World Fuel Services 2015 Annual Report Download - page 29

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Gross Profit. Our gross profit for 2015 was $860.5 million, an increase of $46.9 million, or 5.8%, as compared to 2014. Our
gross profit during these periods was attributable to the following segments (in millions):
2015 2014 $ Change
Aviation segment $ 361.4 $ 321.6 $ 39.8
Marine segment 189.6 205.6 (16.0)
Land segment 309.5 286.4 23.1
Total $ 860.5 $ 813.6 $ 46.9
Our aviation segment gross profit for 2015 was $361.4 million, an increase of $39.8 million, or 12.4%, as compared to 2014.
Of the increase in aviation segment gross profit, $31.0 million was due to increased volume attributable to new and existing
customers and $28.7 million was due to gross profit from acquired businesses. These increases were partially offset by
$19.9 million in lower gross profit per gallon sold due to fluctuations in customer mix.
Our marine segment gross profit for 2015 was $189.6 million, a decrease of $16.0 million, or 7.8%, as compared to 2014.
Of the decrease in marine segment gross profit, $71.2 million was due to lower gross profit per metric ton sold in 2015 as
compared to 2014 due to fluctuations in customer mix, which was partially offset by $55.2 million in increased volume
attributable to new and existing customers.
Our land segment gross profit for 2015 was $309.5 million, an increase of $23.1 million, or 8.1%, as compared to 2014. Of
the increase in land segment gross profit, $37.5 million was due to increased volume attributable to new and existing
customers and $28.2 million was due to gross profit from acquired businesses. These increases were partially offset by
$42.6 million in lower gross profit per gallon sold due to fluctuations in customer mix.
Operating Expenses. Total operating expenses for 2015 were $613.3 million, an increase of $68.8 million, or 12.6%, as
compared to 2014. The following table sets forth our expense categories (in millions):
2015 2014 $ Change
Compensation and employee benefits $ 365.8 $ 319.8 $ 46.0
Provision for bad debt 7.5 3.8 3.7
General and administrative 240.0 220.9 19.1
Total $ 613.3 $ 544.5 $ 68.8
Of the $46.0 million increase in compensation and employee benefits, $24.4 million was due to the inclusion of expenses
from acquired businesses and $21.6 million was principally due to compensation for new hires to support our growing global
business. Of the $19.1 million increase in general and administrative expenses, $17.2 million was due to the inclusion of
expenses from acquired businesses and $1.9 million was due to increased general and administrative expenses to support
our growing global business.
Income from Operations. Our income from operations for 2015 was $247.2 million, a decrease of $21.9 million, or 8.1%,
as compared to 2014. Income from operations during these periods was attributable to the following segments (in millions):
2015 2014 $ Change
Aviation segment $ 131.7 $ 142.3 $ (10.6)
Marine segment 73.0 90.0 (17.0)
Land segment 103.4 90.3 13.1
308.1 322.6 (14.5)
Corporate overhead – unallocated 60.9 53.5 7.4
Total $ 247.2 $ 269.1 $ (21.9)
Our aviation segment income from operations for 2015 was $131.7 million, a decrease of $10.6 million, or 7.4%, as
compared to 2014. This decrease resulted from a $50.4 million increase in operating expenses, which was partially offset
by $39.8 million in higher gross profit. Of the increase in operating expenses, $28.2 million was related to the inclusion of
acquired businesses, $3.8 million was related to the termination of the employment agreement of our former Aviation
Segment President and $18.4 million was due to increased operating expenses to support our growing global business.
Our marine segment income from operations for 2015 was $73.0 million, a decrease of $17.0 million, or 18.9%, as compared
to 2014. This decrease resulted from $16.0 million in lower gross profit and a $1.0 million increase in operating expenses.
Our land segment income from operations for 2015 was $103.4 million, an increase of $13.1 million, or 14.5%, as compared