World Fuel Services 2015 Annual Report Download - page 57

52
2013 Acquisitions
In 2013, we completed three acquisitions in our land segment, which were not material individually or in the aggregate. The
financial position, results of operations and cash flows of the 2013 acquisitions have been included in our consolidated
financial statements since their respective acquisition dates.
The following reconciles the aggregate purchase price for the 2013 acquisitions to the cash paid for the acquisitions, net of
cash acquired (in millions):
Purchase price $ 43.8
Less: Cash acquired 3.3
Purchase price, net of cash acquired 40.5
Less: Promissory notes issued 3.0
Cash paid for acquisition of businesses $ 37.5
During 2014, we completed the valuation of the assets acquired and liabilities assumed for the 2013 acquisitions. As a
result, during 2014, we completed the purchase price allocation which primarily resulted in a $0.4 million increase to goodwill
and a $0.5 million reduction in identifiable intangible assets. Additionally, in 2014, we paid $0.1 million of the amounts due
to sellers that were outstanding as of December 31, 2013.
The purchase price for each of the 2013 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 2013
acquisitions is as follows (in millions):
Assets acquired:
Cash and cash equivalents $ 3.3
Accounts receivable 31.3
Inventories 8.8
Property and equipment 3.9
Identifiable intangible assets 13.5
Goodwill 16.5
Other current and long-term assets 2.7
Liabilities assumed:
Accounts payable (29.6)
Accrued expenses and other current liabilities (3.5)
Other long-term liabilities (3.1)
Purchase price $ 43.8
Significant Accounting Policies
Basis of Consolidation
The accompanying consolidated financial statements and related notes include the accounts of our wholly-owned and
majority-owned subsidiaries and joint ventures where we exercise operational control or have a primary benefit of its profits.
All significant intercompany accounts, transactions and profits are eliminated upon consolidation.
Use of Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the
United States requires us 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. Accordingly, actual results could materially differ from estimated
amounts. We evaluate our estimated assumptions based on historical experience and on various other assumptions that
are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets
and liabilities.
Fair Value of Financial Instruments
The carrying amounts of cash, cash equivalents, accounts receivable, accounts payable and accrued expenses
approximate fair value based on the short maturities of these instruments.