World Fuel Services 2011 Annual Report Download - page 73

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WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Nature of Business, Acquisitions, Significant Accounting Policies and Recent
Accounting Pronouncements
Nature of Business
World Fuel Services Corporation (the ‘‘Company’’) was incorporated in Florida in July 1984 and along
with its consolidated subsidiaries is referred to collectively as ‘‘World Fuel,’’ ‘‘we,’’ ‘‘our’’ and ‘‘us.’’
We are a leading global fuel logistics company, principally engaged in the marketing, sale and distribution
of aviation, marine and land fuel products and related services on a worldwide basis. We compete by
providing our customers value-added benefits, including single-supplier convenience, competitive
pricing, the availability of trade credit, price risk management, logistical support, fuel quality control and
fuel procurement outsourcing. We have three reportable operating business segments: aviation, marine
and land. We primarily contract with third parties for the delivery and storage of fuel products, however in
some cases we own storage and transportation assets for strategic purposes. In our aviation segment,
we offer fuel and related services to major commercial airlines, second and third-tier airlines, cargo
carriers, regional and low cost carriers, airports, fixed based operators, corporate fleets, fractional
operators, private aircraft, military fleets and to the U.S. and foreign governments, and we also offer a
private label charge card to customers in the general aviation industry and charge card processing
services in connection with the purchase of aviation fuel and related services. In our marine segment,
we offer fuel and related services to a broad base of marine customers, including international container
and tanker fleets, commercial cruise lines, yachts and time-charter operators, as well as to the U.S. and
foreign governments. In our land segment, we offer fuel and related services to petroleum distributors
operating in the land transportation market, retail petroleum operators, and industrial, commercial and
government customers. Additionally, we also operate a small number of retail gas stations in the U.S.
and Gibraltar.
Acquisitions
2011 Acquisitions
On April 1, 2011, we completed the acquisition of all of the outstanding stock of Ascent Aviation
Group, Inc. (‘‘Ascent’’) based in Parish, New York. Ascent supplies branded aviation fuel and de-icing fluid
to more than 450 airports and fixed base operators throughout North America. In connection with the
Ascent acquisition, we paid certain assumed employee benefits which have been classified as a
financing activity in the consolidated statement of cash flows due to the fact that the liability was paid on
behalf of the seller subsequent to closing.
On March 1, 2011, we completed the acquisition of all of the outstanding stock of Nordic Camp Supply
ApS and certain affiliates (‘‘NCS’’) based in Aalborg, Denmark. NCS is a full-service supplier of aviation
fuel and related logistics solutions supporting NATO, U.S. and other European armed forces operations
in Iraq and Afghanistan.
In addition to the above acquisitions, we acquired certain assets of three companies in our aviation
segment, one company in our marine segment and two companies in our land segment, which are not
material individually and in the aggregate.
The financial position, results of operations and cash flows of the 2011 acquisitions have been included
in our consolidated financial statements since their respective acquisition dates.
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