World Fuel Services 2002 Annual Report Download - page 48

WORLD FUEL SERVICES CORPORATION AND SUBSIDIAIRES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Continued)
Supplemental Schedule of Noncash Investing and Financing Activities
Cash dividends declared, but not yet paid, totaled $806 thousand at December 31, 2002, $783 thousand at December 31,
2001, $778 thousand at March 31, 2002, $520 thousand at March 31, 2001 and $554 thousand at March 31, 2000, and paid
these dividends in January 2003 and 2002, April 2002, 2001, and 2000, respectively.
During the nine months ended December 31, 2002, in connection with the construction of our new corporate office, we
recorded leasehold improvements of $484 thousand, which was paid by the landlord as an office construction allowance. As of
December 31, 2002, the leasehold improvements for our new corporate office was included in Construction in progress –
corporate office and the related deferred rental credit was included in Long-term liabilities. The deferred rental credit is being
amortized on a straight-line basis over the lease period of the new corporate office.
In connection with the acquisition of businesses, we issued interest and non-interest bearing promissory notes
amounting to $5.0 million, in the aggregate, after discounting the non-interest bearing promissory note at 5%, in January
2002 and April 2001; $540 thousand in February 2001; and $4.25 million in April 1999. See Notes 1 and 3 to the
consolidated financial statements for additional information.
In January 2002 and April 1999, we assumed short-term debt of $1.5 million and $197 thousand, respectively, in
connection with the acquisition of businesses. See Notes 1 and 3 to the consolidated financial statements for additional
information.
In connection with our aviation joint venture investment in December 2000, we issued a non-interest bearing
promissory note of $1.9 million after discounting the promissory note at 9%. For additional information, see Notes 1, 3,
and 7 to the consolidated financial statements.
Effective April 1, 2002, we adopted the accounting provision of Statement of Financial Accounting Standards
(“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-
based awards to our employees and non-employee directors. Under the provision of SFAS 123, we recorded, as of the
grant date, the fair value of awards granted as Unearned deferred compensation and is being amortized over the minimum
vesting period of each individual award. Stock-based awards granted prior to April 1, 2002, continued to be accounted
for under the intrinsic value method of Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to
Employees.” For the nine months ended December 31, 2002, we granted options to purchase 81 thousand shares at an
aggregate value of $215 thousand and amortization of $59 thousand was recognized as compensation expense. See Note
5 to the consolidated financial statements for additional information.
Beginning in October 2001, under the 2001 Omnibus Plan, we started granting shares of restricted common stock to
our employees. The fair value of the restricted stock, based on the market value of our common stock on the date of
grant, is recorded as Unearned deferred compensation and is being amortized over the minimum vesting period of each
individual stock grant. In October 2001, we granted 25 thousand shares 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 at an aggregate value of $1.9 million and recorded amortization of $363 thousand as
compensation expense. See Note 5 to the consolidated financial statements for additional information.
In connection with the sale of the oil-recycling segment in February 2000, we received $5.0 million of EarthCare
Company (“EarthCare”) stock, subject to lock-up and price protection agreements. See Notes 2 and 6 to the consolidated
financial statements for additional information.
The accompanying notes are an integral part of these consolidated financial statements.
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