World Fuel Services 2007 Annual Report Download - page 65

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ˆ1KGX9SH6MC162=WyŠ
1KGX9SH6MC162=W
64435 TX 57WORLD FUEL SERVICES
ANNUAL REPORT
28-Feb-2008 00:12 EST
CLN PSTAM
RR Donnelley ProFile SER kirkw0cm 6*
PMT 2C
CHMFBUAC350855
9.9.26
WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Shares used to calculate earnings per share are as follows (in thousands):
2007 2006 2005
Weighted average shares used in the calculation of basic
earnings per share ................................. 28,102 27,467 23,700
Common stock equivalents ........................... 960 1,456 1,514
Weighted average shares used in the calculation of diluted
earnings per share ................................. 29,062 28,923 25,214
Weighted average shares subject to stock options, SSARs,
restricted stock and non-vested RSUs which are not
included in the calculation of diluted earnings per share
because their impact is antidilutive or the awards’
performance conditions have not yet been met .......... 1,062 714 —
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 and liabilities, 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 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 derivatives are recorded at estimated fair value in the accompanying balance sheets based on quoted market
prices or available market information.
Our long-term debt primarily consists of our borrowings under the 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 years have been reclassified to conform to current year’s presentation.
Recent Accounting Pronouncements
Business Combinations. In December 2007, the Financial Accounting Standards Board (“FASB”) issued
SFAS No. 141(R), “Business Combinations,” which is intended to improve, simplify, and converge
internationally the accounting for business combinations and the reporting of noncontrolling interests in
consolidated financial statements. Under SFAS No. 141(R), an acquiring entity will be required to recognize all
57