World Fuel Services 2011 Annual Report Download - page 74

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The estimated aggregate purchase price for the 2011 acquisitions was $161.0 million, and is subject to
change based on the final value of the net assets acquired. The following reconciles the estimated
aggregate purchase price for the 2011 acquisitions to the cash paid for the acquisitions, net of cash
acquired (in thousands):
Estimated purchase price $161,036
Less: Promissory notes issued 9,028
Less: Common stock issued 27,491
Estimated cash consideration 124,517
Less: Amounts due to sellers, net 2,735
Cash consideration paid 121,782
Less: Cash acquired 2,638
Cash paid for acquisition of businesses, net of cash acquired $119,144
The fair value of the common stock issued as part of the consideration paid for our acquisitions was
determined on the basis of the closing market price of the common shares on the acquisition date.
The estimated purchase price for each of the 2011 acquisitions was allocated to the assets acquired and
liabilities assumed based on their estimated fair value at the acquisition date. Since the valuations of the
assets acquired and liabilities assumed in connection with the 2011 acquisitions have not been finalized,
the allocation of the purchase price of the assets acquired and liabilities assumed of these acquisitions
may change. On an aggregate basis, the estimated purchase price allocation for the 2011 acquisitions is
as follows (in thousands):
Assets acquired:
Cash and cash equivalents $ 2,638
Accounts receivable 61,741
Inventories 40,246
Property and equipment 23,838
Identifiable intangible assets 24,471
Goodwill 44,526
Other current and non-current assets 15,716
Liabilities assumed:
Accounts payable (38,617)
Accrued expenses and other current liabilities (8,453)
Other long-term liabilities (5,070)
Estimated purchase price $161,036
Of the aggregate goodwill of $44.5 million, $28.3 million is anticipated to be deductible for tax purposes.
The aggregate identifiable intangible assets consisted of $21.3 million of customer relationships and
$3.2 million of other identifiable intangible assets with weighted average lives of 2.4 years and 3.1 years,
respectively.
The revenues and net income of the 2011 acquisitions were $530.0 million and $13.5 million for 2011
from their respective acquisition dates.
The following presents the unaudited pro forma results for 2011 and 2010 as if our 2011 acquisitions had
been completed on January 1, 2010, respectively (in thousands, except per share data):
2010
(pro forma) (pro forma)
Revenue $34,743,371 $19,534,970
Net income attributable to World Fuel $ 202,417 $ 152,162
Earnings per common share:
Basic $ 2.86 $ 2.42
Diluted $ 2.83 $ 2.37
50
2011