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WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
PAFCO, we recorded minority interest in income of consolidated subsidiaries of $0.3 million for 2004 and 2005
in the accompanying consolidated statements of income.
The following table summarizes the effect of PAFCO on our consolidated statements of income, after
elimination of all significant intercompany transactions and profits (in thousands):
2003 2004 2005
Revenue ................................................ $— $194,173 $210,800
Gross profit ............................................. $— $ 2,742 $ 2,575
Income from operations ................................... $— $ 1,499 $ 1,404
Other income (expense), net ................................ $493 $ (48) $ 204
Provision for income taxes ................................. $190 $ 559 $ 619
Minority interest in income of consolidated subsidiaries .......... $— $ 306 $ 316
Net income ............................................. $303 $ 586 $ 673
The following table summarizes the effect of PAFCO on our consolidated financial position, after
elimination of all significant intercompany accounts (in thousands):
As of December 31,
2004 2005
Cash and cash equivalents ............................................ $ 3,039 $1,813
Accounts and notes receivable ........................................ $ 4,311 $1,908
Inventory ......................................................... $ 2,740 $1,635
Total assets ....................................................... $10,782 $5,395
Total liabilities .................................................... $10,782 $5,395
Included in accounts and notes receivable, as of December 31, 2004 and 2005, were net receivables due
from Signature, a related party, of $0.8 million and $0.3 million, respectively. For 2004 and 2005, sales to
Signature from PAFCO amounted to $131.1 million and $142.4 million, respectively. In addition to PAFCO’s
sales to Signature, in the normal course of business, we utilize Signature and Aircraft Service International Group
(“ASIG”), a sister company of Signature, as subcontractors to provide various services to customers, including
into-plane fueling at airports, and transportation and storage of fuel and fuel products. These activities with
Signature and ASIG were not considered to be significant.
7. Business Segments, Geographic Information, and Major Customers
Business Segments
Based on the nature of operations and quantitative thresholds pursuant to SFAS 131, “Disclosures about
Segments of and Enterprise and Related Information,” we have two reportable operating segments: marine and
aviation. Performance measurement and resource allocation for the reportable operating segments are based on
many factors. Corporate expenses are allocated to the segments based on usage, where possible, or on other
factors according to the nature of the activity. 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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