WORLD FUEL SERVICES CORP Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-K)

The following discussion should be read in conjunction with the accompanying
Consolidated Financial Statements and Notes thereto appearing within Part IV.
Item 15. Notes to the Consolidated Financial Statements in this 2021 10­K
Report. The following discussion may contain forward-looking statements, and our
actual results may differ materially 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 and under
Forward-Looking Statements.

We have elected to omit in this 2021 10­K Report, discussion on the earliest of
the three years covered by the Consolidated Financial Statements presented.
Refer to Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations located in our Form 10-K for the fiscal year ended
December 31, 2020 (herein incorporated by reference), filed with the SEC on
March 1, 2021, for management's discussion of the fiscal year ended December 31,
2019.

Business Overview
We are principally engaged in the distribution of fuel and related products and
services in the aviation, land and marine transportation industries. Our
intention is to become a leading global energy management company offering a
full suite of energy advisory, management and fulfillment services, technology
solutions, payment management solutions, as well as sustainability products and
services across the renewable energy market. For additional discussion on our
businesses, climate change and the associated risks, see Part I, Item 1. -
Business and Item 1A - Risk Factors within this 2021 10-K Report.

COVID-19[female[feminine

Throughout 2020 and 2021, the COVID-19 pandemic had a significant impact on the
global economy as a whole, and the transportation industries in particular. Many
of our customers in these industries, especially commercial airlines,
experienced a substantial decline in business activity arising from the various
measures enacted by governments around the world to contain the spread of the
virus. While travel and economic activity has begun to improve in certain
regions, activity in many parts of the world continues to be negatively impacted
by travel restrictions and lockdowns. For additional discussion on the risks
relating to the pandemic, see Item 1A. - Risk Factors within this 2021 10-K
Report.

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Reportable Segments
We operate in three reportable segments consisting of aviation, land, and
marine, where we offer fuel and related products and services to customers in
these transportation industries.

See Part I, Article 1. – Activity and Note 13. Business sectors, geographic information and main customers for additional information on our business sectors.

Aviation Segment
Our aviation segment has benefited from growth in our fuel and related services
offerings, as well as our improving logistics capability and the geographic
expansion of our aviation fueling operations into additional international
airport locations. However, the global travel restrictions and sharp decrease in
demand for air travel resulting from the COVID-19 pandemic significantly
impacted the overall aviation market, and accordingly, our results of operations
throughout 2020 and 2021. We have experienced improvements in demand and related
volume increases in certain regions, principally North America, and are
experiencing an accelerating recovery in Western Europe. The continued recovery
in demand will be highly contingent on the timing and extent of governmental
actions or restrictions globally in response to any increases in infection rates
and the overall recovery of the global economy and passenger travel generally.

In addition, our aviation segment has historically benefited from significant
sales to government customers, particularly the North Atlantic Treaty
Organization ("NATO") in Afghanistan, which accounted for a material portion of
our aviation segment's profitability in recent years. The level of troop
deployments and military-related activities can cause our government customer
sales to vary significantly and materially impact our operating results.
Specifically, in 2020 the U.S. government and NATO began to significantly reduce
the level of troops in Afghanistan and we experienced a corresponding material
decline in demand as a result. The final withdrawal of troops in the area was
completed during the third quarter of 2021.

Land Segment
We believe our land segment is well positioned to continue growing market share,
both organically and through leveraging the capabilities of our acquisitions,
serving to further enhance our commercial and industrial platforms to deliver
value-added solutions to customers across the U.S. In addition, to participate
in accelerating the energy transition, we continue to focus on the expansion of
our sustainability offerings, which include consulting, renewable fuel products,
and carbon management and renewable energy solutions through World Kinect, our
global energy management brand. Our land segment can be impacted by market and
weather conditions. In periods where we experience historically extreme or
unseasonable weather conditions, demand for our products may be affected. In
addition, our land segment also similarly benefited from sales to NATO in
Afghanistan in recent years, however, such activity materially declined and
ultimately concluded in 2021 in connection with the U.S. and NATO troop
withdrawal.

In connection with our efforts to sharpen our portfolio of businesses and
accelerate growth in our core business activities, we have divested of certain
businesses and focused on investing in businesses that we believe will drive
enhanced operating efficiencies and generate long-term shareholder value. For
example, in the third quarter of 2020, we completed the sale of MSTS and in
January 2022, we closed the acquisition of Flyers. We believe that the addition
of Flyers' operations, which include transportation, commercial fleet fueling,
lubricants distribution, and the supply of wholesale, branded and renewable
fuels, will enable us to create an expanded national platform to deliver
value-added solutions to commercial and industrial customers across the United
States. See Note 3. Acquisitions and Divestitures for additional information. In
addition to our acquisition and divestiture activities, we also heightened our
focus in 2021 on restructuring our existing land business in North America,
including reorganizing and relocating certain business activities, as well as
implementing changes to the operational and management structure of the business
to allow for greater scalability and quicker integration of new businesses to
capture synergies. During the fourth quarter of 2021, we were able to complete
all necessary activities and close the restructuring and expect the ultimate
financial benefit to be realized as new businesses are acquired and integrated
into our land segment. See Note 5. Restructuring for additional information.

Marine Segment
Through much of 2019 and into early 2020, we experienced improved profitability
in our marine segment due to higher average fuel prices, combined with our
heightened focus on cost management and the continued reshaping of our business
portfolio. In particular, the IMO 2020 regulations resulted in certain supply
imbalances and price volatility which positively impacted our operating results
in those periods. However, beginning in the latter part of the first quarter of
2020 and continuing through 2021, we experienced a material decline in volume
and related profitability primarily due to the impact of the COVID-19 pandemic
on the marine transportation industry. While we

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have experienced some improvements in demand, we expect our marine segment's
operating performance to continue to be impacted by, among other things,
uncertain demand from cruise lines and other sectors of the shipping industry,
as well as competitive market conditions.

Consolidated Results of Operations
The following provides a summary of our consolidated results of operations for
the periods indicated:

                                                                              Year Ended December
                                                                                      31,
                                                                                         2021                 2020
Revenue                                                                             $  31,337.0          $  20,358.3
Cost of revenue                                                                        30,548.8             19,506.5
Gross profit                                                                              788.2                851.8
Operating expenses:
Compensation and employee benefits                                                        386.7                366.9
General and administrative                                                                247.6                311.1
Asset impairments                                                                           4.7                 25.6
Restructuring charges                                                                       6.6                 10.3
Total operating expenses                                                                  645.6                714.0
Income from operations                                                                    142.6                137.9
Non-operating income (expenses), net:
Interest expense and other financing costs, net                                           (40.2)               (44.9)
Other income (expense), net                                                                (2.3)                68.8
Total non-operating income (expense), net                                                 (42.5)                23.9
Income (loss) before income taxes                                                         100.0                161.7
Provision for income taxes                                                                 25.8                 52.1
Net income (loss) including noncontrolling interest                                        74.2                109.6
Net income (loss) attributable to noncontrolling interest                                   0.5                  0.1
Net income (loss) attributable to World Fuel                                

$73.7 $109.6

Basic earnings (loss) per common share                                      

$1.17 $1.72

Diluted earnings (loss) per common share                                    

$1.16 $1.71


Revenue. Our consolidated revenue for the year ended December 31, 2021 was $31.3
billion, an increase of $11.0 billion, or 54%, compared to the year ended
December 31, 2020, driven by increased revenue of $4.6 billion, $3.8 billion,
and $2.6 billion in the aviation, land, and marine segments, respectively, as
discussed further below.

Gross profit. Our consolidated gross profit for the year ended December 31, 2021
was $788.2 million, a decrease of $63.6 million, or 7%, compared to the year
ended December 31, 2020, driven by decreased gross profit of $51.1 million and
$46.5 million in the marine and land segments, respectively, partially offset by
increased gross profit of $34.0 million in the aviation segment, as discussed
further below.

Operating Expenses. Consolidated total operating expenses for the year ended
December 31, 2021 were $645.6 million, a decrease of $68.3 million, or 10%,
compared to the year ended December 31, 2020. The decrease in operating expenses
was driven by a reduction in the provision for credit losses due to a
stabilization of customer credit risk, the sale of MSTS, and the impairment
charge recognized in 2020 as part of the global office footprint rationalization
(the "2020 impairment"). These decreases were partially offset by an increase in
employee compensation and benefit costs primarily related to increased incentive
compensation to reward and retain key employees in a competitive job market.

Non-Operating Income (Expenses), net. For the year ended December 31, 2021, we
had net non-operating expense of $42.5 million, compared to net non-operating
income of $23.9 million for the year ended December 31, 2020. The decrease of
$66.4 million was primarily attributable to the gain on the sale of MSTS in
2020, partially offset by a decrease in foreign currency losses and an increase
in interest income in 2021.

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Income Taxes. For the year ended December 31, 2021, our income tax provision was
$25.8 million and our effective income tax rate was 26%, as compared to an
income tax provision of $52.1 million and an effective income tax rate of 32%
for the year ended December 31, 2020. The decrease of $26.2 million was
primarily attributable to the tax on the gain on the sale of MSTS in 2020, as
well as a $3.2 million net discrete tax benefit for 2021 as compared to a
$4.5 million net discrete tax expense for 2020. See Note 11. Income Taxes for
additional information.

Aviation Segment Results of Operations
The following provides a summary of the aviation segment results of operations
for the periods indicated:

                                                          Year Ended December
                                                                  31,
                                                                     2021                   2020                  Change
Revenue                                                        $    12,824.3          $     8,179.6          $     4,644.8

Gross profit                                                   $       386.9          $       352.9          $        34.0
Operating expenses                                                     223.5                  268.4                  (44.9)
Income from operations                                         $       163.4          $        84.5          $        78.9

Operational metrics:
Aviation segment volumes (gallons)                                   5,857.5                4,694.1                1,163.3
Aviation segment average price per gallon                      $        

2.08 $1.46 $0.62


Revenues in our aviation segment were $12.8 billion for the year ended December
31, 2021, an increase of $4.6 billion, or 57%, compared to the year ended
December 31, 2020. The increase in revenue was driven by higher average prices
and increased volumes. Average jet fuel price per gallon sold increased by 43%
in the year ended December 31, 2021 compared to the year ended December 31, 2020
as a result of the rise in global oil prices. Total aviation volumes increased
by 1.2 billion, or 25%, to 5.9 billion gallons in the year ended December 31,
2021 compared to the year ended December 31, 2020 as travel restrictions eased,
primarily in the North American market, and demand for passenger air travel
continued to recover.

Our aviation segment gross profit for the year ended December 31, 2021 was
$386.9 million, an increase of $34.0 million, or 10%, compared to the year ended
December 31, 2020. The increase in gross profit was primarily due to the
recovery in demand for passenger air travel, partially offset by a reduction in
our government-related activity in Afghanistan and the sale of MSTS.

Our aviation segment income from operations for the year ended December 31, 2021
was $163.4 million, an increase of $78.9 million, or 93%, compared to the year
ended December 31, 2020 due to a reduction in operating expenses combined with
the increase in gross profit. Operating expenses for the year ended December 31,
2021 decreased $44.9 million primarily due to a $46.4 million reduction in the
provision for credit losses driven by the stabilization of customer credit risk
as the global aviation industry continues to recover and the 2020 impairment,
partially offset by an increase in compensation and employee benefit costs as
discussed above.

Land Segment Results of Operations
The following provides a summary of the land segment results of operations for
the periods indicated:

                                                     Year Ended December 31,
                                                                        2021           2020          Change
Revenue                                                             $ 10,426.8      $ 6,663.1      $ 3,763.8

Gross profit                                                             301.1          347.6          (46.5)
Operating expenses                                                       256.4          275.0          (18.6)
Income from operations                                              $     44.6      $    72.6      $   (27.9)

Operational metrics:
Land segment volumes (gallons)                                         5,254.1        5,062.8          191.3
Land segment average price per gallon                               $     1.98      $    1.30      $    0.68


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Revenues in our land segment were $10.4 billion for the year ended December 31,
2021, an increase of $3.8 billion, or 56%, compared to the year ended December
31, 2020. The increase in revenue was primarily driven by a 52% increase in the
average fuel price per gallon or gallon equivalent sold in the year ended
December 31, 2021 compared to the year ended December 31, 2020 as a result of
the rise in global oil prices. Total land volumes increased by 0.2 billion, or
4%, to 5.3 billion gallon or gallon equivalents in the year ended December 31,
2021 compared to the year ended December 31, 2020.

Our land segment gross profit for the year ended December 31, 2021 was $301.1
million, a decrease of $46.5 million, or 13%, compared to the year ended
December 31, 2020. The decrease in gross profit was primarily attributable to
the sale of MSTS, the reduction in our government-related activity in
Afghanistan, and a decrease in demand in the U.K., partially offset by improved
performance in our natural gas business in North America driven by extreme
weather conditions in the first quarter of 2021.

Our land segment income from operations for the year ended December 31, 2021 was
$44.6 million, a decrease of $27.9 million, or 38%, compared to the year ended
December 31, 2020. In 2021, the decrease in gross profit was partially offset by
the overall reduction in operating expenses, driven by the sale of MSTS in 2020,
partially offset by increased compensation and employee benefit costs and
restructuring expenses.

Marine Segment Results of Operations
The following provides a summary of the marine segment results of operations for
the periods indicated:

                                                          Year Ended December
                                                                  31,
                                                                     2021                   2020                  Change
Revenue                                                        $     8,085.8          $     5,515.7          $     2,570.1

Gross profit                                                           100.3                  151.4                  (51.1)
Operating expenses                                                      79.6                   92.8                  (13.2)
Income from operations                                         $        20.7          $        58.5          $       (37.9)

Operational metrics:
Marine segment volumes (metric tons)                                    18.4                   17.5                    1.0
Marine segment average price per metric ton                    $      

438.31 $315.74 $122.57


Revenues in our marine segment were $8.1 billion for the year ended December 31,
2021, an increase of $2.6 billion, or 47%, compared to the year ended December
31, 2020. The increase in revenue was primarily driven by a 39% increase in the
average price per metric ton of bunker fuel sold as a result of the rise in
global oil prices. Total volumes increased by 1.0 million metric tons, or 6%, to
18.4 million metric tons in the year ended December 31, 2021 compared to the
year ended December 31, 2020.

Our marine segment gross profit for the year ended December 31, 2021 was $100.3
million, a decrease of $51.1 million, or 34%, compared to the year ended
December 31, 2020. The decrease in gross profit was primarily attributable to
highly competitive market conditions in 2021, combined with a decline relative
to the strong results in the first half of 2020, which benefited from the
implementation of IMO 2020.

Our marine segment income from operations for the year ended December 31, 2021
was $20.7 million, a decrease of $37.9 million, or 65%, compared to the year
ended December 31, 2020. The decrease in income from operations was primarily
due to the $51.1 million decrease in gross profit, partially offset by a $13.2
million reduction in operating expenses. The decrease in operating expenses was
driven by a lower provision for credit losses, together with the 2020 impairment
and costs associated with the restructuring program recognized in 2020,
partially offset by increased compensation and employee benefit costs.

Liquidity and Capital Resources
Liquidity to fund working capital, as well as make strategic investments to
further our growth strategy, is a significant priority for us. Our views
concerning liquidity are based on currently available information and if
circumstances change significantly, whether as a result of the COVID-19 pandemic
or otherwise, the future availability of trade credit or other sources of
financing may be reduced, and our liquidity would be adversely affected
accordingly.

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Sources of Liquidity and Factors Affecting Our Liquidity Our liquidity, consisting primarily of cash and availability under our credit facility, fluctuates based on a number of factors, including the timing of receipts from our customers and payments to our suppliers, changes in fuel prices, and our financial performance.

We rely on credit arrangements with banks, suppliers and other parties as an
important source of liquidity for capital requirements not satisfied by our
operating cash flow. Future market volatility, generally, and any persistent
weakness in global energy markets may adversely affect our ability to access
capital and credit markets or to obtain funds at reasonable interest rates or on
other advantageous terms. In addition, since our business is impacted by the
availability of trade credit to fund fuel purchases, an actual or perceived
decline in our liquidity or business generally could cause our suppliers to
reduce our credit lines, seek credit support in the form of additional
collateral or otherwise materially modify our payment terms.

During times of high fuel prices, our customers may not be able to purchase as
much fuel from us because of their credit limits with us and the resulting
adverse impact on their business could cause them to be unable to make payments
owed to us for fuel purchased on credit. Furthermore, when fuel prices increase
our working capital requirements increase and our own credit limits could
prevent us from purchasing enough fuel from our suppliers to meet our customers'
demands, or we could be required to prepay for fuel purchases, any of which
would adversely impact our liquidity.

Conversely, extended periods of low fuel prices, particularly when coupled with
low price volatility, can also have an adverse effect on our results of
operations and overall profitability. This can occur due to many factors, such
as reduced demand for our price risk management products and decreased sales to
our customers involved in the oil exploration sector. Low fuel prices also
facilitate increased competition by reducing financial barriers to entry and
enabling existing, lower-capitalized competitors to conduct more business as a
result of lower working capital requirements.

Based on the information currently available, we believe that our cash and cash
equivalents as of December 31, 2021 and available funds from our Credit
Facility, together with cash flows generated by operations, are sufficient to
fund our working capital and capital expenditure requirements for at least the
next twelve months.

Credit Facility and Term Loans. Our availability under our Credit Facility is
limited by, among other things, our consolidated total leverage ratio, which is
defined in the Credit Agreement and is based, in part, on our adjusted
consolidated earnings before interest, taxes, depreciation and amortization
("Adjusted EBITDA") for the four immediately preceding fiscal quarters. The
Credit Agreement generally limits the total amount of indebtedness we may incur
to not more than 3.75 to 1. In connection with the acquisition of Flyers in
January 2022, the applicable leverage ratio is 4.5 to 1 until the end of 2022
pursuant to the terms of the Credit Facility.

As a result of the foregoing, as well as other covenants and restrictions
contained in our Credit Facility, our availability under the Credit Facility may
fluctuate from period to period. In addition, our failure to comply with the
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 certain other agreements to which we
are a party and impair our ability to obtain working capital advances and issue
letters of credit, which would have a material adverse effect on our business,
financial condition, results of operations and cash flows. See Note 8. Debt,
Interest Income, Expense and Other Finance Costs for additional information.

Other Credit Lines. Additionally, we have other uncommitted credit lines
primarily for the issuance of letters of credit, bank guarantees and bankers'
acceptances. These credit lines are renewable on an annual basis and are subject
to fees at market rates. As of December 31, 2021 and 2020, our outstanding
letters of credit and bank guarantees under these credit lines totaled $404.0
million and $328.4 million, respectively.

Receivables Purchase Agreements. We also have accounts receivable programs under
receivables purchase agreements ("RPAs") that allow us to sell a specified
amount of qualifying accounts receivable and receive cash consideration equal to
the total balance, less a discount margin, which varies based on the outstanding
accounts receivable at any given time. The RPA agreements provide the
constituent banks with the ability to add or remove customers from these
programs in their discretion based on, among other things, the level of risk
exposure the bank is willing to accept with respect to any particular customer.
The fees the banks charge us to purchase the receivables from these customers
can also be impacted for these reasons. See Note 2. Accounts Receivable for
additional information.

See Section 1A. – Risk Factors in Part 1 of this 10-K 2021 Report for additional information.

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Future Uses of Liquidity
Cash is primarily used to fund working capital to support our operations as well
as for strategic acquisitions and investments, such as the acquisition of Flyers
discussed below.

From December 31, 2021our contractual obligations were as follows (in millions):

                                      Year 1            Years 2-3           Years 4-5           > 5 Years            Total

Debts and interest obligations (1) $40.4 $486.2 $

      7.1          $      3.0          $   536.6
Operating lease obligations (2)         38.0                59.7                40.9                59.2              197.9
Finance lease obligations (2)            5.3                 7.9                 6.6                 3.6               23.5
Derivatives obligations (3)            168.4                66.6                   -                   -              235.0
Purchase commitment obligations (4)     52.0                17.5                15.4                 8.1               93.0
Other obligations                        1.7                 2.6                 2.6                 1.2                8.1
Total                               $  305.8          $    640.6          $     72.6          $     75.1          $ 1,094.0


(1)Debt and interest obligations include principal and interest payments on
fixed-rate and variable-rate, fixed-term debt based on their maturity dates. See
Note 8. Debt, Interest Income, Expense and Other Finance Costs for additional
information.

(2) We enter into rental agreements for the use of offices, operational facilities, vehicles, vessels, storage tanks and other assets for our operations worldwide. See Note 15. Leases for more information.

(3)As part of our risk management program, we enter into derivative instruments
intended to mitigate risks associated with changes in commodity prices, foreign
currency exchange rate, and interest rates. Our obligations associated with
these derivative instruments fluctuate based on changes in the fair value of the
derivatives. See Note 4. Derivative Instruments and Note 12. Fair Value
Measurements for additional information.

(4)We have fixed purchase commitments associated with our risk management
program, as well as a purchase contract, that runs through 2026, under which we
agreed to purchase annually between 1.9 million barrels and 2.0 million barrels
of aviation fuel at future market prices. See Note 9. Commitments and
Contingencies for additional information.

Significant future cash requirements and off-balance sheet arrangements, in addition to the contractual obligations shown in the table above, include the following:

Acquisition of Flyers. On January 3, 2022, we closed the acquisition of Flyers
for total consideration of $792.7 million, subject to customary adjustments
relating to net working capital, indebtedness and transaction expenses. At
closing, $642.7 million was paid in cash, $50.0 million was satisfied through
the delivery of the Company's common stock, and the remaining $100.0 million
remains payable to the seller, with one-half to be released on each of the first
and second anniversary of the closing of the acquisition. The consideration at
closing was funded through approximately $326 million of cash on hand and
incremental borrowings under our Credit Facility subsequent to December 31,
2021. See Note 3. Acquisitions and Divestitures for additional information.

Capital expenditure. During the year ended December 31, 2021we incurred capital expenditures in the normal course of approximately
$39.2 million. In 2022, we expect our capital expenditures to continue to increase to levels more reflective of pre-pandemic levels.

Unrecognized Income Tax Liabilities. As of December 31, 2021, we have recorded
gross liabilities for unrecognized income tax benefits ("Unrecognized Tax
Liabilities"), including penalties and interest, of $98.2 million. The timing of
any settlement of our Unrecognized Tax Liabilities with the respective taxing
authority cannot be reasonably estimated.

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 December 31, 2021, we had issued letters
of credit and bank guarantees totaling $450.7 million under our Credit Facility
and other uncommitted credit lines.

Surety Bonds. In the normal course of business, we are required to post bid,
performance and other surety-related bonds. The majority of the surety bonds
posted relate to our aviation and land segments. We had outstanding bonds that
were executed in order to satisfy various security requirements of $54.9 million
as of December 31, 2021.

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Cash Flows
The following table reflects the major categories of cash flows for the years
ended December 31, 2021, 2020 and 2019 (in millions). For additional details,
please see the Consolidated Statements of Cash Flows.

                                                        2021         2020   

2019

Net cash provided by (used in) operating activities $173.2 $604.1

     $ 228.8
Net cash provided by (used in) investing activities     (58.3)        72.8  

(50.5)

Net cash provided by (used in) financing activities (113.6) (213.0)

(204.9)


Operating Activities. For the year ended December 31, 2021, net cash provided by
operating activities was $173.2 million compared to net cash provided of $604.1
million for the year ended December 31, 2020. The $430.9 million decrease in
operating cash flows was principally due to an increase in net working capital
of $451.3 million due to a recovery in activity as compared to the
pandemic-related impacts in 2020, as well as higher average fuel prices in 2021,
partially offset by increased operating results of $19.5 million.

Investing Activities. For the year ended December 31, 2021, net cash used in
investing activities was $58.3 million, compared to net cash provided of $72.8
million for the year ended December 31, 2020. The net cash used in investing
activities for the year ended December 31, 2021 was primarily driven by
$39.2 million in capital expenditures and $37.1 million for the acquisition of a
business in the land segment in the fourth quarter of 2021, partially offset by
net cash proceeds of $25.0 million from the collection of a note receivable
related to the sale of MSTS. Net cash provided by investing activities for the
year ended December 31, 2020 was primarily driven by net cash proceeds of $259.6
million received from the sale of MSTS, partially offset by cash paid for the
acquisition of the UVair fuel business of $128.6 million, as discussed in Note
3. Acquisitions and Divestitures, and capital expenditures of $51.3 million.

Financing Activities. For the year ended December 31, 2021, net cash used in
financing activities was $113.6 million, compared to net cash used of $213.0
million for the year ended December 31, 2020. Net cash used in financing
activities for the year ended December 31, 2021 was primarily driven by
repurchases of our common stock in the aggregate amount of $50.5 million,
dividend payments on our common stock of $28.7 million, and net repayments of
debt under our Credit Facility of $23.9 million. Net cash used in financing
activities of $213.0 million for the year ended December 31, 2020 was primarily
driven by net repayments of debt under our Credit Facility of $112.0 million,
repurchases of our common stock in the aggregate amount of $68.3 million, and
dividend payments on our common stock of $25.6 million.

Critical Accounting Estimates
Management's discussion and analysis of our financial condition and results of
operations are based upon our Consolidated Financial Statements included
elsewhere in this 2021 10­K Report, which has been prepared in accordance with
U.S. GAAP. The preparation of these financial statements requires management to
make estimates and judgments that affect the reported amounts of assets,
liabilities, revenues and expenses and related disclosure of contingent assets
and liabilities. On an ongoing basis, we evaluate our estimates, including those
related to unbilled revenue and associated costs of sales, allowance for credit
losses, goodwill and identifiable intangible assets, certain accrued
liabilities, and income taxes. We base our estimates on historical experience
and on other assumptions that are believed to be reasonable under the
circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these estimates under different
assumptions or conditions.

We have identified the areas described below as critical to our business
operations and the understanding of our results of operations given the
uncertainties associated with the assumptions underlying each estimate. For a
detailed discussion on the application of these and other significant accounting
policies, see Note 1. Basis of Presentation, New Accounting Standards and
Significant Accounting Policies.

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                                                                                     Effect if Actual Results Differ
           Description                       Judgments and Uncertainties                    from Assumptions

Impairment Assessments Good willlong-lived assets and equity investments We assess goodwill for

                 These assessments require us to make       Based on the assessments
impairment at least annually, and        accounting estimates that require          performed, and supported by the
whenever events or changes in            consideration of forecasted                available information as of
circumstances indicate it is more        financial information. Significant         December 31, 2021, we concluded
likely than not that the fair            judgment is involved in performing         that the carrying value of our
value of a reporting unit is less        these estimates as they are                long-lived assets and equity
than its carrying amount. We             developed based on forecasted              investments were recoverable and
periodically evaluate whether the        assumptions. As of December 31,            that the fair value of our land
carrying value of long-lived             2021, the assumptions used,                and aviation reporting units were
assets (property and equipment,          particularly the expected growth           not less than their respective
identifiable intangible assets,          rates, the profitability embedded in       carrying values. However, at this
and leases) and equity investments       our projected cash flow, the               time, we are unable to predict
have been impaired when                  discount rate and the market-based         with specificity the ultimate
circumstances indicate the               multiples, were defined in the             impact of the pandemic, as it
carrying value of those assets may       context of current and future              will depend on the magnitude,
not be recoverable.                      potential impacts of COVID-19 on 

our severity and duration, as well as

                                         business and other business 

The factors. at what speed and to what extent,

                                         Management also considered the             normal economic and operating
                                         volatility in the company's market         conditions resume on a
                                         capitalization since the beginning         sustainable basis globally.
                                         of the pandemic and evaluated the          Accordingly, if the impact of the
                                         potential impact that this                 pandemic, and its associated
                                         volatility may have had on the             reduction in business are more
                                         estimated fair value of our                severe or longer in duration than
                                         reporting units.                           we have assumed, such impact
                                                                                    could potentially result in
                                                                                    impairments.

Accounts receivable and allowance for credit losses We maintain an allowance for

              We consider historical payment             As a result of the challenges
estimated credit losses based upon       trends of our customers together           inherent in estimating which
our historical experience with our       with internal and external                 customers are less likely to
customers, any specific customer         information about the economic             remit amounts owed to us, our
collection issues that we have           outlook, geopolitical risks and            provision for estimated credit
identified from current financial        macroeconomic events, which may not        losses may not always be
information and business                 fully capture the current or future        sufficient. Any write-off of
prospects, as well as                    creditworthiness of our customers,         accounts receivable in excess of
forward-looking information from         particularly in difficult economic         our provision for credit losses
market sources.                          periods.                                   could adversely affect our
                                                                                    results of operations and cash
                                                                                    flow.
Business Combinations
A business combination occurs when       Significant judgment is involved in        If estimates or assumptions used
an entity obtains control of a           the determination of fair values in        to estimate fair values are
"business." To conclude if the           the context of acquisitions as fair        materially incorrect, future
definition of a business is met,         values are generally developed based       earnings through depreciation and
we need to conclude whether              on forecasted assumptions. Other           amortization expense could be
substantially all of the fair            factors affecting the concluded fair       impacted. In addition, if
value of the gross assets acquired       value are assumptions and estimates        forecasts supporting the
is concentrated in a single              regarding the industry and economic        valuation of the long-lived
identifiable asset or a group of         factors as well as expected growth,        assets, intangibles, or goodwill
similar identifiable assets which        profitability and risks embedded in        are not achieved, impairments
requires significant judgment to         the new acquired activities.               could arise.
determine the fair value. The
determination of whether the
acquired activities and assets
constitute a business is critical
because the accounting for a
business combination differs
significantly from that of an
asset acquisition. Business
combinations are accounted for
using a fair value model. In
contrast, asset acquisitions are
accounted for using a cost
accumulation and allocation model.


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  Table of     Contents

                                                                                      Effect if Actual Results Differ
           Description                       Judgments and Uncertainties                     from Assumptions
Revenue Recognition
The majority of our consolidated         In drawing this conclusion, we     

Our determination as to whether revenue is generated taking into account various factors, including revenue recognition on a gross or net sale of fuel and fuel-related products

            inventory risk management, latitude        basis can materially impact the
products. We generally recognize         in establishing the sales price,           amount of revenue we report.
fuel sales on a gross basis as we        discretion in the supplier selection
have control of the products             and that we are normally the 

primary

before they are delivered to our         obligor in our sales arrangements.
customers.
Income Taxes
We estimate total income tax             Changes in tax laws and rates, such        Due to the complexity of some of
expense based on statutory tax           as The Tax Cuts and Jobs Act (the          these uncertainties, the ultimate
rates and tax planning                   "Tax Act") enacted on December 22,         resolution of our tax related
opportunities available to us in         2017, could affect recorded deferred       balances or valuation allowances
various jurisdictions in which we        tax assets and liabilities in the          may result in a payment that is
operate. Deferred income taxes are       future. Changes in projected future        materially different from the
recognized for the future tax            earnings could affect the recorded         current estimate of the tax
effects of temporary differences         valuation allowances in the future.        liabilities. To the extent we
between financial and income tax         Our calculations related to income         prevail in matters for which
reporting using tax rates in             taxes contain uncertainties due to         unrecognized tax benefit
effect for the years in which the        judgment used to calculate tax             liabilities have been established,
differences are expected to              liabilities in the application of          or are required to pay amounts in
reverse. Valuation allowances are        complex tax regulations across the         excess of our recorded unrecognized
recorded when it is likely a tax         tax jurisdictions where we operate.        tax benefit liabilities, our
benefit will not be realized for a       Our analysis of unrecognized tax           effective tax rate in a given
deferred tax asset. We record            benefits contains uncertainties            financial statement period could be
unrecognized tax benefit                 based on judgment used to apply the        materially affected.
liabilities for known or                 more likely than not recognition 

and

anticipated tax issues based on          measurement thresholds.
our analysis of whether, and the
extent to which, additional taxes
will be due.

Derivatives

We enter into financial derivative       When available, quoted market prices       While we currently believe that our
contracts to mitigate our risk of        or prices obtained through external        derivative contracts will be
fuel market price fluctuations in        sources are used to determine a            effective in mitigating the
aviation, land and marine fuel as        contract's fair value. For contracts       associated price risks, it is
well as changes in interest and          for which quoted market prices are         possible that our derivative
foreign currency exchange rates          not available, fair value is               instruments will be ineffective at
and also to offer our customers          determined based on pricing models 

mitigate significant changes in fuel pricing alternatives to cater primarily to historical prices, which could adversely affect their needs. These instruments can provide information and expectations

               impact on our financial position
be designated as cash flow or fair       relationship with quoted market            and results of operations. If our
value hedges, or accounted for as        prices. Measurement of the fair            estimates of fair value are
non-designated derivatives. All          value of our derivatives also              inaccurate, we may be exposed to
derivative instruments are               requires the assessment of certain         losses or gains that could be
measured and recorded at fair            risks related to non-performance,          material. See Item 7A. -
value.                                   which requires a significant amount        Quantitative and Qualitative
                                         of judgment.                               Disclosures About Market Risks for
                                                                                    additional information.

Item 7A. Quantitative and qualitative information on market risk

Derivative and Financial Instruments Market Risk
We use commodity-based derivative contracts and financial instruments, when we
deem it appropriate, to manage the risks associated with changes in the prices
of fuel and fuel-related products, fluctuations in foreign currency exchange
rates and interest rates, or to capture market opportunities. We utilize hedge
accounting and formally designate certain of our derivative instruments as
either cash flow or fair value hedges. Derivative instruments that are not
designated are considered non-designated hedges and are designed to achieve an
economic offset of the underlying price risk exposure. Financial instruments and
positions affecting our financial statements are described below and are held
primarily for hedging purposes. As a result, any changes in income associated
with our derivatives contracts are substantially offset by corresponding changes
in the value of the underlying risk being mitigated.

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Contents

Commodity Price Risk
Our commercial business segments use derivative instruments, primarily futures,
forward, swap, and options contracts, in various markets to manage price risk
inherent in the purchase and sale of fuel. Certain of these derivative
instruments are utilized to mitigate the risk of price volatility in forecasted
transactions in a cash flow hedge relationship and to mitigate the risk of
changes in the price of our inventory in a fair value hedge relationship. In
addition, we use derivatives as economic hedges or to optimize the value of our
fuel inventory to capitalize on anticipated market opportunities.

The notional and fair market values of our commodity-based derivative instrument
positions were as follows (in millions, except weighted average contract price):

                                                                                                                                           As of December 31,
                         Commodity Contracts (In millions of BBL)                                                      2021                                                   2020
                                                                                                   Notional            Weighted                           Notional           Weighted
                                                                                                      Net              Average            Fair               Net              Average            Fair
                                                                            Settlement               Long/             Contract           Value             Long/            Contract           Value
     Hedge Strategy                   Derivative Instrument                   Period                (Short)             Price            Amount            (Short)             Price            Amount
                                     Commodity contracts
Designated hedge                     hedging inventory                                2021              -            $       -          $    -              (3.3)           $ 53.291          $   2.9
                                                                                      2022           (2.8)              92.257            (8.2)             (0.1)             54.256             (0.4)
                                                                                                                                          (8.2)                                                   2.5

Non-designated hedge                 Commodity contracts                              2021              -                    -               -              13.9               1.052             24.3
                                                                                      2022            4.6                4.633            10.1               1.0               1.067              7.8
                                                                                      2023            0.1               14.199             7.8                 -               9.333              4.3
                                                                                      2024            0.1               12.274             6.5               0.1              10.118              4.4
                                                                                      2025              -               12.354             2.0                 -                   -                -
                                                                                Thereafter           (0.2)                 12.497          1.4                 -                 10.745           1.7
                                                                                                                                          27.8                                                   42.5
Total commodity derivative contracts                                                                                                    $ 19.6                                                $  45.0


Foreign Currency Exchange Risk
We hedge our exposure to currency exchange rate changes, such as
foreign-currency-denominated trade receivables, payables, or local currency tax
payments. The foreign currency exchange rate risk results primarily from our
international operations and is economically hedged using forward and swap
contracts. The changes in the fair value of these foreign currency exchange
derivatives are recorded in earnings. Since the gains or losses on the forward
and swap contracts are substantially offset by the gains or losses from
remeasuring the hedged foreign-currency-denominated exposure, we do not believe
that a hypothetical 10% change in exchange rates at December 31, 2021 would have
a material impact on our income from operations.

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Contents

As of December 31, 2021, the foreign currency denominated notional amounts and
fair value in U.S. dollars of our exposures from our foreign currency exchange
derivatives, were primarily related to the following (in millions, except
weighted average contract price):

                                        Notional            Weighted Average
Settlement Period        Unit       Net Long/(Short)         Contract Price        Fair Value Amount

2022                     CAD             (22.3)                  1.257            $             (0.1)

2022                     CLP          15,459.0                 838.368                           0.1
2022                     COP         (37,217.2)              3,828.634                           0.4

2022                     DKK             266.6                   6.152                          (0.8)
2022                     EUR             (37.6)                  1.154                           0.5
2022                     GBP               4.8                   1.358                          (0.1)

2022                     KRW         (10,769.6)              1,196.713                          (0.1)
2022                     MXN          (1,107.2)                 21.151                          (0.7)
2022                     NOK            (773.1)                  8.481                           1.7

2022                     SEK             138.1                   8.201                          (0.3)

2022                     ZAR             158.0                  15.705                          (0.2)

Total foreign currency exchange derivative contracts                              $              0.4


The total fair value our foreign currency exchange derivative contracts was an
asset of $0.4 million and a liability of $12.3 million as of December 31, 2021
and 2020, respectively. The majority of foreign currency exchange derivatives
are settled within one year. See Note 4. Derivative Instruments for additional
information.

Interest Rate Risk
Borrowings under our Credit Facility and Term Loans related to base rate loans
or Eurodollar rate loans bear floating interest rates plus applicable margins.
As of December 31, 2021, the applicable margins for base rate loans and
Eurodollar rate loans were 0.75% and 1.75%, respectively. As of December 31,
2021, we had no outstanding borrowings under our Credit Facility and $484.1
million in Term Loans. As of December 31, 2021, the aggregate outstanding
balance of our finance lease obligations was $21.2 million, which bear interest
at annual rates ranging from 1.0% to 5.9%. Our other remaining outstanding debt
of $3.3 million, as of December 31, 2021, primarily relates to loans payable in
varying amounts which bear interest at annual rates ranging from zero to 3.5%.
The weighted average interest rate on our short-term debt was 2.0% as of
December 31, 2021. A 1% fluctuation in the interest rate on our outstanding debt
would result in a $4.8 million change in interest expense during the next twelve
months.

In March 2020, we entered into a $300 million, one-month LIBOR,
floating-for-fixed interest rate non-amortizing swap with a maturity date in
March 2025 (the "Swap"). The Swap agreement effectively locks in the variable
interest cash flows we will pay for a portion of our Eurodollar rate loans at
0.55%. The fair value of the interest rate swap contract was an asset of
$5.1 million and a liability of $3.7 million as of December 31, 2021 and 2020,
respectively.

The following table presents the contractual weighted average interest rates and
expected cash flows by maturity dates (in millions, except weighted average
interest rates):

                      Expected Maturities as of December 31, 2021
Interest Rate Swap          2022         2023        2024        2025       Fair Value
Notional Value: $300                                                       $      5.1
Variable to Fixed(1)      $ (0.3)      $ 2.0       $ 2.7       $ 0.7
Average pay rate            0.55  %     0.55  %     0.55  %     0.55  %
Average receive rate        0.45  %     1.21  %     1.46  %     1.52  %

(1) Represents net receipts or (payments) discounted from cash flows.

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