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Acquisitions | 6 Months Ended
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Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract] |
Acquisitions | 3. Acquisitions 2022 Acquisition On October 28, 2021, we entered into a definitive agreement (the "Purchase Agreement") to acquire all of the outstanding equity interest in Flyers Energy Group, LLC ("Flyers"). Flyers' operations include transportation, commercial fleet fueling, lubricants distribution, and the supply of wholesale, branded and renewable fuels. The acquisition closed on January 3, 2022 for total estimated consideration of $792.2 million, subject to customary adjustments relating to net working capital, indebtedness and transaction expenses. At closing, $642.7 million, inclusive of $19.7 million for estimated net working capital adjustments, was paid in cash and, at the election of the Company, $50.0 million was satisfied through the delivery of 1,768,034 shares of the Company's common stock at a price of $28.28 per share. The remaining $100.0 million was held back to satisfy potential indemnification and other obligations of the seller, with one-half to be released on the first and second anniversary of the closing of the acquisition, in each case subject to reduction in respect to amounts claimed under the Purchase Agreement. The total purchase consideration also included a receivable of $0.5 million from the seller for estimated working capital adjustments. During the second quarter, the working capital adjustments were updated and as a result the working capital payable to seller increased to $2.3 million, which was paid on July 1, 2022. The acquisition was accounted for as a business combination and is reported in the land segment. We are in the process of obtaining information to measure all assets acquired and liabilities assumed. Additionally, we continue to gather and evaluate contracts acquired that could impact the underlying inputs and assumptions used in the valuation of assets acquired and liabilities assumed. These estimates, along with any related tax impacts, are subject to change during the measurement period, which is up to one year from the acquisition date. The following preliminary purchase price allocation was estimated based on the information obtained to date and is expected to be completed in 2022. During the three months ended June 30, 2022, the purchase price allocation was adjusted as shown in the table below. These adjustments have been retrospectively reflected as of the acquisition date. The following table summarizes the fair value of the aggregate consideration as well as the preliminary allocation of the purchase price to the fair value of the assets acquired and liabilities assumed as recorded in the first quarter of 2022 and as adjusted in the second quarter of 2022 (in millions):
|  | Preliminary |  | Adjustments |  | As Adjusted
Consideration: |  |  |  |  |  |
Cash paid |  | $ | 642.7 |  |  | $ | — |  |  | $ | 642.7 |
Working capital adjustment (receivable from) payable to seller |  | (0.5) |  |  | 2.8 |  |  | 2.3 |
Common stock issued to seller |  | 50.0 |  |  | — |  |  | 50.0 |
Amount due to sellers |  | 100.0 |  |  | — |  |  | 100.0 |
Total fair value of consideration |  | $ | 792.2 |  |  | $ | 2.8 |  |  | $ | 795.0 |
Assets acquired and liabilities assumed: |  |  |  |  |  |
Cash |  | $ | 3.3 |  |  | $ | — |  |  | $ | 3.3 |
Accounts receivable |  | 109.2 |  |  | 0.6 |  |  | 109.8 |
Inventory |  | 50.9 |  |  | — |  |  | 50.9 |
Property, plant and equipment |  | 126.6 |  |  | — |  |  | 126.6 |
Identifiable intangible assets subject to amortization (1) |  | 162.9 |  |  | (0.4) |  |  | 162.5 |
Identifiable intangible assets not subject to amortization (2) |  | 29.3 |  |  | — |  |  | 29.3 |
Accounts payable |  | (38.0) |  |  | (0.1) |  |  | (38.0) |
Other assets and liabilities, net (3) |  | (39.0) |  |  | 1.8 |  |  | (37.3) |
Net identifiable assets acquired |  | 405.1 |  |  | 1.9 |  |  | 407.0 |
Goodwill (4) |  | 387.1 |  |  | 0.9 |  |  | 388.0 |
Net assets acquired |  | $ | 792.2 |  |  | $ | 2.8 |  |  | $ | 795.0 |
(1)Identifiable intangible assets subject to amortization primarily consist of customer and network relationships and other identifiable assets which will be amortized over a weighted average life of 11.6 years. (2)Identifiable intangible assets not subject to amortization include trademarks and trade names acquired. (3)Includes the recognition of right of use assets of $45.0 million and lease liabilities of $46.0 million. (4)Goodwill is attributable primarily to the expected synergies and other benefits that we believe will result from combining the acquired operations with the operations of our land segment. We anticipate that all of the goodwill assigned to the land segment will be deductible for tax purposes. Total revenue and income before income taxes of Flyers included in the Company's Condensed Consolidated Statement of Income for the period from the date of acquisition through June 30, 2022 were $1.8 billion and $39.8 million, respectively. The following presents unaudited pro forma combined financial information of the Company for the three and six months ended June 30, 2021 as if the acquisition of Flyers had been completed on January 1, 2021 (in millions, except per share data):
(unaudited) | Three Months Ended June 30, 2021 |  | Six Months Ended June 30, 2021
Revenue | $ | 7,805.4 |  |  | $ | 14,141.0 |
Net income attributable to World Fuel | $ | 33.3 |  |  | $ | 53.5 |
The unaudited pro forma combined financial information was based on the historical financial information of World Fuel and Flyers and includes (i) incremental amortization expense to be incurred based on the preliminary fair values of the identifiable intangible assets acquired; (ii) additional interest expense associated with the incremental borrowings under our Credit Facility to finance the acquisition; (iii) nonrecurring transaction costs recognized in connection with the transaction; and (iv) the tax effect of the pro forma adjustments as well as the recognition of income tax expense associated with Flyers' historical statements, calculated using statutory tax rates, as Flyers was comprised of limited liability companies not subject to federal and state income taxes prior to the acquisition. The unaudited pro forma combined financial information does not necessarily reflect what the combined company's financial condition or results of operations would have been had the transaction and the related financing occurred on the dates indicated. The unaudited pro forma financial information also may not be useful in predicting the future financial condition and results of operations of the combined company following the transaction. In addition, the unaudited pro forma combined financial information does not give effect to any cost savings, operating synergies or revenue synergies that may result from the transaction, or the costs to achieve any such synergies. 2021 Acquisition On October 1, 2021, we completed the acquisition of a liquid fuel business which services business and residential customers for a total purchase price of $41.4 million. The transaction was accounted for as a business combination and is reported in our land segment.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2122178 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI https://asc.fasb.org/topic&trid=2303972 + Details
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