World Fuel Services 2002 Annual Report Download - page 54

Download and view the complete annual report

Please find page 54 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

Earnings Per Share
Basic earnings per share is computed based on the weighted average number of common shares outstanding. Diluted
earnings per share is based on the sum of the weighted average number of common shares outstanding, non-vested restricted
common stock and common stock equivalents arising out of employee stock options and non-employee stock options and
warrants. Our net income is the same for basic and diluted earnings per share calculations. Shares used to calculate
earnings per share are as follows (in thousands):
For the Nine Months
Ended December 31, For the Year Ended March 31,
2002 2001 2002 2001 2000
(unaudited)
Basic weighted average shares 10,468 10,378 10,381 10,644 12,045
Restricted stock weighted average shares 72 7 12 - -
Common stock equivalents 360 267 253 19 -
Diluted weighted average shares used in the
calculation of diluted earnings per share 10,900 10,652 10,646 10,663 12,045
Weighted average shares of stock options
and warrants included in the determination
of common stock equivalents for the
calculation of diluted earnings per share 1,168 1,524 1,087 184 -
Weighted average shares of stock options
which are not included in the calculation
of diluted earnings per share because
their impact is antidilutive 168 474 415 1,029 1,097
Foreign Currency
Our primary functional currency is the U.S. Dollar, which also serves as our reporting currency. Our non-U.S. entities
translate their monetary assets and liabilities, denominated in foreign currencies, at fiscal year-end exchange rates while non-
monetary assets and liabilities, denominated in foreign currencies, are translated at historical rates. Income and expense
accounts, denominated in foreign currencies, are translated at the average rates in effect during the year, except for
depreciation which was translated at historical rates. Unrealized foreign currency gains and losses relating to the translation
of non-U.S. entities’ assets, liabilities, income, and expense were included in Other, net in the accompanying Consolidated
Statements of Income, in the period incurred and ended, and amounted to net losses of $1.2 million for the nine months
ended December 31, 2002, and $127 thousand and $428 thousand for the years ended March 31, 2001 and 2000,
respectively, and net gains of $77 thousand for the nine months ended December 31, 2001 and $134 thousand for the year
ended March 31, 2002, respectively.
Some of our aviation fuel purchases are denominated in local currency. Realized foreign currency exchange gains and
losses on transactions were included in Other, net in the accompanying Consolidated Statements of Income, in the period
incurred, and amounted to net losses of $364 thousand and $1.0 million for the nine months ended December 31, 2002 and
2001, respectively, and $1.2 million and $312 thousand for the years ended March 31, 2002 and 2000, respectively, and a net
gain of $376 thousand for the year ended March 31, 2001.
Comprehensive Income
There were no significant items of other comprehensive income, and, thus, net income was equal to comprehensive
income for all periods presented.
Page 46 of 70