XML 59 R10.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Acquisitions and Significant Accounting Policies | 6 Months Ended
--- | ---
Jun. 30, 2014
Acquisitions and Significant Accounting Policies |
Acquisitions and Significant Accounting Policies | 1. Acquisitions and Significant Accounting Policies Acquisitions 2014 Acquisitions On March 7, 2014, we completed the acquisition of all of the outstanding stock of Watson Petroleum Limited (“Watson Petroleum”) a leading distributor of gasoline, diesel, heating oil, lubricants and other products and related services. Watson Petroleum is headquartered in Brinkworth, England and is one of the largest fuel distributors in the United Kingdom. In June 2014, we completed an acquisition in our aviation segment which was not material. The estimated aggregate purchase price for the 2014 acquisitions was $167.0 million, and is subject to change based on the final value of the net assets acquired. The following reconciles the estimated aggregate purchase price for the 2014 acquisitions to the cash paid for the acquisitions, net of cash acquired (in thousands):
Estimated purchase price |  | $ | 167,038 |
Less: Cash acquired |  | 11,842 |
Estimated purchase price, net of cash acquired |  | 155,196 |
Less: Amounts due to sellers |  | 789 |
Cash paid for acquisition of businesses |  | $ | 154,407 |
The estimated purchase price of the 2014 acquisitions 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. The estimated purchase price allocation for the 2014 acquisitions is as follows (in thousands):
Assets acquired: |  |  |
Cash and cash equivalents |  | $ | 11,842 |
Accounts receivable |  | 217,727 |
Inventories |  | 20,534 |
Property and equipment |  | 60,358 |
Identifiable intangible assets |  | 51,119 |
Goodwill |  | 92,149 |
Other current and long-term assets |  | 12,764 |
Liabilities assumed: |  |  |
Accounts payable |  | (230,386 | )
Accrued expenses and other current liabilities |  | (47,972 | )
Other long-term liabilities |  | (19,142 | )
Initial noncontrolling interest upon acquisition of joint venture |  | (1,955 | )
Estimated purchase price |  | $ | 167,038 |
Upon the completion of the acquisition of Watson Petroleum, we made a payment of £13.0 million ($21.7 million) to an escrow account related to an assumed obligation which was included in accrued expenses and other current liabilities. As of June 30, 2014, the escrow account balance of £13.0 million ($22.2 million) is included in other current assets in the accompanying consolidated balance sheets. In connection with the 2014 acquisitions, we recorded goodwill of $92.1 million in our land segment, none of which is anticipated to be deductible for tax purposes. The identifiable intangible assets consisted of $43.6 million of customer relationships and $1.6 million of other identifiable intangible assets with weighted average lives of 4.1 years and 2.0 years, respectively, as well as $5.9 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):
|  | For the Three Months Ended |  | For the Six Months Ended |
|  | June 30, |  | June 30, |
|  | 2013 |  | 2014 |  | 2013 |
|  | (pro forma) |  | (pro forma) |  | (pro forma) |
Revenue |  | $ | 10,985,812 |  | $ | 22,320,916 |  | $ | 21,705,901 |
Net income attributable to World Fuel |  | $ | 54,226 |  | $ | 100,902 |  | $ | 107,853 |
Earnings per common share: |  |  |  |  |  |  |
Basic |  | $ | 0.76 |  | $ | 1.43 |  | $ | 1.51 |
Diluted |  | $ | 0.75 |  | $ | 1.41 |  | $ | 1.50 |
The financial position, results of operations and cash flows of the 2014 acquisitions have been included in our consolidated financial statements since their respective acquisition dates and did not have a significant impact on our results for the three and six months ended June 30, 2014. Significant Accounting Policies Except as updated below, the significant accounting policies we use for quarterly financial reporting are the same as those disclosed in Note 1 of the “Notes to the Consolidated Financial Statements” included in our 2013 10-K Report. Goodwill During the first six months of 2014, we recorded goodwill of $92.1 million in our land segment in connection with the 2014 acquisitions and we increased land segment goodwill by $0.4 million as a result of a reduction in identifiable intangible assets based on our ongoing fair value assessment of certain of our 2013 acquisitions. Additionally, we had goodwill increases of $0.7 million and $0.4 million as a result of foreign currency translation adjustments of our non-U.S. dollar functional currency subsidiaries in our land and marine segments, respectively. Recent Accounting Pronouncements Compensation —Stock Compensation. In June 2014, The Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) which includes guidance which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. We are currently evaluating whether the adoption of this new guidance will have a significant impact on our consolidated financial statements and disclosures. Transfers and Servicing: Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. In June 2014, the FASB issued an ASU which changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. It also requires additional disclosures about repurchase agreements and other similar transactions. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. We are currently evaluating whether the adoption of this new guidance will have a significant impact on our consolidated financial statements and disclosures. Revenue from Contracts with Customers. In May 2014, the FASB issued an ASU which provides guidance for revenue recognition for any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. We are currently evaluating whether the adoption of this new guidance will have a significant impact on our consolidated financial statements and disclosures. Presentation of Financial Statements and Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. In April 2014, the FASB issued an ASU which changes the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. We do not believe the adoption of this new guidance will have a significant impact on our consolidated financial statements and disclosures. 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 FASB issued an 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 became effective at the beginning of our 2014 fiscal year. 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 became effective at the beginning of our 2014 fiscal year. The adoption of this ASU did not 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 became effective at the beginning of our 2014 fiscal year. The adoption of this ASU did not have a significant impact on our consolidated financial statements and disclosures. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period’s presentation. Consolidated Statement of Cash Flows for the Six Months ended June 30, 2013 During the third quarter of 2013, we identified an incorrect cash flow presentation of $17.7 million related to an acquisition payment that was classified as an operating activity versus an investing activity in the consolidated statement of cash flows for the six months ended June 30, 2013. We assessed the materiality of this incorrect presentation and concluded it was not material. We have modified the prior period presentation of the consolidated statement of cash flows to include this revision.

X
- Details
Name: | int_NatureOfBusinessAcquisitionsAndSignificantAccountingPoliciesAbstract
Namespace Prefix: | int_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the general note to the financial statements for the reporting entity which may include, descriptions of the basis of presentation, business description, significant accounting policies, consolidations, reclassifications, new pronouncements not yet adopted and changes in accounting principles. + References No definition available. + Details
Name: | us-gaap_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration