World Fuel Services 2008 Annual Report Download - page 34

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In connection with our acquisitions, we recorded identifiable intangible assets existing at the date of the
acquisitions for customer, charge card holder and merchant relationships, supplier relationships, non-compete
agreements and trademark/trade name rights. Identifiable intangible assets subject to amortization are amortized
over their estimated lives and are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable based on market factors and operational
considerations. Identifiable intangible assets not subject to amortization are reviewed annually for impairment by
comparing the estimated fair value of the intangible asset with its carrying value.
Results of Operations
The results of operations for 2007 do not include the results of the Texor business (in our land segment)
since the acquisition was not completed until June 1, 2008, and only include the results of AVCARD (in our
aviation segment) for the month of December 2007 since the acquisition was not completed until December 1,
2007. The results of operations for 2008 include the results of the Texor business since June 1, 2008 and the full-
year results of AVCARD.
2008 compared to 2007
Revenue. Our revenue for 2008 was $18.5 billion, an increase of $4.8 billion, or 34.8%, as compared to
2007. The significant increase in revenue from 2007 in total is primarily due to the rise in prices during most of
the first three quarters of 2008 despite a sharp decline in oil prices during the fourth quarter.
Our revenue during these years was attributable to the following segments (in thousands):
2008 2007 $ Change
Marine segment . . . . . . . . . . . . . . . . . . . . . . . . $ 9,915,291 $ 7,665,801 $2,249,490
Aviation segment . . . . . . . . . . . . . . . . . . . . . . . 7,294,466 5,460,838 1,833,628
Land segment . . . . . . . . . . . . . . . . . . . . . . . . . 1,299,646 602,916 696,730
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,509,403 $13,729,555 $4,779,848
Our marine segment contributed $9.9 billion in revenue for 2008, an increase of $2.2 billion, or 29.3%, as
compared to 2007. Of the total increase in marine segment revenue, $1.9 billion was due to an increase in the
average price per metric ton sold as a result of higher world oil prices in 2008. The remaining increase of
approximately $373.6 million was due to increased sales volume to both new and existing customers.
Our aviation segment contributed $7.3 billion in revenue for 2008, an increase of $1.8 billion, or 33.6%, as
compared to 2007. Of the total increase in aviation segment revenue, $2.1 billion was due to an increase in the
average price per gallon sold as a result of higher world oil prices in 2008. Partially offsetting this increase was a
decline of $267.5 million in decreased sales volume primarily attributable to our efforts to reduce low margin
business and to eliminate certain high risk business, offset by the incremental sales volume contributed by our
AVCARD acquisition.
Our land segment contributed $1.3 billion in revenue for 2008, an increase of $696.7 million as compared to
$602.9 million in 2007. Of the total increase in land segment revenue, $508.1 million was due to increased sales
volume attributable to incremental sales resulting from the acquisition of the Texor business, which was
completed in June 2008, partially offset by decreased volume in our existing business. The remaining increase of
$188.6 million was due to an increase in the average price per gallon sold as a result of higher world oil prices in
2008.
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