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81
The nature of inputs that are considered Level 3 are modeled inputs. Commodity contracts are categorized in Level 3 due
to the significance of the unobservable model inputs to their respective fair values. The unobservable model inputs, such
as basis differentials, are based on the difference between the historical prices of our prior transactions and the underlying
observable data as well as certain risk related to non-performance. The effect on our income before income taxes of a 10%
change in the model input for non-performance risk would not be significant. There were no transfers between Level 1 and
Level 2 during the periods presented. Transfers between Level 2 and Level 3 were due to the increased significance of
basis adjustments which are Level 3 measurements.
11. Business Segments, Geographic Information, and Major Customers
Business Segments
Based on the nature of operations and quantitative thresholds pursuant to the accounting guidance on segment reporting,
we have three reportable operating business segments: aviation, marine and land. Corporate expenses are allocated to the
segments based on usage, where possible, or on other factors according to the nature of the activity. Please refer to Note 1
for the dates that the results of operations and related assets and liabilities of our acquisitions have been included in our
operating segments. The accounting policies of the reportable operating segments are the same as those described in the
Summary of Significant Accounting Policies (see Note 1).
Information concerning our revenue, gross profit, income from operations, depreciation and amortization and capital
expenditures by segment is as follows (in millions):
For the Year ended December 31,
2015 2014 2013
Revenue:
Aviation segment $ 11,738.2 $ 17,268.8 $ 16,087.6
Marine segment 9,367.2 13,843.3 14,790.3
Land segment 9,274.3 12,274.3 10,684.0
$ 30,379.7 $ 43,386.4 $ 41,561.9
Gross profit:
Aviation segment $ 361.4 $ 321.6 $ 327.2
Marine segment 189.6 205.6 177.1
Land segment 309.5 286.4 248.5
$ 860.5 $ 813.6 $ 752.8
Income from operations:
Aviation segment $ 131.7 $ 142.3 $ 150.9
Marine segment 73.0 90.0 73.8
Land segment 103.4 90.3 84.8
308.1 322.6 309.5
Corporate overhead – unallocated 60.9 53.5 45.0
$ 247.2 $ 269.1 $ 264.5
Depreciation and amortization:
Aviation segment, includes allocation from corporate $ 22.5 $ 15.4 $ 15.9
Marine segment, includes allocation from corporate 6.4 5.6 5.4
Land segment, includes allocation from corporate 30.8 34.7 20.8
Corporate 3.7 3.7 2.6
$ 63.4 $ 59.4 $ 44.7
Capital expenditures:
Aviation segment $ 13.4 $ 9.0 $ 5.8
Marine segment 8.0 13.9 17.3
Land segment 16.4 16.0 54.3
Corporate 10.6 12.9 5.3
$ 48.4 $ 51.8 $ 82.7