World Fuel Services 2002 Annual Report Download - page 24

NOTES TO SELECTED FINANCIAL DATA
(Continued)
Effective April 2001, we elected to early adopt SFAS No. 142, “Goodwill and Other Intangible Assets,” which among
other provisions, states that goodwill shall not be amortized prospectively. Accordingly, no goodwill amortization was
recorded subsequent to the adoption of SFAS No. 142.
Effective April 1, 2002, we adopted the accounting provision of SFAS No. 123, “Accounting for Stock-Based
Compensation,” as amended by SFAS No. 148, “Accounting for Stock-Based Compensation - Transition and Disclosure, an
amendment of FASB Statement No. 123,” to account for stock options granted to our employees and non-employee directors
using the prospective method. Under the fair value recognition provision, as of the grant date, we recorded the fair value of
the stock option granted as Unearned deferred compensation, which is amortized over the minimum vesting period of each
individual award as compensation cost. For the nine months ended December 31, 2002, we granted stock options to
purchase 81 thousand shares of our common stock at an aggregate fair value of $215 thousand and recorded amortization of
$59 thousand for employee and non-employee director compensation cost. As of December 31, 2002, the unearned deferred
compensation for stock options granted to our employees and non-employee directors was $156 thousand.
In October 2001, we granted 25 thousand shares of restricted common stock at a value of $298 thousand and recorded
compensation expense for the amortization of $182 thousand for the year ended March 31, 2002, of which $39 thousand was
recorded for the nine months ended December 31, 2001. During the nine months ended December 31, 2002, we granted 96
thousand restricted shares of our common stock at an aggregate value of $1.9 million and recorded amortization of $304
thousand for employee compensation cost. As of December 31, 2002, the unearned deferred compensation for restricted
common stock issued to our employees was approximately $1.7 million.
For the nine months ended December 31, 2002, executive severance charges of $4.5 million relating to the termination
of employment of our former Chief Executive Officer, Chief Financial Officer, Chief Information Officer, and two other
executives were included in Operating expenses. Also, during the nine months ended December 31, 2002, a non-recurring
charge of $1.6 million in connection with the settlement of the remaining balance due on the Moorehead judgment was
included in Other income (expense), net. See Item 3 – Legal Proceedings.
During the year ended March 31, 2002, an insurance settlement recovery of $1.0 million relating to a product theft off
the coast of Nigeria was included in Other income (expense), net. The product theft resulted in a non-recurring charge of
$3.1 million recorded for the year ended March 31, 2000 and was included in Other income (expense), net.
For the year ended March 31, 2001, an executive severance charge of $3.5 million relating to the termination of the
employment of our former Chief Executive Officer was included in Operating expenses.
During the year ended March 31, 2000, a non-recurring charge of $2.5 million relating to the write-down of our
investment in the aviation joint venture in Ecuador was included in Other income (expense), net.
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