World Fuel Services 2015 Annual Report Download - page 27

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22
(4) In 2012, we acquired i) certain assets of CarterEnergy Corporation, including the assets comprising its wholesale motor
fuel distribution business (the “CarterEnergy business”) on September 1st, ii) certain assets of Multi Service Corporation,
including the assets comprising its transaction management business, and all of the outstanding stock of its foreign
subsidiaries (the “Multi Service business”) on December 31st and iii) completed three additional acquisitions which were
not material individually or in the aggregate. The financial position and results of operations of these acquisitions have
been included in our consolidated financial statements since their respective acquisition dates.
(5) In 2011, we acquired i) all of the outstanding stock of Nordic Camp Supply ApS and certain affiliates (“NCS”) and ii) all
of the outstanding stock of Ascent Aviation Group, Inc. (“Ascent”) on March 1st and April 1st, respectively, and iii)
completed six additional acquisitions which were not material individually or in the aggregate. The financial position and
results of operations of these acquisitions have been included in our consolidated financial statements since their
respective acquisition dates.
(6) Included in operating expenses are total non-cash compensation costs associated with share-based payment awards
of $17.0 million for 2015, $15.8 million for 2014, $16.7 million for 2013, $14.1 million for 2012 and $11.0 million for 2011
and intangible amortization expense of $28.3 million for 2015, $29.1 million for 2014, $22.4 million for 2013, $18.1
million for 2012 and $25.0 million for 2011.
(7) Included in non-operating income (expenses), net for 2014 is a gain of $18.1 million related to the sale of our crude oil
joint venture interests. The after-tax gain, net of certain related operating expenses was $9.9 million, or $0.14 per basic
and diluted share.
(8) In 2015, we repurchased 1,584,000 shares of our common stock for an aggregate value of $70.5 million pursuant to
the Repurchase Program. In 2014, we repurchased 227,000 shares of our common stock for an aggregate value of
$10.0 million pursuant to the Repurchase Program. In 2013, we repurchased 926,000 shares of our common stock for
an aggregate value of $35.0 million pursuant to the Repurchase Program.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read in conjunction with “Item 6 – Selected Financial Data,” and with the accompanying
consolidated financial statements and related notes thereto appearing elsewhere in this 2015 10-K Report. The following
discussion may contain forward-looking statements, and our actual results may differ significantly 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.”
Overview
We are a global fuel logistics, transaction management and payment processing company, principally engaged in the
distribution of fuel and related products and services in the aviation, marine and land transportation industries. We compete
by providing our customers with value-added benefits, including single-supplier convenience, competitive pricing, the
availability of trade credit, price risk management, logistical support, fuel quality control and fuel procurement outsourcing.
We primarily contract with third parties for the delivery and storage of fuel products, however, we also operate storage
facilities and transportation assets.
Reportable Segments
We operate in three reportable segments consisting of aviation, marine and land. In our aviation segment, we offer fuel and
related products and services to major commercial airlines, second and third-tier airlines, cargo carriers, regional and low
cost carriers, airports, fixed based operators, corporate fleets, fractional operators, private aircraft, military fleets and to the
U.S. and foreign governments as well as intergovernmental organizations. In our marine segment, we offer fuel, lubricants
and related products and services to a broad base of marine customers, including international container and tanker fleets,
commercial cruise lines, yachts and time-charter operators, offshore rig owners and operators, the U.S. and foreign
governments as well as other fuel suppliers. In our land segment, we offer fuel, crude oil, lubricants and related products
and services to petroleum distributors operating in the land transportation market, retail petroleum operators, and industrial,
commercial, residential and government customers. Within each of our segments we may enter into derivative contracts to
mitigate the risk of market price fluctuations and, also to offer our customers fuel pricing alternatives to meet their needs. In
addition, we offer transaction management services which consist of card payment solutions and merchant processing
services to customers, primarily in the aviation, marine and land transportation industries.