World Fuel Services 2013 Annual Report Download - page 53

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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 and related products and 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 products and 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 United
States (‘‘U.S.’’) and foreign governments. In our marine segment, we offer fuel, lubricants and related products and 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, lubricants and related products and
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
2013 Acquisitions
In 2013, we completed three acquisitions in our land segment, which were not material individually or in the aggregate. The financial
position, results of operations and cash flows of the 2013 acquisitions have been included in our consolidated financial statements
since their respective acquisition dates.
The following reconciles the estimated aggregate purchase price for the 2013 acquisitions to the cash paid for the acquisitions, net of
cash acquired (in thousands):
Estimated purchase price $43,792
Less: Cash acquired 3,335
Estimated purchase price, net of cash acquired 40,457
Less: Promissory notes issued 3,000
Less: Amounts due to sellers 124
Cash paid for acquisition of businesses $37,333
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