World Fuel Services 2012 Annual Report Download - page 69

Download and view the complete annual report

Please find page 69 of the 2012 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 115

  • 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
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115

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 and in
some cases own storage and transportation assets for strategic purposes. Additionally, we offer
transaction management services which consist of card payment solutions and merchant processing
services to customers in the aviation, marine and land transportation industries. 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. 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 engage in crude oil marketing activities.
Acquisitions
2012 Acquisitions
On December 31, 2012, we acquired certain assets of Multi Service Corporation, including the assets
comprising its transaction management business, and all of the outstanding stock of its foreign
subsidiaries (the ‘‘Multi Service business’’), a global transaction management company based in
Overland Park, Kansas specializing in fleet, government, and commercial payment programs to expand
our service offering within the transportation industry. The Multi Service product offering includes the
Multi Service Fuel Card, accepted at more than 3,500 truck stops in the United States and Canada,
payment solutions for tolls, bridges and tunnels across Europe, government payment systems for global
fuel procurement, and commercial payment programs in the transportation industry.
On September 1, 2012, we acquired certain assets of CarterEnergy Corporation, including the assets
comprising its wholesale motor fuel distribution business (the ‘‘CarterEnergy business’’). We acquired
the CarterEnergy business, based in Overland Park, Kansas, a distributor of branded gasoline and diesel
fuel to more than 700 retail operators and a supplier to industrial, commercial and government
customers, to expand our wholesale branded gasoline and diesel fuel business.
In addition to the above acquisitions, we completed three acquisitions, which were not material
individually or in the aggregate. Of these acquisitions, two were in our aviation segment and the other
was in our aviation and land segments.
The financial position, results of operations and cash flows of the 2012 acquisitions have been included
in our consolidated financial statements since their respective acquisition dates.
50