World Fuel Services 2014 Annual Report Download - page 54

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49
The estimated purchase price for each of the 2014 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 as of
the acquisition date. Since the valuations of the assets acquired and liabilities assumed in connection with the 2014
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 2014 acquisitions is as follows (in thousands):
Assets acquired:
Cash and cash equivalents $ 20,232
Accounts receivable 259,475
Inventories 14,412
Property and equipment 55,172
Identifiable intangible assets 78,889
Goodwill 180,683
Other current and long-term assets 22,456
Liabilities assumed:
Accounts payable (247,579)
Accrued expenses and other current liabilities (51,579)
Other long-term liabilities (15,751)
Initial noncontrolling interest upon acquisition of businesses (19,448)
Estimated purchase price $ 296,962
In connection with the acquisition of Watson Petroleum, we made a payment of £13.0 million ($21.7 million) to an escrow
account related to an estimated assumed pension exit obligation and amounts due to sellers. In addition to the estimated
amount of £3.2 million ($5.4 million) to be paid to the sellers from the escrow account, we have recorded additional estimated
amounts due to sellers of £2.1 million ($3.5 million). The aggregate estimated amounts due to sellers as of December 31,
2014 were £5.3 million ($8.3 million). The escrow account balance is included in other current assets and the remaining
assumed pension exit obligation is included in accrued expenses and other current liabilities in the accompanying
consolidated balance sheets.
For our 2014 acquisitions, we recorded goodwill of $180.7 million, of which $21.2 million is anticipated to be deductible for
tax purposes. The aggregate identifiable intangible assets consisted of $54.0 million of customer relationships and $14.0
million of other identifiable intangible assets with weighted average lives of 4.9 years and 5.6 years, respectively, as well as
$10.9 million of indefinite-lived trademark/trade name rights.
The following presents the unaudited pro forma results for 2014 and 2013, as if the 2014 acquisitions had been completed
on January 1, 2013 (in thousands, except per share data):
2014 2013
(pro forma) (pro forma)
Revenue $ 44,071,793 $ 44,098,881
Net income attributable to World Fuel $ 226,608 $ 216,429
Earnings per common share:
Basic $ 3.20 $ 3.04
Diluted $ 3.18 $ 3.01
In the aggregate, the 2014 acquisitions did not have a significant impact on our revenue and net income for 2014.