World Fuel Services 2005 Annual Report Download - page 65

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WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
common stock equivalents arising out of non-employee stock options, employee director stock options, SSARs,
stock units, warrants and non-vested restricted common stock.
Our net income is the same for basic and diluted earnings per share calculations. Shares used to calculate
earnings per share are as follows (in thousands):
2003 2004 2005
Basic weighted average shares ......................... 21,234 22,104 23,700
Common stock equivalents ........................... 828 958 1,050
Restricted non-vested stock weighted average shares ....... 276 392 464
Diluted weighted average shares used in the calculation of
diluted earnings per share ........................... 22,338 23,454 25,214
Weighted average shares subject to stock options,
SSARs, stock units and warrants included in the
determination of common stock equivalents for the
calculation of diluted earnings per share ............... 2,866 2,574 2,455
Weighted average shares subject to stock options which are
not included in the calculation of diluted earnings per share
because their impact is antidilutive ................... 314 42 —
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States requires management to make certain estimates and assumptions that affect the reported amounts
of assets, liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expenses during the reporting period. We evaluate our estimates and
assumptions based on historical experience and other relevant facts and circumstances. Accordingly, actual
results could differ from estimated amounts.
Fair Value of Financial Instruments
The estimated fair values of financial instruments, which are presented herein, have been determined by our
management using available market information and appropriate valuation methodologies. However,
considerable judgment was required in interpreting market data to develop estimates of fair value. Accordingly,
the estimates presented herein are not necessarily indicative of amounts we could realize in a current market sale.
Accounts and notes receivable, net, and accounts payable are reflected in the accompanying consolidated
balance sheets at amounts considered by management to reasonably approximate fair value due to their short-
term nature.
Our long-term debt primarily consists of our borrowings under the revolving credit facility, which bears
interest at floating market interest rates. Accordingly, the carrying value of the long-term debt approximated the
fair value of such instruments.
Reclassifications
Certain amounts in prior periods have been reclassified to conform to current year’s presentation.
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