discussion may contain forward-looking statements, and our actual results may differ significantly from the results suggested by these forward-looking statements. Some factors that may cause our results to differ materially from the results and events anticipated or implied by such forward-looking statements are described in “Item 1A — Risk Factors” of our 2011 10-K Report.

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 conferences or otherwise, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words “believe,” “anticipate,” “expect,” “estimate,” “project,” “could,” “would,” “will,” “will be,” “will continue,” “will likely result,” “plan,” or words or phrases of similar meaning.

Forward-looking statements are estimates and projections reflecting our best judgment and involve risks, uncertainties or other factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control.  The Company’s actual results may differ materially from the future results, performance or achievements expressed or implied by the forward-looking statements.  These statements are based on our management’s expectations, beliefs and assumptions concerning future events affecting us, which in turn are based on currently available information.

Examples of forward-looking statements in this 10-Q Report include, but are not limited to, our expectations regarding our business strategy, business prospects, operating results, effectiveness of internal controls to manage risk, working capital, liquidity, capital expenditure requirements and future acquisitions.  Important assumptions relating to the forward-looking statements include, among others, assumptions regarding demand for our products, the cost, terms and availability of fuel from suppliers, pricing levels, the timing and cost of capital expenditures, outcome of pending litigation, competitive conditions, general economic conditions and synergies relating to acquisitions, joint ventures and alliances.  These assumptions could prove inaccurate. Although we believe that the estimates and projections reflected in the forward-looking statements are reasonable, our expectations may prove to be incorrect.

Important factors that could cause actual results to differ materially from the results and events anticipated or implied by such forward-looking statements include, but are not limited to:

·customer and counterparty creditworthiness and our ability to collect accounts receivable and settle derivative contracts;

·changes in the market price of fuel;

·changes in the political, economic or regulatory conditions generally and in the markets in which we operate;

·our failure to effectively hedge certain financial risks and the use of derivatives;

·non-performance by counterparties or customers to derivative contracts;

·changes in credit terms extended to us from our suppliers;

·non-performance of suppliers on their sale commitments and customers on their purchase commitments;

·loss of, or reduced sales to a significant government customer;

·non-performance of third-party service providers;

·adverse conditions in the industries in which our customers operate, including a continuation of the global recession and its impact on the airline and shipping industries;

17

·currency exchange fluctuations;

·failure of the fuel we sell to meet specifications;

·our ability to manage growth;

·our ability to integrate acquired businesses;

·material disruptions in the availability or supply of fuel;

·risks associated with the storage, transportation and delivery of petroleum products;

·risks associated with operating in high risk locations, such as Iraq and Afghanistan;

·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”) and our senior term loans (“Term Loans”);

·the liquidity and solvency of banks within our Credit Facility and Term Loans;

·increases in interest rates;

·declines in the value and liquidity of cash equivalents and investments;

·our ability to retain and attract senior management and other key employees;

·changes in U.S. or foreign tax laws or changes in the mix of taxable income among different tax jurisdictions;

·our ability to comply with U.S. and international laws and regulations including those related to anti-corruption, economic sanction programs and environmental matters;

·increased levels of competition;

·the outcome of litigation; and

·other risks, including those described in “Item 1A - Risk Factors” in our 2011 10-K Report and those described from time to time in our other filings with the SEC.

We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for us to predict all of those risks, nor can we assess the impact of all of those risks on our business or the extent to which any factor may cause actual results to differ materially from those contained in any forward-looking statement. The forward-looking statements in this 10-Q Report are based on assumptions management believes are reasonable.  However, due to the uncertainties associated with forward-looking statements, you should not place undue reliance on any forward-looking statements.  Further, forward-looking statements speak only as of the date they are made, and unless required by law, we expressly disclaim any obligation or undertaking to publicly update any of them in light of new information, future events, or otherwise.

For these statements, we claim the protection of the safe harbor for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

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Overview

We are a leading global fuel logistics company, principally engaged in the marketing, sale and distribution of aviation, marine, and land fuel products and related services on a worldwide basis. We compete by providing 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, and land. We primarily contract with third parties for the delivery and storage of fuel products and in some cases own storage and transportation assets for strategic purposes. In our aviation segment, we offer fuel and related services to major commercial airlines, second and third-tier airlines, cargo carriers, regional and low cost carriers, airports, fixed based operators, corporate fleets, fractional operators, private aircraft, military fleets and the U.S. and foreign governments, and we also offer a private label charge card to customers in the general aviation industry and charge card processing services in connection with the purchase of aviation fuel and related services. In our marine segment, we offer fuel and related services to a broad base of marine customers, including international container and tanker fleets, commercial cruise lines, yachts and time-charter operators, as well as to the U.S. and foreign governments. In our land segment, we offer fuel and related services to petroleum distributors operating in the land transportation market, retail petroleum operators, and industrial, commercial and government customers.  Additionally, we engage in crude oil marketing activities.

In our aviation and land segments, we primarily purchase and resell fuel, and we do not act as brokers. Profit from our aviation and land segments is primarily determined by the volume and the gross profit achieved on fuel resales, and in the case of the aviation segment, a percentage of processed charge card revenue. In our marine segment, we primarily purchase and resell fuel and also act as brokers for others. Profit from our marine segment is determined primarily by the volume and gross profit achieved on fuel resales and by the volume and commission rate of the brokering business. Our profitability in our segments also depends on our operating expenses, which may be significantly affected to the extent that we are required to provide for potential bad debt.

Our revenue and cost of revenue are significantly impacted by world oil prices, as evidenced in part by our revenue and cost of revenue fluctuations in recent fiscal years, while our gross profit is not necessarily impacted by changes in world oil prices. However, significant movements in fuel prices during any given financial period can have a significant impact on our gross profit, either positively or negatively depending on the direction, volatility and timing of such price movements.

We may experience decreases in future sales volumes and margins as a result of the ongoing deterioration in the world economy and transportation industry, natural disasters and continued conflicts and instability in the Middle East, Asia and Latin America, as well as potential future terrorist activities and possible military retaliation. In addition, because fuel costs represent a significant part of our customers’ operating expenses, volatile and/or high fuel prices can adversely affect our customers’ businesses, and, consequently, the demand for our services and our results of operations. Our hedging activities may not be effective to mitigate volatile fuel prices and may expose us to counterparty risk. See “Item 1A — Risk Factors” of our 2011 10-K Report.

Reportable Segments

We have three reportable operating segments: aviation, marine and land.  Corporate expenses are allocated to each 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 with respect to our business segments is provided in Note 8 to the accompanying consolidated financial statements included in this 10-Q Report.

Results of Operations

The results of operations of Nordic Camp Supply ApS and certain affiliates (“NCS”) are included in our aviation segment commencing on March 1, 2011, its acquisition date, and since January 1, 2012, a portion of NCS results is now included in our land segment.  The results of operations include the results of Ascent Aviation Group, Inc. (“Ascent”) in our aviation segment commencing on April 1, 2011, its acquisition date.

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Three Months Ended June 30, 2012 Compared to Three Months Ended June 30, 2011

Revenue.  Our revenue for the second quarter of 2012 was $9.6 billion, an increase of $0.9 billion, or 10.5%, as compared to the second quarter of 2011.  Our revenue during these periods was attributable to the following segments (in thousands):

	For the Three Months ended
	June 30,
	2012		2011		$ Change
Aviation segment	$	3,547,871	$	3,364,829	$	183,042
Marine segment	3,767,144		3,532,983		234,161
Land segment	2,303,782		1,810,897		492,885
	$	9,618,797	$	8,708,709	$	910,088

Our aviation segment contributed $3.5 billion in revenue for the second quarter of 2012, an increase of $0.2 billion, or 5.4% as compared to the second quarter of 2011.  The increase in aviation segment revenue was due to $0.4 billion in increased volume attributable to new and existing customers, which was partially offset by decreased revenue of $0.2 billion due to a decrease in the average price per gallon sold as a result of lower world oil prices in the second quarter of 2012 as compared to the second quarter of 2011.

Our marine segment contributed $3.8 billion in revenue for the second quarter of 2012, an increase of $0.2 billion, or 6.6%, as compared to the second quarter of 2011.  The increase in marine segment revenue was due to an increase in the average price per metric ton sold in the second quarter of 2012 as compared to the second quarter of 2011.

Our land segment contributed $2.3 billion in revenue for the second quarter of 2012, an increase of $0.5 billion, or 27.2%, as compared to the second quarter of 2011.  The increase in land segment revenue was due to $0.3 billion in increased volume attributable to new and existing customers and $0.2 billion in increased volume attributable to crude oil marketing activities.

Gross Profit.  Our gross profit for the second quarter of 2012 was $172.1 million, an increase of $7.0 million, or 4.3%, as compared to the second quarter of 2011.  Our gross profit during these periods was attributable to the following segments (in thousands):

	For the Three Months ended
	June 30,
	2012		2011		$ Change
Aviation segment	$	69,171	$	82,027	$	(12,856	)
Marine segment	51,748		50,674		1,074
Land segment	51,204		32,401		18,803
	$	172,123	$	165,102	$	7,021

Our aviation segment gross profit for the second quarter of 2012 was $69.2 million, a decrease of $12.9 million, or 15.7%, as compared to the second quarter of 2011. The decrease in aviation segment gross profit was due to $13.2 million in lower gross profit per gallon sold in our physical inventory business as a result of volatility, timing and direction of jet fuel price movements in the second quarter of 2012 as compared to the second quarter of 2011. This decrease was partially offset by $0.3 million in other increases.

Our marine segment gross profit for the second quarter of 2012 was $51.7 million, an increase of $1.1 million, or 2.1%, as compared to the second quarter of 2011.  Of the increase in marine segment gross profit, $0.6 million was due to increased volume attributable to new and existing customers and $0.5 million was due to increased gross profit per metric ton sold primarily due to certain higher margin activity.

Our land segment gross profit for the second quarter of 2012 was $51.2 million, an increase of $18.8 million, or 58.0%, as compared to the second quarter of 2011.  Of the increase in land segment gross profit, $13.3 million was due to increased volume attributable to crude oil marketing activities and $6.2 million was due to gross profit from acquired businesses.  These increases were partially offset by $0.7 million in other decreases.

Operating Expenses.  Total operating expenses for the second quarter of 2012 were $99.8 million, an increase of $0.8 million, or 0.8%, as compared to the second quarter of 2011.  The following table sets forth our expense categories (in thousands):

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	For the Three Months ended
	June 30,
	2012		2011		$ Change
Compensation and employee benefits	$	56,183	$	54,877	$	1,306
Provision for bad debt	641		3,531		(2,890		)
General and administrative	42,941		40,591		2,350
	$	99,765	$	98,999	$	766

The $1.3 million increase in compensation and employee benefits and the $2.4 million increase in general and administrative expenses were primarily due to increased expenses to support our growing global business.  The $2.9 million decrease in provision for bad debt was primarily due to the recording of additional provision for bad debt in the second quarter of 2011 primarily as a result of an overall increase in the accounts receivable balance.

Income from Operations.  Our income from operations for the second quarter of 2012 was $72.4 million, an increase of $6.3 million, or 9.5%, as compared to the second quarter of 2011.  Income from operations during these periods was attributable to the following segments (in thousands):

	For the Three Months ended
	June 30,
	2012		2011		$ Change
Aviation segment	$	25,960	$	37,624	$	(11,664	)
Marine segment	27,931		25,763		2,168
Land segment	28,352		14,026		14,326
	82,243		77,413		4,830
Corporate overhead - unallocated	9,885		11,310		(1,425		)
	$	72,358	$	66,103	$	6,255

Our aviation segment income from operations was $26.0 million for the second quarter of 2012, a decrease of $11.7 million, or 31.0%, as compared to the second quarter of 2011. This decrease resulted from $12.9 million in lower gross profit, which was partially offset by decreased operating expenses of $1.2 million.

Our marine segment earned $27.9 million in income from operations for the second quarter of 2012, an increase of $2.2 million, or 8.4%, as compared to the second quarter of 2011. This increase resulted from $1.1 million in higher gross profit and decreased operating expenses of $1.1 million.

Our land segment income from operations was $28.4 million for the second quarter of 2012, an increase of $14.3 million as compared to the second quarter of 2011. This increase resulted from $18.8 million in higher gross profit, which was partially offset by increased operating expenses of $4.5 million. Of the increase in land segment operating expenses, $3.0 million was related to the inclusion of acquired businesses and $1.5 million was due to increased expenses to support our growing global business.

Corporate overhead costs not charged to the business segments were $9.9 million for the second quarter of 2012, a decrease of $1.4 million, or 12.6%, as compared to the second quarter of 2011.

Non-Operating Expenses, net. For the second quarter of 2012, we had non-operating expenses, net of $5.5 million, an increase of $1.1 million as compared to the second quarter of 2011. This increase was primarily due to an increase in interest expense and other financing costs, net, as a result of higher average borrowings as compared to the second quarter of 2011.

Taxes. For the second quarter of 2012, our effective tax rate was 17.9% and our income tax provision was $12.0 million, as compared to an effective tax rate of 17.9% and an income tax provision of $11.0 million for the second quarter of 2011.

Net Income and Diluted Earnings per Common Share. Our net income for the second quarter of 2012 was $48.6 million, a decrease of $1.6 million, or 3.2%, as compared to the second quarter of 2011. Diluted earnings per common share for the second quarter of 2012 was $0.68 per common share, a decrease of $0.02 per common share, or 3.3%, as compared to the second quarter of 2011.

21

Non-GAAP Net Income and Non-GAAP Diluted Earnings per Common Share.  The following table sets forth the reconciliation between our net income and non-GAAP net income for the second quarter of 2012 and 2011 (in thousands):

	For the Three Months ended
	June 30,
	2012		2011
Net income attributable to World Fuel	$	48,600	$	50,203
Share-based compensation expense, net of taxes	2,107		1,879
Intangible asset amortization expense, net of taxes	2,118		5,571
Non-GAAP net income attributable to World Fuel	$	52,825	$	57,653

The following table sets forth the reconciliation between our diluted earnings per common share and non-GAAP diluted earnings per common share for the second quarter of 2012 and 2011:

	For the Three Months ended
	June 30,
	2012		2011
Diluted earnings per common share	$	0.68	$	0.70
Share-based compensation expense, net of taxes	0.03		0.03
Intangible asset amortization expense, net of taxes	0.03		0.08
Non-GAAP diluted earnings per common share	$	0.74	$	0.81

The non-GAAP 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’s core operating results. We believe the exclusion of share-based compensation from operating expenses is useful given the variation in expense that can result from changes in the fair value of our common stock, the effect of which is unrelated to the operational conditions that give rise to variations in the components of our operating costs. Also, we believe the exclusion of the amortization of acquired intangible assets is useful for purposes of evaluating operating performance of our core operating results and comparing them period-over-period.  We believe that these non-GAAP financial measures, when considered in conjunction with our financial information prepared in accordance with GAAP, are useful to investors to further aid in evaluating the ongoing financial performance of the Company and to provide greater transparency as supplemental information to our GAAP results. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.  In addition, our presentation of non-GAAP net income and non-GAAP earnings per common share may not be comparable to the presentation of such metrics by other companies.  Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures.

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Six Months Ended June 30, 2012 Compared to Six Months Ended June 30, 2011

Revenue.  Our revenue for the first six months of 2012 was $19.1 billion, an increase of $3.3 billion, or 21.0%, as compared to the first six months of 2011.  Our revenue during these periods was attributable to the following segments (in thousands):

	For the Six Months ended
	June 30,
	2012		2011		$ Change
Aviation segment	$	6,959,418	$	6,011,421	$	947,997
Marine segment	7,671,335		6,532,402		1,138,933
Land segment	4,467,099		3,244,292		1,222,807
	$	19,097,852	$	15,788,115	$	3,309,737

Our aviation segment contributed $7.0 billion in revenue for the first six months of 2012, an increase of $0.9 billion, or 15.8% as compared to the first six months of 2011.  Of the increase in aviation segment revenue, $0.8 billion was due to increased volume attributable to new and existing customers and $0.1 billion was due to an increase in the average price per gallon sold as a result of higher world oil prices in the first six months of 2012 as compared to the first six months of  2011.

Our marine segment contributed $7.7 billion in revenue for the first six months of 2012, an increase of $1.1 billion, or 17.4%, as compared to the first six months of 2011.  Of the total increase in marine segment revenue, $0.9 billion was due to an increase in the average price per metric ton sold as a result of higher world oil prices in the first six months of 2012 as compared to the first six months of 2011 and $0.2 billion was due to increased volume attributable to new and existing customers.

Our land segment contributed $4.5 billion in revenue for the first six months of 2012, an increase of $1.2 billion, or 37.7%, as compared to the first six months of 2011.  The increase in land segment revenue was primarily due to $0.6 billion in increased volume attributable to new and existing customers and $0.4 billion in increased volume attributable to crude oil marketing activities. Of the remaining increase in land segment revenue, $0.1 billion was due to an increase in the average price per gallon sold as a result of higher world oil prices in the first six months of 2012 as compared to the first six months of 2011 and $0.1 billion was due to revenue from acquired businesses.

Gross Profit.  Our gross profit for the first six months of 2012 was $329.4 million, an increase of $27.5 million, or 9.1%, as compared to the first six months of 2011.  Our gross profit during these periods was attributable to the following segments (in thousands):

	For the Six Months ended
	June 30,
	2012		2011		$ Change
Aviation segment	$	134,085	$	152,155	$	(18,070	)
Marine segment	106,825		90,889		15,936
Land segment	88,448		58,826		29,622
	$	329,358	$	301,870	$	27,488

Our aviation segment gross profit for the first six months of 2012 was $134.1 million, a decrease of $18.1 million, or 11.9%, as compared to the first six months of 2011.  The decrease in aviation segment gross profit was due to $15.0 million in lower gross profit per gallon sold in our physical inventory business as a result of volatility, timing and direction of jet fuel price movements in the first six months of 2012 as compared to the first six months of 2011.  The remaining decrease in aviation segment gross profit of $3.1 million was primarily due to fluctuations in customer mix.

Our marine segment gross profit for the first six months of 2012 was $106.8 million, an increase of $15.9 million, or 17.5%, as compared to the first six months of 2011.  Of the total increase in marine segment gross profit, $12.8 million was due to higher gross profit per metric ton sold due to certain higher margin business activity and $3.1 million was due to increased volume attributable to new and existing customers.

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Our land segment gross profit for the first six months of 2012 was $88.4 million, an increase of $29.6 million, or 50.4%, as compared to the first six months of 2011. Of the increase in land segment gross profit, $17.3 million was due to increased volume attributable to crude oil marketing activities and $12.1 million was due to gross profit from acquired businesses.

Operating Expenses.  Total operating expenses for the first six months of 2012 were $197.7 million, an increase of $17.5 million, or 9.7%, as compared to the first six months of 2011.  The following table sets forth our expense categories (in thousands):

	For the Six Months ended
	June 30,
	2012		2011		$ Change
Compensation and employee benefits	$	110,710	$	101,946	$	8,764
Provision for bad debt	782		4,327		(3,545		)
General and administrative	86,252		73,969		12,283
	$	197,744	$	180,242	$	17,502

The $8.8 million increase in compensation and employee benefits was primarily due to $5.9 million in increased expenses to support our growing global business and $2.9 million related to the inclusion of acquired businesses.  The $3.5 million decrease in provision for bad debt was primarily due to the recording of additional provision for bad debt in the first six months of 2011 primarily as a result of an overall increase in the accounts receivable balance. The $12.3 million increase in general and administrative expenses was primarily due to $7.4 million in increased expenses to support our growing global business and $4.9 million related to the inclusion of acquired businesses.

Income from Operations.  Our income from operations for the first six months of 2012 was $131.6 million, an increase of $10.0 million, or 8.2%, as compared to the first six months of 2011.  Income from operations during these periods was attributable to the following segments (in thousands):

	For the Six Months ended
	June 30,
	2012		2011		$ Change
Aviation segment	$	52,793	$	75,794	$	(23,001	)
Marine segment	55,376		43,118		12,258
Land segment	44,552		24,689		19,863
	152,721		143,601		9,120
Corporate overhead - unallocated	21,107		21,973		(866		)
	$	131,614	$	121,628	$	9,986

Our aviation segment income from operations was $52.8 million for the first six months of 2012, a decrease of $23.0 million, or 30.3%, as compared to the first six months of 2011. This decrease resulted from $18.1 million in lower gross profit and $4.9 million in increased operating expenses attributable to the inclusion of acquired businesses.

Our marine segment earned $55.4 million in income from operations for the first six months of 2012, an increase of $12.3 million, or 28.4%, as compared to the first six months of 2011. This increase resulted from $15.9 million in higher gross profit, which was partially offset by increased operating expenses of $3.6 million primarily attributable to higher general and administrative expenses.

Our land segment income from operations was $44.6 million for the first six months of 2012, an increase of $19.9 million, or 80.5%, as compared to the first six months of 2011. This increase resulted from $29.6 million in higher gross profit, which was partially offset by increased operating expenses of $9.7 million. Of the increase in land segment operating expenses, $6.8 million was related to the inclusion of acquired businesses and $2.9 million was due to increased expenses to support our growing global business.

Corporate overhead costs not charged to the business segments were $21.1 million for the first six months of 2012, a decrease of $0.9 million, or 3.9%, as compared to the first six months of 2011.

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Non-Operating Expenses, net. For the first six months of 2012, we had non-operating expenses, net of $9.6 million, an increase of $1.8 million as compared to the first six months of 2011. This increase was attributable to a $3.3 million increase in interest expense and other financing costs, net, as a result of higher average borrowings in the first six months of 2012 as compared to the first six months of 2011, partially offset by a $1.2 million positive change related to foreign currency exchange gains of $0.5 million in the first six months of 2012 as compared to foreign currency exchange losses of $0.7 million in the first six months of 2011 and $0.3 million related to decreases in other non-operating expenses.

Taxes. For the first six months of 2012, our effective tax rate was 15.2% and our income tax provision was $18.6 million, as compared to an effective tax rate of 18.9% and an income tax provision of $21.5 million for the first six months of 2011. The lower effective tax rate for the first six months of 2012 resulted primarily from differences in the actual results of our subsidiaries in tax jurisdictions with different tax rates as compared to the first six months of 2011 and an income tax benefit of $3.3 million for a discrete item related to a change in estimate for an uncertain tax position.  Excluding this discrete tax benefit, our effective tax rate for the first six months of 2012 would have been 17.9%.

Net Income and Diluted Earnings per Common Share. Our net income for the first six months of 2012 was $95.0 million, an increase of $3.7 million, or 4.1%, as compared to the first six months of 2011. Diluted earnings per common share for the first six months of 2012 was $1.32 per common share, an increase of $0.04 per common share, or 3.1%, as compared to the first six months of 2011.

Non-GAAP Net Income and Non-GAAP Diluted Earnings per Common Share.  The following table sets forth the reconciliation between our net income and non-GAAP net income for the first six months of 2012 and 2011 (in thousands):

	For the Six Months ended
	June 30,
	2012		2011
Net income attributable to World Fuel	$	95,015	$	91,312
Share-based compensation expense, net of taxes	4,108		3,888
Intangible asset amortization expense, net of taxes	6,584		9,233
Non-GAAP net income attributable to World Fuel	$	105,707	$	104,433

The following table sets forth the reconciliation between our diluted earnings per common share and non-GAAP diluted earnings per common share for the first six months of 2012 and 2011:

	For the Six Months ended
	June 30,
	2012		2011
Diluted earnings per common share	$	1.32	$	1.28
Share-based compensation expense, net of taxes	0.06		0.05
Intangible asset amortization expense, net of taxes	0.09		0.13
Non-GAAP diluted earnings per common share	$	1.47	$	1.46

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The non-GAAP 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’s core operating results. We believe the exclusion of share-based compensation from operating expenses is useful given the variation in expense that can result from changes in the fair value of our common stock, the effect of which is unrelated to the operational conditions that give rise to variations in the components of our operating costs. Also, we believe the exclusion of the amortization of acquired intangible assets is useful for purposes of evaluating operating performance of our core operating results and comparing them period-over-period.  We believe that these non-GAAP financial measures, when considered in conjunction with our financial information prepared in accordance with GAAP, are useful to investors to further aid in evaluating the ongoing financial performance of the Company and to provide greater transparency as supplemental information to our GAAP results. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.  In addition, our presentation of non-GAAP net income and non-GAAP earnings per common share may not be comparable to the presentation of such metrics by other companies.  Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures.

Liquidity and Capital Resources

Cash Flows

The following table reflects the major categories of cash flows for the six months ended June 30, 2012 and 2011.  For additional details, please see the consolidated statements of cash flows.

	For the Six Months ended
	June 30,
	2012			2011
Net cash used in operating activities	$	(56,923	)	$	(137,699	)
Net cash used in investing activities	(38,605		)	(113,407		)
Net cash provided by financing activities	26,296			126,318

Operating Activities. For the six months ended June 30, 2012, net cash used in operating activities totaled $56.9 million as compared to net cash used in operating activities of $137.7 million for the first six months of 2011. The $80.8 million decrease in operating cash flows was primarily due to an increase in cash collateral deposits posted with financial counterparties, as well as changes in other net operating assets and liabilities, primarily net working capital and increased net income.

Investing Activities. For the six months ended June 30, 2012, net cash used in investing activities was $38.6 million as compared to $113.4 million for the first six months of 2011. The $74.8 million decrease in cash used in investing activities was primarily due to a reduction in cash used for the acquisition of businesses in the first six months of 2012 as compared to the first six months of 2011.

Financing activities.  For the six months ended June 30, 2012, net cash provided by financing activities was $26.3 million as compared to $126.3 million for the first six months of 2011.  The $100.0 million decrease in financing cash flows was primarily due to lower net borrowings under our Credit Facility in the first six months of 2012 as compared to the first six months of 2011.

Other Liquidity Measures

Cash and Cash Equivalents.  As of June 30, 2012 and December 31, 2011, we had cash and cash equivalents of $136.7 million and $205.4 million, respectively, of which $50.1 million of the December 31, 2011 balance was held by certain of our foreign subsidiaries and not available to fund our domestic operations without incurring additional costs.  Our primary uses of cash and cash equivalents are to fund accounts receivable, purchase inventory and make strategic investments, primarily acquisitions. We are usually extended unsecured trade credit from our suppliers for our fuel purchases; however, certain suppliers require us to either prepay or provide a letter of credit. Increases in oil prices can negatively affect liquidity by increasing the amount of cash needed to fund fuel purchases as well as reducing the amount of fuel which we can purchase on an unsecured basis from our suppliers.

Credit Facility and Term Loans.  We have a senior revolving credit facility (“Credit Facility”) which permits borrowings of up to $800.0 million with a sublimit of $300.0 million for the issuance of letters of credit and bankers’ acceptances. Under the Credit Facility, we have the right to request increases in available borrowings up to an additional $150.0 million, subject to the satisfaction of certain conditions. The Credit Facility expires in July 2016.  We had outstanding borrowings of $48.0 million as of June 30, 2012 and no outstanding borrowings as of December 31, 2011 under our Credit Facility.  Our issued letters of credit under the Credit Facility totaled $98.2 million and $45.3 million as of June 30, 2012 and December 31, 2011, respectively.  We also have $250.0 million in senior term loans (“Term Loans”), all of which were outstanding as of June 30, 2012.

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Our liquidity consisting of cash 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 and our Term Loans contain certain financial covenants with which we are required to comply. Our failure to comply with the financial covenants contained in our Credit Facility and our Term Loans could result in an event of default. An event of default, if not cured or waived, would permit acceleration of any outstanding indebtedness under the Credit Facility and our Term Loans, trigger cross-defaults under other agreements to which we are a party and impair our ability to obtain working capital advances and letters of credit, which would have a material adverse effect on our business, financial condition, results of operations and cash flows. As of June 30, 2012, we were in compliance with all financial covenants contained in our Credit Facility and our Term Loans.

Other Credit Lines. Additionally, we have other unsecured credit lines aggregating approximately $179.3 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 June 30, 2012 and December 31, 2011, our outstanding letters of credit and bank guarantees under these credit lines totaled $127.0 million and $122.3 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 June 30, 2012, we had sold accounts receivable of $96.1 million and recorded a retained beneficial interest of $14.3 million under the RPA.

Short-Term Debt. As of June 30, 2012, our short-term debt of $23.8 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 Loans 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

Except for changes in the contractual obligations and off-balance sheet arrangements described below, there were no other material changes from December 31, 2011 to June 30, 2012.  For a discussion of these matters, refer to “Contractual Obligations and Off-Balance Sheet Arrangements” in Item 7 of our 2011 10-K Report.

Contractual Obligations

Derivative Obligations.  As of June 30, 2012, our net derivative obligations were $20.2 million.

Purchase Commitment Obligations.  As of June 30, 2012, our purchase commitment obligations were $33.0 million.

Off-Balance Sheet Arrangements

Letters of Credit and Bank Guarantees. In the normal course of business, we are required to provide letters of credit to certain suppliers. A majority of these letters of credit expire within one year from their issuance, and expired letters of credit are renewed as needed. As of June 30, 2012, we had issued letters of credit and bank guarantees totaling $225.2 million under our Credit Facility and other unsecured credit lines. For additional information on our Credit Facility and credit lines, see the discussion thereof in “Liquidity and Capital Resources” above.

Recent Accounting Pronouncements

Information regarding recent accounting pronouncements is included in Note 1 - Significant Accounting Policies in the “Notes to the Consolidated Financial Statements” in this 10-Q Report.

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Item 3.  Quantitative and Qualitative Disclosures About Market Risk

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 fluctuations in foreign currency exchange rates.  We also enter into proprietary derivative transactions, primarily intended to capitalize on arbitrage opportunities related to basis or time spreads related to fuel products we sell.  We have applied the normal purchase and normal sales exception (“NPNS”), as provided by accounting guidance for derivative instruments and hedging activities, to certain of our physical forward sales and purchase contracts.  While these contracts are considered derivative instruments under the guidance for derivative instruments and hedging activities, they are not recorded at fair value, but rather are recorded in our consolidated financial statements when physical settlement of the contracts occurs.  If it is determined that a transaction designated as NPNS no longer meets the scope of the exception, the fair value of the related contract is recorded as an asset or liability on the consolidated balance sheet and the difference between the fair value and the contract amount is immediately recognized through earnings.

The following describes our derivative classifications:

Cash Flow Hedges.  Includes certain of our foreign currency forward contracts we enter into in order to mitigate the risk of currency exchange rate fluctuations.

Fair Value Hedges.  Includes derivatives we enter into in order to hedge price risk associated with our inventory and certain firm commitments relating to fixed price purchase and sale contracts.

Non-designated Derivatives.  Includes derivatives we primarily enter into in order to mitigate the risk of market price fluctuations in aviation, marine and land fuel in the form of swaps or futures as well as certain fixed price purchase and sale contracts and proprietary trading. In addition, non-designated derivatives are also entered into to hedge the risk of currency rate fluctuations.

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As of June 30, 2012, our derivative instruments, at their respective fair value positions were as follows (in thousands, except mark-to-market prices):

Hedge Strategy	Settlement Period	Derivative Instrument	Notional	Unit	Mark-to- Market Prices			Mark-to- Market
Fair Value Hedge	2012	Commodity contracts for inventory hedging (short)	63,331	GAL	$	(0.09	)	$	(5,551	)
	2012	Commodity contracts for inventory hedging (short)	48	MT	(34.90		)	(1,675		)
								$	(7,226	)
Non-Designated	2012	Commodity contracts (long)	222,725	GAL	$	(0.03	)	$	(6,486	)
	2012	Commodity contracts (short)	321,090	GAL	0.08			28,814
	2012	Commodity contracts (long)	4,792	MT	(19.26		)	(92,284		)
	2012	Commodity contracts (short)	3,366	MT	21.30			71,698
	2013	Commodity contracts (long)	16,298	GAL	(0.02		)	(263		)
	2013	Commodity contracts (short)	66,505	GAL	0.20			13,500
	2013	Commodity contracts (long)	1,702	MT	(28.62		)	(48,704		)
	2013	Commodity contracts (short)	600	MT	60.64			36,384
	2014	Commodity contracts (long)	3	MT	(42.00		)	(126		)
	2014	Commodity contracts (short)	6	MT	50.17			301
	2012	Foreign currency contracts (long)	13,442	CAD	0.01			110
	2012	Foreign currency contracts (short)	13,300	CAD	(0.01		)	(111		)
	2012	Foreign currency contracts (long)	1,758,457	CLP	(0.00		)	(5		)
	2012	Foreign currency contracts (short)	73,000	CLP	0.00			2
	2012	Foreign currency contracts (long)	2,069	EUR	0.01			11
	2012	Foreign currency contracts (short)	15,834	EUR	(0.00		)	(74		)
	2012	Foreign currency contracts (long)	19,812	GBP	0.00			6
	2012	Foreign currency contracts (short)	73,601	GBP	(0.00		)	(168		)
	2012	Foreign currency contracts (long)	182,641	MXN	0.00			119
	2012	Foreign currency contracts (short)	44,855	MXN	(0.00		)	(17		)
	2012	Foreign currency contracts (long)	491	AUD	0.02			8
	2012	Foreign currency contracts (short)	497	AUD	(0.02		)	(8		)
	2012	Foreign currency contracts (long)	2,336	BRL	0.01			12
	2012	Foreign currency contracts (short)	5,100	RON	(0.00		)	(17		)
	2012	Foreign currency contracts (short)	17,000	DKK	(0.00		)	(44		)
	2012	Foreign currency contracts (short)	14,200,000	COP	0.00			23
	2012	Foreign currency contracts (long)	7,000	SGD	0.00			23
	2012	Foreign currency contracts (short)	11,400	SGD	(0.01		)	(109		)
	2013	Foreign currency contracts (long)	27,715	GBP	(0.02		)	(439		)
	2013	Foreign currency contracts (short)	43,115	GBP	0.02			795
								$	2,946

Item 4.        Controls and Procedures

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 Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

As of the end of the period covered by this 10-Q Report, we evaluated, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, 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 Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2012.

29

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting during the quarter ended June 30, 2012.

It should be noted that any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system will be met. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of future events. Because of these and other inherent limitations of control systems, there is only the reasonable assurance that our controls will succeed in achieving their goals under all potential future conditions.

Part II — Other Information

Item 2.        Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

The following table presents information with respect to repurchases of common stock made by us during the quarterly period ended June 30, 2012 (in thousands, except average per share):

							Remaining Authorized
				Total Number	Total Cost of Common		Common
				of Common Shares Purchased	Shares Purchased		Stock Repurchases
	Total Number			as Part of Publicly	as Part of Publicly		under Publicly
	of Common Shares	Average Price		Announced Plans	Announced Plans		Announced Plans
Period	Purchased (1)	Per Common Share Paid		or Programs (2)	or Programs (2)		or Programs (2)
4/1/12-4/30/12	—	$	—	—	$	—	$	50,000
5/1/12-5/31/12	5	37.38		—	—		50,000
6/1/12-6/30/12	3	37.71		—	—		50,000
Total	8	$	37.50	—	$	—	$	50,000

(1)   These shares relate to the purchase of common stock tendered by employees to exercise share-based payment awards and satisfy the required withholding taxes related to share-based payment awards.

(2)   In October 2008, our Board of Directors authorized a $50.0 million common share repurchase program. The program does not require a minimum number of common shares to be purchased and has no expiration date but may be suspended or discontinued at any time.  As of June 30, 2012, no shares of our common stock had been repurchased under this program.  The timing and amount of common shares to be repurchased under the program will depend on market conditions, share price, securities law and other legal requirements and other factors.

Item 6.        Exhibits

The exhibits set forth in the following index of exhibits are filed as part of this 10-Q Report:

Exhibit No.	Description
10.1	Third Exhibit Update to the Receivables Purchase Agreement among World Fuel Services, Inc., World Fuel Services Europe, Ltd., World Fuel Services (Singapore) Pte Ltd, World Fuel Services Trading DMCC, World Fuel Services Aviation Limited as the sellers, World Fuel Services Corporation, as the parent, and Wells Fargo Bank, National Association, dated as of June 25, 2012.
31.1	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d — 14(a).
31.2	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d — 14(a).
32.1	Certification of Chief Executive Officer and Chief Financial Officer under Section 906 of the Sarbanes-Oxley Act of 2002.

30

101* The following materials from World Fuel Services Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, formatted in XBRL (Extensible Business Reporting Language); (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income and Comprehensive Income, (iii) Consolidated Statements of Shareholders’ Equity, (iv) Consolidated Statements of Cash Flows, and (v) Notes to the Consolidated Financial Statements.

*Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

31

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date:  August 1, 2012	World Fuel Services Corporation
	/s/ Michael J. Kasbar
	Michael J. Kasbar
	President and Chief Executive Officer
	/s/ Ira M. Birns
	Ira M. Birns
	Executive Vice-President and Chief Financial Officer

32

EX-10.1

Exhibit 10.1

THIRD EXHIBIT UPDATE, dated as of June 29, 2012 (the “Third Exhibit Update”), to the RECEIVABLES PURCHASE AGREEMENT, dated as of March 31, 2011, as amended through the date hereof, the “Receivables Purchase Agreement”), among (i) WORLD FUEL SERVICES, INC., a Texas corporation, WORLD FUEL SERVICES EUROPE, LTD., a company organized under the laws of England and Wales (together with its successors and assigns, “WFSE”), WORLD FUEL SERVICES (SINGAPORE) PTE LTD, a company organized under the laws of Singapore (together with its successors and assigns, “WFSS”), WORLD FUEL SERVICES TRADING DMCC, a company organized under rules and regulations of the Dubai Multi Commodities Center and the laws of Dubai (together with its successors and assigns, “WFST”), and WORLD FUEL SERVICES AVIATION LIMITED a private limited liability company organized under the laws of England and Wales (together with its successors and assigns “WFSA”; WFSI, WFSE, WFSS, WFST and WFSA, together with its and their successors and assigns, each individually, “Seller”, and also collectively, as applicable, “Seller”), (ii) WORLD FUEL SERVICES CORPORATION, a Florida corporation (together with its successors and assigns, “Parent”), and (iii) WELLS FARGO BANK, NATIONAL ASSOCIATION, a U.S. national banking association (together with its successors and permitted assigns, “Wells”).  Terms not otherwise defined herein shall have the meanings set forth in the Receivables Purchase Agreement.

1.             Third Exhibit Update.  Seller, Parent and Wells hereby agree to substitute Exhibit A to the Receivables Purchase Agreement with the new Exhibit A attached to this Third Exhibit Update, effective as of June 25, 2012.

2.             Governing Law; Consent to Jurisdiction.  This Third Exhibit Update, and the Receivables Purchase Agreement as so amended by this Third Exhibit Update, shall be interpreted in accordance with and governed by the laws of the State of New York without giving effect to conflicts of law principles that would cause the application of the law of any jurisdiction other than the laws of the State of New York.

3.             Execution in Counterparts.  This Third Exhibit Update may be executed in any number of counterparts, each of which shall be an original, but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this Third Exhibit Update by PDF copy, telefacsimile or other electronic means shall have the same force and effect as the delivery of an original executed counterpart of this Third Exhibit Update.

IN WITNESS WHEREOF each Seller, Wells and Parent have caused this Third Exhibit Update to be executed by their respective officers thereunto duly authorized as of the date first above written.

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Purchaser
By:	/s/ Barbara Van Meerten
	Name: Barbara Van Meerten
	Title: Director

2

WORLD FUEL SERVICES, INC.,
as a Seller
By:	/s/ Adrienne B. Urban
	Name: Adrienne B. Urban
	Title: Vice President, Treasurer

3

WORLD FUEL SERVICES EUROPE, LTD.,
as a Seller
By:	/s/ Adrienne B. Urban
	Name: Adrienne B. Urban
	Title: Director

4

WORLD FUEL SERVICES (SINGAPORE) PTE LTD,
as a Seller
By:	/s/ Francis Lee
	Name: Francis Lee
	Title: Managing Director

5

WORLD FUEL SERVICES TRADING DMCC,
as a Seller
By:	/s/ Timothy R. Bingham
	Name: Timothy R. Bingham
	Title: Director & General Manager

6

WORLD FUEL SERVICES AVIATION LIMITED,
as a Seller
By:	/s/ Anthony Key
	Name: Anthony Miles Key
	Title: Vice President, Finance

7

WORLD FUEL SERVICES CORPORATION,
as Parent
By:	/s/ Adrienne B. Urban
	Name: Adrienne B. Urban
	Title: Vice President, Treasurer

8

EXHIBIT A
List of Account Debtors*

APL Co. Pte Ltd	Purchase Limit (Aggregate) until 6/30/12:	$12,310,000
	Purchase Limit (Aggregate) on and following 6/30/12:	$0
	Maximum Invoice Terms:	30 days
BHP Billiton Marketing AG	Purchase Limit (Aggregate): Maximum Invoice Terms:	$7,200,000 30 days
Cathay Pacific Airways Ltd.	Purchase Limit (Aggregate): Maximum Invoice Terms:	$9,500,000 30 days
Deutsche Lufthansa AG (parent) Austrian Airlines AG (subsidiary) Lufthansa Cargo AG (subsidiary) Swiss International Airlines AG (subsidiary) Deutsche Lufthansa Aktiengessellschaft (subsidiary)	Purchase Limit (Aggregate): Maximum Invoice Terms:	$8,700,000 30 days
Edelweiss Air AG	Purchase Limit (Aggregate): Maximum Invoice Terms:	$300,000 30 days
Kawasaki Kisen Kaisha Ltd. (parent) K Line Pte Ltd (subsidiary) K Line Global Bulk (subsidiary)	Purchase Limit (Aggregate): Maximum Invoice Terms:	$12,150,000 40 days
Nippon Yusen Kaisha (NYK) NYK Global Bulk (subsidiary)	Purchase Limit (Aggregate): Maximum Invoice Terms:	$9,540,000 40 days
Noble Group Ltd. (parent) Noble Chartering, Inc. (subsidiary)	Purchase Limit (Aggregate): Maximum Invoice Terms:	$6,100,000 30 days
NYK Trading Corporation	Purchase Limit (Aggregate): Maximum Invoice Terms:	$6,210,000 30 days
Singapore Airlines Ltd. (parent) Singapore Airlines Cargo Pte Ltd. (subsidiary) SilkAir (Singapore) Private Limited (subsidiary)	Purchase Limit (Aggregate): Maximum Invoice Terms:	$6,500,000 30 days
Vale International, S.A.	Purchase Limit (Aggregate): Maximum Invoice Terms:	$9,500,000 30 days

D-3-1

Federal Express Corporation	Purchase Limit (Aggregate): Maximum Invoice Terms:	$4,500,000 30 days
DHL Express (USA) Inc.	Purchase Limit (Aggregate): Maximum Invoice Terms:	$4,000,000 30 days
DLA Contract # SP0600-09-D-1012	Purchase Limit (Aggregate): Maximum Invoice Terms:	$50,000,000 30 days
DLA Contract # SP0600-10-D-0051	Purchase Limit (Aggregate): Maximum Invoice Terms:	$50,000,000 30 days
DLA Contract # SP0600-11-D-1013	Purchase Limit (Aggregate): Maximum Invoice Terms:	$50,000,000 30 days
DLA Contract # SP0600-12-D-1002	Purchase Limit (Aggregate): Maximum Invoice Terms:	$50,000,000 30 days

* Each Purchase Limit reflects the aggregate Purchase Limit for the applicable parent and its subsidiaries, if any, that are listed beneath such parent on this Exhibit A. Pursuant to Section 1.18(a) of this Agreement, in order to be an Eligible Receivable, the Receivable must be evidenced by an invoice or other documentation delivered to the Account Debtor (or a subsidiary of an Account Debtor, of which such Account Debtor directly owns more than 50% of the voting share capital and which is listed on this Exhibit A), which by its terms is due and payable by the Due Date, provided that the Due Date with respect to the Receivable is no greater than the number of days after the Purchase Date than the number of days designated as the “Maximum Invoice Term” for each Account Debtor set forth on this Exhibit A.

D-3-2

EX-31.1

Exhibit 31.1

Certification of the Chief Executive Officer

Pursuant to

Rule 13a-14(a) or 15d — 14(a)

I, Michael J. Kasbar, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of World Fuel Services Corporation for the quarterly period ended June 30, 2012;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a -15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  August 1, 2012
	/s/ Michael J. Kasbar
	Michael J. Kasbar
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of the Chief Financial Officer

Pursuant to

Rule 13a-14(a) or 15d — 14(a)

I, Ira M. Birns, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of World Fuel Services Corporation for the quarterly period ended June 30, 2012;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a -15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  August 1, 2012
	/s/ Ira M. Birns
	Ira M. Birns
	Executive Vice-President and Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of Chief Executive Officer and Chief Financial Officer

under Section 906 of the Sarbanes-Oxley Act of 2002

(18 U.S.C. § 1350)

We, Michael J. Kasbar, the President and Chief Executive Officer of World Fuel Services Corporation (the “Company”), and Ira M. Birns, the 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 Quarterly Report on Form 10-Q of the Company for the quarterly period ended June 30, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

(ii)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  August 1, 2012

/s/ Michael J. Kasbar

Michael J. Kasbar

President and Chief Executive Officer

/s/ Ira M. Birns

Ira M. Birns

Executive Vice-President and Chief Financial Officer

The foregoing certification is being furnished as an exhibit to the Report pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 and, accordingly, is not being filed with the Securities and Exchange Commission as part of the Report and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934 (whether made before or after the date of the Report, irrespective of any general incorporation language contained in such filing).

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Fair Value Measurements (Details 3) (2009 Acquisitions, USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012 Y	Mar. 31, 2011
2009 Acquisitions
Earn-out
Number of years over which certain operating income targets must be achieved	3
Fair value of the earn-out liability	$ 4.3	$ 5.2
Change in unrealized gains relating to foreign currency translation	$ 0.1	$ 0.1

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Derivatives (Details) In Thousands, unless otherwise specified	Mar. 31, 2012 Derivatives designated as hedging instruments USD ($)	Mar. 31, 2012 Derivatives not designated as hedging instruments USD ($)	Mar. 31, 2012 Commodity contract (long) 2012 GAL Derivatives designated as hedging instruments USD ($) USDPerGAL	Mar. 31, 2012 Commodity contract (long) 2012 GAL Derivatives not designated as hedging instruments USD ($) USDPerGAL	Mar. 31, 2012 Commodity contract (long) 2012 MT Derivatives not designated as hedging instruments USD ($) USDPerMetricTon	Mar. 31, 2012 Commodity contract (long) 2013 GAL Derivatives not designated as hedging instruments USD ($) USDPerGAL	Mar. 31, 2012 Commodity contract (long) 2013 MT Derivatives not designated as hedging instruments USD ($) USDPerMetricTon	Mar. 31, 2012 Commodity contract (long) 2014 MT Derivatives not designated as hedging instruments USD ($) USDPerMetricTon	Mar. 31, 2012 Commodity contract (short) 2012 GAL Derivatives designated as hedging instruments USD ($) USDPerGAL	Mar. 31, 2012 Commodity contract (short) 2012 GAL Derivatives not designated as hedging instruments USD ($) USDPerGAL	Mar. 31, 2012 Commodity contract (short) 2012 MT Derivatives not designated as hedging instruments USD ($) USDPerMetricTon	Mar. 31, 2012 Commodity contract (short) 2013 GAL Derivatives not designated as hedging instruments USD ($) USDPerGAL	Mar. 31, 2012 Commodity contract (short) 2013 MT Derivatives not designated as hedging instruments USD ($) USDPerMetricTon	Mar. 31, 2012 Commodity contract (short) 2014 MT Derivatives not designated as hedging instruments USD ($) USDPerMetricTon	Mar. 31, 2012 Commodity contract inventory (short) 2012 GAL Derivatives designated as hedging instruments USD ($) USDPerGAL	Mar. 31, 2012 Commodity contract inventory (short) 2012 MT Derivatives designated as hedging instruments USD ($) USDPerMetricTon	Mar. 31, 2012 Foreign currency contracts (long) 2012 BRL Derivatives not designated as hedging instruments USD ($) USDPerBRL	Mar. 31, 2012 Foreign currency contracts (long) 2012 BRL Derivatives not designated as hedging instruments	Mar. 31, 2012 Foreign currency contracts (long) 2012 CAD Derivatives not designated as hedging instruments USD ($) USDPerCAD	Mar. 31, 2012 Foreign currency contracts (long) 2012 CAD Derivatives not designated as hedging instruments	Mar. 31, 2012 Foreign currency contracts (long) 2012 CLP Derivatives not designated as hedging instruments USD ($) USDPerCLP	Mar. 31, 2012 Foreign currency contracts (long) 2012 CLP Derivatives not designated as hedging instruments	Mar. 31, 2012 Foreign currency contracts (long) 2012 EUR Derivatives not designated as hedging instruments USD ($) USDPerEUR	Mar. 31, 2012 Foreign currency contracts (long) 2012 EUR Derivatives not designated as hedging instruments EUR (€)	Mar. 31, 2012 Foreign currency contracts (long) 2012 GBP Derivatives not designated as hedging instruments USD ($) USDPerGBP	Mar. 31, 2012 Foreign currency contracts (long) 2012 GBP Derivatives not designated as hedging instruments GBP (£)	Mar. 31, 2012 Foreign currency contracts (long) 2012 MXN Derivatives not designated as hedging instruments USD ($) USDPerMXN	Mar. 31, 2012 Foreign currency contracts (long) 2012 MXN Derivatives not designated as hedging instruments	Mar. 31, 2012 Foreign currency contracts (long) 2012 AUD Derivatives not designated as hedging instruments USD ($) USDPerAUD	Mar. 31, 2012 Foreign currency contracts (long) 2012 AUD Derivatives not designated as hedging instruments	Mar. 31, 2012 Foreign currency contracts (long) 2013 GBP Derivatives not designated as hedging instruments USD ($) USDPerGBP	Mar. 31, 2012 Foreign currency contracts (long) 2013 GBP Derivatives not designated as hedging instruments GBP (£)	Mar. 31, 2012 Foreign currency contracts (short) 2012 BRL Derivatives not designated as hedging instruments USD ($) USDPerBRL	Mar. 31, 2012 Foreign currency contracts (short) 2012 BRL Derivatives not designated as hedging instruments	Mar. 31, 2012 Foreign currency contracts (short) 2012 CAD Derivatives not designated as hedging instruments USD ($) USDPerCAD	Mar. 31, 2012 Foreign currency contracts (short) 2012 CAD Derivatives not designated as hedging instruments	Mar. 31, 2012 Foreign currency contracts (short) 2012 EUR Derivatives not designated as hedging instruments USD ($) USDPerEUR	Mar. 31, 2012 Foreign currency contracts (short) 2012 EUR Derivatives not designated as hedging instruments EUR (€)	Mar. 31, 2012 Foreign currency contracts (short) 2012 GBP Derivatives not designated as hedging instruments USD ($) USDPerGBP	Mar. 31, 2012 Foreign currency contracts (short) 2012 GBP Derivatives not designated as hedging instruments GBP (£)	Mar. 31, 2012 Foreign currency contracts (short) 2012 MXN Derivatives not designated as hedging instruments USD ($) USDPerMXN	Mar. 31, 2012 Foreign currency contracts (short) 2012 MXN Derivatives not designated as hedging instruments	Mar. 31, 2012 Foreign currency contracts (short) 2012 AUD Derivatives not designated as hedging instruments USD ($) USDPerAUD	Mar. 31, 2012 Foreign currency contracts (short) 2012 AUD Derivatives not designated as hedging instruments	Mar. 31, 2012 Foreign currency contracts (short) 2012 DKK Derivatives not designated as hedging instruments USD ($) USDPerDKK	Mar. 31, 2012 Foreign currency contracts (short) 2012 DKK Derivatives not designated as hedging instruments	Mar. 31, 2012 Foreign currency contracts (short) 2012 COP Derivatives not designated as hedging instruments USD ($) USDPerCOP	Mar. 31, 2012 Foreign currency contracts (short) 2012 COP Derivatives not designated as hedging instruments	Mar. 31, 2012 Foreign currency contracts (short) 2013 GBP Derivatives not designated as hedging instruments USD ($) USDPerGBP	Mar. 31, 2012 Foreign currency contracts (short) 2013 GBP Derivatives not designated as hedging instruments GBP (£)
Derivative instruments, at their respective fair value positions
Fair Value Hedge, Notional value of commodity contracts			992,000						3,780,000						50,384,000	72,000
Mark-to-Market Prices of fair value hedge commodity contracts			0.18						(0.08)						0.06	6.36
Mark-to-Market value of fair value hedge commodity contracts			$ 179						$ (318)						$ 2,848	$ 458
Non-Designated, Notional value of commodity contracts				128,366,000	2,678,000	4,516,000	73,000	3,000		199,585,000	2,235,000	9,670,000	31,000	6,000
Mark-to-Market Prices of non-designated commodity contracts				0.08	49.70	0.24	23.38	20.33		(0.11)	(47.07)	(0.05)	(42.23)	(11.67)
Mark-to-Market value of non-designated commodity contracts				10,610	133,103	1,106	1,707	61		(21,789)	(105,170)	(470)	(1,309)	(70)
Non-Designated, Notional amount of foreign currency contracts																		893		8,636		2,289,069		636		14,947		164,573		27		10,430		2,623		15,236		16,000		90,806		69,684		269		11,001		21,800,000		23,315
Mark-to-Market Prices of non-designated foreign currency contracts																	0.03	0.03	0.00	0.00	0.00	0.00	0.02	0.02	0.01	0.01	0.00	0.00	(0.04)	(0.04)	0.00	0.00	(0.02)	(0.02)	0.00	0.00	0.00	0.00	(0.01)	(0.01)	0.00	0.00	0.02	0.02	0.00	0.00	0.00	0.00	0.00	0.00
Mark-to-Market value of non-designated foreign currency contracts																	26		(29)		(43)		14		208		(104)		(1)		24		(63)		(11)		(50)		(1,160)		44		5		(2)		(23)		41
Mark-to-Market, Total	$ 3,167	$ 16,655

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Significant Accounting Policies

3 Months Ended

Mar. 31, 2012

Significant Accounting Policies

Significant Accounting Policies

1.     Significant Accounting Policies

Except as updated below, the significant accounting policies we use for quarterly financial reporting are the same as those disclosed in Note 1 of the “Notes to the Consolidated Financial Statements” included in our 2011 10-K Report.

Basis of Presentation

The accompanying consolidated financial statements and related notes to the consolidated financial statements include our accounts and those of our majority-owned or controlled subsidiaries, after elimination of all significant intercompany accounts, transactions, and profits.

Certain amounts in prior periods have been reclassified to conform to the current period’s presentation.

Accounts Receivable Purchase Agreement

As of March 31, 2012, we had sold accounts receivable of $58.1 million and recorded a retained beneficial interest of $8.6 million.  During the three months ended March 31, 2012 and 2011, the fees and interest paid under a receivables purchase agreement were not significant.

Goodwill

During the three months ended March 31, 2012, based on our ongoing fair value assessment of certain of our 2011 acquisitions, we reclassified $2.9 million in goodwill from our aviation segment to our land segment and increased aviation segment goodwill by $1.8 million as a result of the reclassification of $1.1 million from identifiable intangible assets and a $0.7 million purchase price adjustment.  We had an additional goodwill increase of $0.2 million as a result of foreign currency translation adjustments of our Brazilian subsidiary in our marine segment.

Extinguishment of Liability

In the normal course of business, we accrue liabilities for fuel and services received for which invoices have not yet been received.  These liabilities are derecognized, or extinguished, if either (i) payment is made to relieve our obligation for the liability or (ii) we are legally released from our obligation for the liability, such as when our legal obligations with respect to such liabilities lapse or otherwise no longer exist.  During the three months ended March 31, 2012, we derecognized vendor liability accruals in the amount of $3.5 million, as compared to $0.8 million during the three months ended March 31, 2011, which is reflected as a reduction of cost of revenue in the accompanying consolidated statements of income and comprehensive income.

Recent Accounting Pronouncements

Disclosure About Offsetting Assets and Liabilities.  In December 2011, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) which requires companies to disclose information about financial instruments that have been offset and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. Companies will be required to provide both net (offset amounts) and gross information in the notes to the financial statements for relevant assets and liabilities that are offset. This update is effective at the beginning of our 2013 fiscal year and will be applied retrospectively. We do not believe adoption of this new guidance will have a significant impact on our consolidated financial statements and disclosures.

Disclosure Relating to Comprehensive Income.  In June 2011, the FASB issued an ASU aimed at increasing the prominence of items reported in other comprehensive income in the financial statements. This update requires companies to present comprehensive income in a single statement below net income or in a separate statement of comprehensive income immediately following the income statement. This ASU became effective on a retrospective basis at the beginning of our 2012 fiscal year.  In December 2011, the FASB issued an ASU to defer the effective date of the specific requirement to present items that are reclassified out of accumulated other comprehensive income to net income alongside their respective components of net income and other comprehensive income. All other provisions of this update are currently in effect.  The adoption of this ASU resulted in the inclusion of consolidated statements of comprehensive income for the periods presented below the consolidated statements of income.

Fair Value Measurements.  In May 2011, the FASB issued an ASU to provide a consistent definition of fair value and common requirements for measurement and disclosure of fair value between International Financial Reporting Standards and U.S. Generally Accepted Accounting Principles. This ASU changes some fair value measurement principles and enhances disclosure requirements related to activities in Level 3 of the fair value hierarchy. The guidance became effective on a prospective basis at the beginning of our 2012 fiscal year. The adoption of this ASU did not have a material impact on our consolidated financial statements and disclosures.

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Interest Expense and Other Financing Costs, net (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Interest income, expense and other financing costs
Interest income	$ 272	$ 79
Interest expense and other financing costs	(4,933)	(2,604)
Total interest income, expense and other financing costs	$ (4,661)	$ (2,525)

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Earnings per Common Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Numerator:
Net income attributable to World Fuel	$ 46,415	$ 41,109
Denominator:
Weighted average common shares for basic earnings per common share	70,998	69,970
Effect of dilutive securities (in shares)	776	1,012
Weighted average common shares for diluted earnings per common share	71,774	70,982
Weighted average anti-dilutive securities which are not included in the calculation of diluted earnings per common share (in shares)	54
Basic earnings per common share (in dollars per share)	$ 0.65	$ 0.59
Diluted earnings per common share (in dollars per share)	$ 0.65	$ 0.58

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Income Taxes (Details) (USD $)	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Income Taxes
Income tax provision	$ 6,615,000	$ 10,415,000
Effective income tax rate (as a percent)	12.00%	20.00%
Income tax benefit due to change in estimate related to uncertain tax position	$ 3,300,000

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Fair Value Measurements (Details) (USD $)	Mar. 31, 2012 Netting and Collateral	Dec. 31, 2011 Netting and Collateral	Mar. 31, 2012 Fair value measured on recurring basis Level 1	Dec. 31, 2011 Fair value measured on recurring basis Level 1	Mar. 31, 2012 Fair value measured on recurring basis Level 1 Commodity contracts	Dec. 31, 2011 Fair value measured on recurring basis Level 1 Commodity contracts	Mar. 31, 2012 Fair value measured on recurring basis Level 2	Dec. 31, 2011 Fair value measured on recurring basis Level 2	Mar. 31, 2012 Fair value measured on recurring basis Level 2 Commodity contracts	Dec. 31, 2011 Fair value measured on recurring basis Level 2 Commodity contracts	Mar. 31, 2012 Fair value measured on recurring basis Level 2 Foreign currency contracts	Dec. 31, 2011 Fair value measured on recurring basis Level 2 Foreign currency contracts	Apr. 27, 2012 Fair value measured on recurring basis Level 2 Hedged item inventories	Dec. 31, 2011 Fair value measured on recurring basis Level 2 Hedged item inventories	Mar. 31, 2012 Fair value measured on recurring basis Level 2 Hedged item commitments	Dec. 31, 2011 Fair value measured on recurring basis Level 2 Hedged item commitments	Mar. 31, 2012 Fair value measured on recurring basis Level 3	Dec. 31, 2011 Fair value measured on recurring basis Level 3	Mar. 31, 2012 Fair value measured on recurring basis Level 3 Earn-out	Dec. 31, 2011 Fair value measured on recurring basis Level 3 Earn-out	Mar. 31, 2012 Fair value measured on recurring basis Sub-Total	Dec. 31, 2011 Fair value measured on recurring basis Sub-Total	Mar. 31, 2012 Fair value measured on recurring basis Sub-Total Commodity contracts	Dec. 31, 2011 Fair value measured on recurring basis Sub-Total Commodity contracts	Mar. 31, 2012 Fair value measured on recurring basis Sub-Total Foreign currency contracts	Dec. 31, 2011 Fair value measured on recurring basis Sub-Total Foreign currency contracts	Apr. 27, 2012 Fair value measured on recurring basis Sub-Total Hedged item inventories	Dec. 31, 2011 Fair value measured on recurring basis Sub-Total Hedged item inventories	Mar. 31, 2012 Fair value measured on recurring basis Sub-Total Hedged item commitments	Dec. 31, 2011 Fair value measured on recurring basis Sub-Total Hedged item commitments	Mar. 31, 2012 Fair value measured on recurring basis Sub-Total Earn-out	Dec. 31, 2011 Fair value measured on recurring basis Sub-Total Earn-out	Mar. 31, 2012 Fair value measured on recurring basis Netting and Collateral	Dec. 31, 2011 Fair value measured on recurring basis Netting and Collateral	Mar. 31, 2012 Fair value measured on recurring basis Netting and Collateral Commodity contracts	Dec. 31, 2011 Fair value measured on recurring basis Netting and Collateral Commodity contracts	Mar. 31, 2012 Fair value measured on recurring basis Netting and Collateral Foreign currency contracts	Dec. 31, 2011 Fair value measured on recurring basis Netting and Collateral Foreign currency contracts	Mar. 31, 2012 Fair value measured on recurring basis Netting and Collateral Hedged item commitments	Mar. 31, 2012 Fair value measured on recurring basis Total	Dec. 31, 2011 Fair value measured on recurring basis Total	Mar. 31, 2012 Fair value measured on recurring basis Total Commodity contracts	Dec. 31, 2011 Fair value measured on recurring basis Total Commodity contracts	Mar. 31, 2012 Fair value measured on recurring basis Total Foreign currency contracts	Dec. 31, 2011 Fair value measured on recurring basis Total Foreign currency contracts	Apr. 27, 2012 Fair value measured on recurring basis Total Hedged item inventories	Dec. 31, 2011 Fair value measured on recurring basis Total Hedged item inventories	Mar. 31, 2012 Fair value measured on recurring basis Total Hedged item commitments	Dec. 31, 2011 Fair value measured on recurring basis Total Hedged item commitments	Mar. 31, 2012 Fair value measured on recurring basis Total Earn-out	Dec. 31, 2011 Fair value measured on recurring basis Total Earn-out
Assets:
Notes receivable							$ 7,000,000	$ 6,800,000
Total assets			33,122,000	14,038,000	33,122,000	14,038,000	135,287,000	57,449,000	133,574,000	51,033,000	1,270,000	2,994,000		3,216,000	443,000	206,000					168,409,000	71,487,000	166,696,000	65,071,000	1,270,000	2,994,000		3,216,000	443,000	206,000			(129,261,000)	(44,168,000)	(128,148,000)	(43,275,000)	(1,086,000)	(893,000)	(27,000)	39,148,000	27,319,000	38,548,000	21,796,000	184,000	2,101,000		3,216,000	416,000	206,000
Liabilities:
Debt under Term Loan Facility							250,000,000	250,000,000
All other debt																	35,700,000	37,100,000
Total liabilities			25,534,000	10,148,000	25,534,000	10,148,000	123,205,000	47,796,000	120,216,000	46,754,000	2,394,000	1,018,000	438,000	24,000	157,000		4,323,000	4,194,000	4,323,000	4,194,000	153,062,000	62,138,000	145,750,000	56,902,000	2,394,000	1,018,000	438,000	24,000	157,000		4,323,000	4,194,000	(104,978,000)	(44,184,000)	(103,865,000)	(43,291,000)	(1,086,000)	(893,000)	(27,000)	48,084,000	17,954,000	41,885,000	13,611,000	1,308,000	125,000	438,000	24,000	130,000		4,323,000	4,194,000
Fair value measurement, additional disclosure
Amount recognized for the obligation to return cash collateral	24,700,000	1,000,000
Amount recognized for the right to reclaim cash collateral	$ 400,000	$ 800,000

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Consolidated Statements of Cash Flows (Parenthetical) (USD $)	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Supplemental Schedule of Noncash Investing and Financing Activities:
Cash dividends declared (in dollars per share)	$ 0.0375	$ 0.0375
Cash dividends declared, but not yet paid	$ 2,700,000	$ 2,600,000
Capital expenditure accrual	900,000
Increase in goodwill purchase price adjustment	700,000
Issuance of equity awards to employees in grant	2,700,000	1,500,000
Equity issued for acquisition		27,500,000
Assets acquired, net of cash		127,360,000
Liabilities assumed		$ 32,979,000

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Fair Value Measurements (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Change in fair value of assets and liabilities measured on recurring basis, utilized Level 3 inputs
Beginning of Period, (Liabilities) Assets	$ (4,194)	$ (4,922)
Realized and Unrealized Losses Included in Earnings	(129)	(139)
Settlements		(90)
End of Period, Liabilities	(4,323)	(5,151)
Change in Unrealized Losses Relating to Instruments Still Held as of end of Period	(129)	(139)
Commodity contracts, net
Change in fair value of assets and liabilities measured on recurring basis, utilized Level 3 inputs
Beginning of Period, (Liabilities) Assets		90
Settlements		(90)
Earn-out
Change in fair value of assets and liabilities measured on recurring basis, utilized Level 3 inputs
Beginning of Period, (Liabilities) Assets	(4,194)	(5,012)
Realized and Unrealized Losses Included in Earnings	(129)	(139)
End of Period, Liabilities	(4,323)	(5,151)
Change in Unrealized Losses Relating to Instruments Still Held as of end of Period	$ (129)	$ (139)

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 242,593	$ 205,415
Accounts receivable, net	2,290,085	2,160,561
Inventories	450,285	472,584
Prepaid expenses	172,990	109,297
Other current assets	200,680	174,370
Total current assets	3,356,633	3,122,227
Property and equipment, net	89,509	90,710
Goodwill	348,214	346,246
Identifiable intangible assets, net	101,943	107,620
Non-current other assets	29,505	30,443
Total assets	3,925,804	3,697,246
Current liabilities:
Short-term debt	20,516	17,800
Accounts payable	1,880,861	1,739,678
Customer deposits	83,907	105,554
Accrued expenses and other current liabilities	225,450	163,110
Total current liabilities	2,210,734	2,026,142
Long-term debt	265,147	269,348
Non-current income tax liabilities, net	46,194	47,703
Other long-term liabilities	8,153	7,335
Total liabilities	2,530,228	2,350,528
Commitments and contingencies
World Fuel shareholders' equity:
Preferred stock, $1.00 par value; 100 shares authorized, none issued
Common stock, $0.01 par value; 100,000 shares authorized, 71,887 and 71,154 issued and outstanding as of March 31, 2012 and December 31, 2011, respectively	719	712
Capital in excess of par value	503,636	502,551
Retained earnings	879,973	836,222
Accumulated other comprehensive loss	(3,717)	(6,524)
Total World Fuel shareholders' equity	1,380,611	1,332,961
Noncontrolling interest equity	14,965	13,757
Total equity	1,395,576	1,346,718
Total liabilities and equity	$ 3,925,804	$ 3,697,246

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Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2011
Consolidated Statements of Shareholders' Equity
Issuance of shares related to share-based payment awards, income tax benefit	$ 2,915

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Business Segments (Details 2) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Accounts receivable, net:
Accounts receivable, net	$ 2,290,085	$ 2,160,561
Total assets:
Total assets	3,925,804	3,697,246
Aviation segment
Accounts receivable, net:
Accounts receivable, net	608,959	569,086
Allowance for bad debt	8,419	8,441
Total assets:
Total assets	1,290,714	1,149,031
Marine segment
Accounts receivable, net:
Accounts receivable, net	1,260,189	1,261,340
Allowance for bad debt	9,422	9,495
Total assets:
Total assets	1,573,637	1,568,378
Land segment
Accounts receivable, net:
Accounts receivable, net	420,937	330,135
Allowance for bad debt	6,456	6,365
Total assets:
Total assets	932,108	816,595
Corporate
Total assets:
Total assets	$ 129,345	$ 163,242

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2012

Fair Value Measurements

Schedule of assets and liabilities measured at fair value on a recurring basis

	Level 1		Level 2		Level 3		Sub-Total		Netting and Collateral			Total
As of March 31, 2012
Assets:
Commodity contracts	$	33,122	$	133,574	$	—	$	166,696	$	(128,148	)	$	38,548
Foreign currency contracts	—		1,270		—		1,270		(1,086		)	184
Hedged item commitments	—		443		—		443		(27		)	416
Total	$	33,122	$	135,287	$	—	$	168,409	$	(129,261	)	$	39,148
Liabilities:
Commodity contracts	$	25,534	$	120,216	$	—	$	145,750	$	(103,865	)	$	41,885
Foreign currency contracts	—		2,394		—		2,394		(1,086		)	1,308
Hedged item inventories	—		438		—		438		—			438
Hedged item commitments	—		157		—		157		(27		)	130
Earn-out	—		—		4,323		4,323		—			4,323
Total	$	25,534	$	123,205	$	4,323	$	153,062	$	(104,978	)	$	48,084
As of December 31, 2011
Assets:
Commodity contracts	$	14,038	$	51,033	$	—	$	65,071	$	(43,275	)	$	21,796
Foreign currency contracts	—		2,994		—		2,994		(893		)	2,101
Hedged item inventories	—		3,216		—		3,216		—			3,216
Hedged item commitments	—		206		—		206		—			206
Total	$	14,038	$	57,449	$	—	$	71,487	$	(44,168	)	$	27,319
Liabilities:
Commodity contracts	$	10,148	$	46,754	$	—	$	56,902	$	(43,291	)	$	13,611
Foreign currency contracts	—		1,018		—		1,018		(893		)	125
Hedged item inventories	—		24		—		24		—			24
Earn-out	—		—		4,194		4,194		—			4,194
Total	$	10,148	$	47,796	$	4,194	$	62,138	$	(44,184	)	$	17,954

Schedule of assets and liabilities that are measured at fair value on a recurring basis that utilized Level 3 inputs

	Beginning of Period, (Liabilities) Assets			Realized and Unrealized Losses Included in Earnings			Settlements			End of Period, Liabilities			Change in Unrealized Losses Relating to Instruments Still Held as of end of Period
Three months ended March 31, 2012
Earn-out	(4,194		)	(129		)	—			(4,323		)	(129		)
Total	$	(4,194	)	$	(129	)	$	—		$	(4,323	)	$	(129	)
Three months ended March 31, 2011
Commodity contracts, net	$	90		$	—		$	(90	)	$	—		$	—
Earn-out	(5,012		)	(139		)	—			(5,151		)	(139		)
Total	$	(4,922	)	$	(139	)	$	(90	)	$	(5,151	)	$	(139	)

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Significant Accounting Policies (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Accounts Receivable Purchase Agreement
Accounts receivable sold	$ 58.1
Retained beneficial interest recorded	8.6
Goodwill
Change in goodwill due to reclassification adjustments	2.9
Segment goodwill increase	1.8
Change in goodwill due to foreign currency translation adjustments	0.2
Intangible asset reclassed to goodwill	1.1
Increase in goodwill purchase price adjustment	0.7
Extinguishment of Liability
Derecognized vendor liability accruals amount	$ 3.5	$ 0.8

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Cash flows from operating activities:
Net income including noncontrolling interest	$ 48,546	$ 41,657
Adjustments to reconcile net income including noncontrolling interest to net cash provided by (used in) operating activities:
Depreciation and amortization	9,659	8,167
Provision for bad debt	141	796
Share-based payment award compensation costs	2,904	2,865
Deferred income tax provision	10,730	123
Extinguishment of liabilities	(3,490)	(819)
Foreign currency losses (gains), net	2,274	(818)
Other	(743)	446
Changes in assets and liabilities, net of acquisitions:
Accounts receivable, net	(127,281)	(457,573)
Inventories	23,010	(64,061)
Prepaid expenses	(63,607)	7,476
Other current assets	(35,155)	(12,223)
Non-current other assets	280	960
Accounts payable	143,990	331,061
Customer deposits	(22,336)	(9,407)
Accrued expenses and other current liabilities	62,665	6,923
Non-current income tax, net and other long-term liabilities	(2,795)	(59)
Total adjustments	246	(186,143)
Net cash provided by (used in) operating activities	48,792	(144,486)
Cash flows from investing activities:
Acquisition of business, net of cash acquired	(90)	(67,000)
Capital expenditures	(3,948)	(2,628)
Issuance of notes receivable	(325)
Repayment of notes receivable	210
Net cash used in investing activities	(4,153)	(69,628)
Cash flows from financing activities:
Borrowings under senior revolving credit facility	815,000	374,000
Repayments under senior revolving credit facility	(815,000)	(334,000)
Repayments of debt other than senior revolving credit facility	(1,492)	(463)
Dividends paid on common stock	(2,664)	(2,598)
Distribution of noncontrolling interest	(923)
Federal and state tax benefits resulting from tax deductions in excess of the compensation cost recognized for share-based payment awards		2,915
Purchases of stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards	(4,072)	(6,416)
Net cash (used in) provided by financing activities	(9,151)	33,438
Effect of exchange rate changes on cash and cash equivalents	1,690	1,157
Net increase (decrease) in cash and cash equivalents	37,178	(179,519)
Cash and cash equivalents, as of beginning of period	205,415	272,893
Cash and cash equivalents, as of end of period	$ 242,593	$ 93,374

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 1.00	$ 1.00
Preferred stock, shares authorized	100	100
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	71,887	71,154
Common stock, shares outstanding	71,887	71,154

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Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2012

Significant Accounting Policies

Accounts Receivable Purchase Agreement

Accounts Receivable Purchase Agreement

As of March 31, 2012, we had sold accounts receivable of $58.1 million and recorded a retained beneficial interest of $8.6 million.  During the three months ended March 31, 2012 and 2011, the fees and interest paid under a receivables purchase agreement were not significant.

Goodwill

Goodwill

During the three months ended March 31, 2012, based on our ongoing fair value assessment of certain of our 2011 acquisitions, we reclassified $2.9 million in goodwill from our aviation segment to our land segment and increased aviation segment goodwill by $1.8 million as a result of the reclassification of $1.1 million from identifiable intangible assets and a $0.7 million purchase price adjustment.  We had an additional goodwill increase of $0.2 million as a result of foreign currency translation adjustments of our Brazilian subsidiary in our marine segment.

Extinguishment of Liability

Extinguishment of Liability

In the normal course of business, we accrue liabilities for fuel and services received for which invoices have not yet been received.  These liabilities are derecognized, or extinguished, if either (i) payment is made to relieve our obligation for the liability or (ii) we are legally released from our obligation for the liability, such as when our legal obligations with respect to such liabilities lapse or otherwise no longer exist.  During the three months ended March 31, 2012, we derecognized vendor liability accruals in the amount of $3.5 million, as compared to $0.8 million during the three months ended March 31, 2011, which is reflected as a reduction of cost of revenue in the accompanying consolidated statements of income and comprehensive income.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2012	Apr. 25, 2012
Document and Entity Information
Entity Registrant Name	WORLD FUEL SERVICES CORP
Entity Central Index Key	0000789460
Document Type	10-Q
Document Period End Date	Mar. 31, 2012
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		71,887,000
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1

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Derivatives (Tables)

3 Months Ended

Mar. 31, 2012

Derivatives

Schedule of fair value positions of derivative instruments

As of March 31, 2012, our derivative instruments, at their respective fair value positions were as follows (in thousands, except mark-to-market prices):

Hedge Strategy	Settlement Period	Derivative Instrument	Notional	Unit	Mark-to- Market Prices			Mark-to- Market
Fair Value Hedge	2012	Commodity contracts for firm commitment hedging (long)	992	GAL	$	0.18		$	179
	2012	Commodity contracts for firm commitment hedging (short)	3,780	GAL	(0.08		)	(318		)
	2012	Commodity contracts for inventory hedging (short)	50,384	GAL	0.06			2,848
	2012	Commodity contracts for inventory hedging (short)	72	MT	6.36			458
								$	3,167
Non-Designated	2012	Commodity contracts (long)	128,366	GAL	$	0.08		$	10,610
	2012	Commodity contracts (short)	199,585	GAL	(0.11		)	(21,789		)
	2012	Commodity contracts (long)	2,678	MT	49.70			133,103
	2012	Commodity contracts (short)	2,235	MT	(47.07		)	(105,170		)
	2013	Commodity contracts (long)	4,516	GAL	0.24			1,106
	2013	Commodity contracts (short)	9,670	GAL	(0.05		)	(470		)
	2013	Commodity contracts (long)	73	MT	23.38			1,707
	2013	Commodity contracts (short)	31	MT	(42.23		)	(1,309		)
	2014	Commodity contracts (long)	3	MT	20.33			61
	2014	Commodity contracts (short)	6	MT	(11.67		)	(70		)
	2012	Foreign currency contracts (long)	8,636	CAD	(0.00		)	(29		)
	2012	Foreign currency contracts (short)	15,236	CAD	(0.00		)	(11		)
	2012	Foreign currency contracts (long)	2,289,069	CLP	(0.00		)	(43		)
	2012	Foreign currency contracts (long)	636	EUR	0.02			14
	2012	Foreign currency contracts (short)	16,000	EUR	(0.00		)	(50		)
	2012	Foreign currency contracts (long)	14,947	GBP	0.01			208
	2012	Foreign currency contracts (short)	90,806	GBP	(0.01		)	(1,160		)
	2012	Foreign currency contracts (long)	164,573	MXN	(0.00		)	(104		)
	2012	Foreign currency contracts (short)	69,684	MXN	0.00			44
	2012	Foreign currency contracts (long)	27	AUD	(0.04		)	(1		)
	2012	Foreign currency contracts (short)	269	AUD	0.02			5
	2012	Foreign currency contracts (long)	893	BRL	0.03			26
	2012	Foreign currency contracts (short)	2,623	BRL	(0.02		)	(63		)
	2012	Foreign currency contracts (short)	11,001	DKK	(0.00		)	(2		)
	2012	Foreign currency contracts (short)	21,800,000	COP	(0.00		)	(23		)
	2013	Foreign currency contracts (long)	10,430	GBP	0.00			24
	2013	Foreign currency contracts (short)	23,315	GBP	0.00			41
								$	16,655

Schedule of derivative instruments measured at fair value and their locations on the consolidated balance sheet

		As of
		March 31,		December 31,
	Balance Sheet Location	2012		2011
Derivative assets:
Derivatives designated as hedging instruments
Commodity contracts	Other current assets	$	4,213	$	528
Commodity contracts	Accrued expenses and other current liabilities	—		22
		4,213		550
Derivatives not designated as hedging instruments
Commodity contracts	Other current assets	153,230		59,185
Commodity contracts	Non-current other assets	2,225		2,065
Commodity contracts	Accrued expenses and other current liabilities	6,985		3,231
Commodity contracts	Other long-term liabilities	43		40
Foreign currency contracts	Other current assets	254		1,912
Foreign currency contracts	Non-current other assets	98		1,082
Foreign currency contracts	Accrued expenses and other current liabilities	883		—
Foreign currency contracts	Other long-term liabilities	35		—
		163,753		67,515
		$	167,966	$	68,065
Derivative liabilities:
Derivatives designated as hedging instruments
Commodity contracts	Other current assets	$	1,026	$	1,519
Commodity contracts	Accrued expenses and other current liabilities	—		21
		1,026		1,540
Derivatives not designated as hedging instruments
Commodity contracts	Other current assets	95,140		37,713
Commodity contracts	Non-current other assets	241		2
Commodity contracts	Accrued expenses and other current liabilities	48,564		16,434
Commodity contracts	Other long-term liabilities	779		1,213
Foreign currency contracts	Other current assets	66		413
Foreign currency contracts	Non-current other assets	102		481
Foreign currency contracts	Accrued expenses and other current liabilities	2,080		124
Foreign currency contracts	Other long-term liabilities	146		—
		147,118		56,380
		$	148,144	$	57,920

Impact of derivatives designated as fair value hedges on the consolidated statements of earnings

		Realized and Unrealized Gain (Loss)								Realized and Unrealized Gain (Loss)
Derivatives	Location	2012			2011			Hedged Items	Location	2012			2011
Three months ended March 31,
Commodity contracts	Revenue	$	265		$	10,687		Firm commitments	Revenue	$	(201	)	$	(11,433	)
Commodity contracts	Cost of revenue	(1,417		)	(7,461		)	Firm commitments	Cost of revenue	739			8,037
Commodity contracts	Cost of revenue	(26,329		)	(40,259		)	Inventories	Cost of revenue	29,428			47,341
		$	(27,481	)	$	(37,033	)			$	29,966		$	43,945

Impact of derivatives not designated as hedges on the consolidated statements of earnings

		Realized and Unrealized
Derivatives	Location	Gain (Loss)
		2012			2011
Three months ended March 31,
Commodity contracts	Revenue	$	(223	)	$	1,558
Commodity contracts	Cost of revenue	7,021			663
Foreign currency contracts	Revenue	(1,552		)	—
Foreign currency contracts	Other income (expense), net	(1,662		)	(1,909		)
		$	3,584		$	312

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Consolidated Statements of Income and Comprehensive Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Revenue	$ 9,479,055	$ 7,079,406
Cost of revenue	9,321,820	6,942,638
Gross profit	157,235	136,768
Operating expenses:
Compensation and employee benefits	54,527	47,069
Provision for bad debt	141	796
General and administrative	43,311	33,378
Total operating expenses	97,979	81,243
Income from operations	59,256	55,525
Non-operating expenses, net:
Interest expense and other financing costs, net	(4,661)	(2,525)
Other income (expense), net	566	(928)
Total non-operating expenses, net	(4,095)	(3,453)
Income before income taxes	55,161	52,072
Provision for income taxes	6,615	10,415
Net income including noncontrolling interest	48,546	41,657
Net income attributable to noncontrolling interest	2,131	548
Net income attributable to World Fuel	46,415	41,109
Basic earnings per common share (in dollars per share)	$ 0.65	$ 0.59
Basic weighted average common shares (in shares)	70,998	69,970
Diluted earnings per common share (in dollars per share)	$ 0.65	$ 0.58
Diluted weighted average common shares (in shares)	71,774	70,982
Comprehensive income:
Net income including noncontrolling interest	48,546	41,657
Other comprehensive income:
Foreign currency translation adjustment	2,807	701
Comprehensive income including noncontrolling interest	51,353	42,358
Comprehensive income attributable to noncontrolling interest	2,131	548
Comprehensive income attributable to World Fuel	$ 49,222	$ 41,810

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Interest Expense and Other Financing Costs, net

3 Months Ended

Mar. 31, 2012

Interest Expense and Other Financing Costs, net

Interest Expense and Other Financing Costs, net

4.     Interest Expense and Other Financing Costs, net

The following table provides additional information about our interest expense and other financing costs, net, for the periods presented (in thousands):

	For the Three Months ended
	March 31,
	2012			2011
Interest income	$	272		$	79
Interest expense and other financing costs	(4,933		)	(2,604		)
	$	(4,661	)	$	(2,525	)

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Earnings per Common Share

3 Months Ended

Mar. 31, 2012

Earnings per Common Share

Earnings per Common Share

3.     Earnings per Common Share

The following table sets forth the computation of basic and diluted earnings per common share for the periods presented (in thousands, except per share amounts):

	For the Three Months ended
	March 31,
	2012		2011
Numerator:
Net income attributable to World Fuel	$	46,415	$	41,109
Denominator:
Weighted average common shares for basic earnings per common share	70,998		69,970
Effect of dilutive securities	776		1,012
Weighted average common shares for diluted earnings per common share	71,774		70,982
Weighted average anti-dilutive securities which are not included in the calculation of diluted earnings per common share	54		—
Basic earnings per common share	$	0.65	$	0.59
Diluted earnings per common share	$	0.65	$	0.58

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Business Segments (Tables)

3 Months Ended

Mar. 31, 2012

Business Segments

Schedule of revenue, gross profit and income from operations by segment

	For the Three Months ended
	March 31,
	2012		2011
Revenue:
Aviation segment	$	3,411,547	$	2,646,592
Marine segment	3,904,191		2,999,419
Land segment	2,163,317		1,433,395
	$	9,479,055	$	7,079,406
Gross profit:
Aviation segment	$	64,914	$	70,128
Marine segment	55,077		40,215
Land segment	37,244		26,425
	$	157,235	$	136,768
Income from operations:
Aviation segment	$	26,833	$	38,170
Marine segment	27,445		17,355
Land segment	16,200		10,663
	70,478		66,188
Corporate overhead – unallocated	11,222		10,663
	$	59,256	$	55,525

Schedule of accounts receivable, net and total assets by segment

	As of
	March 31,		December 31,
	2012		2011
Accounts receivable, net:
Aviation segment, net of allowance for bad debt of $8,419 and $8,441 as of March 31, 2012 and December 31, 2011, respectively	$	608,959	$	569,086
Marine segment, net of allowance for bad debt of $9,422 and $9,495 as of March 31, 2012 and December 31, 2011, respectively	1,260,189		1,261,340
Land segment, net of allowance for bad debt of $6,456 and $6,365 as of March 31, 2012 and December 31, 2011, respectively	420,937		330,135
	$	2,290,085	$	2,160,561
Total assets:
Aviation segment	$	1,290,714	$	1,149,031
Marine segment	1,573,637		1,568,378
Land segment	932,108		816,595
Corporate	129,345		163,242
	$	3,925,804	$	3,697,246

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Earnings per Common Share (Tables)

3 Months Ended

Mar. 31, 2012

Earnings per Common Share

Computation of basic and diluted earnings per share

	For the Three Months ended
	March 31,
	2012		2011
Numerator:
Net income attributable to World Fuel	$	46,415	$	41,109
Denominator:
Weighted average common shares for basic earnings per common share	70,998		69,970
Effect of dilutive securities	776		1,012
Weighted average common shares for diluted earnings per common share	71,774		70,982
Weighted average anti-dilutive securities which are not included in the calculation of diluted earnings per common share	54		—
Basic earnings per common share	$	0.65	$	0.59
Diluted earnings per common share	$	0.65	$	0.58

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Fair Value Measurements

3 Months Ended

Mar. 31, 2012

Fair Value Measurements

Fair Value Measurements

7.     Fair Value Measurements

The carrying amounts of cash and cash equivalents, accounts receivable, net, accounts payable and accrued expenses and other current liabilities approximate fair value based on the short-term maturities of these instruments.  We believe the carrying values of our notes receivable and debt approximate fair value since these instruments bear interest either at variable rates or fixed rates which are not significantly different than market rates.  Based on the fair value hierarchy, notes receivable of $7.0 million as of March 31, 2012 and $6.8 million as of December 31, 2011 are categorized in Level 3, the debt under our Term Loan Facility of $250.0 million as of March 31, 2012 and December 31, 2011 is categorized in Level 2 and all other debt of $35.7 million as of March 31, 2012 and $37.1 million as of December 31, 2011 is categorized in Level 3.

The following table presents information about our assets and liabilities that are measured at estimated fair value on a recurring basis (in thousands):

	Level 1		Level 2		Level 3		Sub-Total		Netting and Collateral			Total
As of March 31, 2012
Assets:
Commodity contracts	$	33,122	$	133,574	$	—	$	166,696	$	(128,148	)	$	38,548
Foreign currency contracts	—		1,270		—		1,270		(1,086		)	184
Hedged item commitments	—		443		—		443		(27		)	416
Total	$	33,122	$	135,287	$	—	$	168,409	$	(129,261	)	$	39,148
Liabilities:
Commodity contracts	$	25,534	$	120,216	$	—	$	145,750	$	(103,865	)	$	41,885
Foreign currency contracts	—		2,394		—		2,394		(1,086		)	1,308
Hedged item inventories	—		438		—		438		—			438
Hedged item commitments	—		157		—		157		(27		)	130
Earn-out	—		—		4,323		4,323		—			4,323
Total	$	25,534	$	123,205	$	4,323	$	153,062	$	(104,978	)	$	48,084
As of December 31, 2011
Assets:
Commodity contracts	$	14,038	$	51,033	$	—	$	65,071	$	(43,275	)	$	21,796
Foreign currency contracts	—		2,994		—		2,994		(893		)	2,101
Hedged item inventories	—		3,216		—		3,216		—			3,216
Hedged item commitments	—		206		—		206		—			206
Total	$	14,038	$	57,449	$	—	$	71,487	$	(44,168	)	$	27,319
Liabilities:
Commodity contracts	$	10,148	$	46,754	$	—	$	56,902	$	(43,291	)	$	13,611
Foreign currency contracts	—		1,018		—		1,018		(893		)	125
Hedged item inventories	—		24		—		24		—			24
Earn-out	—		—		4,194		4,194		—			4,194
Total	$	10,148	$	47,796	$	4,194	$	62,138	$	(44,184	)	$	17,954

Fair value of commodity contracts and hedged item commitments is derived using forward prices that take into account commodity prices, basis differentials, interest rates, credit risk ratings, option volatility and currency rates.  Fair value of hedged item inventories is derived using spot commodity prices and basis differentials.  Fair value of foreign currency contracts is derived using forward prices that take into account interest rates, credit risk ratings and currency rates.

For our derivative contracts, we may enter into master netting, collateral and offset agreements with counterparties. These agreements provide us the ability to offset a counterparty’s rights and obligations, request additional collateral when necessary or liquidate the collateral in the event of counterparty default. We net fair value of cash collateral paid or received against fair value amounts recognized for net derivative positions executed with the same counterparty under the same master netting or offset agreement.

As of March 31, 2012, included within netting and collateral in the above table, the amounts recognized for the obligation to return cash collateral and the right to reclaim cash collateral that have been offset against fair value assets and fair value liabilities were $24.7 million and $0.4 million, respectively. As of December 31, 2011, included within netting and collateral in the above table, the amounts recognized for the obligation to return cash collateral and the right to reclaim cash collateral that have been offset against fair value assets and fair value liabilities were $1.0 million and $0.8 million, respectively.

The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis that utilized Level 3 inputs for the periods presented (in thousands):

	Beginning of Period, (Liabilities) Assets			Realized and Unrealized Losses Included in Earnings			Settlements			End of Period, Liabilities			Change in Unrealized Losses Relating to Instruments Still Held as of end of Period
Three months ended March 31, 2012
Earn-out	(4,194		)	(129		)	—			(4,323		)	(129		)
Total	$	(4,194	)	$	(129	)	$	—		$	(4,323	)	$	(129	)
Three months ended March 31, 2011
Commodity contracts, net	$	90		$	—		$	(90	)	$	—		$	—
Earn-out	(5,012		)	(139		)	—			(5,151		)	(139		)
Total	$	(4,922	)	$	(139	)	$	(90	)	$	(5,151	)	$	(139	)

Our policy is to recognize transfers between Level 1, 2 or 3 as of the beginning of the reporting period in which the event or change in circumstances caused the transfer to occur.  There were no transfers between Level 1, 2 or 3 during the periods presented.  In addition, there were no Level 3 purchases, sales or issuances for the periods presented.

Earn-out Relating to 2009 Acquisition

In connection with an acquisition made in 2009, we entered into an earn-out agreement with the sellers based on achieving certain operating targets over a three year period ending April 3, 2012.  As of March 31, 2012 and 2011, the estimated fair value of the earn-out liability is $4.3 million and $5.2 million, respectively.  During the three months ended March 31, 2012 and 2011, there was a $0.1 million Level 3 adjustment related to unrealized foreign currency losses.  The impact of the acquisition’s revenue and net income did not have a significant impact on our results for the three months ended March 31, 2012 and 2011.

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Income Taxes

3 Months Ended

Mar. 31, 2012

Income Taxes

Income Taxes

5.     Income Taxes

Our income tax provision for the periods presented and the respective effective tax rates for such periods are as follows (in thousands, except for tax rates):

	For the Three Months ended
	March 31,
	2012			2011
Income tax provision	$	6,615		$	10,415
Effective income tax rate	12.0		%	20.0		%

Our provision for income taxes for each of the three-month periods ended March 31, 2012 and 2011 were calculated based on the estimated annual effective tax rate for the full 2012 fiscal year, adjusted for an income tax benefit of $3.3 million for a discrete item related to a change in estimate in an uncertain tax position, and 2011 fiscal year.  The actual effective tax rate for the full 2012 fiscal year may be materially different as a result of differences between estimated versus actual results and the geographic tax jurisdictions in which the results are earned.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2012

Commitments and Contingencies

Commitments and Contingencies

6.     Commitments and Contingencies

Legal Matters

We are involved in litigation and administrative proceedings primarily arising in the normal course of our business. In the opinion of management, our liability, if any, under any other pending litigation or administrative proceedings, even if determined adversely, would not materially affect our financial condition, results of operations or cash flows. As of March 31, 2012, we had recorded certain reserves which were not significant.

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Business Segments

3 Months Ended

Mar. 31, 2012

Business Segments

Business Segments

8.     Business Segments

Based on the nature of operations and quantitative thresholds pursuant to accounting guidance for segment reporting, we have three reportable operating business segments: aviation, marine and land.  Corporate expenses are allocated to the segments based on usage, where possible, or on other factors according to the nature of the activity.  The results of operations of Nordic Camp Supply ApS and certain affiliates (“NCS”) are included in our aviation segment commencing on March 1, 2011, its acquisition date, and since January 1, 2012, a portion of NCS activity is now included in our land segment.  The results of operations include the results of Ascent in our aviation segment commencing on April 1, 2011, its acquisition date.  The accounting policies of the reportable operating segments are the same as those described in the Summary of Significant Accounting Policies (see Note 1).

Information concerning our revenue, gross profit and income from operations by segment is as follows (in thousands):

	For the Three Months ended
	March 31,
	2012		2011
Revenue:
Aviation segment	$	3,411,547	$	2,646,592
Marine segment	3,904,191		2,999,419
Land segment	2,163,317		1,433,395
	$	9,479,055	$	7,079,406
Gross profit:
Aviation segment	$	64,914	$	70,128
Marine segment	55,077		40,215
Land segment	37,244		26,425
	$	157,235	$	136,768
Income from operations:
Aviation segment	$	26,833	$	38,170
Marine segment	27,445		17,355
Land segment	16,200		10,663
	70,478		66,188
Corporate overhead – unallocated	11,222		10,663
	$	59,256	$	55,525

Information concerning our accounts receivable, net and total assets by segment is as follows (in thousands):

	As of
	March 31,		December 31,
	2012		2011
Accounts receivable, net:
Aviation segment, net of allowance for bad debt of $8,419 and $8,441 as of March 31, 2012 and December 31, 2011, respectively	$	608,959	$	569,086
Marine segment, net of allowance for bad debt of $9,422 and $9,495 as of March 31, 2012 and December 31, 2011, respectively	1,260,189		1,261,340
Land segment, net of allowance for bad debt of $6,456 and $6,365 as of March 31, 2012 and December 31, 2011, respectively	420,937		330,135
	$	2,290,085	$	2,160,561
Total assets:
Aviation segment	$	1,290,714	$	1,149,031
Marine segment	1,573,637		1,568,378
Land segment	932,108		816,595
Corporate	129,345		163,242
	$	3,925,804	$	3,697,246

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Business Segments (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012 segment	Mar. 31, 2011
Business Segments
Number of reportable operating business segments	3
Revenue:
Total revenue	$ 9,479,055	$ 7,079,406
Gross profit:
Gross profit	157,235	136,768
Income from operations:
Income from operations	59,256	55,525
Operating Segments
Income from operations:
Income from operations	70,478	66,188
Aviation segment
Revenue:
Total revenue	3,411,547	2,646,592
Gross profit:
Gross profit	64,914	70,128
Income from operations:
Income from operations	26,833	38,170
Marine segment
Revenue:
Total revenue	3,904,191	2,999,419
Gross profit:
Gross profit	55,077	40,215
Income from operations:
Income from operations	27,445	17,355
Land segment
Revenue:
Total revenue	2,163,317	1,433,395
Gross profit:
Gross profit	37,244	26,425
Income from operations:
Income from operations	16,200	10,663
Corporate
Income from operations:
Corporate overhead	$ 11,222	$ 10,663

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2012

Income Taxes

Schedule of Income tax provision and the respective effective tax rates

	For the Three Months ended
	March 31,
	2012			2011
Income tax provision	$	6,615		$	10,415
Effective income tax rate	12.0		%	20.0		%

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Derivatives (Details 2) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2012 Derivatives designated as hedging instruments	Dec. 31, 2011 Derivatives designated as hedging instruments	Mar. 31, 2012 Derivatives designated as hedging instruments Commodity contracts Other current assets	Dec. 31, 2011 Derivatives designated as hedging instruments Commodity contracts Other current assets	Dec. 31, 2011 Derivatives designated as hedging instruments Commodity contracts Accrued expenses and other current liabilities	Mar. 31, 2012 Derivatives not designated as hedging instruments	Dec. 31, 2011 Derivatives not designated as hedging instruments	Mar. 31, 2012 Derivatives not designated as hedging instruments Commodity contracts Other current assets	Dec. 31, 2011 Derivatives not designated as hedging instruments Commodity contracts Other current assets	Mar. 31, 2012 Derivatives not designated as hedging instruments Commodity contracts Accrued expenses and other current liabilities	Dec. 31, 2011 Derivatives not designated as hedging instruments Commodity contracts Accrued expenses and other current liabilities	Mar. 31, 2012 Derivatives not designated as hedging instruments Commodity contracts Other long-term assets	Dec. 31, 2011 Derivatives not designated as hedging instruments Commodity contracts Other long-term assets	Mar. 31, 2012 Derivatives not designated as hedging instruments Commodity contracts Other long-term liabilities	Dec. 31, 2011 Derivatives not designated as hedging instruments Commodity contracts Other long-term liabilities	Mar. 31, 2012 Derivatives not designated as hedging instruments Foreign currency contracts Other current assets	Dec. 31, 2011 Derivatives not designated as hedging instruments Foreign currency contracts Other current assets	Mar. 31, 2012 Derivatives not designated as hedging instruments Foreign currency contracts Accrued expenses and other current liabilities	Mar. 31, 2011 Derivatives not designated as hedging instruments Foreign currency contracts Accrued expenses and other current liabilities	Mar. 31, 2012 Derivatives not designated as hedging instruments Foreign currency contracts Other long-term assets	Dec. 31, 2011 Derivatives not designated as hedging instruments Foreign currency contracts Other long-term assets	Mar. 31, 2012 Derivatives not designated as hedging instruments Foreign currency contracts Other long-term liabilities
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet
Derivative assets	$ 167,966	$ 68,065	$ 4,213	$ 550	$ 4,213	$ 528	$ 22	$ 163,753	$ 67,515	$ 153,230	$ 59,185	$ 6,985	$ 3,231	$ 2,225	$ 2,065	$ 43	$ 40	$ 254	$ 1,912	$ 883		$ 98	$ 1,082	$ 35
Derivative liabilities	$ 148,144	$ 57,920	$ 1,026	$ 1,540	$ 1,026	$ 1,519	$ 21	$ 147,118	$ 56,380	$ 95,140	$ 37,713	$ 48,564	$ 16,434	$ 241	$ 2	$ 779	$ 1,213	$ 66	$ 413	$ 2,080	$ 124	$ 102	$ 481	$ 146

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Consolidated Statements of Shareholders' Equity (USD $) In Thousands, unless otherwise specified	Total	World Fuel Shareholders' Equity	Common Stock	Capital in Excess of Par Value	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Noncontrolling Interest (Deficit) Equity
Balance at Dec. 31, 2010	$ 1,126,564	$ 1,127,208	$ 696	$ 468,963	$ 652,796	$ 4,753	$ (644)
Balance (in shares) at Dec. 31, 2010			69,602
Increase (Decrease) in Shareholders' Equity
Net income	41,657	41,109			41,109		548
Initial noncontrolling interest upon consolidation of joint venture	614						614
Cash dividends declared	(2,645)	(2,645)			(2,645)
Amortization of share-based payment awards	2,265	2,265		2,265
Issuance of common stock related to share-based payment awards including income tax benefit of $2,915 for the period March 31, 2011	4,364	4,364	6	4,358
Issuance of common stock related to share-based payment awards including income tax benefit (in shares)			561
Issuance of common stock related to acquisition	27,498	27,498	7	27,491
Issuance of common stock related to acquisition (in shares)			691
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards	(6,416)	(6,416)	(1)	(6,415)
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards (in shares)			(49)
Other comprehensive income	701	701				701
Balance at Mar. 31, 2011	1,194,602	1,194,084	708	496,662	691,260	5,454	518
Balance (in shares) at Mar. 31, 2011			70,805
Balance at Dec. 31, 2011	1,346,718	1,332,961	712	502,551	836,222	(6,524)	13,757
Balance (in shares) at Dec. 31, 2011	71,154		71,154
Increase (Decrease) in Shareholders' Equity
Net income	48,546	46,415			46,415		2,131
Distribution of noncontrolling interest	(923)						(923)
Cash dividends declared	(2,664)	(2,664)			(2,664)
Amortization of share-based payment awards	2,435	2,435		2,435
Issuance of common stock related to share-based payment awards including income tax benefit of $2,915 for the period March 31, 2011	2,729	2,729	7	2,722
Issuance of common stock related to share-based payment awards including income tax benefit (in shares)			758
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards	(4,072)	(4,072)		(4,072)
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards (in shares)			(25)
Other comprehensive income	2,807	2,807				2,807
Balance at Mar. 31, 2012	$ 1,395,576	$ 1,380,611	$ 719	$ 503,636	$ 879,973	$ (3,717)	$ 14,965
Balance (in shares) at Mar. 31, 2012	71,887		71,887

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Derivatives

3 Months Ended

Mar. 31, 2012

Derivatives

Derivatives

2.     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 fluctuations in foreign currency exchange rates.  We also enter into proprietary derivative transactions, primarily intended to capitalize on arbitrage opportunities related to basis or time spreads related to fuel products we sell.  We have applied the normal purchase and normal sales exception (“NPNS”), as provided by accounting guidance for derivative instruments and hedging activities, to certain of our physical forward sales and purchase contracts.  While these contracts are considered derivative instruments under the guidance for derivative instruments and hedging activities, they are not recorded at fair value, but rather are recorded in our consolidated financial statements when physical settlement of the contracts occurs.  If it is determined that a transaction designated as NPNS no longer meets the scope of the exception, the fair value of the related contract is recorded as an asset or liability on the consolidated balance sheet and the difference between the fair value and the contract amount is immediately recognized through earnings.

The following describes our derivative classifications:

Cash Flow Hedges.  Includes certain of our foreign currency forward contracts we enter into in order to mitigate the risk of currency exchange rate fluctuations.

Fair Value Hedges.  Includes derivatives we enter into in order to hedge price risk associated with our inventory and certain firm commitments relating to fixed price purchase and sale contracts.

Non-designated Derivatives.  Includes derivatives we primarily enter into in order to mitigate the risk of market price fluctuations in aviation, marine and land fuel in the form of swaps or futures as well as certain fixed price purchase and sale contracts and proprietary trading. In addition, non-designated derivatives are also entered into to hedge the risk of currency rate fluctuations.

As of March 31, 2012, our derivative instruments, at their respective fair value positions were as follows (in thousands, except mark-to-market prices):

Hedge Strategy	Settlement Period	Derivative Instrument	Notional	Unit	Mark-to- Market Prices			Mark-to- Market
Fair Value Hedge	2012	Commodity contracts for firm commitment hedging (long)	992	GAL	$	0.18		$	179
	2012	Commodity contracts for firm commitment hedging (short)	3,780	GAL	(0.08		)	(318		)
	2012	Commodity contracts for inventory hedging (short)	50,384	GAL	0.06			2,848
	2012	Commodity contracts for inventory hedging (short)	72	MT	6.36			458
								$	3,167
Non-Designated	2012	Commodity contracts (long)	128,366	GAL	$	0.08		$	10,610
	2012	Commodity contracts (short)	199,585	GAL	(0.11		)	(21,789		)
	2012	Commodity contracts (long)	2,678	MT	49.70			133,103
	2012	Commodity contracts (short)	2,235	MT	(47.07		)	(105,170		)
	2013	Commodity contracts (long)	4,516	GAL	0.24			1,106
	2013	Commodity contracts (short)	9,670	GAL	(0.05		)	(470		)
	2013	Commodity contracts (long)	73	MT	23.38			1,707
	2013	Commodity contracts (short)	31	MT	(42.23		)	(1,309		)
	2014	Commodity contracts (long)	3	MT	20.33			61
	2014	Commodity contracts (short)	6	MT	(11.67		)	(70		)
	2012	Foreign currency contracts (long)	8,636	CAD	(0.00		)	(29		)
	2012	Foreign currency contracts (short)	15,236	CAD	(0.00		)	(11		)
	2012	Foreign currency contracts (long)	2,289,069	CLP	(0.00		)	(43		)
	2012	Foreign currency contracts (long)	636	EUR	0.02			14
	2012	Foreign currency contracts (short)	16,000	EUR	(0.00		)	(50		)
	2012	Foreign currency contracts (long)	14,947	GBP	0.01			208
	2012	Foreign currency contracts (short)	90,806	GBP	(0.01		)	(1,160		)
	2012	Foreign currency contracts (long)	164,573	MXN	(0.00		)	(104		)
	2012	Foreign currency contracts (short)	69,684	MXN	0.00			44
	2012	Foreign currency contracts (long)	27	AUD	(0.04		)	(1		)
	2012	Foreign currency contracts (short)	269	AUD	0.02			5
	2012	Foreign currency contracts (long)	893	BRL	0.03			26
	2012	Foreign currency contracts (short)	2,623	BRL	(0.02		)	(63		)
	2012	Foreign currency contracts (short)	11,001	DKK	(0.00		)	(2		)
	2012	Foreign currency contracts (short)	21,800,000	COP	(0.00		)	(23		)
	2013	Foreign currency contracts (long)	10,430	GBP	0.00			24
	2013	Foreign currency contracts (short)	23,315	GBP	0.00			41
								$	16,655

The following table presents information about our derivative instruments measured at fair value and their locations on the consolidated balance sheets (in thousands):

		As of
		March 31,		December 31,
	Balance Sheet Location	2012		2011
Derivative assets:
Derivatives designated as hedging instruments
Commodity contracts	Other current assets	$	4,213	$	528
Commodity contracts	Accrued expenses and other current liabilities	—		22
		4,213		550
Derivatives not designated as hedging instruments
Commodity contracts	Other current assets	153,230		59,185
Commodity contracts	Non-current other assets	2,225		2,065
Commodity contracts	Accrued expenses and other current liabilities	6,985		3,231
Commodity contracts	Other long-term liabilities	43		40
Foreign currency contracts	Other current assets	254		1,912
Foreign currency contracts	Non-current other assets	98		1,082
Foreign currency contracts	Accrued expenses and other current liabilities	883		—
Foreign currency contracts	Other long-term liabilities	35		—
		163,753		67,515
		$	167,966	$	68,065
Derivative liabilities:
Derivatives designated as hedging instruments
Commodity contracts	Other current assets	$	1,026	$	1,519
Commodity contracts	Accrued expenses and other current liabilities	—		21
		1,026		1,540
Derivatives not designated as hedging instruments
Commodity contracts	Other current assets	95,140		37,713
Commodity contracts	Non-current other assets	241		2
Commodity contracts	Accrued expenses and other current liabilities	48,564		16,434
Commodity contracts	Other long-term liabilities	779		1,213
Foreign currency contracts	Other current assets	66		413
Foreign currency contracts	Non-current other assets	102		481
Foreign currency contracts	Accrued expenses and other current liabilities	2,080		124
Foreign currency contracts	Other long-term liabilities	146		—
		147,118		56,380
		$	148,144	$	57,920

The following table presents the effect and financial statement location of our derivative instruments and related hedged items in fair value hedging relationships on our consolidated statements of income and comprehensive income (in thousands):

		Realized and Unrealized Gain (Loss)								Realized and Unrealized Gain (Loss)
Derivatives	Location	2012			2011			Hedged Items	Location	2012			2011
Three months ended March 31,
Commodity contracts	Revenue	$	265		$	10,687		Firm commitments	Revenue	$	(201	)	$	(11,433	)
Commodity contracts	Cost of revenue	(1,417		)	(7,461		)	Firm commitments	Cost of revenue	739			8,037
Commodity contracts	Cost of revenue	(26,329		)	(40,259		)	Inventories	Cost of revenue	29,428			47,341
		$	(27,481	)	$	(37,033	)			$	29,966		$	43,945

There were no gains or losses for the three months ended March 31, 2012 and 2011 that were excluded from the assessment of the effectiveness of our fair value hedges.

The following table presents the effect and financial statement location of our derivative instruments not designated as hedging instruments on our consolidated statements of income and comprehensive income (in thousands):

		Realized and Unrealized
Derivatives	Location	Gain (Loss)
		2012			2011
Three months ended March 31,
Commodity contracts	Revenue	$	(223	)	$	1,558
Commodity contracts	Cost of revenue	7,021			663
Foreign currency contracts	Revenue	(1,552		)	—
Foreign currency contracts	Other income (expense), net	(1,662		)	(1,909		)
		$	3,584		$	312

We enter into derivative instrument contracts which may require us to periodically post collateral. Certain of these derivative contracts contain clauses that are similar to credit-risk-related contingent features, including material adverse change, general adequate assurance and internal credit review clauses that may require additional collateral to be posted and/or settlement of the instruments in the event an aforementioned clause is triggered.  The triggering events are not a quantifiable measure; rather they are based on good faith and reasonable determination by the counterparty that the triggers have occurred. The net liability position for such contracts, the collateral posted and the amount of assets required to be posted and/or to settle the positions should a contingent feature be triggered was $2.3 million as of March 31, 2012.

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Derivatives (Details 3) (USD $)	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Gain (loss) on derivative
Collateral posted and the amount of assets required to be posted	$ 2,300,000
Derivatives instruments designated as hedging instruments | Fair value hedges
Gain (loss) on derivative
Realized and Unrealized Gain (Loss) on Hedge	(27,481,000)	(37,033,000)
Derivatives instruments designated as hedging instruments | Fair value hedges | Hedged items
Gain (loss) on derivative
Realized and Unrealized Gain (Loss) on Hedged Item	29,966,000	43,945,000
Derivatives instruments designated as hedging instruments | Fair value hedges | Revenue | Hedged item commitments
Gain (loss) on derivative
Realized and Unrealized Gain (Loss) on Hedged Item	(201,000)	(11,433,000)
Derivatives instruments designated as hedging instruments | Fair value hedges | Cost of revenue | Hedged item commitments
Gain (loss) on derivative
Realized and Unrealized Gain (Loss) on Hedged Item	739,000	8,037,000
Derivatives instruments designated as hedging instruments | Fair value hedges | Cost of revenue | Hedged item inventories
Gain (loss) on derivative
Realized and Unrealized Gain (Loss) on Hedged Item	29,428,000	47,341,000
Derivatives instruments not designated as hedging instruments
Gain (loss) on derivative
Realized and Unrealized Gain (Loss)	3,584,000	312,000
Commodity contracts | Derivatives instruments designated as hedging instruments | Fair value hedges | Revenue
Gain (loss) on derivative
Realized and Unrealized Gain (Loss) on Hedge	265,000	10,687,000
Commodity contracts | Derivatives instruments designated as hedging instruments | Fair value hedges | Cost of revenue
Gain (loss) on derivative
Realized and Unrealized Gain (Loss) on Hedge	(1,417,000)	(7,461,000)
Commodity contracts | Derivatives instruments not designated as hedging instruments | Revenue
Gain (loss) on derivative
Realized and Unrealized Gain (Loss)	(223,000)	1,558,000
Commodity contracts | Derivatives instruments not designated as hedging instruments | Cost of revenue
Gain (loss) on derivative
Realized and Unrealized Gain (Loss)	7,021,000	663,000
Foreign currency contracts | Derivatives instruments not designated as hedging instruments | Revenue
Gain (loss) on derivative
Realized and Unrealized Gain (Loss)	(1,552,000)
Foreign currency contracts | Derivatives instruments not designated as hedging instruments | Other income (expense), net
Gain (loss) on derivative
Realized and Unrealized Gain (Loss)	(1,662,000)	(1,909,000)
Commodity contracts. | Derivatives instruments designated as hedging instruments | Fair value hedges | Cost of revenue
Gain (loss) on derivative
Realized and Unrealized Gain (Loss) on Hedge	$ (26,329,000)	$ (40,259,000)

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Interest Expense and Other Financing Costs, net (Tables)

3 Months Ended

Mar. 31, 2012

Interest Expense and Other Financing Costs, net

Schedule of interest income and expense and other financing costs, net

	For the Three Months ended
	March 31,
	2012			2011
Interest income	$	272		$	79
Interest expense and other financing costs	(4,933		)	(2,604		)
	$	(4,661	)	$	(2,525	)