World Fuel Services 2015 Annual Report Download - page 56

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51
The following reconciles the aggregate purchase price for the 2014 acquisitions to the cash paid for the acquisitions, net of
cash acquired (in millions):
Purchase price $ 295.8
Less: Cash acquired 20.2
Purchase price, net of cash acquired 275.6
Less: Promissory notes issued 9.0
Less: Amounts due to sellers 3.4
Cash paid for acquisition of businesses $ 263.2
The purchase price for each of the 2014 acquisitions was allocated to the assets acquired and liabilities assumed based on
their estimated fair value at the acquisition date. On an aggregate basis, the purchase price allocation for the 2014
acquisitions is as follows (in millions):
Assets acquired:
Cash and cash equivalents $ 20.2
Accounts receivable 257.9
Inventories 14.4
Property and equipment 55.9
Identifiable intangible assets 83.5
Goodwill 177.8
Other current and long-term assets 22.5
Liabilities assumed:
Accounts payable (247.6)
Accrued expenses and other current liabilities (50.7)
Other long-term liabilities (18.7)
Initial noncontrolling interest upon acquisition of businesses (19.4)
Purchase price $ 295.8
In connection with the acquisition of Watson Petroleum, we made a payment of £13.0 million ($21.7 million) to an escrow
account related to an estimated assumed pension exit obligation and amounts due to sellers. During 2015, we completed
the pension buy-out and the remaining escrow account balance of £3.4 million ($5.1 million) was paid to the sellers. As of
December 31, 2015 we had an additional amount due to sellers of £2.1 million ($3.0 million) which is included in accrued
expenses and other current liabilities in the accompanying consolidated balance sheets.
For our 2014 acquisitions, we recorded goodwill of $177.8 million, of which $22.4 million is anticipated to be deductible for
tax purposes. The aggregate identifiable intangible assets consisted of $55.5 million of customer relationships and $16.5
million of other identifiable intangible assets with weighted average lives of 4.9 years and 5.0 years, respectively, as well as
$11.5 million of indefinite-lived trademark/trade name rights.
The following presents the unaudited pro forma results for 2014 and 2013, as if the 2014 acquisitions had been completed
on January 1, 2013 (in millions, except per share data):
2014 2013
(pro forma) (pro forma)
Revenue $ 44,071.8 $ 44,098.8
Net income attributable to World Fuel $ 226.6 $ 216.4
Earnings per common share:
Basic $ 3.20 $ 3.04
Diluted $ 3.18 $ 3.01
In the aggregate, the 2014 acquisitions did not have a significant impact on our revenue and net income for 2014.