World Fuel Services 2013 Annual Report Download - page 62

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):
2013 2012 2011
Numerator:
Net income attributable to World Fuel $203,075 $189,345 $194,029
Denominator:
Weighted average common shares for basic earnings per common share 71,224 71,154 70,687
Effect of dilutive securities 576 663 823
Weighted average common shares for diluted earnings per common share 71,800 71,817 71,510
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 594 603 103
Basic earnings per common share $ 2.85 $ 2.66 $ 2.74
Diluted earnings per common share $ 2.83 $ 2.64 $ 2.71
Reclassifications
Certain amounts in prior years have been reclassified to conform to current year’s presentation.
Recent Accounting Pronouncements
Presentation of an Unrecognized Tax Benefit When a Net Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. In
July 2013, the Financial Accounting Standards Board (‘‘FASB’’) issued an accounting standards update (‘‘ASU’’) on the presentation of
an unrecognized tax benefit when a net operating loss carryforward exists. Under this guidance, an unrecognized tax benefit, or a
portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net
operating loss carryforward. This update is effective for fiscal years, and interim periods within those years, beginning after
December 15, 2013. We are currently evaluating whether the adoption of this new guidance will have a significant impact on our
consolidated financial statements and disclosures.
Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting
Purposes. In July 2013, the FASB issued an ASU which includes amendments permitting the Fed Funds Effective Swap Rate to be
used as a U.S. benchmark interest rate for hedge accounting purposes, in addition to U.S. Government and London Interbank Offered
Rate. The amendments also remove the restriction on using different benchmark rates for similar hedges. This update is effective
prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of this ASU
did not have a significant impact on our consolidated financial statements and disclosures.
Foreign Currency Matters Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Foreign
Subsidiaries. In March 2013, the FASB issued an ASU aimed at resolving the diversity in practice of accounting for the release of the
cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no
longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign
entity. In addition, the amendments in this ASU resolve the diversity in practice for the treatment of business combinations achieved in
stages (sometimes also referred to as step acquisitions) involving a foreign entity. This update is effective for fiscal years, and interim
periods within those years, beginning after December 15, 2013. We do not believe the adoption of this new guidance will have a
significant impact on our consolidated financial statements and disclosures.
Disclosure Obligations Resulting from Joint and Several Liability Arrangements. In February 2013, the FASB issued an ASU clarifying
the guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for
which the total amount of the obligation within the scope of this ASU is fixed at the reporting date, except for obligations addressed
within existing guidance in U.S. GAAP. This update is effective for fiscal years, and interim periods within those years, beginning after
December 15, 2013 and will be applied retrospectively. We do not believe the adoption of this new guidance will have a significant
impact on our consolidated financial statements and disclosures.
Disclosure Relating to Amounts Reclassified Out of Accumulated Other Comprehensive Income. In February 2013, the FASB issued
an ASU amending the information that companies will be required to present relating to reclassifications out of accumulated other
comprehensive income. The amendments require presentation, either on the face of the financial statements or in the notes, of
amounts reclassified out of accumulated other comprehensive income by component and by net income line item. This update is
effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The adoption of this ASU
resulted in additional derivative disclosures included in Note 3 – Derivatives and did not have a significant impact on our consolidated
financial statements and disclosures.
56