World Fuel Services 2013 Annual Report Download - page 54

The estimated purchase price for each of the 2013 acquisitions is subject to change based on the final value of the net assets acquired
and 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 2013 acquisitions have not been finalized, the
allocation of the purchase price of these acquisitions may change. On an aggregate basis, the estimated purchase price allocation for
the 2013 acquisitions is as follows (in thousands):
Assets acquired:
Cash and cash equivalents $ 3,335
Accounts receivable 31,287
Inventories 8,839
Property and equipment 3,917
Identifiable intangible assets 14,068
Goodwill 16,077
Other current and long-term assets 2,717
Liabilities assumed:
Accounts payable (29,631)
Accrued expenses and other current liabilities (3,582)
Other long-term liabilities (3,235)
Estimated purchase price $ 43,792
In connection with the 2013 acquisitions, we recorded goodwill of $16.1 million in our land segment of which $9.1 million is anticipated
to be deductible for income tax purposes. The aggregate identifiable intangible assets consisted of $13.3 million of customer
relationships with a weighted average amortizable life of 6.1 years, as well as $0.8 million of indefinite-lived trademark/trade name
rights.
The revenues and net income of the 2013 acquisitions did not have a significant impact on our results for 2013. Pro forma information
for the 2013 acquisitions has not been presented as the impact on our consolidated financial statements is not material, either
individually or in the aggregate.
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.
The following reconciles the aggregate purchase price for the 2012 acquisitions to the cash paid for the acquisitions, net of cash
acquired (in thousands):
Purchase price $226,449
Less: Cash acquired 12,793
Purchase price, net of cash acquired 213,656
Less: Promissory notes issued 7,214
Less: Amounts due to sellers 75
Cash paid for acquisition of businesses $206,367
48