World Fuel Services 2012 Annual Report Download - page 80

Download and view the complete annual report

Please find page 80 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

Earnings per Common Share
Basic earnings per common share is computed by dividing net income attributable to World Fuel and
available to common shareholders by the sum of the weighted average number of shares of common
stock, stock units, restricted stock entitled to dividends not subject to forfeiture and vested RSUs
outstanding during the period. Diluted earnings per common share is computed by dividing net income
attributable to World Fuel and available to common shareholders by the sum of the weighted average
number of shares of common stock, stock units, restricted stock entitled to dividends not subject to
forfeiture and vested RSUs outstanding during the period and the number of additional shares of
common stock that would have been outstanding if our outstanding potentially dilutive securities had
been issued. Potentially dilutive securities include restricted stock subject to forfeitable dividends,
non-vested RSUs and SSAR Awards. The dilutive effect of potentially dilutive securities is reflected in
diluted earnings per common share by application of the treasury stock method. Under the treasury
stock method, an increase in the fair market value of our common stock can result in a greater dilutive
effect from potentially dilutive securities.
The following table sets forth the computation of basic and diluted earnings per common share for the
periods presented (in thousands, except per share amounts):
2011 2010
Numerator:
Net income attributable to World Fuel $189,345 $194,029 $146,865
Denominator:
Weighted average common shares for basic earnings per common share 71,154 70,687 62,168
Effect of dilutive securities 663 823 1,273
Weighted average common shares for diluted earnings per common share 71,817 71,510 63,441
Weighted average securities which are not included in the calculation of
diluted earnings per common share because their impact is anti-dilutive
or their performance conditions have not been met 603 103 305
Basic earnings per common share $ 2.66 $ 2.74 $ 2.36
Diluted earnings per common share $ 2.64 $ 2.71 $ 2.31
Reclassifications
Certain amounts in prior years have been reclassified to conform to current year’s presentation.
Recent Accounting Pronouncements
Testing Indefinite-Lived Intangible Assets for Impairment. In July 2012, the Financial Accounting
Standards Board (‘‘FASB’’) issued an accounting standards update (‘‘ASU’’) which permits an entity to
first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived
intangible asset is impaired as a basis for determining whether it is necessary to perform a quantitative
impairment test. The adoption of this ASU (pursuant to early adoption provisions) did not have a material
impact on our consolidated financial statements and disclosures.
Disclosure About Offsetting Assets and Liabilities. In December 2011, the FASB issued an ASU which
requires companies to disclose information about financial instruments that have been offset and related
arrangements to enable users of its financial statements to understand the effect of those arrangements
on its financial position. Companies will be required to provide both net (offset amounts) and gross
information in the notes to the financial statements for relevant assets and liabilities that are offset. In
January 2013, the FASB issued an ASU clarifying that the requirement to disclose information about
financial instruments that have been offset and related arrangements applies only to derivatives,
repurchase agreements and reverse purchase agreements, and securities borrowing and lending
transactions that are either offset in accordance with specific criteria contained in the FASB Accounting
Standards Codification or subject to a master netting arrangement or similar agreement. This update is
effective at the beginning of our 2013 fiscal year and will be applied retrospectively. We do not believe
adoption of this new guidance will have a significant impact on our consolidated financial statements and
disclosures.
61
2012