Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 07, 2018 | Jun. 30, 2017 | |
Document and Entity Information | |||
Entity Registrant Name | WORLD FUEL SERVICES CORP | ||
Entity Central Index Key | 789,460 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2,586,431,684 | ||
Entity Common Stock, Shares Outstanding | 67,644,036 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 372.3 | $ 698.6 |
Accounts receivable, net | 2,705.6 | 2,344 |
Inventories | 505 | 458 |
Prepaid expenses | 64.4 | 46.5 |
Short-term derivative assets, net | 51.1 | 58.9 |
Other current assets | 241.9 | 230.6 |
Total current assets | 3,940.4 | 3,836.6 |
Property and equipment, net | 329.8 | 311.2 |
Goodwill | 845.5 | 835.8 |
Identifiable intangible and other non-current assets | 472.1 | 429.1 |
Total assets | 5,587.8 | 5,412.6 |
Current liabilities: | ||
Current maturities of long-term debt and capital leases | 25.6 | 15.4 |
Accounts payable | 2,239.7 | 1,770.4 |
Customer deposits | 108.3 | 90.8 |
Accrued expenses and other current liabilities | 344.9 | 306 |
Total current liabilities | 2,718.6 | 2,182.7 |
Long-term debt | 884.6 | 1,170.8 |
Non-current income tax liabilities, net | 202.4 | 84.6 |
Other long-term liabilities | 44.2 | 34.5 |
Total liabilities | 3,849.8 | 3,472.6 |
Commitments and contingencies | ||
World Fuel shareholders' equity: | ||
Preferred stock, $1.00 par value; 0.1 shares authorized, none issued | 0 | 0 |
Common stock, $0.01 par value; 100.0 shares authorized, 67.7 and 69.9 issued and outstanding as of December 31, 2017 and December 31, 2016, respectively | 0.7 | 0.7 |
Capital in excess of par value | 354.9 | 399.9 |
Retained earnings | 1,492.8 | 1,679.3 |
Accumulated other comprehensive loss | (126.5) | (154.8) |
Total World Fuel shareholders' equity | 1,721.9 | 1,925 |
Noncontrolling interest | 16 | 15 |
Total equity | 1,738 | 1,940 |
Total liabilities and equity | $ 5,587.8 | $ 5,412.6 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 100,000 | 100,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 67,700,000 | 69,900,000 |
Common stock, shares outstanding (in shares) | 67,700,000 | 69,900,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Revenue | $ 33,695.5 | $ 27,015.8 | $ 30,381.4 |
Cost of revenue | 32,763.3 | 26,116.8 | 29,520.4 |
Gross profit | 932.2 | 899 | 861 |
Operating expenses: | |||
Compensation and employee benefits | 428.2 | 413.3 | 365.8 |
General and administrative | 306.9 | 296.8 | 249.5 |
Goodwill and other impairments | 91.9 | 0 | 0 |
Restructuring charges | 59.6 | 0 | 0 |
Total operating expenses | 886.6 | 710.1 | 615.3 |
Income from operations | 45.6 | 188.9 | 245.7 |
Non-operating expenses, net: | |||
Interest expense and other financing costs, net | (60.3) | (39.2) | (29.9) |
Other income (expense), net | (6.4) | (7.5) | 2 |
Total non-operating expenses, net | (66.7) | (46.7) | (27.9) |
Income (loss) before income taxes | (21.1) | 142.1 | 217.7 |
Provision for income taxes | 149.2 | 15.7 | 47.2 |
Net income (loss) including noncontrolling interest | (170.3) | 126.4 | 170.5 |
Net income (loss) attributable to noncontrolling interest | (0.1) | 0 | (3.9) |
Net income (loss) attributable to World Fuel | $ (170.2) | $ 126.5 | $ 174.5 |
Basic earnings (loss) per common share (in dollars per share) | $ (2.50) | $ 1.82 | $ 2.49 |
Basic weighted average common shares (in shares) | 68.1 | 69.3 | 70.2 |
Diluted earnings (loss) per common share (in dollars per share) | $ (2.50) | $ 1.81 | $ 2.47 |
Diluted weighted average common shares (in shares) | 68.1 | 69.8 | 70.7 |
Comprehensive income: | |||
Net income (loss) including noncontrolling interest | $ (170.3) | $ 126.4 | $ 170.5 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 30.1 | (40.4) | (45.4) |
Cash Flow hedges, net of income tax benefit of $0.3, $4.1, and $0.5 for 2017, 2016, and 2015, respectively | (0.3) | (6.6) | (0.8) |
Other comprehensive income (loss): | 29.8 | (47) | (46.2) |
Comprehensive income (loss) including noncontrolling interest | (140.5) | 79.5 | 124.3 |
Comprehensive income (loss) attributable to noncontrolling interest | 1.5 | 1.6 | (2.2) |
Comprehensive income (loss) attributable to World Fuel | $ (142) | $ 77.9 | $ 126.4 |
Consolidated Statements of Inc5
Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Cash flow hedges, income tax benefit | $ 0.3 | $ 4.1 | $ 0.5 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Total World Fuel Shareholders’ Equity | Noncontrolling Interest |
Balance as of beginning of period at Dec. 31, 2014 | $ 1,859.4 | $ 0.7 | $ 496.4 | $ 1,412 | $ (59.2) | $ 1,849.9 | $ 9.5 |
Balance (in shares) at Dec. 31, 2014 | 72.1 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | 170.5 | 174.5 | 174.5 | (3.9) | |||
Cash dividends declared | (16.8) | (16.8) | (16.8) | ||||
Investment by noncontrolling interest | 0.5 | 0.5 | |||||
Distribution of noncontrolling interest | (0.2) | (0.2) | |||||
Amortization of share-based payment awards | 16.9 | 16.9 | 16.9 | ||||
Issuance (Cancellation) of common stock related to share-based payment awards (including income tax benefit of $1.6 million 2016) (in shares) | 0.4 | ||||||
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards | (7.3) | (7.3) | (7.3) | ||||
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards (in shares) | (0.1) | ||||||
Purchases of common stock | $ (70.5) | (70.5) | (70.5) | ||||
Purchases of common stock (in shares) | (1.6) | (1.6) | |||||
Other comprehensive income (loss) | $ (46.2) | (50.3) | (50.3) | 4 | |||
Other | (0.3) | (0.1) | (0.3) | (0.4) | 0.1 | ||
Balance as of end of period at Dec. 31, 2015 | 1,905.9 | $ 0.7 | 435.3 | 1,569.4 | (109.5) | 1,895.9 | 10 |
Balance (in shares) at Dec. 31, 2015 | 70.8 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | 126.4 | 126.5 | 126.5 | ||||
Cash dividends declared | (16.6) | (16.6) | (16.6) | ||||
Distribution of noncontrolling interest | (0.5) | (0.5) | |||||
Amortization of share-based payment awards | 19.7 | 19.7 | 19.7 | ||||
Issuance (Cancellation) of common stock related to share-based payment awards (including income tax benefit of $1.6 million 2016) | 1.6 | 1.6 | 1.6 | ||||
Issuance (Cancellation) of common stock related to share-based payment awards (including income tax benefit of $1.6 million 2016) (in shares) | 0.1 | ||||||
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards | (4.6) | (4.6) | (4.6) | ||||
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards (in shares) | (0.1) | ||||||
Purchases of common stock | $ (41.2) | (41.2) | (41.2) | ||||
Purchases of common stock (in shares) | (1) | (1) | |||||
Acquisition of remaining 49% equity interest | $ (3.7) | (10.9) | (10.9) | 7.2 | |||
Other comprehensive income (loss) | (47) | (45.4) | (45.4) | (1.6) | |||
Other | (0.1) | (0.1) | |||||
Balance as of end of period at Dec. 31, 2016 | $ 1,940 | $ 0.7 | 399.9 | 1,679.3 | (154.8) | 1,925 | 15 |
Balance (in shares) at Dec. 31, 2016 | 69.9 | 69.9 | |||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | $ (170.3) | (170.2) | (170.2) | (0.1) | |||
Cash dividends declared | (16.3) | (16.3) | (16.3) | ||||
Distribution of noncontrolling interest | (0.4) | (0.4) | |||||
Amortization of share-based payment awards | 21.3 | 21.3 | 21.3 | ||||
Issuance (Cancellation) of common stock related to share-based payment awards (including income tax benefit of $1.6 million 2016) (in shares) | (0.4) | ||||||
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards | (4.3) | (4.3) | (4.3) | ||||
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards (in shares) | (0.1) | ||||||
Purchases of common stock | $ (61.9) | (61.9) | (61.9) | ||||
Purchases of common stock (in shares) | (1.7) | (1.7) | |||||
Other comprehensive income (loss) | $ 29.8 | 28.3 | 28.3 | 1.5 | |||
Balance as of end of period at Dec. 31, 2017 | $ 1,738 | $ 0.7 | $ 354.9 | $ 1,492.8 | $ (126.5) | $ 1,721.9 | $ 16 |
Balance (in shares) at Dec. 31, 2017 | 67.7 | 67.7 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Issuance of common stock related to share-based payment awards, income tax benefit | $ 0 | $ 1.6 | $ 0 |
Previous percentage ownership of noncontrolling owners | 49.00% |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income (loss) including noncontrolling interest | $ (170.3) | $ 126.4 | $ 170.5 |
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities: | |||
Depreciation and amortization | 86 | 82.3 | 65.5 |
Provision for bad debt | 9.3 | 15.4 | 7.5 |
Share-based payment award compensation costs | 21.2 | 19.2 | 17 |
Deferred income tax provision (benefit) | 13.9 | (36) | 5.3 |
Goodwill and other impairments | 91.9 | 0 | 0 |
Restructuring charges | 25.7 | 0 | 0 |
Foreign currency losses (gains), net | (0.6) | (11.8) | (7.3) |
Other | (1.2) | (7.5) | (5) |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable, net | (366.6) | (506.8) | 485 |
Inventories | (43.9) | (49.5) | 81.4 |
Prepaid expenses | (19.7) | 7.7 | 10.8 |
Short-term derivative assets, net | (0.2) | 163.7 | 81.5 |
Other current assets | (13.9) | (20.4) | 34 |
Cash collateral with financial counterparties | (26.7) | 149.2 | 133.3 |
Other non-current assets | (30.3) | 4.4 | (1.9) |
Accounts payable | 451.2 | 423.4 | (481.5) |
Customer deposits | 13.4 | (26.3) | (17.5) |
Accrued expenses and other current liabilities | 77.7 | (121.9) | (141.9) |
Non-current income tax, net and other long-term liabilities | 88.4 | (6.4) | 11 |
Total adjustments | 375.5 | 78.8 | 276.9 |
Net cash provided by operating activities | 205.2 | 205.2 | 447.5 |
Cash flows from investing activities: | |||
Acquisition of businesses, net of cash acquired and other investments | (120.7) | (430.8) | (96.9) |
Capital expenditures | (54) | (36.1) | (51) |
Other investing activities, net | (5.4) | 38.4 | 3.2 |
Net cash used in investing activities | (180.1) | (428.5) | (144.8) |
Cash flows from financing activities: | |||
Borrowings of debt | 4,472.7 | 4,688 | 4,831.2 |
Repayments of debt | (4,749.7) | (4,280.3) | (4,752) |
Dividends paid on common stock | (16.3) | (16.6) | (15.3) |
Purchases of common stock | (61.9) | (41.2) | (70.5) |
Other financing activities, net | (6.3) | (9) | (10.5) |
Net cash provided by (used in) financing activities | (361.6) | 340.9 | (17) |
Effect of exchange rate changes on cash and cash equivalents | 10.3 | (1.5) | (5.5) |
Net increase (decrease) in cash and cash equivalents | (326.2) | 116.1 | 280.2 |
Cash and cash equivalents, as of beginning of period | 698.6 | 582.5 | 302.3 |
Cash and cash equivalents, as of end of period | 372.3 | 698.6 | 582.5 |
Supplemental Disclosures of Cash Flow Information Cash paid during the year for: | |||
Interest, net of capitalized interest | 64.9 | 40.7 | 33.1 |
Income taxes | $ 50.8 | $ 37.5 | $ 44 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Cash Flows [Abstract] | ||
Cash dividends declared, but not yet paid | $ 4 | $ 4.1 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Basis of Presentation and Significant Accounting Policies | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies World Fuel Services Corporation (the “Company”) was incorporated in Florida in July 1984 and along with its consolidated subsidiaries is referred to collectively in this Annual Report on Form 10‑K (“ 2017 10‑K Report”) as “World Fuel,” “we,” “our” and “us.” We are a leading global fuel services company, principally engaged in the distribution of fuel and related products and services in the aviation, marine and land transportation industries. In recent years, we have expanded our product and service offerings to include energy advisory services and supply fulfillment with respect to natural gas and power and transaction and payment management solutions to commercial and industrial customers. Our intention is to become a leading global energy management company offering a full suite of energy advisory, management and fulfillment services and technology solutions across the energy product spectrum. We also seek to become a leading transaction and payment management company, offering payment management solutions to commercial and industrial customers, principally in the aviation, land and marine transportation industries. A. Basis of Presentation The consolidated financial statements and related notes include our parent company and all wholly‑owned and majority‑owned subsidiaries and joint ventures where we exercise control. Our consolidated financial statements include the operations of an acquired business after the completion of the acquisition. The decision of whether or not to consolidate an entity requires consideration of majority voting interests, as well as effective economic or other control over the entity. The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Our fiscal year-end is as of and for the year ended December 31 for each year presented. All transactions among our businesses have been eliminated. For additional information pertaining to our acquisitions, refer to Note 3. Certain amounts in the consolidated financial statements and associated notes may not add due to rounding. All percentages have been calculated using unrounded amounts. B. New Accounting Standards Adoption of New Accounting Standards Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . In January 2017, Accounting Standards Update (“ASU”) 2017-04 was issued, which simplifies the accounting for goodwill impairment by eliminating the requirement to perform a hypothetical purchase price allocation. As a result, an entity should recognize an impairment charge for the amount by which the carrying value of a reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. We have early adopted ASU 2017-04 and applied the new guidance for our goodwill impairment tests that were performed during the fourth quarter. Accounting Standards Issued But Not Yet Adopted Revenue Recognition (Topic 606): Revenue from Contracts with Customers. In May 2014, ASU 2014-09 was issued. Under this ASU and subsequently issued amendments, an entity is required to recognize the amount of revenue it expects to be entitled to for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP. This ASU provides alternative methods of transition, a full retrospective and a modified retrospective approach. The modified retrospective approach would result in recognition of the cumulative impact of a retrospective application as of the beginning of the period of initial application, which in our case is the period beginning January 1, 2018. In preparation for adoption, we initially developed a cross-functional team and utilized a third-party service provider to assist us throughout our evaluation. In addition, we factored in the adoption into our ongoing enterprise resource planning platform upgrade, which we previously committed to perform. We have completed our review of a representative sample of contracts across each of our revenue streams. Through this process, we have made determinations on how our revenue streams will be accounted for after adoption, concluding that we will have similar performance obligations and timing of revenue recognition under ASC 606, as compared to those prior to adoption. As a result of completing these activities, we have prepared and made accessible internally our revenue recognition policy, which captures those decisions. We conducted an initial training that was distributed to our finance and accounting organization and we continue to train our commercial and operational teams on the relevant facets of our revenue recognition policy. We identified and implemented appropriate changes to our business processes and controls to support our revenue recognition and associated disclosure requirements under the new standard. An important aspect of adoption is the design of our contract management review process and its impact on the control environment. The ongoing training activities will also serve as a platform to communicate certain process changes associated with our contract review process. We have selected the modified retrospective adoption approach, and the cumulative adjustment did not have a material impact on our financial statements. We anticipate certain disclosure changes, specifically as it relates to the financial statement line items where certain costs are recorded. Accordingly, the adoption of the new standard will not have a material impact on our financial statements after adoption. Leases (Topic 842): Leases. In February 2016, ASU 2016-02 was issued. This standard will require all lessees to recognize a right of use asset and a lease liability on the balance sheet, except for leases with durations that are less than twelve months. This standard is effective at the beginning of our 2019 fiscal year. We are currently evaluating whether the adoption of this new guidance will have a material impact on our consolidated financial statements and related disclosures. Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. In August 2016 ASU 2016-15 was issued. The ASU provides guidance on classification of eight specific cash flows items. This standard is effective at the beginning of our 2018 fiscal year. We are currently evaluating whether the adoption of this new guidance will have a material impact on our consolidated financial statements and related disclosures. Business Combinations (Topic 805): Clarifying the Definition of a Business. In January 2017, ASU 2017-01 was issued. The update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of businesses. This standard is effective at the beginning of our 2018 fiscal year. We do not believe the adoption of this new guidance will have a material impact on our consolidated financial statements and related disclosures. Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. In August 2017, ASU 2017-12 was issued. The ASU is targeted at simplifying the application of hedge accounting and is effective at the beginning of our 2019 fiscal year. The amended guidance aims at aligning the recognition and presentation of the effects of hedge instruments and hedge items. We are currently evaluating whether the adoption of this new guidance will have a material impact on our consolidated financial statements and related disclosures. C. Estimates and Assumptions The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Accordingly, actual results could materially differ from estimated amounts. We evaluate our estimated assumptions based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. D. Cash and Cash Equivalents Our cash equivalents consist principally of overnight investments, bank money market accounts and bank time deposits which have an original maturity date of less than 90 days. These securities are carried at cost, which approximates market value. E. Accounts Receivable and Allowance for Bad Debt Our accounts receivables credit terms are generally 30-60 days. Accounts receivable balances that are not paid within the terms of the sales agreement are generally subject to finance fees, based on the outstanding balance. Credit extension, monitoring and collection are performed for each of our business segments. Each business segment has a credit function that is responsible for establishing credit limits and approving limits above previously approved amounts, and managing the overall quality of the credit portfolio. We perform ongoing credit evaluations of our customers and adjust credit limits based upon payment history and the customer’s current creditworthiness, as determined by our review of our customer’s credit information. We extend credit on an unsecured basis to most of our customers. Accounts receivable are deemed past due based on contractual terms agreed to with our customers. Although we analyze customers’ payment history and creditworthiness, we cannot predict with certainty that the customers to whom we extend credit will be able to remit payments on a timely basis, or at all. Because we extend credit on an unsecured basis to most of our customers, there is a possibility that any accounts receivable not collected will ultimately need to be written off. Write-offs for the year ended December 31, 2017 did not have a material impact on our consolidated statement of operations. We continuously monitor the composition of accounts receivable, collections and payments from our customers and maintain a provision for estimated credit losses based upon our historical experience with our customers, current market and industry conditions affecting our customers and any specific customer collection issues that we have identified. Principally based on these factors, an internally derived risk-based reserve is established on a quarterly basis. In addition to a risk-based reserve, a specific reserve is established for certain customers, based on customer receivable balances, overall exposure, payment history, current and expected market conditions, business developments, and other factors that influence the likelihood of collectability. Historical payment trends may not be an accurate indicator of current or future credit worthiness of our customers, particularly in difficult economic and financial markets. As a result of the limited predictability inherent in estimating which customers are less likely or unlikely to remit amounts owed to us, our provision for estimated credit losses may not be sufficient. Any write-off of accounts receivable in excess of our provision for estimated credit losses would have an adverse effect on our results of operations. If credit losses exceed established allowances, our business, financial condition, results of operations and cash flows may be adversely affected. F. Inventories Inventories are valued primarily using weighted average cost, and first-in first-out in certain limited locations, and are stated at the lower of average cost or net realizable value. We utilize a variety of fuel indices and other indicators of market value. Sharp negative changes in these indices can result in reduction of our inventory valuation, which could have an adverse impact on our results of operations in the period in which we take the adjustment. Historically these adjustments have not had a material impact on our consolidated statements of operations. Components of inventory include fuel purchase costs, the related transportation costs and changes in the estimated fair market values for inventories included in a fair value hedge relationship. G. Business Combinations We account for business combinations using the acquisition method of accounting, under which the purchase price of the acquisition is allocated to the assets acquired and liabilities assumed using the fair values determined by management as of the acquisition date. We calculate the fair value based on the present value of estimated future cash flows. The estimated future cash flows are based on the best information available to us at the time. Acquisition-related costs incurred in connection with a business combination are expensed as incurred. H. Fair Value of Financial Instruments We measure the fair value of financial instruments using observable and unobservable inputs. Observable inputs reflect what market participants would use in pricing the instrument, based on publicly available market data obtained from sources independent of us. Unobservable inputs are inputs for which market data are not available and reflect internal market assumptions. The accounting guidance establishes the following fair value hierarchy: Level 1 Inputs - Quoted prices in active markets. Level 2 Inputs - Quoted prices for similar instruments in active markets other than quoted prices included within Level 1, quoted prices for identical or similar instruments in markets that are not active; and model based valuations whose inputs are observable. Level 3 Inputs - Inputs that are unobservable. Our policy is to recognize transfers between levels as of the beginning of the reporting period in which the event or change in circumstance caused the transfer to occur. There were no significant changes to our valuation techniques during 2017 and 2016 . For additional information pertaining to our fair value measurements, see Note 12. I. Derivatives We enter into financial derivative contracts to mitigate the risk of market price fluctuations in aviation, land and marine fuel, to offer our customers fuel pricing alternatives to meet their needs and to mitigate the risk due to changes in foreign currency exchange rates. While we currently believe that our derivative contracts will be effective in mitigating the associated price risks, it is possible that our derivative instruments will be ineffective at mitigating material changes in prices, which could have an adverse impact on our financial position and results of operations. At the inception and on an ongoing basis, we assess the hedging relationship to determine its effectiveness in offsetting changes in cash flows or fair value attributable to the hedged risk. Our derivative contracts are recognized at their estimated fair market value in accordance with the accounting guidance for fair value measurements. The fair value of our derivatives is derived using observable and certain unobservable inputs, such as basis differentials, which are based on the difference between the historical prices of our prior transactions and the underlying observable data. Measurement of the fair value of our derivatives also requires the assessment of certain risks related to non-performance, which requires a significant amount of judgment. The effect on our income before income taxes of a 10% change in the model input for non-performance risk would not be material to our consolidated statements of operations. If the derivative instrument is not designated as a hedge, changes in the estimated fair market value are recognized as a component of revenue, cost of revenue or other income (expense), net (based on the underlying transaction type) in the consolidated statements of income and comprehensive income. Derivatives which qualify for hedge accounting may be designated as either a fair value or cash flow hedge. For our fair value hedges, changes in the estimated fair market value of the hedging instrument and the hedged item are recognized in the same line item as the underlying transaction type in the consolidated statements of income and comprehensive income. For our cash flow hedges, the effective portion of the changes in the fair market value of the hedging instrument is initially recognized as a component of other comprehensive income and subsequently reclassified into the same line item as the underlying forecasted transaction when both are settled or deemed probable of not occurring. The ineffective portion of the changes in the estimated fair market value of the hedging instrument is recognized in the same line item as the underlying transaction type in the consolidated statements of income and comprehensive income. Cash flows for our hedging instruments used in our hedges are classified in the same category as the cash flow from the hedged items. If for any reason hedge accounting is discontinued, then any cash flows subsequent to the date of discontinuance will be classified in a manner consistent with the nature of the instrument. For more information on our derivatives, see Note 4. J. Property and Equipment Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated primarily by using the straight‑line method over the estimated useful lives of the assets. Costs of major additions and improvements are capitalized while expenditures for maintenance and repairs, which do not extend the life of the asset, are expensed. Upon sale or disposition of property and equipment, the cost and related accumulated depreciation and amortization are eliminated from the accounts and any resulting gain or loss is credited or charged to income. Long‑lived assets held and used by us are reviewed based on market factors and operational considerations for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Purchases of computer software are capitalized. External costs and certain internal costs directly associated with developing significant computer software applications for internal use are capitalized. Computer software costs are amortized using the straight‑line method over the estimated useful life of the software. K. Goodwill and Identifiable Intangible Assets Goodwill arises because the purchase price paid reflects numerous factors, including the strategic fit and expected synergies these acquisitions bring to our existing operations. Goodwill is recorded at fair value and is reviewed at least annually at year-end (or more frequently under certain circumstances) for impairment. Goodwill is evaluated for impairment at the reporting unit level and is initially based on an assessment of qualitative factors to determine whether it is more likely than not that the fair value of any individual reporting unit is less than its carrying amount. Such events or circumstances could include a material adverse change in the markets where we operate, similar to the current conditions within the shipping and offshore markets, limited market volatility, which adversely impact our supply and trading activities, among others. To determine whether goodwill is impaired, we would compare the fair value of the reporting units to which goodwill was assigned to their respective carrying values to measure the amount of goodwill impairment, if any. In calculating fair value, we use a combination of both an income and market approach as our primary indicator of fair value. Under the market approach we use a selection of global companies that correspond to each reporting unit to derive a market-based multiple. Under the income approach, we calculate the fair value of a reporting unit based on the present value of estimated future cash flows. The estimated future cash flows are based on the best information available to us at the time, including our annual operating plan, which is completed annually during the fourth quarter and is approved by our Board of Directors. Our estimates are considered supportable assumptions that we believe are reasonable based on information available to us at that time, and are based on a number of factors including industry experience, internal benchmarks, and the economic environment. Our cash flow estimates are discounted using rates that correspond to a weighted-average cost of capital consistent with those used internally for investment decisions. If our annual operating plan is not achieved or if there are other variations to our estimates and assumptions, particularly in the expected growth rates and profitability embedded in our cash flow projections or the discount rate used, there is the potential for a partial or total impairment of the carrying amount of goodwill within one or more of our reporting units. If we are required to impair all or a substantial amount of the goodwill attributable to one or more of our reporting units, our financial results of operations and financial condition could be adversely affected. In connection with our acquisitions, we record identifiable intangible assets at fair value. The determination of the fair values of our identifiable intangible assets involves a significant amount of forecasting and other assumptions associated with recently acquired businesses for which we may not have as much historical information or trend data as we would for our existing businesses. Identifiable intangible assets subject to amortization are amortized over their estimated useful lives and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We assess identifiable intangible assets not subject to amortization during the fourth quarter of each year for potential impairment. Our impairment analysis of our intangible assets not subject to amortization (primarily trademarks and/or trade names) generally involves the use of qualitative and quantitative analyses to estimate whether the estimated future cash flows generated as a result of these assets will be greater than or equal to the carrying value assigned to such assets. For information pertaining to our 2017 impairment assessment, see Note 7, Goodwill and Identifiable Intangible Assets. L. Other Investments Our other investments consist primarily of equity investments, net of basis adjustments. These investments are accounted for under the equity method as we own less than 50% of the entities and exercise significant influence over the investee, but do not have operational or financial control. As of December 31, 2017 and 2016 , we had other investments of $70.9 million and $67.2 million , respectively, which are included within identifiable intangible and other non‑current assets. In 2017, we recorded a $9.0 million other-than-temporary impairment charge for two underperforming investments in the land segment, which is included in goodwill and other impairment on our consolidated statements of income and comprehensive income. M. Revenue Recognition We execute contracts with customers through a variety of methods including by executing a master supply or blanket sales agreement combined with a purchase order or delivery ticket, stand-alone contracts, or through spot transactions where fuel is delivered for immediate settlement. Our contracts primarily require us to deliver fuel and fuel-related products, while other arrangements require us to complete agreed-upon services. Our contracts may contain fixed or variable pricing or some combination of those. The majority of our consolidated revenues are generated through the sale of fuel and fuel-related products. Revenue from the sale of fuel is recognized when delivery is made to our customers and title has passed, the sales price is determinable, and collectability is reasonably assured. Our fuel sales are generated as a fuel reseller as well as from inventory supply. When acting as a fuel reseller, we generally purchase fuel from the supplier, and contemporaneously resell the fuel to the customer, normally taking delivery for purchased fuel at the same place and time as the delivery is made to the customer. Revenue from services, including energy procurement advisory services and international trip planning support, and transaction and payment management processing, are recognized over the contract period when services have been performed and we have the right to invoice for those services. We record fuel sales and services on a gross basis as we generally take inventory risk, have latitude in establishing the sales price, have discretion in the supplier selection, maintain credit risk and are the primary obligor in the sales arrangement. Whether the services have been performed and when title and risk of loss passes to the customer are the factors we take into consideration in deciding when to recognize revenue. These factors are readily determinable and consistently applied throughout our business. Therefore, we generally have not needed to make material estimates or assumptions with respect to revenue recognition. N. Share‑Based Payment Awards We account for share‑based payment awards on a fair value basis. Under fair value accounting, the grant‑date fair value of the share‑based payment award is amortized as compensation expense, on a straight‑line basis, over the vesting period for both graded and cliff vesting awards. Annual compensation expense for share‑based payment awards is reduced by an expected forfeiture amount on outstanding share‑based payment awards. We utilize our historical forfeiture rates to calculate future expected forfeitures. These estimates can vary significantly from actual forfeiture rates experienced. Our estimated forfeiture rates have historically approximated actual forfeitures. O. Foreign Currency The functional currency of our U.S. and foreign subsidiaries is the U.S. dollar, except for certain subsidiaries which utilize their respective local currency as their functional currency. Foreign currency transaction gains and losses are recognized upon settlement of foreign currency transactions. In addition, for unsettled foreign currency transactions, foreign currency translation gains and losses are recognized for changes between the transaction exchange rates and month‑end exchange rates. Foreign currency transaction gains and losses are included in other income (expense), net, in the accompanying consolidated statements of income and comprehensive income in the period incurred. Revenues and expenses of the subsidiaries that have a functional currency other than the U.S. dollar have been translated into U.S. dollars at average exchange rates prevailing during the period. The assets and liabilities of these subsidiaries have been translated at the rates of exchange on the balance sheet dates. The resulting translation gain and loss adjustments are recorded in accumulated other comprehensive income as a separate component of shareholders’ equity. P. Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and income tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in income tax rates is recorded as a component of the income tax provision in the period that includes the enactment date. Regular assessments are made on the likelihood that our deferred tax assets will be recovered from our future taxable income. Our evaluation is based on estimates, assumptions, and includes an analysis of available positive and negative evidence, giving weight based on the evidence’s relative objectivity. Sources of positive evidence include estimates of future taxable income, future reversal of existing taxable temporary differences, taxable income in carryback years, and available tax planning strategies. Sources of negative evidence include current and cumulative losses in recent years, losses expected in early future years, any history of operating losses or tax credit carryforwards expiring unused, and unsettled circumstances that, if unfavorably resolved, would adversely affect future profit levels. The remaining carrying value of our deferred tax assets, after recording the valuation allowance on our deferred tax assets, is based on our present belief that it is more likely than not that we will be able to generate sufficient future taxable income in certain tax jurisdictions to utilize such deferred tax assets. The amount of the remaining deferred tax assets considered recoverable could be adjusted if our estimates of future taxable income during the carryforward period change favorably or unfavorably. To the extent we believe that it is more likely than not that some or all of the remaining deferred tax assets will not be realized, we must establish a valuation allowance against those deferred tax assets, resulting in additional income tax expense in the period such determination is made. To the extent a valuation allowance currently exists, we will continue to monitor all positive and negative evidence until we believe it is more likely than not that it is no longer necessary, resulting in an income tax benefit in the period such determination is made. Significant judgment is required in evaluating our tax positions, and in determining our provisions for income taxes, our deferred tax assets and liabilities and any valuation allowance recorded against our net deferred tax assets. We establish reserves when, despite our belief that the income tax return positions are fully supportable, certain positions are likely to be challenged and we may ultimately not prevail in defending those positions. Q. Earnings per Common Share Basic earnings per common share is computed by dividing net income attributable to World Fuel and available to common shareholders by the sum of the weighted average number of shares of common stock. Diluted earnings per common share is computed by dividing net income attributable to World Fuel and available to common shareholders by the sum of the weighted average number of shares of common stock and the number of additional shares of common stock that would have been outstanding if our outstanding potentially dilutive securities had been issued. Potentially dilutive securities include restricted stock subject to forfeitable dividends, non‑vested RSUs and SSAR Awards. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per common share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of our common stock can result in a greater dilutive effect from potentially dilutive securities. The following table sets forth the computation of basic and diluted earnings per common share for the periods presented (in millions, except per share amounts): 2017 2016 2015 Numerator: Net income (loss) attributable to World Fuel $ (170.2 ) $ 126.5 $ 174.5 Denominator: Weighted average common shares for basic earnings per common share 68.1 69.3 70.2 Effect of dilutive securities — 0.5 0.5 Weighted average common shares for diluted earnings per common share 68.1 69.8 70.7 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 1.4 1.3 1.0 Basic earnings (loss) per common share $ (2.50 ) $ 1.82 $ 2.49 Diluted earnings (loss) per common share $ (2.50 ) $ 1.81 $ 2.47 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2017 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable | Accounts Receivable We had accounts receivable of $2.7 billion and $2.3 billion , net of an allowance for bad debt of $27.8 million and $24.9 million , as of December 31, 2017 and 2016 , respectively. Accounts receivable are written-off when it becomes apparent based upon customer circumstances that such amounts will not be collected. We have Receivables Purchase Agreements (“RPAs”) with Wells Fargo and Citibank, that allows for the sale of our accounts receivable, in an amount equal to either 90% or 100% , depending on the customer, of total balance, less a discount margin equivalent to LIBOR plus 1% to 3% and certain other fees, as applicable. Receivables sold under the RPAs are excluded from accounts receivable, net on the accompanying consolidated balance sheet. Under the terms of the RPAs, we retain a beneficial interest in certain of the sold accounts receivable of 10% , which is included in accounts receivable, net in the accompanying consolidated balance sheet. Fees and interest paid under the RPAs is recorded within "Interest expense and other financing costs, net" in the Consolidated Statements of Comprehensive Income. We had sold accounts receivable of $377.3 million and $235.5 million under the RPAs, as of December 31, 2017 and 2016 , respectively. In addition, we have a $15.9 million and $11.4 million retained beneficial interest in the transferred receivables as of December 31, 2017 and 2016 , respectively. The fees and interest paid under the RPA were $12.4 million , $4.8 million , and $2.8 million , for 2017 , 2016 and 2015 , respectively. Under the RPAs, we sold $6.1 billion and $3.0 billion of accounts receivable during 2017 and 2016, respectively and collected $5.9 billion and $2.9 billion of accounts receivables during 2017 and 2016, respectively. The following table sets forth activities in our allowance for bad debt (in millions): 2017 2016 2015 Balance as of beginning of period $ 24.9 $ 25.0 $ 25.7 Charges to provision for bad debt 9.3 15.4 7.5 Write-off of uncollectible accounts receivable (8.7 ) (15.9 ) (8.3 ) Recoveries of bad debt 2.0 0.3 0.5 Translation Adjustments 0.3 0.2 (0.4 ) Balance as of end of period $ 27.8 $ 24.9 $ 25.0 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures 2017 Acquisitions During the first quarter of 2017 , we completed the acquisition of certain aviation fueling operations in Italy, Germany, Australia and New Zealand associated with the ExxonMobil transaction, further described below. We also completed five acquisitions during 2017 which were not material individually or in the aggregate. The following table summarizes the aggregate consideration paid for acquisitions during 2017 and the provisional amounts of the assets acquired and liabilities assumed, recognized at the acquisition date. We are in the process of finalizing the valuations of certain intangible assets; thus, the provisional measurements of these acquired assets and assumed liabilities are subject to change and will be finalized no later than one year from the acquisition date. (In millions) Cash paid for acquisition of businesses, net of cash acquired $ 108.2 Cash and cash equivalents 4.5 Amounts due to sellers 0.7 Non-monetary consideration 4.2 Estimated purchase price $ 117.6 Assets acquired: Cash and cash equivalents $ 4.5 Property and equipment 10.6 Goodwill and identifiable intangible assets 105.2 Other current and long-term assets 10.2 Liabilities assumed: Accrued expenses and other current liabilities (3.7 ) Long-term liabilities and deferred tax liabilities (9.1 ) Estimated purchase price $ 117.6 In connection with the 2017 acquisitions, we recorded goodwill of $63.5 million , of which $29.5 million is anticipated to be deductible for tax purposes. The goodwill, of which $51.3 million and $12.2 million is assigned to the aviation segment and land segment, respectively, is attributable primarily to the expected synergies and other benefits that we believe will result from combining the operations of the acquired businesses with the operations of World Fuel Services' aviation and land segments. The identifiable intangible assets consist of $ 41.7 million of customer relationships with weighted average lives of 8.0 years . The financial position, results of operations and cash flows of the 2017 acquisitions have been included in our consolidated financial statements since their respective acquisition dates and did not have a material impact on our consolidated revenue and net income for 2017. Accordingly, pro forma information for the 2017 acquisitions has not been provided as the impact is not material. 2016 Acquisitions ExxonMobil In the first quarter of 2016 , we signed a definitive agreement to acquire from certain ExxonMobil affiliates their aviation fueling operations at more than 80 airport locations in Canada, the United Kingdom, Germany, Italy, France, Australia and New Zealand. The transaction closed in phases with the Canada, France and U.K. locations closing during the fourth quarter of 2016 and the remaining locations closing during the first quarter of 2017 . On July 1, 2016 , we acquired all of the outstanding capital stock of PAPCO, Inc. (“PAPCO”) and Associated Petroleum Products, Inc. (“APP”). PAPCO, headquartered in Virginia Beach, Virginia and APP, headquartered in Tacoma, Washington are leading distributors of gasoline, diesel, lubricants, propane and related services in the Mid-Atlantic and the Pacific Northwest region of the U.S., respectively. In addition to the above acquisitions, we completed six acquisitions in our land segment in 2016 which were not material individually or in the aggregate. The following table summarizes the aggregate consideration paid for the 2016 acquisitions and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date. The purchase price allocation for the 2016 acquisitions is as follows: (In millions) Cash paid for acquisition of businesses, net of cash acquired $ 424.3 Cash acquired 2.6 Amounts due to sellers 20.0 Purchase price $ 446.9 Assets acquired: Cash and cash equivalents $ 2.6 Accounts and notes receivable 62.8 Inventories 39.0 Property and equipment 100.3 Goodwill and identifiable intangible assets 291.9 Other current and long-term assets 14.8 Liabilities assumed: Accrued expenses and other current liabilities (61.0 ) Non-current income tax liabilities and other long term liabilities (3.5 ) Purchase price $ 446.9 In connection with the 2016 acquisitions, we recorded goodwill of $173.3 million of which $133.4 million is anticipated to be deductible for tax purposes. The goodwill, of which $95.6 million and $77.7 million is assigned to the aviation segment and land segment, respectively, is attributable primarily to the expected synergies and other benefits that we believe will result from combining the operations of the acquired businesses with the operations of World Fuel Services' land and aviation segments. The identifiable intangible assets consisted of $105.1 million of customer relationships and $3.9 million of other identifiable intangible assets with weighted average lives of 5.6 years and 2.1 years , respectively, as well as $9.5 million of indefinite-lived trademark/trade name rights. The following presents the unaudited pro forma results for 2016 and 2015 as if 2016 and 2015 acquisitions had been completed on January 1, 2015: 2016 2015 (pro forma) (pro forma) Revenue $ 27,925.0 $ 32,604.4 Net income attributable to World Fuel $ 146.1 $ 202.0 Earnings per common share: Basic $ 2.11 $ 2.88 Diluted $ 2.09 $ 2.86 The financial position, results of operations and cash flows of the 2016 acquisitions have been included in our consolidated financial statements since their respective acquisition dates and did not have a material impact on our revenue and net income for the year ended December 31, 2016. Tobras Distribuidora de Combustiveis Limitada On June 23, 2016, we acquired the remaining 49% of the outstanding equity interest of Tobras from the minority owners for an aggregate purchase price of approximately $3.7 million in cash (the “Tobras Acquisition”). Prior to the Tobras Acquisition, we owned 51% of the outstanding shares of Tobras and exercised control, and as such, we consolidated Tobras in our financial statements. As a result of the acquisition of the remaining equity interest of Tobras, we recorded a $10.9 million adjustment to capital in excess of par value on our consolidated balance sheets, which consisted of $3.7 million of cash paid and $7.2 million |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The following describes our derivative classifications: Cash Flow Hedges. Includes certain derivative contracts we execute to mitigate the risk of price volatility in forecasted transactions. Fair Value Hedges. Includes derivative contracts we hold to hedge the risk of changes in the price of our inventory. Non-designated Derivatives. Includes derivatives we primarily transact to mitigate the risk of market price fluctuations in the form of swap or futures contracts as well as certain forward fixed price purchase and sale contracts, and for portfolio optimization. In addition, non-designated derivatives are held to hedge the risk of currency rate fluctuations. The following table presents the gross fair value of our derivative instruments and their locations on the consolidated balance sheets (in millions): Gross Derivative Assets Gross Derivative Liabilities As of December 31, As of December 31, Derivative Instruments Balance Sheet Location 2017 2016 2017 2016 Derivatives designated as hedging instruments Commodity contracts Short-term derivative assets, net $ 0.4 $ 2.2 $ 0.5 $ 5.4 Identifiable intangible and other non-current assets — — — — Accrued expenses and other current liabilities 2.3 86.0 43.1 93.5 Other long-term liabilities — 5.1 — 10.1 Total derivatives designated as hedging instruments $ 2.7 $ 93.3 $ 43.6 $ 108.9 Derivatives not designated as hedging instruments Commodity contracts Short-term derivative assets, net $ 191.4 $ 160.3 $ 123.3 $ 86.7 Identifiable intangible and other non-current assets 18.2 17.1 5.2 6.2 Accrued expenses and other current liabilities 86.1 52.5 138.2 112.2 Other long-term liabilities 5.2 8.1 13.5 12.1 $ 300.9 $ 238.0 $ 280.2 $ 217.2 Foreign currency contracts Short-term derivative assets, net $ 4.5 $ 13.5 $ 2.8 $ 3.4 Identifiable intangible and other non-current assets — 0.9 — 0.1 Accrued expenses and other current liabilities 3.9 1.6 5.7 2.8 Other long-term liabilities — 0.2 $ 8.5 $ 16.0 $ 8.7 $ 6.4 Total derivatives not designated as hedging instruments $ 309.4 $ 253.9 $ 288.9 $ 223.6 Total derivatives $ 312.0 $ 347.2 $ 332.5 $ 332.5 For information regarding our derivative instruments measured at fair value after netting and collateral see Note 12. The following table summarizes the gross notional values of our commodity and foreign currency exchange derivative contracts used for risk management purposes that were outstanding as of December 31, 2017 (in millions): As of December 31, Derivative Instruments Units 2017 Commodity contracts Buy / Long BBL 66.5 Sell / Short BBL (75.9 ) Foreign currency exchange contracts Sell U.S. dollar, buy other currencies USD (255.8 ) Buy U.S. dollar, sell other currencies USD 485.5 For additional information about our use of derivative instruments, see Item 7A. Quantitative and Qualitative Disclosures About Market Risk. The following table presents the effect and financial statement location of our derivative instruments and related hedged items in fair value hedging relationships on our consolidated statements of income and comprehensive income (in millions): Realized and Unrealized Gain (Loss) For the Year Ended Realized and Unrealized Gain (Loss) For the Year Ended December 31, December 31, Derivative Instruments Location 2017 2016 2015 Hedged Items Location 2017 2016 2015 Commodity contracts Inventories Revenue $ — $ — $ 49.3 Revenue $ — $ — $ — Cost of revenue (35.7 ) (25.3 ) 37.5 Cost of revenue 13.0 10.8 (70.7 ) Total gain (loss) $ (35.7 ) $ (25.3 ) $ 86.8 Total gain (loss) $ 13.0 $ 10.8 $ (70.7 ) We recognized net losses in income representing hedge ineffectiveness of $22.7 million and $14.5 million for the years ended December 31, 2017 and 2016 , respectively, and net gains of $16.1 million for the year ended December 31, 2015 . There were no gains or losses for the year ended December 31, 2017 , 2016 and 2015 that were excluded from the assessment of the effectiveness of our fair value hedges. The following table presents the effect and financial statement location of our derivative instruments in cash flow hedging relationships on our accumulated other comprehensive income and consolidated statements of income and comprehensive income (in millions): Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Effective Portion) For the Year Ended Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Effective Portion) For the Year Ended December 31, December 31, Derivative Instruments 2017 2016 2015 Location 2017 2016 2015 Commodity contracts $ (7.8 ) $ (145.8 ) $ 106.5 Revenue $ (41.3 ) $ 18.1 $ 7.2 Commodity contracts (0.1 ) 178.1 (105.4 ) Cost of revenue 33.7 20.8 (5.3 ) Total gain (loss) $ (7.9 ) $ 32.3 $ 1.0 Total gain (loss) $ (7.6 ) $ 38.8 $ 1.8 Amount of Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) For the Year Ended December 31, Location 2017 2016 2015 Revenue $ 0.7 $ (13.7 ) $ 28.6 Cost of revenue (15.4 ) 9.4 (17.8 ) Total gain (loss) $ (14.8 ) $ (4.4 ) $ 10.8 The effective portion of the gains or losses on derivative instruments designated as cash flow hedges of forecasted transactions are initially reported as a component of accumulated other comprehensive income and subsequently reclassified into earnings once the future transaction affects earnings. The following table presents the effect and financial statement location of our derivative instruments not designated as hedging instruments on our consolidated statements of income and comprehensive income (in millions): Amount of Realized and Unrealized Gain (Loss) For the Year Ended December 31, Derivative Instruments - Non-designated Location 2017 2016 2015 Commodity contracts Revenue $ (0.5 ) $ 29.7 $ 171.7 Cost of revenue 62.3 (31.6 ) (139.0 ) $ 61.8 $ (1.9 ) $ 32.7 Foreign currency contracts Revenue $ (3.2 ) $ 10.0 $ 4.1 Other (expense) income, net (7.8 ) (0.8 ) 9.5 $ (11.0 ) $ 9.2 $ 13.6 Total gain $ 50.8 $ 7.3 $ 46.3 Credit-Risk-Related Contingent Features We enter into derivative contracts which may require us to post collateral periodically. Certain of these derivative contracts contain credit-risk-related contingent clauses which are triggered by credit events. These credit events may include the requirement to post additional collateral or the immediate settlement of the derivative instruments upon the occurrence of a credit downgrade or if certain defined financial ratios fall below an established threshold. The following table presents the potential collateral requirements for derivative liabilities with credit-risk-contingent features (in millions): Potential Collateral Requirements for Derivative Liabilities with Credit-Risk-Contingent Features As of December 31, 2017 2016 Net derivative liability positions with credit contingent features $ 11.8 $ 15.2 Maximum potential collateral requirements $ 11.8 $ 15.2 At December 31, 2017 and 2016 , there was no |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges During the fourth quarter of 2017, we began an enterprise-wide restructuring plan that is designed to streamline the organization, and reallocate resources to better align our organizational structure and costs with our strategy. While these activities are ongoing, we expect the majority of these activities to be completed over the course of 2018, and based on activities being reviewed, we cannot reasonably estimate the ultimate cost that will be incurred. Specifically, as the restructuring plan involves reviewing non-core businesses and assets, our organizational structure, and expected commercial opportunities in the markets we serve. We will also consider our existing technology platforms, specifically with an aim to more fully integrate recent acquisitions and increase associated profit contribution. During the fourth quarter, we incurred $59.6 million in restructuring charges, comprised primarily of costs associated with exiting certain business lines, including completely exiting the railcar business, exiting a low return capital-intensive distributor program within the land segment, approximately $26.0 million non-cash impairment charge related to notes due from certain of those preferred distributors and employee and facility-related costs. As of December 31, 2017, approximately $32.0 million of total restructuring charges is included in accrued expenses and other current liabilities on our consolidated balance sheet. A summary of the restructuring charges we recorded by segment, are as follows: Aviation Land Marine Corporate Consolidated Business line exit costs $ — $ 50.3 $ — $ — $ 50.3 Employee and facility-related 0.9 2.1 1.4 5.1 9.4 Restructuring charges $ 0.9 $ 52.4 $ 1.4 $ 5.1 $ 59.6 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The amount of property and equipment and their respective estimated useful lives are as follows (in millions): As of December 31, Estimated 2017 2016 Useful Lives Land $ 28.0 $ 27.4 Indefinite Buildings and leasehold improvements 87.2 87.3 3 - 40 years Office equipment, furniture and fixtures 15.5 15.4 3 - 7 years Computer equipment and software costs 169.4 140.7 3 - 9 years Machinery, equipment and vehicles 246.5 217.5 3 - 40 years 546.6 488.3 Accumulated depreciation and amortization 216.8 177.1 $ 329.8 $ 311.2 For 2017 , 2016 and 2015 , we recorded depreciation expense of $44.1 million , $42.5 million and $35.1 million , respectively. The amount of computer software costs, including capitalized internally developed software costs are as follows (in millions): As of December 31, 2017 2016 Computer software costs $ 108.0 $ 94.5 Accumulated amortization 80.3 69.5 Computer software costs, net $ 27.7 $ 25.0 Included in capitalized computer software costs are costs incurred in connection with software development in progress of $27.6 million and $12.5 million as of December 31, 2017 and 2016 , respectively. For 2017 , 2016 and 2015 , we recorded amortization expense related to computer software costs of $11.0 million , $13.7 million and $10.7 million , respectively. The assets and accumulated amortization recorded under capital leases are as follows (in millions): As of December 31, 2017 2016 Capital leases $ 25.5 $ 24.4 Accumulated amortization 16.0 8.2 Capital leases, net $ 9.5 $ 16.2 |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Intangible Assets | Goodwill and Identifiable Intangible Assets In 2017 , we used a combination of qualitative and quantitative factors to review goodwill and identifiable intangible assets for impairment for all of our reporting units. As a result of performing these assessments, we recorded an impairment charge of $80.2 million , of which $72.3 million was attributable to the write-off of goodwill in our marine segment, and $7.9 million associated with intangible assets, primarily customer relationships in both the marine and land segments. The impairment within our marine segment was driven principally by growing competitive pressures in maritime markets, including the decline of maritime shipping volumes along with lower demand for price risk management products and our ultimate decision in the fourth quarter to exit our marine business in certain international markets. Goodwill The following table provides information regarding changes in goodwill (in millions): Aviation Segment Land Segment Marine Segment Total As of December 31, 2015 $ 173.7 $ 430.7 $ 71.4 $ 675.8 2016 acquisitions 95.6 77.7 — 173.3 Adjustment of purchase price allocations 1.3 5.5 0.1 6.9 Foreign currency translation of non-USD functional currency subsidiary goodwill (3.7 ) (17.3 ) 0.7 (20.3 ) As of December 31, 2016 266.8 496.7 72.3 835.8 2017 acquisitions 51.2 12.2 — 63.5 Adjustment of purchase price allocations 6.2 (0.1 ) — 6.0 Impairment charge — — (72.3 ) (72.3 ) Foreign currency translation of non-USD functional currency subsidiary goodwill 2.7 9.8 — 12.5 As of December 31, 2017 $ 326.9 $ 518.5 $ — $ 845.5 Identifiable Intangible Assets The following table provides information about our identifiable intangible assets (in millions): As of December 31, 2017 As of December 31, 2016 Gross Accumulated (1) Net Gross Accumulated (1) Net Intangible assets subject to amortization: Customer relationships (2) $ 373.8 $ 171.4 $ 202.4 $ 353.8 $ 155.5 $ 198.3 Supplier agreements 38.7 15.4 23.4 38.7 13.3 25.4 Others 40.0 26.3 13.7 37.2 20.2 17.0 452.5 213.1 239.4 429.7 189.1 240.7 Intangible assets not subject to amortization: Trademark/trade name rights 40.3 40.3 41.7 41.7 $ 492.9 $ 213.1 $ 279.7 $ 471.4 $ 189.1 $ 282.3 (1) Includes the impact of foreign exchange (2) Reflects recorded impairment charges for 2017 of $4.1 million and $3.0 million in our Marine and Land segments, respectively, which is presented in " Goodwill and other impairments " on our Consolidated Statement of Income. Intangible amortization expense for 2017 , 2016 and 2015 was $41.9 million , $39.7 million and $30.4 million , respectively. The future estimated amortization of our identifiable intangible assets is as follows (in millions): Year Ended December 31, 2018 $ 41.0 2019 34.5 2020 29.9 2021 26.6 2022 23.6 Thereafter 83.7 $ 239.4 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of December 31, 2017 , we have a Credit Facility which permits borrowings up to approximately $1.26 billion , with a sublimit of $400.0 million for the issuance of letters of credit and bankers' acceptances. Under the Credit Facility, we have the right to request increases in available borrowings up to an additional $200.0 million , subject to the satisfaction of certain conditions. The Credit Facility matures in October 2021. We had outstanding borrowings under our Credit Facility totaling $60.0 million and $325.2 million as of December 31, 2017 and 2016 , respectively. Our issued letters of credit under the Credit Facility totaled $8.6 million and $8.3 million as of December 31, 2017 and 2016 , respectively. We also had $835.8 million and $840.0 million in Term Loans outstanding as of December 31, 2017 and 2016 , respectively. As of December 31, 2017 and 2016 , the unused portion of our Credit Facility was $1.19 billion and $926.5 million , respectively. Availability under our Credit Facility is principally limited by the ratio of adjusted total debt to adjusted EBITDA, as defined in the revolving credit facility, which limits the total amount of indebtedness we may incur, and may therefore fluctuate from period to period. Borrowings under our Credit Facility and Term Loans related to base rate loans or Eurodollar rate loans bear floating interest rates plus applicable margins. As of December 31, 2017 , the applicable margins for base rate loans and Eurodollar rate loans were 1.50% and 2.50% , respectively. Letters of credit issued under our Credit Facility are subject to letter of credit fees of 0.25% as of December 31, 2017 , and the unused portion of our Credit Facility is subject to commitment fees of 0.35% as of December 31, 2017 . Our Credit Facility and our Term Loans contain certain financial and other covenants with which we are required to comply. Our failure to comply with the covenants contained in our Credit Facility and our Term Loans could result in an event of default. An event of default, if not cured or waived, would permit acceleration of any outstanding indebtedness under the Credit Facility and our Term Loans, trigger cross‑defaults under certain other agreements to which we are a party and impair our ability to obtain working capital advances and issue letters of credit, which would have a material adverse effect on our business, financial condition, results of operations and cash flows. As of December 31, 2017 , we were in compliance with all financial and other covenants contained in our Credit Facility and our Term Loans. On January 30, 2018, we elected to amend our Credit Facility (the “Amendment”), and prepay certain amounts on our Term Loans. The Amendment lowers the borrowing capacity of our Credit Facility to approximately $1.16 billion with a sublimit of $400.0 million for the issuance of letters of credit and bankers' acceptances. Under the Credit Facility, we have the right to request increases in available borrowings up to an additional $200.0 million , subject to the satisfaction of certain conditions. The Credit Facility matures in October 2021. In connection with the Amendment, we also elected to make a $300.0 million payment on the outstanding amounts owed on the Term Loans, representing additional capacity that is accessible by us. This payment was facilitated by an ability to use foreign cash without incurring additional U.S. tax costs as a result of the recently enacted Tax Act. Outside of our Credit Facility we have other uncommitted credit lines primarily for the issuance of letters of credit, bank guarantees and bankers’ acceptances. These credit lines are renewable on an annual basis and are subject to fees at market rates. As of December 31, 2017 and 2016 , our outstanding letters of credit and bank guarantees under these credit lines totaled $272.0 million and $176.5 million , respectively. Substantially all of the letters of credit and bank guarantees issued under our Credit Facility and the uncommitted credit lines were provided to suppliers in the normal course of business and generally expire within one year of issuance. Expired letters of credit and bank guarantees are renewed as needed. Our debt consisted of the following (in millions): As of December 31, 2017 2016 Credit Facility $ 60.0 $ 325.2 Term Loans 835.8 840.0 Capital leases 10.4 12.6 Other 4.0 8.5 Total debt 910.2 1,186.3 Current maturities of long-term debt and capital leases 25.6 15.4 Long-term debt $ 884.6 $ 1,170.8 The capital lease obligations are payable in varying amounts through November 2023 and bear interest at annual rates ranging from 3.0% to 6.3% as of December 31, 2017 . As of December 31, 2017 , the aggregate annual maturities of debt are as follows (in millions): Year Ended December 31, 2018 $ 25.6 2019 41.6 2020 55.8 2021 723.5 2022 61.7 Thereafter 1.9 $ 910.2 The following table provides additional information about our interest income, interest expense and other financing costs, net (in millions): 2017 2016 2015 Interest income $ 6.0 $ 4.5 $ 5.0 Interest expense and other financing costs (66.3 ) (43.7 ) (34.9 ) $ (60.3 ) $ (39.2 ) $ (29.9 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Surety Bonds In the normal course of business, we are required to post bid, performance and other surety-related bonds. The majority of the surety bonds posted relate to our aviation and land segments. We had outstanding bonds that were executed in order to satisfy various security requirements of $44.6 million and $52.8 million , as of December 31, 2017 and 2016 , respectively. Lease Commitments As of December 31, 2017 , our future minimum lease payments under non-cancelable operating leases were as follows (in millions): Year Ended December 31, 2018 $ 39.7 2019 31.0 2020 25.7 2021 21.3 2022 15.1 Thereafter 32.4 $ 165.2 We incurred rental expense for all properties and equipment of $40.3 million , $36.9 million and $31.6 million for 2017 , 2016 and 2015 , respectively. Minimum payments have not been reduced by minimum sublease rentals of $34.7 million due in the future under non-cancelable subleases. Sales and Purchase Commitments As of December 31, 2017 , the notional value associated with fixed sales and purchase commitments under our derivative programs amounted to $921.4 million and $516.4 million , respectively with delivery dates from 2018 through 2023. Additionally, we have certain purchase contracts that extend through 2026, under which we agreed to purchase annually between 1.72 million barrels and 2.00 million barrels of aviation fuel at future market prices. Agreements with Executive Officers and Key Employees We have an agreement with our Chairman, President and Chief Executive Officer, Michael J. Kasbar (“Mr. Kasbar”), for his continued employment with us which provides for an annual base salary as determined by our Compensation Committee in its sole discretion (currently $900,000 ), termination severance benefits, and such incentives and other compensation and amounts as our Compensation Committee may determine from time to time in its sole discretion. The current term of the Kasbar agreement, as amended, expired on December 31, 2017, and automatically extends for successive one -year terms unless either party provides written notice to the other at least one year prior to the expiration of the term that such party does not want to extend the term. Pursuant to his amended agreement, Mr. Kasbar is entitled to receive cash severance payments if: (a) we terminate his employment without cause following a change of control or for any reason other than death, disability or cause; (b) he resigns for good reason (generally a reduction in his responsibilities or compensation, or a breach by us), or resigns following a change of control; or (c) either he elects or we elect not to extend the term of the agreement, as amended. The severance payments are equal to $5.0 million for a termination following a change of control and $3.0 million in the other scenarios described above, a portion of which will be payable two years after the termination of Mr. Kasbar’s employment. All of Mr. Kasbar’s outstanding SSAR Awards, restricted stock and RSUs (collectively, “outstanding equity awards”) will immediately vest in each scenario described in (a) and (b) above following a change of control, except for awards assumed or substituted by a successor company, in which case, such awards shall continue to vest in accordance with their applicable terms. In each scenario described in (a), (b) or (c) above where there has not been a change of control, Mr. Kasbar’s outstanding equity awards will generally vest over a two year period following termination of his employment, with any remaining unvested awards vesting on the last day of such two year period. For each scenario described above, awards with multiple annual performance conditions must satisfy certain other requirements in order to have their vesting terms accelerated. We have also entered into employment agreements or separation agreements with certain of our other executive officers and key employees. These agreements provide for minimum salary levels, and, in most cases, bonuses which are payable if specified performance goals are attained. Some executive officers and key employees are also entitled to severance benefits upon termination or non-renewal of their contracts under certain circumstances. As of December 31, 2017 , the approximate future minimum commitments under these agreements, excluding discretionary and performance bonuses, are as follows (in millions): Year Ended December 31, 2018 $ 0.9 Deferred Compensation Plans We maintain a 401(k) defined contribution plan which covers all U.S. employees who meet minimum requirements and elect to participate. We are currently making a match contribution of 50% for each 1% of the participants' contributions up to 6% of the participants' contributions. Annual contributions by us are made at our sole discretion, as approved by the Compensation Committee. Additionally, certain of our foreign subsidiaries have defined contribution plans, which allow for voluntary contributions by the employees. In some cases, we make employer contributions on behalf of the employees. The expenses for our contributions under these plans were not material during each of the years presented on the consolidated statements of income and comprehensive income. We offer a non-qualified deferred compensation (“NQDC”) plan to certain eligible employees, excluding our named executive officers, whereby the participants may defer a portion of their compensation. We do not match any participant deferrals under the NQDC plan. Participants can elect from a variety of investment choices for their deferred compensation and gains and losses on these investments are credited to their respective accounts. The deferred compensation payable amount under this NQDC plan is subject to the claims of our general creditors and was $5.8 million and $4.3 million as of December 31, 2017 and December 31, 2016 , respectively, which was included in other long-term liabilities in the accompanying consolidated balance sheets. Environmental and Other Liabilities; Uninsured Risks Our business is subject to numerous federal, state , local and foreign environmental laws and regulations, including those relating to fuel storage and distribution, terminals, underground storage tanks, the release or discharge of regulated materials into the air, water and soil, the generation, storage, handling, use, transportation and disposal of hazardous materials, and the exposure of persons to regulated materials. A violation of, liability under, or noncompliance with these laws and regulations, or any future environmental law or regulation, could result in material liabilities, including administrative, civil or criminal penalties, remediation costs for natural resource damages as well as third-party damages. From time to time, we may be responsible for remediating contamination at properties we own or lease and can be entitled to reimbursement for certain of these costs from state trust funds, as well as various third-party contractual indemnities and insurance policies, subject to eligibility requirements, deductibles, and aggregate caps. Although we continuously review the adequacy of our insurance coverage, we may lack adequate coverage for various risks, including environmental claims. If we are uninsured or under‑insured for a claim or claims of sufficient magnitude arising out of our activities, it will have a material adverse effect on our financial position, results of operations and cash flows. We accrue for environmental assessment and remediation expenses when the future costs are probable and reasonably estimable. At December 31, 2017 and 2016, accrued liabilities for remediation were not material. It is not presently possible to estimate the ultimate amount of all remediation costs that might be incurred or the penalties that may be imposed. Tax Matters From time to time, we are under review by various domestic and foreign tax authorities with regards to indirect tax matters and are involved in various challenges and litigation in a number of countries, including, in particular, Brazil and South Korea, where the amounts under controversy may be material. We believe that these assessments are without merit and are currently appealing the actions. During the quarter ended December 31, 2016, the Korean branch (“WFSK”) of one of our subsidiaries received assessments of approximately $10.6 million (KRW 11.9 billion ) and during the quarter ended June 30, 2017, an assessment for an additional $17.9 million (KRW 20.1 billion ) from the regional tax authorities of Seoul, South Korea (“SRTO”). The assessments primarily consist of fines and penalties for allegedly failing to issue Value Added Tax ("VAT") invoices and report certain transactions during the period 2011-2014. These assessments do not involve failure to pay or collect VAT. We believe that these assessments are without merit and are currently appealing the actions. We are also involved in a number of tax disputes with federal, state and municipal tax authorities in Brazil, relating primarily to VAT (ICMS) tax matters. These disputes are at various stages of the legal process, including the administrative review phase and the collection action phase, and include assessments of fixed amounts of principal and penalties, plus interest. When we deem it appropriate and the amounts are reasonably estimable, we establish reserves for potential adjustments to our provision for the accrual of indirect taxes that may result from examinations or other actions by tax authorities. If events occur which indicate payment of these amounts is unnecessary, the reversal of the liabilities would result in the recognition of benefits in the period we determine the liabilities are no longer necessary. If our estimates of any of our federal, state, and foreign indirect tax liabilities are less than the ultimate assessment, it could result in a further charge to expense. Except with respect to the matters described above, we believe that the final outcome of any pending examinations, agreements, administrative or judicial proceedings will not have a material effect on our results of operations or cash flows. Other Matters We are also a party to various claims, complaints and proceedings arising in the ordinary course of our business including, but not limited to, environmental claims, commercial and governmental contract claims, such as property damage, demurrage, personal injury, billing and fuel quality claims, as well as bankruptcy preference claims and tax and administrative claims. We have established loss provisions for these ordinary course claims as well as other matters in which losses are probable and can be reasonably estimated. As of December 31, 2017 , we had recorded certain reserves which were not material. For those matters where a reserve has not been established and for which we believe a loss is reasonably possible, as well as for matters where a reserve has been recorded but for which an exposure to loss in excess of the amount accrued is reasonably possible, we believe that such losses will not have a material adverse effect on our consolidated financial statements. However, any adverse resolution of one or more such claims, complaints or proceedings during a particular period could have a material adverse effect on our consolidated financial statements or disclosures for that period. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Dividends We declared aggregate cash dividends of $0.24 per share of common stock for 2017 , 2016 and 2015 , respectively. Our Credit Facility and Term Loans have restrictions regarding the maximum amount of cash dividends allowed to be paid. The payment of the above‑referenced cash dividends was in compliance with the Credit Facility and Term Loans. Stock Repurchase Programs In October 2017, our Board of Directors approved a new common stock repurchase program which replaced the remainder of the existing program and authorized the purchase of up to $100.0 million in common stock (the “Repurchase Program”). The Repurchase Program does not require a minimum number of shares of common stock to be purchased, has no expiration date and may be suspended or discontinued at any time. As of December 31, 2017 , $100.0 million remains available for purchase under the Repurchase Program. The timing and amount of shares of common stock to be repurchased under the Repurchase Program will depend on market conditions, share price, securities law and other legal requirements and factors. Under several of our repurchase programs, we repurchased 1.6 million shares of our common stock for an aggregate value of $70.5 million during 2015, 1.0 million shares of our common stock for an aggregate value of $41.2 million during 2016 and 1.7 million shares of our common stock for an aggregate value of $61.9 million in 2017. Share-Based Payment Plans Plan Summary and Description In May 2016, our shareholders approved the 2016 Omnibus Plan (the “2016 Plan”), which replaced our previously adopted 2006 Omnibus Plan, as amended and restated in 2009 (the “2006 Plan”). The 2016 Plan is administered by the Compensation Committee of the Board of Directors (the “Compensation Committee”). The purpose of the 2016 Plan is to (i) attract and retain persons eligible to participate in the 2016 Plan; (ii) motivate participants, by means of appropriate incentives, to achieve long‑range goals; (iii) provide incentive compensation opportunities that are competitive with those of other similar companies; and (iv) further align participants’ interests with those of our other shareholders through compensation that is based on the value of our common stock. The goal is to promote the long‑term financial interest of World Fuel and its subsidiaries, including the growth in value of our equity and enhancement of long‑term shareholder return. The persons eligible to receive awards under the 2016 Plan are our employees, officers, and members of the Board of Directors, or any consultant or other person who performs services for us. The provisions of the 2016 Plan authorize the grant of stock options which can be “qualified” or “nonqualified” under the Internal Revenue Code of 1986, as amended, restricted stock, RSUs, SSAR Awards, performance shares and performance units and other share‑based awards. The 2016 Plan is unlimited in duration and, in the event of its termination, the 2016 Plan will remain in effect as long as any awards granted under it remain outstanding. No awards may be granted under the 2016 Plan after May 2026. The term and vesting period of awards granted under the 2016 Plan are established on a per grant basis, but options and SSAR Awards may not remain exercisable after the seven‑year anniversary of the date of grant. Under the 2016 Plan, 2.5 million shares of common stock are authorized for issuance plus any shares of common stock with respect to awards that were granted under the 2006 Plan but are forfeited or canceled (e.g., due to the recipient's failure to satisfy applicable service or performance conditions) after May 2016. As of December 31, 2017, approximately 2.2 million shares of common stock were subject to outstanding awards under the 2016 and 2006 Plan (assuming maximum achievement of performance goals for restricted stock and target achievement of performance goals for RSUs, where applicable). The following table summarizes the outstanding awards issued pursuant to the 2016 Plan described above as of December 31, 2017 and the remaining shares of common stock available for future issuance (in millions): Plan name Restricted Stock RSUs SSAR Awards Remaining shares of common stock available for future issuance 2016 Plan (1) — 0.6 0.4 3.4 2006 Plan (2) 0.3 0.9 0.3 (1) As of December 31, 2017 , unvested RSUs will vest between February 2018 and August 2021 and the outstanding SSAR Awards will expire between March 2020 and May 2020. (2) As of December 31, 2017 , unvested restricted stock will vest between February 2018 and February 2021, unvested RSUs will vest between February 2018 and May 2019 and the outstanding SSAR Awards will expire in March 2019. RSUs granted to non‑employee directors under the 2006 Plan prior to 2011 remain outstanding until the date the non‑employee director ceases, for any reason, to be a member of the Board of Directors. Restricted Stock Awards The following table summarizes the status of our unvested restricted stock outstanding and related transactions for each of the following years (in millions, except weighted average grant-date fair value price and weighted average remaining vesting term data): Unvested Restricted Stock Weighted Average Grant date Fair Value Price Aggregate Intrinsic Value Weighted Average Remaining Vesting Term (in Years) As of December 31, 2014 1.5 $ 41.18 $ 70.2 2.1 Granted 0.2 49.95 Vested (0.2 ) 39.63 Forfeited (0.1 ) 41.84 As of December 31, 2015 1.4 42.69 54.9 1.4 Granted 0.1 42.92 Vested (0.2 ) 40.40 Forfeited (0.1 ) 43.30 As of December 31, 2016 1.2 43.10 55.7 0.8 Granted — — Vested (0.2 ) 43.69 Forfeited (0.7 ) 41.50 As of December 31, 2017 0.3 $ 45.80 $ 9.7 0.9 The aggregate value of restricted stock which vested during 2017 , 2016 and 2015 was $7.8 million , $9.6 million and $9.9 million , respectively, based on the average high and low market price of our common stock at the vesting date. RSU Awards The following table summarizes the status of our RSUs and related transactions for each of the following years (in millions, except for weighted average grant‑date fair value data and weighted average remaining contractual life): RSUs Outstanding RSUs Weighted Average Grant date Fair Value Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Life (in Years) As of December 31, 2014 0.8 $ 38.55 $ 36.9 1.5 Granted 0.3 51.00 Vested (0.3 ) 38.80 Forfeited — 42.65 As of December 31, 2015 0.7 43.10 28.0 1.7 Granted 0.7 44.23 Vested (0.1 ) 42.78 Forfeited (0.1 ) 44.78 As of December 31, 2016 1.2 43.28 55.7 1.6 Granted 0.6 37.74 Vested (0.2 ) 43.06 Forfeited (0.1 ) 42.43 As of December 31, 2017 1.6 $ 41.01 $ 43.9 1.4 The aggregate intrinsic value of RSUs issued during 2017 , 2016 and 2015 was $7.7 million , $6.2 million and $15.3 million , respectively. SSAR Awards The following table summarizes the status of our outstanding and exercisable SSAR Awards and related transactions for each of the following years (in millions, except weighted average exercise price and weighted average remaining contractual life data): SSAR Awards Outstanding SSAR Awards Exercisable SSAR Awards Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Life (in Years) SSAR Awards Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Life (in Years) As of December 31, 2014 0.2 $ 40.06 $ 1.6 3.0 0.1 $ 35.81 $ 0.6 2.2 Granted — 57.48 Exercised — 25.08 As of December 31, 2015 0.2 42.91 — 2.5 0.1 42.06 — 2.2 Granted 0.1 48.58 Exercised — 40.91 As of December 31, 2016 0.3 44.97 0.3 2.4 0.2 42.15 0.7 1.3 Granted 0.4 36.31 Exercised — 40.91 As of December 31, 2017 0.7 $ 40.27 $ — 3.0 0.2 $ 42.76 $ — 0.4 The aggregate intrinsic value of SSAR Awards exercised during 2016 and 2015 was $0.1 million and $0.5 million , respectively. As discussed in Note 1, we currently use the Black Scholes option pricing model to estimate the fair value of SSAR Awards granted to employees. The weighted average fair value of the SSAR Awards for 2017 was $8.82 and the assumptions used to determine such fair value were as follows: expected term of 4.3 years , volatility of 28.6% , dividend yields of 0.7% and risk-free interest rates of 1.8% . The weighted average fair value of the SSAR Awards for 2016 was $12.32 and the assumptions used to determine such fair value were as follows: expected term of 4.5 years , volatility of 29.8% , dividend yields of 0.5% and risk-free interest rates of 1.2% . The weighted average fair value of the SSAR Awards for 2015 was $14.78 and the assumptions used to determine such fair value were as follows: expected term of 4.3 years , volatility of 30.2% , dividend yields of 0.3% and risk-free interest rates of 1.2% . Unrecognized Compensation Cost As of December 31, 2017 , there was $47.4 million of total unrecognized compensation cost related to unvested share-based payment awards, which is included as capital in excess of par value in the accompanying consolidated balance sheets. The unrecognized compensation cost as of December 31, 2017 is expected to be recognized as compensation expense over a weighted average period of 1.4 years as follows (in millions): Year Ended December 31, 2018 $ 18.8 2019 19.6 2020 4.4 2021 4.5 2022 0.2 $ 47.4 Other Comprehensive Loss and Accumulated Other Comprehensive Loss Our other comprehensive loss, consisting of foreign currency translation adjustments related to our subsidiaries that have a functional currency other than the U.S. dollar and cash flow hedges, was as follows (in millions): Foreign Currency Translation Adjustments Cash Flow Hedges Accumulated Other Comprehensive Loss Balance as of December 31, 2015 $ (108.7 ) $ (0.8 ) $ (109.5 ) Other comprehensive loss (40.4 ) (6.6 ) (47.0 ) Less: Net other comprehensive (income) loss attributable to noncontrolling interest 1.6 — 1.6 Balance as of December 31, 2016 (147.5 ) (7.4 ) (154.8 ) Other comprehensive income (loss) 30.1 (0.3 ) 29.8 Less: Net other comprehensive (income) loss attributable to noncontrolling interest (1.5 ) — (1.5 ) Balance as of December 31, 2017 $ (118.8 ) $ (7.7 ) $ (126.5 ) The foreign currency translation adjustment gains for 2017 were primarily due to the strengthening of the British Pound as compared to the U.S. dollar. The foreign currency translation adjustment losses for 2016 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes U.S. and foreign income before income taxes consist of the following (in millions): 2017 2016 2015 United States $ (152.3 ) $ (85.4 ) $ 3.5 Foreign 131.2 227.5 214.2 $ (21.1 ) $ 142.1 $ 217.7 The income tax provision (benefit) related to income before income taxes consists of the following components (in millions): 2017 2016 2015 Current: U.S. federal statutory tax $ 94.6 $ 7.5 $ (9.9 ) State 5.6 0.8 0.7 Foreign 34.2 30.4 27.0 134.4 38.7 17.8 Deferred: U.S. federal statutory tax 15.1 (29.3 ) 4.6 State 8.9 (4.2 ) 3.0 Foreign (10.0 ) (2.5 ) (2.3 ) 13.9 (36.0 ) 5.3 Non-current tax expense (income) 0.9 13.0 24.1 $ 149.2 $ 15.7 $ 47.2 Non-current tax expense (income) is primarily related to income tax associated with the reserve for uncertain tax positions. A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows: 2017 2016 2015 U.S. federal statutory tax rate 35.0 % 35.0 % 35.0 % Foreign earnings, net of foreign taxes 245.4 (42.4 ) (28.3 ) State income taxes, net of U.S. federal income tax benefit (51.8 ) (1.5 ) 1.1 U.S. tax on deemed dividends (14.0 ) 1.3 1.7 Tax Act impact (704.3 ) — — Deferred tax impact on foreign unrepatriated earnings (65.5 ) — — Goodwill impairment (81.5 ) — — Sale of subsidiary — 3.8 — Uncertain tax positions (4.1 ) 9.2 10.3 Tax authority settlements (10.0 ) — — Nontaxable interest income 36.9 — — Nondeductible interest expense (12.6 ) — — Valuation allowance (19.6 ) 2.0 0.3 Other permanent differences (61.0 ) 3.6 1.6 Effective income tax rate (707.1 )% 11.0 % 21.7 % On December 22, 2017, the U.S. President signed into law the Tax Act. This legislation will significantly change the U.S. Internal Revenue Code, including taxation of U.S. corporations, by, among other things, limiting interest deductions, reducing the U.S. corporate income tax rate, altering the expensing of capital expenditures, adopting elements of a territorial tax system, GILTI, assessing a repatriation tax or “toll-charge” on undistributed earnings and profits of U.S.-owned foreign corporations, and introducing certain anti-base erosion provisions. The legislation is unclear in certain respects and will require interpretations and implementing regulations by the IRS, as well as state tax authorities, and the legislation could be subject to potential amendments and technical corrections, any of which could increase certain adverse impacts of the legislation. For the year ended 2017 , our effective income tax rate was (707.1)% , and our income tax provision was $149.2 million , as compared to an effective income tax rate of 11.0% and an income tax provision of $15.7 million for 2016 . The higher effective income tax rate for 2017 , as compared to 2016 , resulted principally from the effects of the Tax Act's $143.7 million one-time transition tax on historic accumulated foreign earnings. Without the transition tax charge, the effective income tax rate for 2017 would have been (25.9)% . For 2016 , our effective income tax rate was 11.0% , for an income tax provision of $15.7 million , as compared to an effective income tax rate of 21.7% and an income tax provision of $47.2 million for 2015 . The lower effective income tax rate for 2016 resulted primarily from differences in the results of our subsidiaries in tax jurisdictions with different income tax rates. For 2015 , our effective income tax rate was 21.7% , for an income tax provision of $47.2 million , as compared to an effective income tax rate of 19.5% and an income tax provision of $53.6 million for 2014 . The higher effective income tax rate for 2015 compared to 2014 , resulted primarily from differences in the results of our subsidiaries in tax jurisdictions with different income tax rates. Through September 30, 2017, we considered all of the earnings in our non-U.S. subsidiaries to be indefinitely reinvested and, accordingly, recorded no deferred income taxes. The passage of the Tax Act in December of 2017 dramatically changed the US taxation of foreign earnings. Following a transition period and one-time toll charge of our foreign earnings and profits, foreign dividends will be exempt from US federal income tax. We have analyzed our global working capital and cash requirements and the potential tax liabilities attributable to repatriation and have determined that we intend to continue our assertion to permanently reinvest $725 million of our foreign earnings in non-US business operations. For these investments, due to uncertainty in foreign law, it is not practical to determine the amount of deferred taxes payable if such earnings are not reinvested indefinitely. For the remaining $1.7 billion accumulated foreign earnings that are actually or deemed repatriated, we have made a reasonable provisional estimate of the associated foreign withholding and state income tax effects of $13.8 million . The temporary differences which comprise our net deferred tax liabilities are as follows (in millions): As of December 31, 2017 2016 Gross Deferred Tax Assets: Bad debt reserve $ 3.5 $ 4.5 Net operating loss 23.0 38.6 Accrued and other share-based compensation 18.8 26.2 Accrued expenses 11.7 5.0 U.S. foreign income tax credits — 7.8 Other income tax credits 0.2 0.2 Customer deposits 1.9 6.3 Investments 1.3 — Cash flow hedges 3.2 4.6 Total gross deferred tax assets 63.7 93.2 Less: Valuation allowance 24.6 7.1 Gross deferred tax assets, net of valuation allowance 39.1 86.1 Deferred Tax Liabilities: Depreciation (6.4 ) (8.5 ) Goodwill and intangible assets (43.6 ) (56.1 ) Unrealized foreign exchange (0.9 ) (8.0 ) Prepaid expenses, deductible for tax purposes (3.8 ) (5.8 ) Deferred tax costs on foreign unrepatriated earnings (13.8 ) — Unrealized derivatives (1.1 ) (2.4 ) Other (1.1 ) (0.7 ) Total gross deferred tax liabilities (70.8 ) (81.5 ) Net deferred tax liability $ 31.7 $ — Net deferred tax asset — 4.6 Reported on the consolidated balance sheets as: Identifiable intangible and other non-current assets for deferred tax assets, non-current $ 12.8 $ 20.6 Non-current income tax liabilities, net for deferred tax liabilities, non-current $ 44.5 $ 16.0 As of December 31, 2017 and 2016 , we had net operating losses (“NOLs”) of approximately $240.3 million and $106.2 million , respectively. The NOLs as of December 31, 2017 originated in various U.S. states and countries including Argentina, Australia, South Africa, Brazil, Puerto Rico, France, Italy, Canada, and the Netherlands. We have recorded a deferred tax asset of $23.0 million reflecting the benefit of the NOL carryforward as of December 31, 2017 . This deferred tax asset expires as follows (in millions): Expiration Date Deferred December 31, 2020 $ 0.1 December 31, 2021 0.2 December 31, 2022 1.2 December 31, 2024 0.2 December 31, 2025 1.0 December 31, 2026 0.2 December 31, 2027 0.2 December 31, 2028 0.3 December 31, 2029 0.8 December 31, 2031 0.2 December 31, 2032 0.5 December 31, 2033 0.1 December 31, 2034 0.3 December 31, 2035 0.5 December 31, 2036 2.7 December 31, 2037 5.7 Indefinite 8.8 Total $ 23.0 We assessed the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. On the basis of this evaluation, as of December 31, 2017 , a valuation allowance of $24.6 million has been recorded to recognize only the portion of the deferred tax assets related to NOLs and other deferred tax assets that are more likely than not to be realized. The amount of the deferred tax asset considered realizable could be adjusted if estimates of future taxable income during the carryforward period change or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as growth projections. We operated under a special income tax concession in Singapore which began January 1, 2008. Our current five year special income tax concession was effective on January 1, 2013. The special income tax concession is conditional upon our meeting certain employment and investment thresholds which, if not met in accordance with our agreement, may eliminate the benefit beginning with the first year in which the conditions are not satisfied. The income tax concession reduces the income tax rate on qualified sales and derivative gains and losses. The impact of this income tax concession decreased (increased) foreign income taxes by $1.3 million , $2.7 million , and $(7.7) million for 2017 , 2016 and 2015 respectively. The impact of the income tax concession on basic earnings per common share was $0.02 , $0.04 , and $(0.11) for 2017 , 2016 and 2015 respectively. On a diluted earnings per common share basis, the impact was $0.02 , $0.04 , and $(0.11) for 2017 , 2016 and 2015 respectively. The special income tax concession in Singapore has been renewed effective January 1, 2018 for the next five year period. Income Tax Contingencies We recorded a decrease of $3.4 million of liabilities related to unrecognized income tax benefits (“Unrecognized Tax Liabilities”) and an increase of $19.8 million of assets related to unrecognized income tax benefits (“Unrecognized Tax Assets”) during 2017 . In addition, during 2017 , we recorded an increase of $1.4 million to our Unrecognized Tax Liabilities related to a foreign currency translation loss, which is included in other income (expense), net, in the accompanying consolidated statements of income and comprehensive income. As of December 31, 2017 , our Unrecognized Tax Liabilities, including penalties and interest, were $72.6 million and our Unrecognized Tax Assets were $25.4 million . During 2016, we recorded an increase of $14.4 million of liabilities related to Unrecognized Tax Liabilities and an increase of $3.2 million of assets related to Unrecognized Tax Assets. In addition, during 2016 , we recorded a decrease of $0.1 million to our Unrecognized Tax Liabilities related to a foreign currency translation gain, which is included in other income (expense), net, in the accompanying consolidated statements of income and comprehensive income. As of December 31, 2016 , our Unrecognized Tax Liabilities, including penalties and interest, were $62.2 million and our Unrecognized Tax Assets were $5.6 million . The following is a tabular reconciliation of the total amounts of gross unrecognized income tax liabilities for the year (in millions): 2017 2016 2015 Gross Unrecognized Tax Liabilities – opening balance $ 62.2 $ 47.8 $ 24.3 Gross increases – tax positions in prior period 10.9 19.7 9.2 Gross decreases – tax positions in prior period — (15.4 ) (4.8 ) Gross increases – tax positions in current period 10.7 12.9 22.0 Gross decreases – tax positions in current period — — — Settlements (23.0 ) — — Lapse of statute of limitations (2.1 ) (2.8 ) (2.9 ) Gross Unrecognized Tax Liabilities – ending balance $ 58.8 $ 62.2 $ 47.8 If our gross Unrecognized Tax Liabilities, net of our Unrecognized Tax Assets of $25.4 million , as of December 31, 2017 are settled by the taxing authorities in our favor, our income tax expense would be reduced by $33.4 million (exclusive of interest and penalties) in the period the matter is considered settled in accordance with Accounting Standards Codification 740. This would have the impact of reducing our 2017 effective income tax rate by 158.2% . As of December 31, 2017 , it does not appear that the total amount of our unrecognized income tax benefits will materially increase or decrease within the next twelve months. We record accrued interest and penalties related to unrecognized income tax benefits as income tax expense. Related to the uncertain income tax benefits noted above, for interest we recorded expense of $3.4 million during 2017 and income of $(0.7) million and an expense $0.9 million during 2016 and 2015 , respectively. For penalties, we recorded expense of $0.1 million , $2.3 million and income of $0.3 million during 2017 , 2016 and 2015 , respectively. As of December 31, 2017 and 2016 , we had recognized liabilities of $7.3 million and $4.3 million for interest and $6.5 million and $6.5 million for penalties, respectively. During the quarters ended March 31, 2017 and June 30, 2017, the Korean Branch of one of our subsidiaries received income tax assessment notices for $9.7 million (KRW 10.4 billion ) for the years 2011 through 2014 from the South Korea tax authorities. We disagree with the Korean tax authorities' assessment and are appealing. In many cases, our uncertain tax positions are related to tax years that remain subject to examination by the relevant taxing authorities. The following table summarizes these open tax years by jurisdiction with major uncertain tax positions: Open Tax Year Jurisdiction Examination Examination not United States 2013 - 2016 2017 Korea 2011 - 2014 2015 - 2017 United Kingdom 2013 - 2015 2016 - 2017 The Netherlands None 2013 - 2017 Greece None 2012 - 2017 Denmark 2013 - 2015 2016 - 2017 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The carrying amounts of cash and cash equivalents, accounts receivable, net, accounts payable and accrued expenses and other current liabilities approximate fair value based on the short‑term maturities of these instruments. The carrying values of our debt and notes receivables approximate fair value since these instruments bear interest either at variable rates or fixed rates which are not materially different than market rates. Based on the fair value hierarchy, our debt of $0.9 billion and $1.2 billion as of December 31, 2017 and December 31, 2016 , respectively, and our notes receivable of $44.9 million and $16.9 million as of December 31, 2017 and December 31, 2016 , respectively are categorized in Level 2. Recurring Fair Value Measurements. The following table presents information about our gross assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2017 and 2016 (in millions): Fair Value Measurements as of December 31, 2017 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Assets: Commodities contracts $ 196.3 $ 106.1 $ 1.2 $ 303.6 Foreign currency contracts — 8.5 — 8.5 Cash surrender value of life insurance — 5.6 — 5.6 Total assets at fair value $ 196.3 $ 120.2 $ 1.2 $ 317.7 Liabilities: Commodities contracts $ 210.6 $ 111.8 $ 1.4 $ 323.9 Foreign currency contracts — 8.7 — 8.7 Total liabilities at fair value $ 210.6 $ 120.5 $ 1.4 $ 332.5 Fair Value Measurements as of December 31, 2016 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Assets: Commodities contracts $ 273.6 $ 55.3 $ 2.3 $ 331.2 Foreign currency contracts — 16.0 — 16.0 Cash surrender value of life insurance — 4.0 — 4.0 Total assets at fair value $ 273.6 $ 75.3 $ 2.3 $ 351.2 Liabilities: Commodities contracts $ 236.6 $ 88.8 $ 0.7 $ 326.1 Foreign currency contracts — 6.4 — 6.4 Total liabilities at fair value $ 236.6 $ 95.2 $ 0.7 $ 332.5 There were no transfers between Level 1 and Level 2 during the periods presented. The fair values of our commodity contracts measured using Level 3 inputs were not material at December 31, 2017 and 2016 , respectively. For our derivative contracts, we may enter into master netting, collateral and offset agreements with counterparties. These agreements provide us the ability to offset a counterparty’s rights and obligations, request additional collateral when necessary or liquidate the collateral in the event of counterparty default. We net fair value of cash collateral paid or received against fair value amounts recognized for net derivative positions executed with the same counterparty under the same master netting or offset agreement. The following tables summarize those commodity derivative balances subject to the right of offset as presented on our consolidated balance sheet. We have elected to offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements when a legal right of offset exists. Fair Value as of December 31, 2017 Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Cash Collateral Gross Amounts Without Right of Offset Net Amounts Assets: Commodities contracts $ 303.6 $ 228.4 $ 75.1 $ 21.2 $ — $ 53.9 Foreign currency contracts 8.5 6.7 1.7 — — 1.7 Total assets at fair value $ 312.0 $ 235.2 $ 76.9 $ 21.2 $ — $ 55.7 Liabilities: Commodities contracts $ 323.9 $ 228.4 $ 95.4 $ 39.2 $ — $ 56.2 Foreign currency contracts 8.7 6.7 2.0 — — 2.0 Total liabilities at fair value $ 332.5 $ 235.2 $ 97.4 $ 39.2 $ — $ 58.2 Fair Value as of December 31, 2016 Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Cash Collateral Gross Amounts Without Right of Offset Net Amounts Assets: Commodities contracts $ 331.2 $ 249.7 $ 81.5 $ 27.1 $ — $ 54.5 Foreign currency contracts 16.0 5.1 10.9 — — 10.9 Total assets at fair value $ 347.2 $ 254.8 $ 92.4 $ 27.1 $ — $ 65.3 Liabilities: Commodities contracts $ 326.1 $ 249.7 $ 76.5 $ 2.0 $ — $ 74.5 Foreign currency contracts 6.4 5.1 1.2 — — 1.2 Total liabilities at fair value $ 332.5 $ 254.8 $ 77.7 $ 2.0 $ — $ 75.7 At December 31, 2017 and 2016 , we did not present any amounts gross on our consolidated balance sheet where we had the right of setoff. Concentration of Credit Risk The individual over-the-counter (OTC) counterparty exposure is managed within predetermined credit limits and includes the use of cash-call margins when appropriate, thereby reducing the risk of significant nonperformance. At December 31, 2017 , two counterparties each represented over 10% of our credit exposure to OTC derivative counterparties for a total credit risk of 24.2 million |
Business Segments, Geographic I
Business Segments, Geographic Information, and Major Customers | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segments, Geographic Information, and Major Customers | Business Segments, Geographic Information, and Major Customers Business Segments We operate in three reportable segments consisting of aviation, land and marine. Corporate expenses are allocated to the segments based on usage, where possible, or on other factors according to the nature of the activity. Our operating segments are determined based on the different markets in which we provide products and services, which are defined primarily by the customers and the products and services provided to those customers. Accordingly, our aviation, land and marine segments are organized based on the specific markets their functional business components serve, which are primarily businesses and governmental customers operating in those respective markets. In our aviation segment, we offer fuel and related products and services to major commercial airlines, second and third tier airlines, cargo carriers, regional and low cost carriers, airports, fixed based operators, corporate fleets, fractional operators, private aircraft, military fleets and the U.S. and foreign governments as well as intergovernmental organizations. In addition, we supply products and services to U.S. and foreign government, intergovernmental and military customers, such as the U.S. Defense Logistics Agency and the North Atlantic Treaty Organization (NATO). In our land segment, we offer fuel, lubricants, power and natural gas solutions through Kinect, our global energy management services platform, and related products and services to customers including petroleum distributors operating in the land transportation market, retail petroleum operators, and industrial, commercial, residential and government customers. Our marine segment product and service offerings include fuel, lubricants and related products and services to a broad base of customers, including international container and tanker fleets, commercial cruise lines, yachts and time charter operators, offshore rig owners and operators, the U.S. and foreign governments as well as other fuel suppliers. Within each of our segments we may enter into derivative contracts to mitigate the risk of market price fluctuations and also to offer our customers fuel pricing alternatives to meet their needs. Information concerning our revenue, gross profit, income from operations, depreciation and amortization and capital expenditures by segment is as follows (in millions): For the Year ended December 31, 2017 2016 2015 Revenue: Aviation segment $ 14,538.2 $ 10,914.4 $ 11,739.8 Land segment 10,958.0 8,918.8 9,274.3 Marine segment 8,199.3 7,182.5 9,367.2 $ 33,695.5 $ 27,015.8 $ 30,381.4 Gross profit: Aviation segment $ 440.5 $ 401.0 $ 361.9 Land segment 365.8 348.5 309.5 Marine segment 126.0 149.5 189.6 $ 932.2 $ 899.0 $ 861.0 Income from operations: Aviation segment $ 192.9 $ 160.5 $ 132.2 Land segment (7.9 ) 70.8 101.4 Marine segment (57.8 ) 30.2 73.0 127.2 261.5 306.5 Corporate overhead - unallocated (81.6 ) (72.7 ) (60.9 ) $ 45.6 $ 188.9 $ 245.7 Depreciation and amortization: Aviation segment $ 26.8 $ 24.2 $ 22.6 Land segment 49.8 47.1 32.9 Marine segment 5.8 6.6 6.4 Corporate 3.5 4.4 3.7 $ 86.0 $ 82.3 $ 65.5 Capital expenditures: Aviation segment $ 12.3 $ 4.9 $ 13.4 Land segment 21.0 12.3 16.4 Marine segment 1.5 6.1 8.0 Corporate 19.1 14.5 10.6 $ 54.0 $ 37.7 $ 48.4 (1) Includes a $52.4 million of restructuring charges and a $12.8 million impairment charge attributable to certain long term assets in 2017 . (2) Includes a $79.1 million impairment charge attributable to the impairment of goodwill and other long term assets, and $1.4 million of restructuring charges in 2017 . Information concerning our accounts receivable, net, and total assets by segment is as follows (in millions): As of December 31, 2017 2016 Accounts receivable, net: Aviation segment, net of allowance for bad debt of $10.8 and $6.6 as of December 31, 2017 and December 31, 2016, respectively $ 1,013.0 $ 776.0 Land segment, net of allowance for bad debt of $6.6 and $8.2 as of December 31, 2017 and December 31, 2016, respectively 874.7 737.5 Marine segment, net of allowance for bad debt of $10.4 and $10.2 as of December 31, 2017 and December 31, 2016, respectively 817.9 830.5 $ 2,705.6 $ 2,344.0 Total assets: Aviation segment $ 2,240.4 $ 2,050.6 Land segment 2,091.4 1,928.5 Marine segment 1,097.1 1,287.7 Corporate 158.9 145.8 $ 5,587.8 $ 5,412.6 Geographic Information Information concerning our revenue and property and equipment, net, as segregated between the Americas, EMEA (Europe, Middle East and Africa) and the Asia Pacific regions, is presented as follows, based on the country of incorporation of the relevant subsidiary (in millions): For the Year ended December 31, 2017 2016 2015 Revenue: United States $ 17,938.0 $ 14,368.8 $ 15,496.3 EMEA (1) 7,553.3 6,018.6 6,382.2 Asia Pacific (2) 4,923.0 4,271.1 5,863.4 Americas, excluding United States 3,281.2 2,357.2 2,639.5 Total $ 33,695.5 $ 27,015.8 $ 30,381.4 As of December 31, 2017 2016 Property and equipment, net: United States $ 152.6 $ 137.7 EMEA 120.2 122.9 Asia Pacific 10.4 1.4 Americas, excluding United States 46.7 49.1 Total $ 329.8 $ 311.2 (1) Includes revenue related to the U.K. of $5.0 billion , $4.1 billion and $4.7 billion for 2017 , 2016 and 2015 , respectively. (2) Includes revenue related to Singapore of $4.8 billion , $4.2 billion and $5.8 billion for 2017 , 2016 and 2015 , respectively. Major Customers |
Summary Quarterly Information (
Summary Quarterly Information (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Summary Quarterly Information (Unaudited) | Summary Quarterly Information (Unaudited) The following is a summary of the unaudited quarterly results for 2017 and 2016 (in millions, except earnings per share data): March 31, June 30, September 30, December 31, 2017 2017 2017 (1) 2017 (2) Revenue $ 8,194.3 $ 8,086.2 $ 8,543.0 $ 8,872.0 Gross profit $ 231.4 $ 231.0 $ 239.9 $ 229.9 Net income including noncontrolling interest $ 31.1 $ 30.3 $ (37.9 ) $ (193.7 ) Net income attributable to World Fuel $ 31.3 $ 30.0 $ (38.5 ) $ (193.1 ) Basic earnings per common share (3) $ 0.46 $ 0.44 $ (0.57 ) $ (2.86 ) Diluted earnings per common share (3) $ 0.45 $ 0.44 $ (0.57 ) $ (2.86 ) March 31, June 30, September 30, December 31, 2016 2016 2016 2016 Revenue $ 5,190.8 $ 6,633.0 $ 7,399.8 $ 7,792.1 Gross profit $ 221.5 $ 218.5 $ 236.7 $ 222.3 Net income including noncontrolling interest $ 51.6 $ 29.8 $ 43.0 $ 2.1 Net income attributable to World Fuel $ 51.8 $ 30.0 $ 42.7 $ 2.2 Basic earnings per common share (3) $ 0.74 $ 0.43 $ 0.62 $ 0.03 Diluted earnings per common share (3) $ 0.74 $ 0.43 $ 0.61 $ 0.03 (1) Includes a valuation allowance on our U.S. deferred tax assets of $76.9 million , due to our U.S. operations generating a three-year cumulative loss during the quarter. (2) In the fourth quarter of 2017, we included in our operating expenses $91.9 million for goodwill and other impairment related charges, $59.6 million for restructuring related charges and a one-time transition tax charge of $143.7 million which was reduced by the reversal of the third quarter valuation allowance on our U.S. deferred tax assets of $76.9 million . (3) |
Basis of Presentation and Sig24
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Basis of Presentation and Significant Accounting Policies | |
Basis of Presentation | Basis of PresentationThe consolidated financial statements and related notes include our parent company and all wholly‑owned and majority‑owned subsidiaries and joint ventures where we exercise control. Our consolidated financial statements include the operations of an acquired business after the completion of the acquisition. The decision of whether or not to consolidate an entity requires consideration of majority voting interests, as well as effective economic or other control over the entity. The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Our fiscal year-end is as of and for the year ended December 31 for each year presented. All transactions among our businesses have been eliminated. |
New Accounting Standards | New Accounting Standards Adoption of New Accounting Standards Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . In January 2017, Accounting Standards Update (“ASU”) 2017-04 was issued, which simplifies the accounting for goodwill impairment by eliminating the requirement to perform a hypothetical purchase price allocation. As a result, an entity should recognize an impairment charge for the amount by which the carrying value of a reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. We have early adopted ASU 2017-04 and applied the new guidance for our goodwill impairment tests that were performed during the fourth quarter. Accounting Standards Issued But Not Yet Adopted Revenue Recognition (Topic 606): Revenue from Contracts with Customers. In May 2014, ASU 2014-09 was issued. Under this ASU and subsequently issued amendments, an entity is required to recognize the amount of revenue it expects to be entitled to for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP. This ASU provides alternative methods of transition, a full retrospective and a modified retrospective approach. The modified retrospective approach would result in recognition of the cumulative impact of a retrospective application as of the beginning of the period of initial application, which in our case is the period beginning January 1, 2018. In preparation for adoption, we initially developed a cross-functional team and utilized a third-party service provider to assist us throughout our evaluation. In addition, we factored in the adoption into our ongoing enterprise resource planning platform upgrade, which we previously committed to perform. We have completed our review of a representative sample of contracts across each of our revenue streams. Through this process, we have made determinations on how our revenue streams will be accounted for after adoption, concluding that we will have similar performance obligations and timing of revenue recognition under ASC 606, as compared to those prior to adoption. As a result of completing these activities, we have prepared and made accessible internally our revenue recognition policy, which captures those decisions. We conducted an initial training that was distributed to our finance and accounting organization and we continue to train our commercial and operational teams on the relevant facets of our revenue recognition policy. We identified and implemented appropriate changes to our business processes and controls to support our revenue recognition and associated disclosure requirements under the new standard. An important aspect of adoption is the design of our contract management review process and its impact on the control environment. The ongoing training activities will also serve as a platform to communicate certain process changes associated with our contract review process. We have selected the modified retrospective adoption approach, and the cumulative adjustment did not have a material impact on our financial statements. We anticipate certain disclosure changes, specifically as it relates to the financial statement line items where certain costs are recorded. Accordingly, the adoption of the new standard will not have a material impact on our financial statements after adoption. Leases (Topic 842): Leases. In February 2016, ASU 2016-02 was issued. This standard will require all lessees to recognize a right of use asset and a lease liability on the balance sheet, except for leases with durations that are less than twelve months. This standard is effective at the beginning of our 2019 fiscal year. We are currently evaluating whether the adoption of this new guidance will have a material impact on our consolidated financial statements and related disclosures. Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. In August 2016 ASU 2016-15 was issued. The ASU provides guidance on classification of eight specific cash flows items. This standard is effective at the beginning of our 2018 fiscal year. We are currently evaluating whether the adoption of this new guidance will have a material impact on our consolidated financial statements and related disclosures. Business Combinations (Topic 805): Clarifying the Definition of a Business. In January 2017, ASU 2017-01 was issued. The update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of businesses. This standard is effective at the beginning of our 2018 fiscal year. We do not believe the adoption of this new guidance will have a material impact on our consolidated financial statements and related disclosures. Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. In August 2017, ASU 2017-12 was issued. The ASU is targeted at simplifying the application of hedge accounting and is effective at the beginning of our 2019 fiscal year. The amended guidance aims at aligning the recognition and presentation of the effects of hedge instruments and hedge items. We are currently evaluating whether the adoption of this new guidance will have a material impact on our consolidated financial statements and related disclosures. |
Estimates and Assumptions | Estimates and AssumptionsThe preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Accordingly, actual results could materially differ from estimated amounts. We evaluate our estimated assumptions based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Cash and Cash Equivalents | Cash and Cash EquivalentsOur cash equivalents consist principally of overnight investments, bank money market accounts and bank time deposits which have an original maturity date of less than 90Â days. These securities are carried at cost, which approximates market value. |
Accounts Receivable and Allowance for Bad Debt | Accounts Receivable and Allowance for Bad Debt Our accounts receivables credit terms are generally 30-60 days. Accounts receivable balances that are not paid within the terms of the sales agreement are generally subject to finance fees, based on the outstanding balance. Credit extension, monitoring and collection are performed for each of our business segments. Each business segment has a credit function that is responsible for establishing credit limits and approving limits above previously approved amounts, and managing the overall quality of the credit portfolio. We perform ongoing credit evaluations of our customers and adjust credit limits based upon payment history and the customer’s current creditworthiness, as determined by our review of our customer’s credit information. We extend credit on an unsecured basis to most of our customers. Accounts receivable are deemed past due based on contractual terms agreed to with our customers. Although we analyze customers’ payment history and creditworthiness, we cannot predict with certainty that the customers to whom we extend credit will be able to remit payments on a timely basis, or at all. Because we extend credit on an unsecured basis to most of our customers, there is a possibility that any accounts receivable not collected will ultimately need to be written off. Write-offs for the year ended December 31, 2017 did not have a material impact on our consolidated statement of operations. We continuously monitor the composition of accounts receivable, collections and payments from our customers and maintain a provision for estimated credit losses based upon our historical experience with our customers, current market and industry conditions affecting our customers and any specific customer collection issues that we have identified. Principally based on these factors, an internally derived risk-based reserve is established on a quarterly basis. In addition to a risk-based reserve, a specific reserve is established for certain customers, based on customer receivable balances, overall exposure, payment history, current and expected market conditions, business developments, and other factors that influence the likelihood of collectability. |
Inventories | InventoriesInventories are valued primarily using weighted average cost, and first-in first-out in certain limited locations, and are stated at the lower of average cost or net realizable value. We utilize a variety of fuel indices and other indicators of market value. Sharp negative changes in these indices can result in reduction of our inventory valuation, which could have an adverse impact on our results of operations in the period in which we take the adjustment. Historically these adjustments have not had a material impact on our consolidated statements of operations. Components of inventory include fuel purchase costs, the related transportation costs and changes in the estimated fair market values for inventories included in a fair value hedge relationship. |
Business Combinations | Business CombinationsWe account for business combinations using the acquisition method of accounting, under which the purchase price of the acquisition is allocated to the assets acquired and liabilities assumed using the fair values determined by management as of the acquisition date. We calculate the fair value based on the present value of estimated future cash flows. The estimated future cash flows are based on the best information available to us at the time. Acquisition-related costs incurred in connection with a business combination are expensed as incurred. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We measure the fair value of financial instruments using observable and unobservable inputs. Observable inputs reflect what market participants would use in pricing the instrument, based on publicly available market data obtained from sources independent of us. Unobservable inputs are inputs for which market data are not available and reflect internal market assumptions. The accounting guidance establishes the following fair value hierarchy: Level 1 Inputs - Quoted prices in active markets. Level 2 Inputs - Quoted prices for similar instruments in active markets other than quoted prices included within Level 1, quoted prices for identical or similar instruments in markets that are not active; and model based valuations whose inputs are observable. Level 3 Inputs - Inputs that are unobservable. |
Derivatives | Derivatives We enter into financial derivative contracts to mitigate the risk of market price fluctuations in aviation, land and marine fuel, to offer our customers fuel pricing alternatives to meet their needs and to mitigate the risk due to changes in foreign currency exchange rates. While we currently believe that our derivative contracts will be effective in mitigating the associated price risks, it is possible that our derivative instruments will be ineffective at mitigating material changes in prices, which could have an adverse impact on our financial position and results of operations. At the inception and on an ongoing basis, we assess the hedging relationship to determine its effectiveness in offsetting changes in cash flows or fair value attributable to the hedged risk. Our derivative contracts are recognized at their estimated fair market value in accordance with the accounting guidance for fair value measurements. The fair value of our derivatives is derived using observable and certain unobservable inputs, such as basis differentials, which are based on the difference between the historical prices of our prior transactions and the underlying observable data. Measurement of the fair value of our derivatives also requires the assessment of certain risks related to non-performance, which requires a significant amount of judgment. The effect on our income before income taxes of a 10% change in the model input for non-performance risk would not be material to our consolidated statements of operations. |
Property and Equipment | Property and Equipment Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated primarily by using the straight‑line method over the estimated useful lives of the assets. Costs of major additions and improvements are capitalized while expenditures for maintenance and repairs, which do not extend the life of the asset, are expensed. Upon sale or disposition of property and equipment, the cost and related accumulated depreciation and amortization are eliminated from the accounts and any resulting gain or loss is credited or charged to income. Long‑lived assets held and used by us are reviewed based on market factors and operational considerations for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. |
Goodwill and Identifiable Intangible Assets | Goodwill and Identifiable Intangible Assets Goodwill arises because the purchase price paid reflects numerous factors, including the strategic fit and expected synergies these acquisitions bring to our existing operations. Goodwill is recorded at fair value and is reviewed at least annually at year-end (or more frequently under certain circumstances) for impairment. Goodwill is evaluated for impairment at the reporting unit level and is initially based on an assessment of qualitative factors to determine whether it is more likely than not that the fair value of any individual reporting unit is less than its carrying amount. Such events or circumstances could include a material adverse change in the markets where we operate, similar to the current conditions within the shipping and offshore markets, limited market volatility, which adversely impact our supply and trading activities, among others. To determine whether goodwill is impaired, we would compare the fair value of the reporting units to which goodwill was assigned to their respective carrying values to measure the amount of goodwill impairment, if any. In calculating fair value, we use a combination of both an income and market approach as our primary indicator of fair value. Under the market approach we use a selection of global companies that correspond to each reporting unit to derive a market-based multiple. Under the income approach, we calculate the fair value of a reporting unit based on the present value of estimated future cash flows. The estimated future cash flows are based on the best information available to us at the time, including our annual operating plan, which is completed annually during the fourth quarter and is approved by our Board of Directors. Our estimates are considered supportable assumptions that we believe are reasonable based on information available to us at that time, and are based on a number of factors including industry experience, internal benchmarks, and the economic environment. Our cash flow estimates are discounted using rates that correspond to a weighted-average cost of capital consistent with those used internally for investment decisions. If our annual operating plan is not achieved or if there are other variations to our estimates and assumptions, particularly in the expected growth rates and profitability embedded in our cash flow projections or the discount rate used, there is the potential for a partial or total impairment of the carrying amount of goodwill within one or more of our reporting units. If we are required to impair all or a substantial amount of the goodwill attributable to one or more of our reporting units, our financial results of operations and financial condition could be adversely affected. |
Other Investments | Other InvestmentsOur other investments consist primarily of equity investments, net of basis adjustments. These investments are accounted for under the equity method as we own less than 50% of the entities and exercise significant influence over the investee, but do not have operational or financial control. |
Revenue Recognition | Revenue Recognition We execute contracts with customers through a variety of methods including by executing a master supply or blanket sales agreement combined with a purchase order or delivery ticket, stand-alone contracts, or through spot transactions where fuel is delivered for immediate settlement. Our contracts primarily require us to deliver fuel and fuel-related products, while other arrangements require us to complete agreed-upon services. Our contracts may contain fixed or variable pricing or some combination of those. The majority of our consolidated revenues are generated through the sale of fuel and fuel-related products. Revenue from the sale of fuel is recognized when delivery is made to our customers and title has passed, the sales price is determinable, and collectability is reasonably assured. Our fuel sales are generated as a fuel reseller as well as from inventory supply. When acting as a fuel reseller, we generally purchase fuel from the supplier, and contemporaneously resell the fuel to the customer, normally taking delivery for purchased fuel at the same place and time as the delivery is made to the customer. Revenue from services, including energy procurement advisory services and international trip planning support, and transaction and payment management processing, are recognized over the contract period when services have been performed and we have the right to invoice for those services. We record fuel sales and services on a gross basis as we generally take inventory risk, have latitude in establishing the sales price, have discretion in the supplier selection, maintain credit risk and are the primary obligor in the sales arrangement. Whether the services have been performed and when title and risk of loss passes to the customer are the factors we take into consideration in deciding when to recognize revenue. These factors are readily determinable and consistently applied throughout our business. Therefore, we generally have not needed to make material estimates or assumptions with respect to revenue recognition. |
Share-Based Payment Awards | Share‑Based Payment Awards We account for share‑based payment awards on a fair value basis. Under fair value accounting, the grant‑date fair value of the share‑based payment award is amortized as compensation expense, on a straight‑line basis, over the vesting period for both graded and cliff vesting awards. Annual compensation expense for share‑based payment awards is reduced by an expected forfeiture amount on outstanding share‑based payment awards. We utilize our historical forfeiture rates to calculate future expected forfeitures. These estimates can vary significantly from actual forfeiture rates experienced. Our estimated forfeiture rates have historically approximated actual forfeitures. |
Foreign Currency | Foreign Currency The functional currency of our U.S. and foreign subsidiaries is the U.S. dollar, except for certain subsidiaries which utilize their respective local currency as their functional currency. Foreign currency transaction gains and losses are recognized upon settlement of foreign currency transactions. In addition, for unsettled foreign currency transactions, foreign currency translation gains and losses are recognized for changes between the transaction exchange rates and month‑end exchange rates. Foreign currency transaction gains and losses are included in other income (expense), net, in the accompanying consolidated statements of income and comprehensive income in the period incurred. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and income tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in income tax rates is recorded as a component of the income tax provision in the period that includes the enactment date. Regular assessments are made on the likelihood that our deferred tax assets will be recovered from our future taxable income. Our evaluation is based on estimates, assumptions, and includes an analysis of available positive and negative evidence, giving weight based on the evidence’s relative objectivity. Sources of positive evidence include estimates of future taxable income, future reversal of existing taxable temporary differences, taxable income in carryback years, and available tax planning strategies. Sources of negative evidence include current and cumulative losses in recent years, losses expected in early future years, any history of operating losses or tax credit carryforwards expiring unused, and unsettled circumstances that, if unfavorably resolved, would adversely affect future profit levels. The remaining carrying value of our deferred tax assets, after recording the valuation allowance on our deferred tax assets, is based on our present belief that it is more likely than not that we will be able to generate sufficient future taxable income in certain tax jurisdictions to utilize such deferred tax assets. The amount of the remaining deferred tax assets considered recoverable could be adjusted if our estimates of future taxable income during the carryforward period change favorably or unfavorably. To the extent we believe that it is more likely than not that some or all of the remaining deferred tax assets will not be realized, we must establish a valuation allowance against those deferred tax assets, resulting in additional income tax expense in the period such determination is made. To the extent a valuation allowance currently exists, we will continue to monitor all positive and negative evidence until we believe it is more likely than not that it is no longer necessary, resulting in an income tax benefit in the period such determination is made. Significant judgment is required in evaluating our tax positions, and in determining our provisions for income taxes, our deferred tax assets and liabilities and any valuation allowance recorded against our net deferred tax assets. We establish reserves when, despite our belief that the income tax return positions are fully supportable, certain positions are likely to be challenged and we may ultimately not prevail in defending those positions. |
Earnings per Common Share | Earnings per Common ShareBasic earnings per common share is computed by dividing net income attributable to World Fuel and available to common shareholders by the sum of the weighted average number of shares of common stock. Diluted earnings per common share is computed by dividing net income attributable to World Fuel and available to common shareholders by the sum of the weighted average number of shares of common stock and the number of additional shares of common stock that would have been outstanding if our outstanding potentially dilutive securities had been issued. Potentially dilutive securities include restricted stock subject to forfeitable dividends, non‑vested RSUs and SSAR Awards. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per common share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of our common stock can result in a greater dilutive effect from potentially dilutive securities. |
Basis of Presentation and Sig25
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Basis of Presentation and Significant Accounting Policies | |
Computation of basic and diluted earnings per common share | The following table sets forth the computation of basic and diluted earnings per common share for the periods presented (in millions, except per share amounts): 2017 2016 2015 Numerator: Net income (loss) attributable to World Fuel $ (170.2 ) $ 126.5 $ 174.5 Denominator: Weighted average common shares for basic earnings per common share 68.1 69.3 70.2 Effect of dilutive securities — 0.5 0.5 Weighted average common shares for diluted earnings per common share 68.1 69.8 70.7 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 1.4 1.3 1.0 Basic earnings (loss) per common share $ (2.50 ) $ 1.82 $ 2.49 Diluted earnings (loss) per common share $ (2.50 ) $ 1.81 $ 2.47 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounts Receivable, Net [Abstract] | |
Schedule of allowance for bad debt | The following table sets forth activities in our allowance for bad debt (in millions): 2017 2016 2015 Balance as of beginning of period $ 24.9 $ 25.0 $ 25.7 Charges to provision for bad debt 9.3 15.4 7.5 Write-off of uncollectible accounts receivable (8.7 ) (15.9 ) (8.3 ) Recoveries of bad debt 2.0 0.3 0.5 Translation Adjustments 0.3 0.2 (0.4 ) Balance as of end of period $ 27.8 $ 24.9 $ 25.0 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of estimated purchase price allocation for the acquisition | The following table summarizes the aggregate consideration paid for the 2016 acquisitions and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date. The purchase price allocation for the 2016 acquisitions is as follows: (In millions) Cash paid for acquisition of businesses, net of cash acquired $ 424.3 Cash acquired 2.6 Amounts due to sellers 20.0 Purchase price $ 446.9 Assets acquired: Cash and cash equivalents $ 2.6 Accounts and notes receivable 62.8 Inventories 39.0 Property and equipment 100.3 Goodwill and identifiable intangible assets 291.9 Other current and long-term assets 14.8 Liabilities assumed: Accrued expenses and other current liabilities (61.0 ) Non-current income tax liabilities and other long term liabilities (3.5 ) Purchase price $ 446.9 (In millions) Cash paid for acquisition of businesses, net of cash acquired $ 108.2 Cash and cash equivalents 4.5 Amounts due to sellers 0.7 Non-monetary consideration 4.2 Estimated purchase price $ 117.6 Assets acquired: Cash and cash equivalents $ 4.5 Property and equipment 10.6 Goodwill and identifiable intangible assets 105.2 Other current and long-term assets 10.2 Liabilities assumed: Accrued expenses and other current liabilities (3.7 ) Long-term liabilities and deferred tax liabilities (9.1 ) Estimated purchase price $ 117.6 |
Schedule of unaudited pro forma results | The following presents the unaudited pro forma results for 2016 and 2015 as if 2016 and 2015 acquisitions had been completed on January 1, 2015: 2016 2015 (pro forma) (pro forma) Revenue $ 27,925.0 $ 32,604.4 Net income attributable to World Fuel $ 146.1 $ 202.0 Earnings per common share: Basic $ 2.11 $ 2.88 Diluted $ 2.09 $ 2.86 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments measured at fair value and their locations on the consolidated balance sheets | The following table presents the gross fair value of our derivative instruments and their locations on the consolidated balance sheets (in millions): Gross Derivative Assets Gross Derivative Liabilities As of December 31, As of December 31, Derivative Instruments Balance Sheet Location 2017 2016 2017 2016 Derivatives designated as hedging instruments Commodity contracts Short-term derivative assets, net $ 0.4 $ 2.2 $ 0.5 $ 5.4 Identifiable intangible and other non-current assets — — — — Accrued expenses and other current liabilities 2.3 86.0 43.1 93.5 Other long-term liabilities — 5.1 — 10.1 Total derivatives designated as hedging instruments $ 2.7 $ 93.3 $ 43.6 $ 108.9 Derivatives not designated as hedging instruments Commodity contracts Short-term derivative assets, net $ 191.4 $ 160.3 $ 123.3 $ 86.7 Identifiable intangible and other non-current assets 18.2 17.1 5.2 6.2 Accrued expenses and other current liabilities 86.1 52.5 138.2 112.2 Other long-term liabilities 5.2 8.1 13.5 12.1 $ 300.9 $ 238.0 $ 280.2 $ 217.2 Foreign currency contracts Short-term derivative assets, net $ 4.5 $ 13.5 $ 2.8 $ 3.4 Identifiable intangible and other non-current assets — 0.9 — 0.1 Accrued expenses and other current liabilities 3.9 1.6 5.7 2.8 Other long-term liabilities — 0.2 $ 8.5 $ 16.0 $ 8.7 $ 6.4 Total derivatives not designated as hedging instruments $ 309.4 $ 253.9 $ 288.9 $ 223.6 Total derivatives $ 312.0 $ 347.2 $ 332.5 $ 332.5 |
Schedule of fair value positions of derivative instruments | The following table summarizes the gross notional values of our commodity and foreign currency exchange derivative contracts used for risk management purposes that were outstanding as of December 31, 2017 (in millions): As of December 31, Derivative Instruments Units 2017 Commodity contracts Buy / Long BBL 66.5 Sell / Short BBL (75.9 ) Foreign currency exchange contracts Sell U.S. dollar, buy other currencies USD (255.8 ) Buy U.S. dollar, sell other currencies USD 485.5 For additional information about our use of derivative instruments, see |
Impact of derivatives designated as fair value hedges on the consolidated statements of income and comprehensive income | The following table presents the effect and financial statement location of our derivative instruments and related hedged items in fair value hedging relationships on our consolidated statements of income and comprehensive income (in millions): Realized and Unrealized Gain (Loss) For the Year Ended Realized and Unrealized Gain (Loss) For the Year Ended December 31, December 31, Derivative Instruments Location 2017 2016 2015 Hedged Items Location 2017 2016 2015 Commodity contracts Inventories Revenue $ — $ — $ 49.3 Revenue $ — $ — $ — Cost of revenue (35.7 ) (25.3 ) 37.5 Cost of revenue 13.0 10.8 (70.7 ) Total gain (loss) $ (35.7 ) $ (25.3 ) $ 86.8 Total gain (loss) $ 13.0 $ 10.8 $ (70.7 ) |
Impact of derivatives designated as hedges on the accumulated other comprehensive income and consolidated statements of income and comprehensive income | The following table presents the effect and financial statement location of our derivative instruments in cash flow hedging relationships on our accumulated other comprehensive income and consolidated statements of income and comprehensive income (in millions): Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Effective Portion) For the Year Ended Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Effective Portion) For the Year Ended December 31, December 31, Derivative Instruments 2017 2016 2015 Location 2017 2016 2015 Commodity contracts $ (7.8 ) $ (145.8 ) $ 106.5 Revenue $ (41.3 ) $ 18.1 $ 7.2 Commodity contracts (0.1 ) 178.1 (105.4 ) Cost of revenue 33.7 20.8 (5.3 ) Total gain (loss) $ (7.9 ) $ 32.3 $ 1.0 Total gain (loss) $ (7.6 ) $ 38.8 $ 1.8 Amount of Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) For the Year Ended December 31, Location 2017 2016 2015 Revenue $ 0.7 $ (13.7 ) $ 28.6 Cost of revenue (15.4 ) 9.4 (17.8 ) Total gain (loss) $ (14.8 ) $ (4.4 ) $ 10.8 |
Impact of derivatives not designated as hedges on the consolidated statements of income and comprehensive income | The following table presents the effect and financial statement location of our derivative instruments not designated as hedging instruments on our consolidated statements of income and comprehensive income (in millions): Amount of Realized and Unrealized Gain (Loss) For the Year Ended December 31, Derivative Instruments - Non-designated Location 2017 2016 2015 Commodity contracts Revenue $ (0.5 ) $ 29.7 $ 171.7 Cost of revenue 62.3 (31.6 ) (139.0 ) $ 61.8 $ (1.9 ) $ 32.7 Foreign currency contracts Revenue $ (3.2 ) $ 10.0 $ 4.1 Other (expense) income, net (7.8 ) (0.8 ) 9.5 $ (11.0 ) $ 9.2 $ 13.6 Total gain $ 50.8 $ 7.3 $ 46.3 |
Schedule of potential collateral requirements for derivative liabilities | The following table presents the potential collateral requirements for derivative liabilities with credit-risk-contingent features (in millions): Potential Collateral Requirements for Derivative Liabilities with Credit-Risk-Contingent Features As of December 31, 2017 2016 Net derivative liability positions with credit contingent features $ 11.8 $ 15.2 Maximum potential collateral requirements $ 11.8 $ 15.2 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | A summary of the restructuring charges we recorded by segment, are as follows: Aviation Land Marine Corporate Consolidated Business line exit costs $ — $ 50.3 $ — $ — $ 50.3 Employee and facility-related 0.9 2.1 1.4 5.1 9.4 Restructuring charges $ 0.9 $ 52.4 $ 1.4 $ 5.1 $ 59.6 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | The amount of property and equipment and their respective estimated useful lives are as follows (in millions): As of December 31, Estimated 2017 2016 Useful Lives Land $ 28.0 $ 27.4 Indefinite Buildings and leasehold improvements 87.2 87.3 3 - 40 years Office equipment, furniture and fixtures 15.5 15.4 3 - 7 years Computer equipment and software costs 169.4 140.7 3 - 9 years Machinery, equipment and vehicles 246.5 217.5 3 - 40 years 546.6 488.3 Accumulated depreciation and amortization 216.8 177.1 $ 329.8 $ 311.2 |
Schedule of amount of computer software costs, including capitalized internally developed software costs | The amount of computer software costs, including capitalized internally developed software costs are as follows (in millions): As of December 31, 2017 2016 Computer software costs $ 108.0 $ 94.5 Accumulated amortization 80.3 69.5 Computer software costs, net $ 27.7 $ 25.0 |
Schedule of assets and accumulated amortization recorded under capital leases | The assets and accumulated amortization recorded under capital leases are as follows (in millions): As of December 31, 2017 2016 Capital leases $ 25.5 $ 24.4 Accumulated amortization 16.0 8.2 Capital leases, net $ 9.5 $ 16.2 |
Goodwill and Identifiable Int31
Goodwill and Identifiable Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | The following table provides information regarding changes in goodwill (in millions): Aviation Segment Land Segment Marine Segment Total As of December 31, 2015 $ 173.7 $ 430.7 $ 71.4 $ 675.8 2016 acquisitions 95.6 77.7 — 173.3 Adjustment of purchase price allocations 1.3 5.5 0.1 6.9 Foreign currency translation of non-USD functional currency subsidiary goodwill (3.7 ) (17.3 ) 0.7 (20.3 ) As of December 31, 2016 266.8 496.7 72.3 835.8 2017 acquisitions 51.2 12.2 — 63.5 Adjustment of purchase price allocations 6.2 (0.1 ) — 6.0 Impairment charge — — (72.3 ) (72.3 ) Foreign currency translation of non-USD functional currency subsidiary goodwill 2.7 9.8 — 12.5 As of December 31, 2017 $ 326.9 $ 518.5 $ — $ 845.5 |
Schedule of identifiable intangible assets | The following table provides information about our identifiable intangible assets (in millions): As of December 31, 2017 As of December 31, 2016 Gross Accumulated (1) Net Gross Accumulated (1) Net Intangible assets subject to amortization: Customer relationships (2) $ 373.8 $ 171.4 $ 202.4 $ 353.8 $ 155.5 $ 198.3 Supplier agreements 38.7 15.4 23.4 38.7 13.3 25.4 Others 40.0 26.3 13.7 37.2 20.2 17.0 452.5 213.1 239.4 429.7 189.1 240.7 Intangible assets not subject to amortization: Trademark/trade name rights 40.3 40.3 41.7 41.7 $ 492.9 $ 213.1 $ 279.7 $ 471.4 $ 189.1 $ 282.3 (1) Includes the impact of foreign exchange (2) Reflects recorded impairment charges for 2017 of $4.1 million and $3.0 million in our Marine and Land segments, respectively, which is presented in " Goodwill and other impairments |
Schedule of future estimated amortization of identifiable intangible assets | The future estimated amortization of our identifiable intangible assets is as follows (in millions): Year Ended December 31, 2018 $ 41.0 2019 34.5 2020 29.9 2021 26.6 2022 23.6 Thereafter 83.7 $ 239.4 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Our debt consisted of the following (in millions): As of December 31, 2017 2016 Credit Facility $ 60.0 $ 325.2 Term Loans 835.8 840.0 Capital leases 10.4 12.6 Other 4.0 8.5 Total debt 910.2 1,186.3 Current maturities of long-term debt and capital leases 25.6 15.4 Long-term debt $ 884.6 $ 1,170.8 |
Schedule of aggregate annual maturities of debt | As of December 31, 2017 , the aggregate annual maturities of debt are as follows (in millions): Year Ended December 31, 2018 $ 25.6 2019 41.6 2020 55.8 2021 723.5 2022 61.7 Thereafter 1.9 $ 910.2 |
Schedule of interest expense and other financing costs, net | The following table provides additional information about our interest income, interest expense and other financing costs, net (in millions): 2017 2016 2015 Interest income $ 6.0 $ 4.5 $ 5.0 Interest expense and other financing costs (66.3 ) (43.7 ) (34.9 ) $ (60.3 ) $ (39.2 ) $ (29.9 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments under non-cancelable operating leases | As of December 31, 2017 , our future minimum lease payments under non-cancelable operating leases were as follows (in millions): Year Ended December 31, 2018 $ 39.7 2019 31.0 2020 25.7 2021 21.3 2022 15.1 Thereafter 32.4 $ 165.2 |
Schedule of future minimum commitments under agreement with executive officers and key employees | As of December 31, 2017 , the approximate future minimum commitments under these agreements, excluding discretionary and performance bonuses, are as follows (in millions): Year Ended December 31, 2018 $ 0.9 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of outstanding awards issued pursuant to plans | The following table summarizes the outstanding awards issued pursuant to the 2016 Plan described above as of December 31, 2017 and the remaining shares of common stock available for future issuance (in millions): Plan name Restricted Stock RSUs SSAR Awards Remaining shares of common stock available for future issuance 2016 Plan (1) — 0.6 0.4 3.4 2006 Plan (2) 0.3 0.9 0.3 (1) As of December 31, 2017 , unvested RSUs will vest between February 2018 and August 2021 and the outstanding SSAR Awards will expire between March 2020 and May 2020. (2) As of December 31, 2017 |
Schedule of unvested restricted stock outstanding | The following table summarizes the status of our unvested restricted stock outstanding and related transactions for each of the following years (in millions, except weighted average grant-date fair value price and weighted average remaining vesting term data): Unvested Restricted Stock Weighted Average Grant date Fair Value Price Aggregate Intrinsic Value Weighted Average Remaining Vesting Term (in Years) As of December 31, 2014 1.5 $ 41.18 $ 70.2 2.1 Granted 0.2 49.95 Vested (0.2 ) 39.63 Forfeited (0.1 ) 41.84 As of December 31, 2015 1.4 42.69 54.9 1.4 Granted 0.1 42.92 Vested (0.2 ) 40.40 Forfeited (0.1 ) 43.30 As of December 31, 2016 1.2 43.10 55.7 0.8 Granted — — Vested (0.2 ) 43.69 Forfeited (0.7 ) 41.50 As of December 31, 2017 0.3 $ 45.80 $ 9.7 0.9 |
Schedule of RSUs | The following table summarizes the status of our RSUs and related transactions for each of the following years (in millions, except for weighted average grant‑date fair value data and weighted average remaining contractual life): RSUs Outstanding RSUs Weighted Average Grant date Fair Value Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Life (in Years) As of December 31, 2014 0.8 $ 38.55 $ 36.9 1.5 Granted 0.3 51.00 Vested (0.3 ) 38.80 Forfeited — 42.65 As of December 31, 2015 0.7 43.10 28.0 1.7 Granted 0.7 44.23 Vested (0.1 ) 42.78 Forfeited (0.1 ) 44.78 As of December 31, 2016 1.2 43.28 55.7 1.6 Granted 0.6 37.74 Vested (0.2 ) 43.06 Forfeited (0.1 ) 42.43 As of December 31, 2017 1.6 $ 41.01 $ 43.9 1.4 |
Schedule of outstanding and exercisable SSAR Awards | The following table summarizes the status of our outstanding and exercisable SSAR Awards and related transactions for each of the following years (in millions, except weighted average exercise price and weighted average remaining contractual life data): SSAR Awards Outstanding SSAR Awards Exercisable SSAR Awards Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Life (in Years) SSAR Awards Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Life (in Years) As of December 31, 2014 0.2 $ 40.06 $ 1.6 3.0 0.1 $ 35.81 $ 0.6 2.2 Granted — 57.48 Exercised — 25.08 As of December 31, 2015 0.2 42.91 — 2.5 0.1 42.06 — 2.2 Granted 0.1 48.58 Exercised — 40.91 As of December 31, 2016 0.3 44.97 0.3 2.4 0.2 42.15 0.7 1.3 Granted 0.4 36.31 Exercised — 40.91 As of December 31, 2017 0.7 $ 40.27 $ — 3.0 0.2 $ 42.76 $ — 0.4 |
Schedule of unrecognized compensation cost | The unrecognized compensation cost as of December 31, 2017 is expected to be recognized as compensation expense over a weighted average period of 1.4 years as follows (in millions): Year Ended December 31, 2018 $ 18.8 2019 19.6 2020 4.4 2021 4.5 2022 0.2 $ 47.4 |
Schedule of components of other comprehensive income and accumulated other comprehensive loss | Our other comprehensive loss, consisting of foreign currency translation adjustments related to our subsidiaries that have a functional currency other than the U.S. dollar and cash flow hedges, was as follows (in millions): Foreign Currency Translation Adjustments Cash Flow Hedges Accumulated Other Comprehensive Loss Balance as of December 31, 2015 $ (108.7 ) $ (0.8 ) $ (109.5 ) Other comprehensive loss (40.4 ) (6.6 ) (47.0 ) Less: Net other comprehensive (income) loss attributable to noncontrolling interest 1.6 — 1.6 Balance as of December 31, 2016 (147.5 ) (7.4 ) (154.8 ) Other comprehensive income (loss) 30.1 (0.3 ) 29.8 Less: Net other comprehensive (income) loss attributable to noncontrolling interest (1.5 ) — (1.5 ) Balance as of December 31, 2017 $ (118.8 ) $ (7.7 ) $ (126.5 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of U.S. and foreign income before income taxes | U.S. and foreign income before income taxes consist of the following (in millions): 2017 2016 2015 United States $ (152.3 ) $ (85.4 ) $ 3.5 Foreign 131.2 227.5 214.2 $ (21.1 ) $ 142.1 $ 217.7 |
Schedule of components of income tax provision (benefit) | The income tax provision (benefit) related to income before income taxes consists of the following components (in millions): 2017 2016 2015 Current: U.S. federal statutory tax $ 94.6 $ 7.5 $ (9.9 ) State 5.6 0.8 0.7 Foreign 34.2 30.4 27.0 134.4 38.7 17.8 Deferred: U.S. federal statutory tax 15.1 (29.3 ) 4.6 State 8.9 (4.2 ) 3.0 Foreign (10.0 ) (2.5 ) (2.3 ) 13.9 (36.0 ) 5.3 Non-current tax expense (income) 0.9 13.0 24.1 $ 149.2 $ 15.7 $ 47.2 |
Reconciliation of the U.S. federal statutory income tax rate to effective income tax rate | A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows: 2017 2016 2015 U.S. federal statutory tax rate 35.0 % 35.0 % 35.0 % Foreign earnings, net of foreign taxes 245.4 (42.4 ) (28.3 ) State income taxes, net of U.S. federal income tax benefit (51.8 ) (1.5 ) 1.1 U.S. tax on deemed dividends (14.0 ) 1.3 1.7 Tax Act impact (704.3 ) — — Deferred tax impact on foreign unrepatriated earnings (65.5 ) — — Goodwill impairment (81.5 ) — — Sale of subsidiary — 3.8 — Uncertain tax positions (4.1 ) 9.2 10.3 Tax authority settlements (10.0 ) — — Nontaxable interest income 36.9 — — Nondeductible interest expense (12.6 ) — — Valuation allowance (19.6 ) 2.0 0.3 Other permanent differences (61.0 ) 3.6 1.6 Effective income tax rate (707.1 )% 11.0 % 21.7 % |
Schedule of net deferred tax liabilities | The temporary differences which comprise our net deferred tax liabilities are as follows (in millions): As of December 31, 2017 2016 Gross Deferred Tax Assets: Bad debt reserve $ 3.5 $ 4.5 Net operating loss 23.0 38.6 Accrued and other share-based compensation 18.8 26.2 Accrued expenses 11.7 5.0 U.S. foreign income tax credits — 7.8 Other income tax credits 0.2 0.2 Customer deposits 1.9 6.3 Investments 1.3 — Cash flow hedges 3.2 4.6 Total gross deferred tax assets 63.7 93.2 Less: Valuation allowance 24.6 7.1 Gross deferred tax assets, net of valuation allowance 39.1 86.1 Deferred Tax Liabilities: Depreciation (6.4 ) (8.5 ) Goodwill and intangible assets (43.6 ) (56.1 ) Unrealized foreign exchange (0.9 ) (8.0 ) Prepaid expenses, deductible for tax purposes (3.8 ) (5.8 ) Deferred tax costs on foreign unrepatriated earnings (13.8 ) — Unrealized derivatives (1.1 ) (2.4 ) Other (1.1 ) (0.7 ) Total gross deferred tax liabilities (70.8 ) (81.5 ) Net deferred tax liability $ 31.7 $ — Net deferred tax asset — 4.6 Reported on the consolidated balance sheets as: Identifiable intangible and other non-current assets for deferred tax assets, non-current $ 12.8 $ 20.6 Non-current income tax liabilities, net for deferred tax liabilities, non-current $ 44.5 $ 16.0 |
Schedule of expiration of NOL carryforward | This deferred tax asset expires as follows (in millions): Expiration Date Deferred December 31, 2020 $ 0.1 December 31, 2021 0.2 December 31, 2022 1.2 December 31, 2024 0.2 December 31, 2025 1.0 December 31, 2026 0.2 December 31, 2027 0.2 December 31, 2028 0.3 December 31, 2029 0.8 December 31, 2031 0.2 December 31, 2032 0.5 December 31, 2033 0.1 December 31, 2034 0.3 December 31, 2035 0.5 December 31, 2036 2.7 December 31, 2037 5.7 Indefinite 8.8 Total $ 23.0 |
Schedule of reconciliation of the total amounts of unrecognized income tax benefits | The following is a tabular reconciliation of the total amounts of gross unrecognized income tax liabilities for the year (in millions): 2017 2016 2015 Gross Unrecognized Tax Liabilities – opening balance $ 62.2 $ 47.8 $ 24.3 Gross increases – tax positions in prior period 10.9 19.7 9.2 Gross decreases – tax positions in prior period — (15.4 ) (4.8 ) Gross increases – tax positions in current period 10.7 12.9 22.0 Gross decreases – tax positions in current period — — — Settlements (23.0 ) — — Lapse of statute of limitations (2.1 ) (2.8 ) (2.9 ) Gross Unrecognized Tax Liabilities – ending balance $ 58.8 $ 62.2 $ 47.8 |
Schedule of open tax years by jurisdiction with major uncertain tax positions | The following table summarizes these open tax years by jurisdiction with major uncertain tax positions: Open Tax Year Jurisdiction Examination Examination not United States 2013 - 2016 2017 Korea 2011 - 2014 2015 - 2017 United Kingdom 2013 - 2015 2016 - 2017 The Netherlands None 2013 - 2017 Greece None 2012 - 2017 Denmark 2013 - 2015 2016 - 2017 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at estimated fair value on a recurring basis | The following table presents information about our gross assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2017 and 2016 (in millions): Fair Value Measurements as of December 31, 2017 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Assets: Commodities contracts $ 196.3 $ 106.1 $ 1.2 $ 303.6 Foreign currency contracts — 8.5 — 8.5 Cash surrender value of life insurance — 5.6 — 5.6 Total assets at fair value $ 196.3 $ 120.2 $ 1.2 $ 317.7 Liabilities: Commodities contracts $ 210.6 $ 111.8 $ 1.4 $ 323.9 Foreign currency contracts — 8.7 — 8.7 Total liabilities at fair value $ 210.6 $ 120.5 $ 1.4 $ 332.5 Fair Value Measurements as of December 31, 2016 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Assets: Commodities contracts $ 273.6 $ 55.3 $ 2.3 $ 331.2 Foreign currency contracts — 16.0 — 16.0 Cash surrender value of life insurance — 4.0 — 4.0 Total assets at fair value $ 273.6 $ 75.3 $ 2.3 $ 351.2 Liabilities: Commodities contracts $ 236.6 $ 88.8 $ 0.7 $ 326.1 Foreign currency contracts — 6.4 — 6.4 Total liabilities at fair value $ 236.6 $ 95.2 $ 0.7 $ 332.5 |
Schedule of derivative instruments at fair value and their locations on the balance sheets | The following tables summarize those commodity derivative balances subject to the right of offset as presented on our consolidated balance sheet. We have elected to offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements when a legal right of offset exists. Fair Value as of December 31, 2017 Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Cash Collateral Gross Amounts Without Right of Offset Net Amounts Assets: Commodities contracts $ 303.6 $ 228.4 $ 75.1 $ 21.2 $ — $ 53.9 Foreign currency contracts 8.5 6.7 1.7 — — 1.7 Total assets at fair value $ 312.0 $ 235.2 $ 76.9 $ 21.2 $ — $ 55.7 Liabilities: Commodities contracts $ 323.9 $ 228.4 $ 95.4 $ 39.2 $ — $ 56.2 Foreign currency contracts 8.7 6.7 2.0 — — 2.0 Total liabilities at fair value $ 332.5 $ 235.2 $ 97.4 $ 39.2 $ — $ 58.2 Fair Value as of December 31, 2016 Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Cash Collateral Gross Amounts Without Right of Offset Net Amounts Assets: Commodities contracts $ 331.2 $ 249.7 $ 81.5 $ 27.1 $ — $ 54.5 Foreign currency contracts 16.0 5.1 10.9 — — 10.9 Total assets at fair value $ 347.2 $ 254.8 $ 92.4 $ 27.1 $ — $ 65.3 Liabilities: Commodities contracts $ 326.1 $ 249.7 $ 76.5 $ 2.0 $ — $ 74.5 Foreign currency contracts 6.4 5.1 1.2 — — 1.2 Total liabilities at fair value $ 332.5 $ 254.8 $ 77.7 $ 2.0 $ — $ 75.7 |
Business Segments, Geographic37
Business Segments, Geographic Information, and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of revenue, gross profit, income from operations, depreciation and amortization and capital expenditures by segment | Information concerning our revenue, gross profit, income from operations, depreciation and amortization and capital expenditures by segment is as follows (in millions): For the Year ended December 31, 2017 2016 2015 Revenue: Aviation segment $ 14,538.2 $ 10,914.4 $ 11,739.8 Land segment 10,958.0 8,918.8 9,274.3 Marine segment 8,199.3 7,182.5 9,367.2 $ 33,695.5 $ 27,015.8 $ 30,381.4 Gross profit: Aviation segment $ 440.5 $ 401.0 $ 361.9 Land segment 365.8 348.5 309.5 Marine segment 126.0 149.5 189.6 $ 932.2 $ 899.0 $ 861.0 Income from operations: Aviation segment $ 192.9 $ 160.5 $ 132.2 Land segment (7.9 ) 70.8 101.4 Marine segment (57.8 ) 30.2 73.0 127.2 261.5 306.5 Corporate overhead - unallocated (81.6 ) (72.7 ) (60.9 ) $ 45.6 $ 188.9 $ 245.7 Depreciation and amortization: Aviation segment $ 26.8 $ 24.2 $ 22.6 Land segment 49.8 47.1 32.9 Marine segment 5.8 6.6 6.4 Corporate 3.5 4.4 3.7 $ 86.0 $ 82.3 $ 65.5 Capital expenditures: Aviation segment $ 12.3 $ 4.9 $ 13.4 Land segment 21.0 12.3 16.4 Marine segment 1.5 6.1 8.0 Corporate 19.1 14.5 10.6 $ 54.0 $ 37.7 $ 48.4 (1) Includes a $52.4 million of restructuring charges and a $12.8 million impairment charge attributable to certain long term assets in 2017 . (2) Includes a $79.1 million impairment charge attributable to the impairment of goodwill and other long term assets, and $1.4 million of restructuring charges in 2017 |
Schedule of accounts receivable, net and total assets by segment | Information concerning our accounts receivable, net, and total assets by segment is as follows (in millions): As of December 31, 2017 2016 Accounts receivable, net: Aviation segment, net of allowance for bad debt of $10.8 and $6.6 as of December 31, 2017 and December 31, 2016, respectively $ 1,013.0 $ 776.0 Land segment, net of allowance for bad debt of $6.6 and $8.2 as of December 31, 2017 and December 31, 2016, respectively 874.7 737.5 Marine segment, net of allowance for bad debt of $10.4 and $10.2 as of December 31, 2017 and December 31, 2016, respectively 817.9 830.5 $ 2,705.6 $ 2,344.0 Total assets: Aviation segment $ 2,240.4 $ 2,050.6 Land segment 2,091.4 1,928.5 Marine segment 1,097.1 1,287.7 Corporate 158.9 145.8 $ 5,587.8 $ 5,412.6 |
Schedule of revenue, income from operations, non-current assets and total assets by geographic segment | Information concerning our revenue and property and equipment, net, as segregated between the Americas, EMEA (Europe, Middle East and Africa) and the Asia Pacific regions, is presented as follows, based on the country of incorporation of the relevant subsidiary (in millions): For the Year ended December 31, 2017 2016 2015 Revenue: United States $ 17,938.0 $ 14,368.8 $ 15,496.3 EMEA (1) 7,553.3 6,018.6 6,382.2 Asia Pacific (2) 4,923.0 4,271.1 5,863.4 Americas, excluding United States 3,281.2 2,357.2 2,639.5 Total $ 33,695.5 $ 27,015.8 $ 30,381.4 As of December 31, 2017 2016 Property and equipment, net: United States $ 152.6 $ 137.7 EMEA 120.2 122.9 Asia Pacific 10.4 1.4 Americas, excluding United States 46.7 49.1 Total $ 329.8 $ 311.2 (1) Includes revenue related to the U.K. of $5.0 billion , $4.1 billion and $4.7 billion for 2017 , 2016 and 2015 , respectively. (2) Includes revenue related to Singapore of $4.8 billion , $4.2 billion and $5.8 billion for 2017 , 2016 and 2015 |
Summary Quarterly Information38
Summary Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Summary Quarterly Information (Unaudited) | The following is a summary of the unaudited quarterly results for 2017 and 2016 (in millions, except earnings per share data): March 31, June 30, September 30, December 31, 2017 2017 2017 (1) 2017 (2) Revenue $ 8,194.3 $ 8,086.2 $ 8,543.0 $ 8,872.0 Gross profit $ 231.4 $ 231.0 $ 239.9 $ 229.9 Net income including noncontrolling interest $ 31.1 $ 30.3 $ (37.9 ) $ (193.7 ) Net income attributable to World Fuel $ 31.3 $ 30.0 $ (38.5 ) $ (193.1 ) Basic earnings per common share (3) $ 0.46 $ 0.44 $ (0.57 ) $ (2.86 ) Diluted earnings per common share (3) $ 0.45 $ 0.44 $ (0.57 ) $ (2.86 ) March 31, June 30, September 30, December 31, 2016 2016 2016 2016 Revenue $ 5,190.8 $ 6,633.0 $ 7,399.8 $ 7,792.1 Gross profit $ 221.5 $ 218.5 $ 236.7 $ 222.3 Net income including noncontrolling interest $ 51.6 $ 29.8 $ 43.0 $ 2.1 Net income attributable to World Fuel $ 51.8 $ 30.0 $ 42.7 $ 2.2 Basic earnings per common share (3) $ 0.74 $ 0.43 $ 0.62 $ 0.03 Diluted earnings per common share (3) $ 0.74 $ 0.43 $ 0.61 $ 0.03 (1) Includes a valuation allowance on our U.S. deferred tax assets of $76.9 million , due to our U.S. operations generating a three-year cumulative loss during the quarter. (2) In the fourth quarter of 2017, we included in our operating expenses $91.9 million for goodwill and other impairment related charges, $59.6 million for restructuring related charges and a one-time transition tax charge of $143.7 million which was reduced by the reversal of the third quarter valuation allowance on our U.S. deferred tax assets of $76.9 million . (3) |
Basis of Presentation and Sig39
Basis of Presentation and Significant Accounting Policies - Policies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other Investments | ||
Other investments | $ 70.9 | $ 67.2 |
Other-than-temporary impairment charge | $ 9 |
Basis of Presentation and Sig40
Basis of Presentation and Significant Accounting Policies - Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Net income (loss) attributable to World Fuel | $ (193.1) | $ (38.5) | $ 30 | $ 31.3 | $ 2.2 | $ 42.7 | $ 30 | $ 51.8 | $ (170.2) | $ 126.5 | $ 174.5 |
Denominator: | |||||||||||
Weighted average common shares for basic earnings per common share (in shares) | 68.1 | 69.3 | 70.2 | ||||||||
Effect of dilutive securities (in shares) | 0 | 0.5 | 0.5 | ||||||||
Weighted average common shares for diluted earnings per common share (in shares) | 68.1 | 69.8 | 70.7 | ||||||||
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 (in shares) | 1.4 | 1.3 | 1 | ||||||||
Basic earnings (loss) per common share (in dollars per share) | $ (2.86) | $ (0.57) | $ 0.44 | $ 0.46 | $ 0.03 | $ 0.62 | $ 0.43 | $ 0.74 | $ (2.50) | $ 1.82 | $ 2.49 |
Diluted earnings (loss) per common share (in dollars per share) | $ (2.86) | $ (0.57) | $ 0.44 | $ 0.45 | $ 0.03 | $ 0.61 | $ 0.43 | $ 0.74 | $ (2.50) | $ 1.81 | $ 2.47 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts receivable | |||||
Accounts receivable, net of allowance | $ 2,705.6 | $ 2,344 | |||
Beneficial interest retained, percentage of accounts receivable | 10.00% | ||||
Account receivable sold | $ 377.3 | $ 235.5 | |||
Retained beneficial interest | 15.9 | 11.4 | |||
Fees and interest paid under RPA | 12.4 | 4.8 | $ 2.8 | ||
Accounts receivable sold under repurchase agreement | 6,100 | 3,000 | |||
Amount collected of accounts receivables under repurchase agreement | 5,900 | 2,900 | |||
Minimum | |||||
Accounts receivable | |||||
Sale price of receivables, percentage of sold amount | 90.00% | ||||
Minimum | LIBOR | |||||
Accounts receivable | |||||
Receivable, basis spread on variable rate | 1.00% | ||||
Maximum | |||||
Accounts receivable | |||||
Sale price of receivables, percentage of sold amount | 100.00% | ||||
Maximum | LIBOR | |||||
Accounts receivable | |||||
Receivable, basis spread on variable rate | 3.00% | ||||
Allowance for bad debt | |||||
Accounts receivable | |||||
Allowance for bad debt | 27.8 | 25 | 25 | $ 27.8 | $ 24.9 |
Activities in allowance for bad debt | |||||
Balance as of beginning of period | 24.9 | 25 | 25.7 | ||
Charges to provision for bad debt | 9.3 | 15.4 | 7.5 | ||
Write-off of uncollectible accounts receivable | (8.7) | (15.9) | (8.3) | ||
Recoveries of bad debt | 2 | 0.3 | 0.5 | ||
Translation Adjustments | 0.3 | 0.2 | (0.4) | ||
Balance as of end of period | $ 27.8 | $ 24.9 | $ 25 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - 2017 Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)acquisition | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Business Acquisition [Line Items] | |||
Goodwill | $ 845.5 | $ 835.8 | $ 675.8 |
Aviation segment | |||
Business Acquisition [Line Items] | |||
Goodwill | 326.9 | 266.8 | 173.7 |
Land segment | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 518.5 | $ 496.7 | $ 430.7 |
Acquisitions 2,017 | |||
Business Acquisition [Line Items] | |||
Number of business acquired | acquisition | 5 | ||
Goodwill | $ 63.5 | ||
Goodwill anticipated to be deductible for tax purposes | 29.5 | ||
Acquisitions 2017 | Customer relationships | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | $ 41.7 | ||
Weighted average amortizable lives of identifiable intangible assets | 8 years | ||
Acquisitions 2017 | Aviation segment | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 51.3 | ||
Acquisitions 2017 | Land segment | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 12.2 |
Acquisitions and Divestitures43
Acquisitions and Divestitures - 2017 Purchase Price Allocation (Details) - Acquisitions 2017 $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Business Acquisition [Line Items] | |
Cash paid for acquisition of businesses | $ 108.2 |
Cash and cash equivalents | 4.5 |
Amounts due to sellers | 0.7 |
Non-monetary consideration | 4.2 |
Purchase price | 117.6 |
Assets acquired: | |
Cash and cash equivalents | 4.5 |
Property and equipment | 10.6 |
Goodwill and identifiable intangible assets | 105.2 |
Other current and long-term assets | 10.2 |
Liabilities assumed: | |
Accrued expenses and other current liabilities | (3.7) |
Long-term liabilities and deferred tax liabilities | (9.1) |
Purchase price | $ 117.6 |
Acquisitions and Divestitures44
Acquisitions and Divestitures - 2016 Narrative (Details) $ in Millions | Jun. 23, 2016USD ($) | Mar. 31, 2016airport | Dec. 31, 2016USD ($)acquisition | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ 835.8 | $ 845.5 | $ 675.8 | ||
Previous percentage ownership of noncontrolling owners | 49.00% | 49.00% | |||
Capital in excess of par value | $ 399.9 | 354.9 | |||
Land segment | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 496.7 | 518.5 | 430.7 | ||
Aviation segment | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 266.8 | $ 326.9 | $ 173.7 | ||
Aviation fueling operations of certain ExxonMobil affiliates | |||||
Business Acquisition [Line Items] | |||||
Number of airports to be acquired (more than) | airport | 80 | ||||
2016 Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 173.3 | ||||
Goodwill anticipated to be deductible for tax purposes | 133.4 | ||||
Purchase price | 446.9 | ||||
2016 Acquisitions | Trademark/Trade name rights | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | 9.5 | ||||
2016 Acquisitions | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 105.1 | ||||
Weighted average amortizable lives of identifiable intangible assets | 5 years 7 months 6 days | ||||
2016 Acquisitions | Others | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 3.9 | ||||
Weighted average amortizable lives of identifiable intangible assets | 2 years 1 month 6 days | ||||
2016 Acquisitions | Land segment | |||||
Business Acquisition [Line Items] | |||||
Number of business acquired | acquisition | 6 | ||||
Goodwill | $ 77.7 | ||||
2016 Acquisitions | Aviation segment | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 95.6 | ||||
Tobras | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 3.7 | ||||
Previous percentage of ownership of parent | 51.00% | ||||
Capital in excess of par value | $ 10.9 | ||||
Cash paid for acquisition of businesses | 3.7 | ||||
Initial noncontrolling interest upon acquisition of businesses | $ 7.2 |
Acquisitions and Divestitures45
Acquisitions and Divestitures - 2016 Purchase Price Allocation (Details) - 2016 Acquisitions $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Business Acquisition [Line Items] | |
Cash paid for acquisition of businesses | $ 424.3 |
Cash acquired | 2.6 |
Amounts due to sellers | 20 |
Purchase price | 446.9 |
Assets acquired: | |
Cash and cash equivalents | 2.6 |
Accounts and notes receivable | 62.8 |
Inventories | 39 |
Property and equipment | 100.3 |
Goodwill and identifiable intangible assets | 291.9 |
Other current and long-term assets | 14.8 |
Liabilities assumed: | |
Accrued expenses and other current liabilities | (61) |
Long-term liabilities and deferred tax liabilities | (3.5) |
Purchase price | $ 446.9 |
Acquisitions and Divestitures46
Acquisitions and Divestitures - Unaudited Pro Forma Results (Details) - Acquisitions 2016 and 2015 - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||
Revenue | $ 27,925 | $ 32,604.4 |
Net income attributable to World Fuel | $ 146.1 | $ 202 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 2.11 | $ 2.88 |
Diluted (in dollars per share) | $ 2.09 | $ 2.86 |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet Location (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | $ 312 | $ 347.2 |
Gross Derivative Liabilities | 332.5 | 332.5 |
Derivatives designated as hedging instruments | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 2.7 | 93.3 |
Gross Derivative Liabilities | 43.6 | 108.9 |
Derivatives designated as hedging instruments | Commodity contracts | Short-term derivative assets, net | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 0.4 | 2.2 |
Gross Derivative Liabilities | 0.5 | 5.4 |
Derivatives designated as hedging instruments | Commodity contracts | Identifiable intangible and other non-current assets | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 0 | 0 |
Gross Derivative Liabilities | 0 | 0 |
Derivatives designated as hedging instruments | Commodity contracts | Accrued expenses and other current liabilities | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 2.3 | 86 |
Gross Derivative Liabilities | 43.1 | 93.5 |
Derivatives designated as hedging instruments | Commodity contracts | Other long-term liabilities | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 0 | 5.1 |
Gross Derivative Liabilities | 0 | 10.1 |
Derivatives not designated as hedging instruments | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 309.4 | 253.9 |
Gross Derivative Liabilities | 288.9 | 223.6 |
Derivatives not designated as hedging instruments | Commodity contracts | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 300.9 | 238 |
Gross Derivative Liabilities | 280.2 | 217.2 |
Derivatives not designated as hedging instruments | Commodity contracts | Short-term derivative assets, net | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 191.4 | 160.3 |
Gross Derivative Liabilities | 123.3 | 86.7 |
Derivatives not designated as hedging instruments | Commodity contracts | Identifiable intangible and other non-current assets | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 18.2 | 17.1 |
Gross Derivative Liabilities | 5.2 | 6.2 |
Derivatives not designated as hedging instruments | Commodity contracts | Accrued expenses and other current liabilities | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 86.1 | 52.5 |
Gross Derivative Liabilities | 138.2 | 112.2 |
Derivatives not designated as hedging instruments | Commodity contracts | Other long-term liabilities | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 5.2 | 8.1 |
Gross Derivative Liabilities | 13.5 | 12.1 |
Derivatives not designated as hedging instruments | Foreign currency contracts | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 8.5 | 16 |
Gross Derivative Liabilities | 8.7 | 6.4 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Short-term derivative assets, net | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 4.5 | 13.5 |
Gross Derivative Liabilities | 2.8 | 3.4 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Identifiable intangible and other non-current assets | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 0 | 0.9 |
Gross Derivative Liabilities | 0 | 0.1 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Accrued expenses and other current liabilities | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 3.9 | 1.6 |
Gross Derivative Liabilities | 5.7 | $ 2.8 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Other long-term liabilities | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 0 | |
Gross Derivative Liabilities | $ 0.2 |
Derivative Instruments - Gross
Derivative Instruments - Gross Notional Values (Details) bbl in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)bbl | |
Buy / Long | Commodity contracts | |
Derivative [Line Items] | |
Notional value of commodity contracts | bbl | 66.5 |
Buy / Long | Foreign currency contracts | U.S. dollar | |
Derivative [Line Items] | |
Notional amount of foreign currency contracts | $ | $ 485.5 |
Sell / Short | Commodity contracts | |
Derivative [Line Items] | |
Notional value of commodity contracts | bbl | 75.9 |
Sell / Short | Foreign currency contracts | U.S. dollar | |
Derivative [Line Items] | |
Notional amount of foreign currency contracts | $ | $ 255.8 |
Derivative Instruments - Effect
Derivative Instruments - Effect on Income (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gain (loss) on derivative | ||||
Gains or (losses) recognized in income representing hedge ineffectiveness | $ 16,100,000 | $ (22,700,000) | $ (14,500,000) | |
Gains or (losses) that were excluded from the assessment of the effectiveness of fair value hedges | 0 | 0 | $ 0 | |
Derivative, credit-risk related contingent features | ||||
Net derivative liability positions with credit contingent features | 11,800,000 | 15,200,000 | ||
Maximum potential collateral requirements | 11,800,000 | 15,200,000 | ||
Collateral posted | 0 | 0 | ||
Derivatives designated as hedging instruments | Fair value hedges | ||||
Gain (loss) on derivative | ||||
Realized and Unrealized Gain (Loss) on Derivative Instruments | (35,700,000) | (25,300,000) | 86,800,000 | |
Realized and Unrealized Gain (Loss) on Hedged Items | 13,000,000 | 10,800,000 | (70,700,000) | |
Derivatives designated as hedging instruments | Fair value hedges | Commodity contracts | Revenue | ||||
Gain (loss) on derivative | ||||
Realized and Unrealized Gain (Loss) on Derivative Instruments | 0 | 0 | 49,300,000 | |
Derivatives designated as hedging instruments | Fair value hedges | Commodity contracts | Cost of revenue | ||||
Gain (loss) on derivative | ||||
Realized and Unrealized Gain (Loss) on Derivative Instruments | (35,700,000) | (25,300,000) | 37,500,000 | |
Derivatives designated as hedging instruments | Fair value hedges | Commodity contracts for inventory hedging | Revenue | ||||
Gain (loss) on derivative | ||||
Realized and Unrealized Gain (Loss) on Hedged Items | 0 | 0 | 0 | |
Derivatives designated as hedging instruments | Fair value hedges | Commodity contracts for inventory hedging | Cost of revenue | ||||
Gain (loss) on derivative | ||||
Realized and Unrealized Gain (Loss) on Hedged Items | 13,000,000 | 10,800,000 | (70,700,000) | |
Derivatives designated as hedging instruments | Cash flow hedges | ||||
Gain (loss) on derivative | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Effective Portion) | (7,900,000) | 32,300,000 | 1,000,000 | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Effective Portion) | (7,600,000) | 38,800,000 | 1,800,000 | |
Amount of Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (14,800,000) | (4,400,000) | 10,800,000 | |
Derivatives designated as hedging instruments | Cash flow hedges | Commodity contracts | Revenue | ||||
Gain (loss) on derivative | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Effective Portion) | (7,800,000) | (145,800,000) | 106,500,000 | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Effective Portion) | (41,300,000) | 18,100,000 | 7,200,000 | |
Amount of Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 700,000 | (13,700,000) | 28,600,000 | |
Derivatives designated as hedging instruments | Cash flow hedges | Commodity contracts | Cost of revenue | ||||
Gain (loss) on derivative | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Effective Portion) | (100,000) | 178,100,000 | (105,400,000) | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Effective Portion) | 33,700,000 | 20,800,000 | (5,300,000) | |
Amount of Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (15,400,000) | 9,400,000 | (17,800,000) | |
Derivatives not designated as hedging instruments | ||||
Gain (loss) on derivative | ||||
Amount of Realized and Unrealized Gain (Loss) | 50,800,000 | 7,300,000 | 46,300,000 | |
Derivatives not designated as hedging instruments | Commodity contracts | ||||
Gain (loss) on derivative | ||||
Amount of Realized and Unrealized Gain (Loss) | 61,800,000 | (1,900,000) | 32,700,000 | |
Derivatives not designated as hedging instruments | Commodity contracts | Revenue | ||||
Gain (loss) on derivative | ||||
Amount of Realized and Unrealized Gain (Loss) | (500,000) | 29,700,000 | 171,700,000 | |
Derivatives not designated as hedging instruments | Commodity contracts | Cost of revenue | ||||
Gain (loss) on derivative | ||||
Amount of Realized and Unrealized Gain (Loss) | 62,300,000 | (31,600,000) | (139,000,000) | |
Derivatives not designated as hedging instruments | Foreign currency contracts | ||||
Gain (loss) on derivative | ||||
Amount of Realized and Unrealized Gain (Loss) | (11,000,000) | 9,200,000 | 13,600,000 | |
Derivatives not designated as hedging instruments | Foreign currency contracts | Revenue | ||||
Gain (loss) on derivative | ||||
Amount of Realized and Unrealized Gain (Loss) | (3,200,000) | 10,000,000 | 4,100,000 | |
Derivatives not designated as hedging instruments | Foreign currency contracts | Other (expense) income, net | ||||
Gain (loss) on derivative | ||||
Amount of Realized and Unrealized Gain (Loss) | $ (7,800,000) | $ (800,000) | $ 9,500,000 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring charges | $ 59,600,000 | $ 59,600,000 | $ 0 | $ 0 |
Restructuring charges included in accrued expenses and other current liabilities | 32,000,000 | 32,000,000 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Business line exit costs | 50,300,000 | |||
Employee and facility-related | 9,400,000 | |||
Restructuring charges | 59,600,000 | 59,600,000 | $ 0 | $ 0 |
Corporate | ||||
Restructuring and Related Activities [Abstract] | ||||
Restructuring charges | 5,100,000 | |||
Restructuring Cost and Reserve [Line Items] | ||||
Business line exit costs | 0 | |||
Employee and facility-related | 5,100,000 | |||
Restructuring charges | 5,100,000 | |||
Aviation segment | Operating Segments | ||||
Restructuring and Related Activities [Abstract] | ||||
Restructuring charges | 900,000 | |||
Restructuring Cost and Reserve [Line Items] | ||||
Business line exit costs | 0 | |||
Employee and facility-related | 900,000 | |||
Restructuring charges | 900,000 | |||
Land segment | Operating Segments | ||||
Restructuring and Related Activities [Abstract] | ||||
Restructuring charges | 52,400,000 | 52,400,000 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Business line exit costs | 50,300,000 | |||
Employee and facility-related | 2,100,000 | |||
Restructuring charges | 52,400,000 | 52,400,000 | ||
Marine segment | Operating Segments | ||||
Restructuring and Related Activities [Abstract] | ||||
Restructuring charges | 1,400,000 | 1,400,000 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Business line exit costs | 0 | |||
Employee and facility-related | 1,400,000 | |||
Restructuring charges | 1,400,000 | $ 1,400,000 | ||
Write off of notes due | ||||
Restructuring and Related Activities [Abstract] | ||||
Restructuring charges | 26,000,000 | |||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 26,000,000 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amount of property and equipment | |||
Property and equipment gross | $ 546.6 | $ 488.3 | |
Accumulated depreciation and amortization | 216.8 | 177.1 | |
Total property and equipment, net | 329.8 | 311.2 | |
Depreciation expense | 44.1 | 42.5 | $ 35.1 |
Land | |||
Amount of property and equipment | |||
Property and equipment gross | 28 | 27.4 | |
Buildings and leasehold improvements | |||
Amount of property and equipment | |||
Property and equipment gross | $ 87.2 | 87.3 | |
Buildings and leasehold improvements | Minimum | |||
Amount of property and equipment | |||
Estimated useful lives | 3 years | ||
Buildings and leasehold improvements | Maximum | |||
Amount of property and equipment | |||
Estimated useful lives | 40 years | ||
Office equipment, furniture and fixtures | |||
Amount of property and equipment | |||
Property and equipment gross | $ 15.5 | 15.4 | |
Office equipment, furniture and fixtures | Minimum | |||
Amount of property and equipment | |||
Estimated useful lives | 3 years | ||
Office equipment, furniture and fixtures | Maximum | |||
Amount of property and equipment | |||
Estimated useful lives | 7 years | ||
Computer equipment and software costs | |||
Amount of property and equipment | |||
Property and equipment gross | $ 169.4 | 140.7 | |
Computer equipment and software costs | Minimum | |||
Amount of property and equipment | |||
Estimated useful lives | 3 years | ||
Computer equipment and software costs | Maximum | |||
Amount of property and equipment | |||
Estimated useful lives | 9 years | ||
Machinery, equipment and vehicles | |||
Amount of property and equipment | |||
Property and equipment gross | $ 246.5 | 217.5 | |
Machinery, equipment and vehicles | Minimum | |||
Amount of property and equipment | |||
Estimated useful lives | 3 years | ||
Machinery, equipment and vehicles | Maximum | |||
Amount of property and equipment | |||
Estimated useful lives | 40 years | ||
Computer software costs | |||
Computer software costs | |||
Computer software costs | $ 108 | 94.5 | |
Accumulated amortization | 80.3 | 69.5 | |
Computer software costs, net | 27.7 | 25 | |
Computer software costs | 108 | 94.5 | |
Amortization expense related to computer software costs | 11 | 13.7 | $ 10.7 |
Software development in progress | |||
Computer software costs | |||
Computer software costs | 27.6 | 12.5 | |
Computer software costs | 27.6 | 12.5 | |
Capital lease | |||
Amount of property and equipment | |||
Property and equipment gross | 25.5 | 24.4 | |
Accumulated depreciation and amortization | 16 | 8.2 | |
Total property and equipment, net | $ 9.5 | $ 16.2 |
Goodwill and Identifiable Int52
Goodwill and Identifiable Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill | ||
Goodwill impairment and intangible asset impairment | $ 80.2 | |
Goodwill impairment charge | 72.3 | |
Impairment of intangible assets | 7.9 | |
Goodwill | ||
Balance at the beginning of the period | 835.8 | $ 675.8 |
Acquisitions | 63.5 | 173.3 |
Adjustment of purchase price allocations | 6 | 6.9 |
Impairment charge | (72.3) | |
Foreign currency translation of non-USD functional currency subsidiary goodwill | 12.5 | (20.3) |
Balance at the end of the period | 845.5 | 835.8 |
Aviation segment | ||
Goodwill | ||
Goodwill impairment charge | 0 | |
Goodwill | ||
Balance at the beginning of the period | 266.8 | 173.7 |
Acquisitions | 51.2 | 95.6 |
Adjustment of purchase price allocations | 6.2 | 1.3 |
Impairment charge | 0 | |
Foreign currency translation of non-USD functional currency subsidiary goodwill | 2.7 | (3.7) |
Balance at the end of the period | 326.9 | 266.8 |
Land segment | ||
Goodwill | ||
Goodwill impairment charge | 0 | |
Goodwill | ||
Balance at the beginning of the period | 496.7 | 430.7 |
Acquisitions | 12.2 | 77.7 |
Adjustment of purchase price allocations | (0.1) | 5.5 |
Impairment charge | 0 | |
Foreign currency translation of non-USD functional currency subsidiary goodwill | 9.8 | (17.3) |
Balance at the end of the period | 518.5 | 496.7 |
Marine segment | ||
Goodwill | ||
Goodwill impairment charge | 72.3 | |
Goodwill | ||
Balance at the beginning of the period | 72.3 | 71.4 |
Acquisitions | 0 | 0 |
Adjustment of purchase price allocations | 0 | 0.1 |
Impairment charge | (72.3) | |
Foreign currency translation of non-USD functional currency subsidiary goodwill | 0 | 0.7 |
Balance at the end of the period | $ 0 | $ 72.3 |
Goodwill and Identifiable Int53
Goodwill and Identifiable Intangible Assets - Identifiable Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Identifiable intangible assets | ||||
Gross Carrying Amount | $ 452.5 | $ 452.5 | $ 429.7 | |
Accumulated Amortization | 213.1 | 213.1 | 189.1 | |
Net | 239.4 | 239.4 | 240.7 | |
Total intangible assets, Gross Carrying Amount | 492.9 | 492.9 | 471.4 | |
Total intangible assets, Net | 279.7 | 279.7 | 282.3 | |
Goodwill and other impairments | 91.9 | 91.9 | 0 | $ 0 |
Intangible amortization expense | 41.9 | 39.7 | $ 30.4 | |
Trademark/trade name rights | ||||
Identifiable intangible assets | ||||
Indefinite lived intangible assets | 40.3 | 40.3 | 41.7 | |
Customer relationships | ||||
Identifiable intangible assets | ||||
Gross Carrying Amount | 373.8 | 373.8 | 353.8 | |
Accumulated Amortization | 171.4 | 171.4 | 155.5 | |
Net | 202.4 | 202.4 | 198.3 | |
Supplier agreements | ||||
Identifiable intangible assets | ||||
Gross Carrying Amount | 38.7 | 38.7 | 38.7 | |
Accumulated Amortization | 15.4 | 15.4 | 13.3 | |
Net | 23.4 | 23.4 | 25.4 | |
Others | ||||
Identifiable intangible assets | ||||
Gross Carrying Amount | 40 | 40 | 37.2 | |
Accumulated Amortization | 26.3 | 26.3 | 20.2 | |
Net | $ 13.7 | 13.7 | $ 17 | |
Marine segment | ||||
Identifiable intangible assets | ||||
Goodwill and other impairments | 4.1 | |||
Land segment | ||||
Identifiable intangible assets | ||||
Goodwill and other impairments | $ 3 |
Goodwill and Identifiable Int54
Goodwill and Identifiable Intangible Assets - Future Estimated Amortization of Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Future estimated amortization of identifiable intangible assets | ||
2,018 | $ 41 | |
2,019 | 34.5 | |
2,020 | 29.9 | |
2,021 | 26.6 | |
2,022 | 23.6 | |
Thereafter | 83.7 | |
Net | $ 239.4 | $ 240.7 |
Debt - Instruments (Details)
Debt - Instruments (Details) - USD ($) | Jan. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Amended credit facility | Subsequent event | |||
Debt | |||
Payment on outstanding amounts owed | $ 300,000,000 | ||
Amended credit facility | Subsequent event | Credit facility | |||
Debt | |||
Maximum borrowing capacity | $ 1,160,000,000 | ||
Credit facility | |||
Debt | |||
Maximum borrowing capacity | $ 1,260,000,000 | ||
Maximum additional borrowings available at the entity's request subject to satisfaction of certain conditions | 200,000,000 | ||
Amount outstanding | 60,000,000 | $ 325,200,000 | |
Unused portion of facility | $ 1,190,000,000 | 926,500,000 | |
Commitment fee on the unused portion of the credit facility | 0.35% | ||
Credit facility | Base rate | |||
Debt | |||
Reference rate for variable rate of interest | base rate | ||
Credit facility | Eurodollar | |||
Debt | |||
Reference rate for variable rate of interest | Eurodollar rate | ||
Letters of credit and bankers' acceptances | |||
Debt | |||
Maximum borrowing capacity | $ 400,000,000 | ||
Amount outstanding | $ 8,600,000 | 8,300,000 | |
Letters of credit fees (as a percent) | 0.25% | ||
Term loans | |||
Debt | |||
Amount of term loan outstanding | $ 835,800,000 | 840,000,000 | |
Term loans | Base rate | |||
Debt | |||
Basis points added to reference rate | 1.50% | ||
Term loans | Eurodollar | |||
Debt | |||
Basis points added to reference rate | 2.50% | ||
Other uncommitted credit lines | |||
Debt | |||
Letters of credit, outstanding amount | $ 272,000,000 | $ 176,500,000 |
Debt - Summary and Maturities (
Debt - Summary and Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt | ||
Total debt | $ 910.2 | $ 1,186.3 |
Current maturities of long-term debt and capital leases | 25.6 | 15.4 |
Long-term debt | 884.6 | 1,170.8 |
Credit Facility | ||
Debt | ||
Total debt | 60 | 325.2 |
Term Loans | ||
Debt | ||
Total debt | 835.8 | 840 |
Capital leases | ||
Debt | ||
Total debt | $ 10.4 | 12.6 |
Capital leases | Minimum | ||
Debt | ||
Stated interest rate | 3.00% | |
Capital leases | Maximum | ||
Debt | ||
Stated interest rate | 6.30% | |
Other | ||
Debt | ||
Total debt | $ 4 | $ 8.5 |
Debt - Aggregate Annual Maturit
Debt - Aggregate Annual Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Aggregate annual maturities of debt | ||
2,018 | $ 25.6 | |
2,019 | 41.6 | |
2,020 | 55.8 | |
2,021 | 723.5 | |
2,022 | 61.7 | |
Thereafter | 1.9 | |
Total debt | $ 910.2 | $ 1,186.3 |
Debt - Interest Income, Expense
Debt - Interest Income, Expense and Other Financing Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income, expense and other financing costs | |||
Interest income | $ 6 | $ 4.5 | $ 5 |
Interest expense and other financing costs | (66.3) | (43.7) | (34.9) |
Interest expense and other financing costs, net | $ (60.3) | $ (39.2) | $ (29.9) |
Commitments and Contingencies -
Commitments and Contingencies - Bonds, Leases, and Sales and Purchase Commitments (Details) bbl in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)bbl | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Surety Bonds | |||
Outstanding bonds | $ 44.6 | $ 52.8 | |
Future minimum lease payments under non-cancelable operating leases | |||
2,018 | 39.7 | ||
2,019 | 31 | ||
2,020 | 25.7 | ||
2,021 | 21.3 | ||
2,022 | 15.1 | ||
Thereafter | 32.4 | ||
Total future minimum lease payment | 165.2 | ||
Rental expenses for properties and equipment | 40.3 | $ 36.9 | $ 31.6 |
Minimum sublease rentals due in the future under non-cancelable subleases | 34.7 | ||
Sales and Purchase Commitments | |||
Sales commitments under derivative programs | 921.4 | ||
Purchase commitments under derivative programs | $ 516.4 | ||
Minimum | Aviation Fuel | |||
Long-term Purchase Commitment [Line Items] | |||
Minimum purchase required (in barrels) | bbl | 1,720 | ||
Maximum | Aviation Fuel | |||
Long-term Purchase Commitment [Line Items] | |||
Minimum purchase required (in barrels) | bbl | 2,000 |
Commitments and Contingencies60
Commitments and Contingencies - Employment Agreements (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Kasbar agreement | |
Loss contingencies | |
Annual base salary | $ 900,000 |
Agreement expiration term, extension under specified condition | 1 year |
Minimum period prior to expiration of the term for serving specified notice to prevent extension of the agreement term | 1 year |
Severance payment for termination following a change of control | $ 5,000,000 |
Severance payment for termination following other scenarios | $ 3,000,000 |
Vesting period of outstanding equity awards | 2 years |
Period for severance payment after termination of executive's employment | 2 years |
Agreements with executive officers and key employees | |
Future minimum commitments under agreements with executive officers and key employees | |
2,018 | $ 900,000 |
Commitments and Contingencies61
Commitments and Contingencies - Deferred Compensation, Environmental and Other Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Employer match for each 1% of the participants contributions up to 6% of the participants contributions (as a percent) | 50.00% | |
Percentage of eligible compensation up to 6% of the eligible compensation, matched 50% by employer | 1.00% | |
Employer contribution limit per calendar year (as a percent of compensation) | 6.00% | |
Other long-term liabilities | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Deferred compensation payable | $ 5.8 | $ 4.3 |
Environmental Assessment and Remediation Expenses | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Accrued liabilities for remediation | $ 0 | $ 0 |
Commitments and Contingencies62
Commitments and Contingencies - Legal, Tax, and Other Matters (Details) - Dec. 31, 2016 $ in Millions, â‚© in Billions | USD ($) | KRW (â‚©) |
Assessment | ||
Loss Contingencies [Line Items] | ||
Estimate of possible loss | $ 10.6 | â‚© 11.9 |
Pre-assessment | ||
Loss Contingencies [Line Items] | ||
Estimate of possible loss | $ 17.9 | â‚© 20.1 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends and Stock Repurchase Programs (Details) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 31, 2017 | |
Dividends | ||||
Cash dividends declared (in dollars per share) | $ 0.24 | $ 0.24 | $ 0.24 | |
Stock Repurchase Programs | ||||
Authorized common stock repurchase amount | $ 100,000,000 | |||
Shares repurchased (in shares) | 1.7 | 1 | 1.6 | |
Amount of shares repurchased | $ 61,900,000 | $ 41,200,000 | $ 70,500,000 | |
Amount available to repurchase shares under stock repurchase program | $ 100,000,000 |
Shareholders' Equity - Plan Sum
Shareholders' Equity - Plan Summary and Description (Details) - shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Restricted Stock | ||||
Information pertaining to stock based awards | ||||
Outstanding awards issued (in shares) | 300,000 | 1,200,000 | 1,400,000 | 1,500,000 |
RSUs | ||||
Information pertaining to stock based awards | ||||
Outstanding awards issued (in shares) | 1,600,000 | 1,200,000 | 700,000 | 800,000 |
SSAR Awards | ||||
Information pertaining to stock based awards | ||||
Outstanding awards issued (in shares) | 700,000 | 300,000 | 200,000 | 200,000 |
2016 Plan | ||||
Information pertaining to stock based awards | ||||
Common stock authorized for issuance (in shares) | 2,500,000 | |||
Remaining shares of common stock available for future issuance (in shares) | 3,400,000 | |||
2016 Plan | Restricted Stock | ||||
Information pertaining to stock based awards | ||||
Outstanding awards issued (in shares) | 0 | |||
2016 Plan | RSUs | ||||
Information pertaining to stock based awards | ||||
Outstanding awards issued (in shares) | 600,000 | |||
2016 Plan | SSAR Awards | ||||
Information pertaining to stock based awards | ||||
Outstanding awards issued (in shares) | 400,000 | |||
2006 Plan | ||||
Information pertaining to stock based awards | ||||
Common stock subject to outstanding awards (in shares) | 2,200,000 | |||
Remaining shares of common stock available for future issuance (in shares) | ||||
2006 Plan | Restricted Stock | ||||
Information pertaining to stock based awards | ||||
Outstanding awards issued (in shares) | 300,000 | |||
2006 Plan | RSUs | ||||
Information pertaining to stock based awards | ||||
Outstanding awards issued (in shares) | 900,000 | |||
2006 Plan | SSAR Awards | ||||
Information pertaining to stock based awards | ||||
Outstanding awards issued (in shares) | 300,000 |
Shareholders' Equity - Restrict
Shareholders' Equity - Restricted Stock Awards (Details) - Restricted Stock - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Unvested Restricted Stock Outstanding | ||||
Balance at the beginning of the period (in shares) | 1.2 | 1.4 | 1.5 | |
Granted (in shares) | 0 | 0.1 | 0.2 | |
Vested (in shares) | (0.2) | (0.2) | (0.2) | |
Forfeited (in shares) | (0.7) | (0.1) | (0.1) | |
Balance at the end of the period (in shares) | 0.3 | 1.2 | 1.4 | 1.5 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Balance at the beginning of the period (in dollars per share) | $ 43.10 | $ 42.69 | $ 41.18 | |
Granted (in dollars per share) | 0 | 42.92 | 49.95 | |
Vested (in dollars per share) | 43.69 | 40.40 | 39.63 | |
Forfeited (in dollars per share) | 41.50 | 43.30 | 41.84 | |
Balance at the end of the period (in dollars per share) | $ 45.80 | $ 43.10 | $ 42.69 | $ 41.18 |
Aggregate Intrinsic Value | $ 9.7 | $ 55.7 | $ 54.9 | $ 70.2 |
Weighted Average Remaining Vesting Term | 27 days | 24 days | 1 year 4 months 24 days | 2 years 1 month 6 days |
Aggregate value of awards vested | $ 7.8 | $ 9.6 | $ 9.9 |
Shareholders' Equity - RSU Awar
Shareholders' Equity - RSU Awards and SSAR Awards (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
RSUs | ||||
Awards Outstanding | ||||
Balance at the beginning of the period (in shares) | 1.2 | 0.7 | 0.8 | |
Granted (in shares) | 0.6 | 0.7 | 0.3 | |
Vested (in shares) | (0.2) | (0.1) | (0.3) | |
Forfeited (in shares) | (0.1) | (0.1) | 0 | |
Balance at the end of the period (in shares) | 1.6 | 1.2 | 0.7 | 0.8 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Balance at the beginning of the period (in dollars per share) | $ 43.28 | $ 43.10 | $ 38.55 | |
Granted (in dollars per share) | 37.74 | 44.23 | 51 | |
Vested (in dollars per share) | 43.06 | 42.78 | 38.80 | |
Forfeited (in dollars per share) | 42.43 | 44.78 | 42.65 | |
Balance at the end of the period (in dollars per share) | $ 41.01 | $ 43.28 | $ 43.10 | $ 38.55 |
Aggregate Intrinsic Value | $ 43.9 | $ 55.7 | $ 28 | $ 36.9 |
Weighted Average Remaining Vesting Term | 1 year 4 months 24 days | 1 year 7 months 6 days | 1 year 8 months 12 days | 1 year 6 months |
Aggregate intrinsic value of awards issued | $ 7.7 | $ 6.2 | $ 15.3 | |
SSAR Awards | ||||
Awards Outstanding | ||||
Balance at the beginning of the period (in shares) | 0.3 | 0.2 | 0.2 | |
Granted (in shares) | 0.4 | 0.1 | 0 | |
Exercised (in shares) | 0 | 0 | 0 | |
Balance at the end of the period (in shares) | 0.7 | 0.3 | 0.2 | 0.2 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Balance at the beginning of the period (in dollars per share) | $ 44.97 | $ 42.91 | $ 40.06 | |
Granted (in dollars per share) | 36.31 | 48.58 | 57.48 | |
Exercised (in dollars per share) | 40.91 | 40.91 | 25.08 | |
Balance at the end of the period (in dollars per share) | $ 40.27 | $ 44.97 | $ 42.91 | $ 40.06 |
Aggregate Intrinsic Value | $ 0 | $ 0.3 | $ 0 | $ 1.6 |
Weighted Average Remaining Vesting Term | 3 years | 2 years 4 months 24 days | 2 years 6 months | 3 years |
SSAR Awards Exercisable | ||||
SSAR Awards (in shares) | 0.2 | 0.2 | 0.1 | 0.1 |
Weighted Average Exercise Price (in dollars per share) | $ 42.76 | $ 42.15 | $ 42.06 | $ 35.81 |
Aggregate Intrinsic Value | $ 0 | $ 0.7 | $ 0 | $ 0.6 |
Weighted Average Remaining Contractual Life | 12 days | 1 year 3 months 18 days | 2 years 2 months 12 days | 2 years 2 months 12 days |
Aggregate intrinsic value of SSAR Awards exercised | $ 0.1 | $ 0.5 | ||
Assumptions used to determine weighted average fair value | ||||
Weighted average fair value of SSAR Awards (in dollars per share) | $ 8.82 | $ 12.32 | $ 14.78 | |
Expected term | 4 years 3 months 18 days | 4 years 6 months | 4 years 3 months 18 days | |
Volatility | 28.60% | 29.80% | 30.20% | |
Dividend yields | 0.70% | 0.50% | 0.30% | |
Risk-free interest rates | 1.80% | 1.20% | 1.20% |
Shareholders' Equity - Unrecogn
Shareholders' Equity - Unrecognized Compensation Cost (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Equity [Abstract] | |
Total unrecognized compensatoin cost related to unvested share-based payment awards | $ 47.4 |
Period for recognition of unrecognized compensation cost related to unvested share-based payment awards | 1 year 4 months 24 days |
Unrecognized compensation cost expected to be recognized as compensation expense | |
2,018 | $ 18.8 |
2,019 | 19.6 |
2,020 | 4.4 |
2,021 | 4.5 |
2,022 | 0.2 |
Total | $ 47.4 |
Shareholders' Equity - Other Co
Shareholders' Equity - Other Comprehensive Loss and Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance as of beginning of period | $ 1,940 | $ 1,905.9 | $ 1,859.4 |
Other comprehensive income (loss) | 29.8 | (47) | (46.2) |
Balance as of end of period | 1,738 | 1,940 | 1,905.9 |
Foreign Currency Translation Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance as of beginning of period | (147.5) | (108.7) | |
Other comprehensive income (loss) | 30.1 | (40.4) | |
Less: Net other comprehensive (income) loss attributable to noncontrolling interest | (1.5) | 1.6 | |
Balance as of end of period | (118.8) | (147.5) | (108.7) |
Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance as of beginning of period | (7.4) | (0.8) | |
Other comprehensive income (loss) | (0.3) | (6.6) | |
Less: Net other comprehensive (income) loss attributable to noncontrolling interest | 0 | 0 | |
Balance as of end of period | (7.7) | (7.4) | (0.8) |
Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance as of beginning of period | (154.8) | (109.5) | |
Other comprehensive income (loss) | 29.8 | (47) | |
Less: Net other comprehensive (income) loss attributable to noncontrolling interest | (1.5) | 1.6 | |
Balance as of end of period | $ (126.5) | $ (154.8) | $ (109.5) |
Income Taxes - Tax Provision (B
Income Taxes - Tax Provision (Benefit), Reconciliation, and Tax Rates (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. and foreign income before income taxes | ||||
United States | $ (152.3) | $ (85.4) | $ 3.5 | |
Foreign | 131.2 | 227.5 | 214.2 | |
Income (loss) before income taxes | (21.1) | 142.1 | 217.7 | |
Current: | ||||
U.S. federal statutory tax | 94.6 | 7.5 | (9.9) | |
State | 5.6 | 0.8 | 0.7 | |
Foreign | 34.2 | 30.4 | 27 | |
Total current income tax provision (benefit) | 134.4 | 38.7 | 17.8 | |
Deferred: | ||||
U.S. federal statutory tax | 15.1 | (29.3) | 4.6 | |
State | 8.9 | (4.2) | 3 | |
Foreign | (10) | (2.5) | (2.3) | |
Total deferred income (loss) before income taxes | 13.9 | (36) | 5.3 | |
Non-current tax expense (income) | 0.9 | 13 | 24.1 | |
Income tax provision | $ 149.2 | $ 15.7 | $ 47.2 | $ 53.6 |
Reconciliation of U.S. federal statutory income tax rate to effective income tax rate | ||||
U.S. federal statutory tax rate | 35.00% | 35.00% | 35.00% | |
Foreign earnings, net of foreign taxes | 245.40% | (42.40%) | (28.30%) | |
State income taxes, net of U.S. federal income tax benefit | (51.80%) | (1.50%) | 1.10% | |
U.S. tax on deemed dividends | (14.00%) | 1.30% | 1.70% | |
Tax Act impact | (704.30%) | 0.00% | 0.00% | |
Deferred tax impact on foreign unrepatriated earnings | (65.50%) | 0.00% | 0.00% | |
Goodwill impairment | (81.50%) | 0.00% | 0.00% | |
Sale of subsidiary | 0.00% | 3.80% | 0.00% | |
Uncertain tax positions | (4.10%) | 9.20% | 10.30% | |
Tax authority settlements | (10.00%) | 0.00% | 0.00% | |
Nontaxable interest income | 36.90% | 0.00% | 0.00% | |
Nondeductible interest expense | (12.60%) | 0.00% | 0.00% | |
Valuation allowance | (19.60%) | 2.00% | 0.30% | |
Other permanent differences | (61.00%) | 3.60% | 1.60% | |
Effective income tax rate | (707.10%) | 11.00% | 21.70% | 19.50% |
Effective income tax rate | (707.10%) | 11.00% | 21.70% | 19.50% |
Provision for income taxes | $ 149.2 | $ 15.7 | $ 47.2 | $ 53.6 |
Transition tax toll charge on historic accumulated foreign earnings | 143.7 | |||
Provisional undistributed accumulated earnings of foreign subsidiary | 725 | |||
Accumulated foreign earnings deemed repatriated | 1,700 | |||
Provisional estimate of the associated foreign withholding and state income tax effects | $ 13.8 | |||
Without transition tax toll charge | ||||
Reconciliation of U.S. federal statutory income tax rate to effective income tax rate | ||||
Effective income tax rate | (25.90%) | |||
Effective income tax rate | (25.90%) |
Income Taxes - Temporary Differ
Income Taxes - Temporary Differences (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Gross Deferred Tax Assets: | ||
Bad debt reserve | $ 3.5 | $ 4.5 |
Net operating loss | 23 | 38.6 |
Accrued and other share-based compensation | 18.8 | 26.2 |
Accrued expenses | 11.7 | 5 |
U.S. foreign income tax credits | 0 | 7.8 |
Other income tax credits | 0.2 | 0.2 |
Customer deposits | 1.9 | 6.3 |
Investments | 1.3 | 0 |
Cash flow hedges | 3.2 | 4.6 |
Total gross deferred tax assets | 63.7 | 93.2 |
Less: Valuation allowance | 24.6 | 7.1 |
Gross deferred tax assets, net of valuation allowance | 39.1 | 86.1 |
Deferred Tax Liabilities: | ||
Depreciation | (6.4) | (8.5) |
Goodwill and intangible assets | (43.6) | (56.1) |
Unrealized foreign exchange | (0.9) | (8) |
Prepaid expenses, deductible for tax purposes | (3.8) | (5.8) |
Deferred tax costs on foreign unrepatriated earnings | (13.8) | 0 |
Unrealized derivatives | (1.1) | (2.4) |
Other | (1.1) | (0.7) |
Total gross deferred tax liabilities | (70.8) | (81.5) |
Net deferred tax liability | 31.7 | |
Net deferred tax asset | 4.6 | |
Reported on the consolidated balance sheets as: | ||
Identifiable intangible and other non-current assets for deferred tax assets, non-current | 12.8 | 20.6 |
Non-current income tax liabilities, net for deferred tax liabilities, non-current | $ 44.5 | $ 16 |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Losses and Income Tax Concessions (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 01, 2018 | Jan. 01, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income taxes | |||||
Net operating losses | $ 240.3 | $ 106.2 | |||
Net operating loss carryforward | 23 | 38.6 | |||
Valuation allowance | 24.6 | 7.1 | |||
Period applicable for additional special income tax concession | 5 years | ||||
Period applicable for additional special income tax concession, renewal term | 5 years | ||||
Decrease (increase) in foreign income taxes due to special income tax concession in Singapore | $ 1.3 | $ 2.7 | $ (7.7) | ||
Impact of income tax concession on basic earnings per common share (in dollars per share) | $ 0.02 | $ 0.04 | $ (0.11) | ||
Impact of income tax concession on diluted earnings per common share (in dollars per share) | $ 0.02 | $ 0.04 | $ (0.11) | ||
December 31, 2020 | |||||
Income taxes | |||||
Net operating loss carryforward | $ 0.1 | ||||
December 31, 2021 | |||||
Income taxes | |||||
Net operating loss carryforward | 0.2 | ||||
December 31, 2022 | |||||
Income taxes | |||||
Net operating loss carryforward | 1.2 | ||||
December 31, 2024 | |||||
Income taxes | |||||
Net operating loss carryforward | 0.2 | ||||
December 31, 2025 | |||||
Income taxes | |||||
Net operating loss carryforward | 1 | ||||
December 31, 2026 | |||||
Income taxes | |||||
Net operating loss carryforward | 0.2 | ||||
December 31, 2027 | |||||
Income taxes | |||||
Net operating loss carryforward | 0.2 | ||||
December 31, 2028 | |||||
Income taxes | |||||
Net operating loss carryforward | 0.3 | ||||
December 31, 2029 | |||||
Income taxes | |||||
Net operating loss carryforward | 0.8 | ||||
December 31, 2031 | |||||
Income taxes | |||||
Net operating loss carryforward | 0.2 | ||||
December 31, 2032 | |||||
Income taxes | |||||
Net operating loss carryforward | 0.5 | ||||
December 31, 2033 | |||||
Income taxes | |||||
Net operating loss carryforward | 0.1 | ||||
December 31, 2034 | |||||
Income taxes | |||||
Net operating loss carryforward | 0.3 | ||||
December 31, 2035 | |||||
Income taxes | |||||
Net operating loss carryforward | 0.5 | ||||
December 31, 2036 | |||||
Income taxes | |||||
Net operating loss carryforward | 2.7 | ||||
December 31, 2037 | |||||
Income taxes | |||||
Net operating loss carryforward | 5.7 | ||||
Indefinite | |||||
Income taxes | |||||
Net operating loss carryforward | $ 8.8 |
Income Taxes - Income Tax Conti
Income Taxes - Income Tax Contingencies (Details) $ in Millions, â‚© in Billions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2016KRW (â‚©) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Income Tax Disclosure [Abstract] | |||||
Increase (decrease) in additional liabilities related to unrecognized tax liabilities | $ (3.4) | $ 14.4 | |||
Increase (decrease) in assets related to unrecognized tax assets | 19.8 | 3.2 | |||
Increase (decrease) in unrecognized tax liabilities related to a foreign currency translation expense | 1.4 | (0.1) | |||
Unrecognized tax liabilities | $ 62.2 | 72.6 | 62.2 | ||
Unrecognized tax assets | 5.6 | 25.4 | 5.6 | ||
Reconciliation of total amounts of unrecognized income tax benefits | |||||
Gross Unrecognized Tax Liabilities – opening balance | 62.2 | 47.8 | $ 24.3 | ||
Gross increases – tax positions in prior period | 10.9 | 19.7 | 9.2 | ||
Gross decreases – tax positions in prior period | 0 | (15.4) | (4.8) | ||
Gross increases – tax positions in current period | 10.7 | 12.9 | 22 | ||
Gross decreases – tax positions in current period | 0 | 0 | 0 | ||
Settlements | (23) | 0 | 0 | ||
Lapse of statute of limitations | (2.1) | (2.8) | (2.9) | ||
Gross Unrecognized Tax Liabilities – ending balance | 62.2 | 58.8 | 62.2 | 47.8 | |
Expected reduction in income tax expense if uncertain tax positions are settled by the taxing authorities in the entity's favor | $ 33.4 | ||||
Expected reduction in effective income tax rate if uncertain tax positions are settled by the taxing authorities in the entity's favor (as a percent) | 158.20% | ||||
Interest and penalties expense | |||||
Interest related to unrecognized tax benefits, recorded as income (expense) | $ (3.4) | 0.7 | (0.9) | ||
Penalties related to unrecognized tax benefits, recorded as income tax income (expense) | (0.1) | (2.3) | $ 0.3 | ||
Accrued interest and penalties | |||||
Accrued interest related to unrecognized tax benefits | 4.3 | 7.3 | 4.3 | ||
Accrued penalties related to unrecognized tax benefits | 6.5 | $ 6.5 | $ 6.5 | ||
SRTO | |||||
Income Tax Contingency [Line Items] | |||||
Pre-assessment notice, amount | $ 9.7 | â‚© 10.4 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Debt | $ 910,200,000 | $ 1,186,300,000 |
Total derivative assets | 312,000,000 | 347,200,000 |
Gross Amounts Recognized | 332,500,000 | 332,500,000 |
Transfers from Level 1 to Level 2, assets | 0 | 0 |
Transfers from Level 2 to Level 1, assets | 0 | 0 |
Transfers from Level 1 to Level 2, liabilities | 0 | 0 |
Transfers from Level 2 to Level 1, liabilities | 0 | 0 |
Commodity contracts | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Total derivative assets | 303,600,000 | 331,200,000 |
Gross Amounts Recognized | 323,900,000 | 326,100,000 |
Foreign currency contracts | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Total derivative assets | 8,500,000 | 16,000,000 |
Gross Amounts Recognized | 8,700,000 | 6,400,000 |
Fair value measured on recurring basis | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Total assets | 317,700,000 | 351,200,000 |
Total liabilities | 332,500,000 | 332,500,000 |
Fair value measured on recurring basis | Cash surrender value of life insurance | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Cash surrender value of life insurance | 5,600,000 | 4,000,000 |
Fair value measured on recurring basis | Commodity contracts | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Total derivative assets | 303,600,000 | 331,200,000 |
Gross Amounts Recognized | 323,900,000 | 326,100,000 |
Fair value measured on recurring basis | Foreign currency contracts | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Total derivative assets | 8,500,000 | 16,000,000 |
Gross Amounts Recognized | 8,700,000 | 6,400,000 |
Level 1 | Fair value measured on recurring basis | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Total assets | 196,300,000 | 273,600,000 |
Total liabilities | 210,600,000 | 236,600,000 |
Level 1 | Fair value measured on recurring basis | Cash surrender value of life insurance | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Cash surrender value of life insurance | 0 | 0 |
Level 1 | Fair value measured on recurring basis | Commodity contracts | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Total derivative assets | 196,300,000 | 273,600,000 |
Gross Amounts Recognized | 210,600,000 | 236,600,000 |
Level 1 | Fair value measured on recurring basis | Foreign currency contracts | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Total derivative assets | 0 | 0 |
Gross Amounts Recognized | 0 | 0 |
Level 2 | Cash surrender value of life insurance | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Cash surrender value of life insurance | 5,600,000 | |
Level 2 | Fair value measured on recurring basis | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Debt | 900,000,000 | 1,200,000,000 |
Notes receivable | 44,900,000 | 16,900,000 |
Total assets | 120,200,000 | 75,300,000 |
Total liabilities | 120,500,000 | 95,200,000 |
Level 2 | Fair value measured on recurring basis | Cash surrender value of life insurance | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Cash surrender value of life insurance | 4,000,000 | |
Level 2 | Fair value measured on recurring basis | Commodity contracts | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Total derivative assets | 106,100,000 | 55,300,000 |
Gross Amounts Recognized | 111,800,000 | 88,800,000 |
Level 2 | Fair value measured on recurring basis | Foreign currency contracts | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Total derivative assets | 8,500,000 | 16,000,000 |
Gross Amounts Recognized | 8,700,000 | 6,400,000 |
Level 3 | Fair value measured on recurring basis | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Total assets | 1,200,000 | 2,300,000 |
Total liabilities | 1,400,000 | 700,000 |
Level 3 | Fair value measured on recurring basis | Cash surrender value of life insurance | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Cash surrender value of life insurance | 0 | 0 |
Level 3 | Fair value measured on recurring basis | Commodity contracts | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Total derivative assets | 1,200,000 | 2,300,000 |
Gross Amounts Recognized | 1,400,000 | 700,000 |
Level 3 | Fair value measured on recurring basis | Foreign currency contracts | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Total derivative assets | 0 | 0 |
Gross Amounts Recognized | $ 0 | $ 0 |
Fair Value Measurements - Commo
Fair Value Measurements - Commodity and Foreign Currency Contracts (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Gross Amounts Recognized | $ 312 | $ 347.2 |
Gross Amounts Offset | 235.2 | 254.8 |
Net Amounts Presented | 76.9 | 92.4 |
Cash Collateral | 21.2 | 27.1 |
Gross Amounts Without Right of Offset | 0 | 0 |
Net Amounts | 55.7 | 65.3 |
Liabilities: | ||
Gross Amounts Recognized | 332.5 | 332.5 |
Gross Amounts Offset | 235.2 | 254.8 |
Net Amounts Presented | 97.4 | 77.7 |
Cash Collateral | 39.2 | 2 |
Gross Amounts Without Right of Offset | 0 | 0 |
Net Amounts | 58.2 | 75.7 |
Commodity contracts | ||
Assets: | ||
Gross Amounts Recognized | 303.6 | 331.2 |
Gross Amounts Offset | 228.4 | 249.7 |
Net Amounts Presented | 75.1 | 81.5 |
Cash Collateral | 21.2 | 27.1 |
Gross Amounts Without Right of Offset | 0 | 0 |
Net Amounts | 53.9 | 54.5 |
Liabilities: | ||
Gross Amounts Recognized | 323.9 | 326.1 |
Gross Amounts Offset | 228.4 | 249.7 |
Net Amounts Presented | 95.4 | 76.5 |
Cash Collateral | 39.2 | 2 |
Gross Amounts Without Right of Offset | 0 | 0 |
Net Amounts | 56.2 | 74.5 |
Foreign currency contracts | ||
Assets: | ||
Gross Amounts Recognized | 8.5 | 16 |
Gross Amounts Offset | 6.7 | 5.1 |
Net Amounts Presented | 1.7 | 10.9 |
Cash Collateral | 0 | 0 |
Gross Amounts Without Right of Offset | 0 | 0 |
Net Amounts | 1.7 | 10.9 |
Liabilities: | ||
Gross Amounts Recognized | 8.7 | 6.4 |
Gross Amounts Offset | 6.7 | 5.1 |
Net Amounts Presented | 2 | 1.2 |
Cash Collateral | 0 | 0 |
Gross Amounts Without Right of Offset | 0 | 0 |
Net Amounts | $ 2 | $ 1.2 |
Fair Value Measurements - Conce
Fair Value Measurements - Concentration of Credit Risk (Details) $ in Millions | Dec. 31, 2017USD ($) |
Credit concentration risk | Credit exposure | Two largest counterparties | |
Concentration Risk [Line Items] | |
Total credit risk | $ 24.2 |
Business Segments, Geographic76
Business Segments, Geographic Information, and Major Customers - Income Statement Items (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Information concerning revenue, gross profit and income from operations by segment | |||||||||||
Number of reportable operating business segments | segment | 3 | ||||||||||
Revenue: | |||||||||||
Revenue | $ 8,872 | $ 8,543 | $ 8,086.2 | $ 8,194.3 | $ 7,792.1 | $ 7,399.8 | $ 6,633 | $ 5,190.8 | $ 33,695.5 | $ 27,015.8 | $ 30,381.4 |
Gross profit: | |||||||||||
Gross profit | 229.9 | $ 239.9 | $ 231 | $ 231.4 | $ 222.3 | $ 236.7 | $ 218.5 | $ 221.5 | 932.2 | 899 | 861 |
Income from operations: | |||||||||||
Income from operations | 45.6 | 188.9 | 245.7 | ||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 86 | 82.3 | 65.5 | ||||||||
Capital expenditures: | |||||||||||
Total capital expenditures | 54 | 37.7 | 48.4 | ||||||||
Impairment of intangible assets | 7.9 | ||||||||||
Goodwill impairment and intangible asset impairment | 80.2 | ||||||||||
Restructuring charges | 59.6 | 59.6 | 0 | 0 | |||||||
Operating Segments | |||||||||||
Income from operations: | |||||||||||
Income from operations | 127.2 | 261.5 | 306.5 | ||||||||
Corporate | |||||||||||
Income from operations: | |||||||||||
Income from operations | (81.6) | (72.7) | (60.9) | ||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 3.5 | 4.4 | 3.7 | ||||||||
Capital expenditures: | |||||||||||
Total capital expenditures | 19.1 | 14.5 | 10.6 | ||||||||
Restructuring charges | 5.1 | ||||||||||
Aviation segment | |||||||||||
Revenue: | |||||||||||
Revenue | 14,538.2 | 10,914.4 | 11,739.8 | ||||||||
Gross profit: | |||||||||||
Gross profit | 440.5 | 401 | 361.9 | ||||||||
Aviation segment | Operating Segments | |||||||||||
Income from operations: | |||||||||||
Income from operations | 192.9 | 160.5 | 132.2 | ||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 26.8 | 24.2 | 22.6 | ||||||||
Capital expenditures: | |||||||||||
Total capital expenditures | 12.3 | 4.9 | 13.4 | ||||||||
Restructuring charges | 0.9 | ||||||||||
Land segment | |||||||||||
Revenue: | |||||||||||
Revenue | 10,958 | 8,918.8 | 9,274.3 | ||||||||
Gross profit: | |||||||||||
Gross profit | 365.8 | 348.5 | 309.5 | ||||||||
Land segment | Operating Segments | |||||||||||
Income from operations: | |||||||||||
Income from operations | (7.9) | 70.8 | 101.4 | ||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 49.8 | 47.1 | 32.9 | ||||||||
Capital expenditures: | |||||||||||
Total capital expenditures | 21 | 12.3 | 16.4 | ||||||||
Impairment of intangible assets | 12.8 | ||||||||||
Restructuring charges | 52.4 | 52.4 | |||||||||
Marine segment | |||||||||||
Revenue: | |||||||||||
Revenue | 8,199.3 | 7,182.5 | 9,367.2 | ||||||||
Gross profit: | |||||||||||
Gross profit | 126 | 149.5 | 189.6 | ||||||||
Marine segment | Operating Segments | |||||||||||
Income from operations: | |||||||||||
Income from operations | (57.8) | 30.2 | 73 | ||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 5.8 | 6.6 | 6.4 | ||||||||
Capital expenditures: | |||||||||||
Total capital expenditures | 1.5 | $ 6.1 | $ 8 | ||||||||
Goodwill impairment and intangible asset impairment | 79.1 | ||||||||||
Restructuring charges | $ 1.4 | $ 1.4 |
Business Segments, Geographic77
Business Segments, Geographic Information, and Major Customers - Balance Sheet Items (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts receivable, net: | ||
Accounts receivable, net | $ 2,705.6 | $ 2,344 |
Total assets: | ||
Total assets | 5,587.8 | 5,412.6 |
Corporate | ||
Total assets: | ||
Total assets | 158.9 | 145.8 |
Aviation segment | ||
Accounts receivable, net: | ||
Accounts receivable, net | 1,013 | 776 |
Allowance for bad debt | 10.8 | 6.6 |
Aviation segment | Operating Segments | ||
Total assets: | ||
Total assets | 2,240.4 | 2,050.6 |
Land segment | ||
Accounts receivable, net: | ||
Accounts receivable, net | 874.7 | 737.5 |
Allowance for bad debt | 6.6 | 8.2 |
Land segment | Operating Segments | ||
Total assets: | ||
Total assets | 2,091.4 | 1,928.5 |
Marine segment | ||
Accounts receivable, net: | ||
Accounts receivable, net | 817.9 | 830.5 |
Allowance for bad debt | 10.4 | 10.2 |
Marine segment | Operating Segments | ||
Total assets: | ||
Total assets | $ 1,097.1 | $ 1,287.7 |
Business Segments, Geographic78
Business Segments, Geographic Information, and Major Customers - Geographic Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | |||||||||||
Revenue | $ 8,872 | $ 8,543 | $ 8,086.2 | $ 8,194.3 | $ 7,792.1 | $ 7,399.8 | $ 6,633 | $ 5,190.8 | $ 33,695.5 | $ 27,015.8 | $ 30,381.4 |
Property and equipment, net | 329.8 | 311.2 | 329.8 | 311.2 | |||||||
United States | |||||||||||
Revenue: | |||||||||||
Revenue | 17,938 | 14,368.8 | 15,496.3 | ||||||||
Property and equipment, net | 152.6 | 137.7 | 152.6 | 137.7 | |||||||
EMEA | |||||||||||
Revenue: | |||||||||||
Revenue | 7,553.3 | 6,018.6 | 6,382.2 | ||||||||
Property and equipment, net | 120.2 | 122.9 | 120.2 | 122.9 | |||||||
Asia Pacific | |||||||||||
Revenue: | |||||||||||
Revenue | 4,923 | 4,271.1 | 5,863.4 | ||||||||
Property and equipment, net | 10.4 | 1.4 | 10.4 | 1.4 | |||||||
Americas, excluding United States | |||||||||||
Revenue: | |||||||||||
Revenue | 3,281.2 | 2,357.2 | 2,639.5 | ||||||||
Property and equipment, net | $ 46.7 | $ 49.1 | 46.7 | 49.1 | |||||||
U.K. | |||||||||||
Revenue: | |||||||||||
Revenue | 5,000 | 4,100 | 4,700 | ||||||||
Singapore | |||||||||||
Revenue: | |||||||||||
Revenue | $ 4,800 | $ 4,200 | $ 5,800 |
Summary Quarterly Information79
Summary Quarterly Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of unaudited quarterly result | |||||||||||
Revenue | $ 8,872 | $ 8,543 | $ 8,086.2 | $ 8,194.3 | $ 7,792.1 | $ 7,399.8 | $ 6,633 | $ 5,190.8 | $ 33,695.5 | $ 27,015.8 | $ 30,381.4 |
Gross profit | 229.9 | 239.9 | 231 | 231.4 | 222.3 | 236.7 | 218.5 | 221.5 | 932.2 | 899 | 861 |
Net income (loss) including noncontrolling interest | (193.7) | (37.9) | 30.3 | 31.1 | 2.1 | 43 | 29.8 | 51.6 | (170.3) | 126.4 | 170.5 |
Net income (loss) attributable to World Fuel | $ (193.1) | $ (38.5) | $ 30 | $ 31.3 | $ 2.2 | $ 42.7 | $ 30 | $ 51.8 | $ (170.2) | $ 126.5 | $ 174.5 |
Basic earnings per common share (in dollars per share) | $ (2.86) | $ (0.57) | $ 0.44 | $ 0.46 | $ 0.03 | $ 0.62 | $ 0.43 | $ 0.74 | $ (2.50) | $ 1.82 | $ 2.49 |
Diluted earnings per common share (in dollars per share) | $ (2.86) | $ (0.57) | $ 0.44 | $ 0.45 | $ 0.03 | $ 0.61 | $ 0.43 | $ 0.74 | $ (2.50) | $ 1.81 | $ 2.47 |
Effective income tax rate reconciliation, valuation allowance on U.S. deferred tax assets | $ 76.9 | ||||||||||
Goodwill and other impairments | $ 91.9 | $ 91.9 | $ 0 | $ 0 | |||||||
Cumulative loss period | 3 years | ||||||||||
Restructuring charges | $ 59.6 | 59.6 | $ 0 | $ 0 | |||||||
Transition tax toll charge on historic accumulated foreign earnings | $ 143.7 |