World Fuel Services 2002 Annual Report Download - page 53

Download and view the complete annual report

Please find page 53 of the 2002 World Fuel Services annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 84

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

In accordance with SFAS No. 142, the following pro forma information is presented (in thousands, except earnings per
share):
For the Nine Months
Ended December 31, For the Year Ended March 31,
2002 2001 2002 2001 2000
(unaudited)
Net income:
Reported net income 9,872$ 12,762$ 17,235$ 10,634$ 9,635$
Add back: Goodwill amortization, net of tax - - - 636 573
Adjusted net income 9,872$ 12,762$ 17,235$ 11,270$ 10,208$
Basic earnings per share:
Reported earnings per share 0.94$ 1.23$ 1.66$ 1.00$ 0.80$
Add back: Goodwill amortization, net of tax - - - 0.06 0.05
Adjusted earnings per share 0.94$ 1.23$ 1.66$ 1.06$ 0.85$
Diluted earnings per share:
Reported earnings per share 0.91$ 1.20$ 1.62$ 1.00$ 0.80$
Add back: Goodwill amortization, net of tax - - - 0.06 0.05
Adjusted earnings per share 0.91$ 1.20$ 1.62$ 1.06$ 0.85$
Revenue Recognition
Revenue is generally recorded in the period when the sale is made or as the services are performed. We contract with
third parties to provide the fuel and/or deliver most services. This causes delays in receiving the necessary information for
invoicing. Accordingly, revenue may be recognized in a period subsequent to when the actual delivery of fuel or service was
performed. This policy does not result in reported results that are materially different than if the revenue were recognized in
the period of actual delivery or performance.
In December 1999, the staff of the Securities and Exchange Commission (the "SEC") published Staff Accounting
Bulletin 101, "Topic 13: Revenue Recognition," ("SAB 101") to provide guidance on the recognition, presentation and
disclosure of revenue in financial statements. SAB 101 also provides guidance on disclosures that should be made for
revenue recognition policies and the impact of events and trends on revenue. We adopted SAB 101, effective June 30, 2000,
as required. The implementation of SAB 101 did not have a material effect on our financial position or results of operations.
Income Taxes
Our provision for income taxes was determined by taxable jurisdiction. We file a consolidated U.S. federal income tax
return which includes all of our U.S. companies. Our non-U.S. companies file income tax returns in their respective
countries of incorporation, as required. We do not provide for U.S. federal and state income taxes, and non-U.S. withholding
taxes on the undistributed earnings of our non-U.S. companies. The distribution of these earnings would result in additional
U.S. federal and state income taxes to the extent they are not offset by foreign tax credits and non-U.S. withholding taxes. It
is our intention to reinvest undistributed earnings of our non-U.S. companies indefinitely and thereby postpone their
remittance. Accordingly, no provision has been made for taxes that could result from the remittance of such earnings.
We provide for deferred income taxes on temporary differences arising from assets and liabilities whose bases are
different for financial reporting and U.S. federal, state and non-U.S. income tax purposes. A valuation allowance is recorded
to reduce deferred income tax assets when it is more likely than not that an income tax benefit will not be realized. No
valuation allowance was recorded in the accompanying Consolidated Balance Sheets.
Page 45 of 70