Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 19, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | WORLD FUEL SERVICES CORP | |
Entity Central Index Key | 789,460 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding (in shares) | 67,231,043 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 142.1 | $ 372.3 |
Accounts receivable, net | 3,106.9 | 2,705.6 |
Inventories | 679.3 | 505 |
Prepaid expenses | 78.9 | 64.4 |
Short-term derivative assets, net | 61.8 | 51.1 |
Other current assets | 258.9 | 241.9 |
Total current assets | 4,327.9 | 3,940.4 |
Property and equipment, net | 338.8 | 329.8 |
Goodwill | 855.6 | 845.5 |
Identifiable intangible and other non-current assets | 485.7 | 472.1 |
Total assets | 6,008 | 5,587.8 |
Current liabilities: | ||
Current maturities of long-term debt and capital leases | 35.7 | 25.6 |
Accounts payable | 2,785.9 | 2,239.7 |
Customer deposits | 105.9 | 108.3 |
Accrued expenses and other current liabilities | 356 | 344.9 |
Total current liabilities | 3,283.4 | 2,718.6 |
Long-term debt | 706.6 | 884.6 |
Non-current income tax liabilities, net | 186.9 | 202.4 |
Other long-term liabilities | 49.9 | 44.2 |
Total liabilities | 4,226.8 | 3,849.8 |
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, 67.0 and 67.7 issued and outstanding as of September 30, 2018 and December 31, 2017, respectively | 0.7 | 0.7 |
Capital in excess of par value | 340.8 | 354.9 |
Retained earnings | 1,580.4 | 1,492.8 |
Accumulated other comprehensive loss | (156.7) | (126.5) |
Total World Fuel shareholders' equity | 1,765.2 | 1,721.9 |
Noncontrolling interest | 16 | 16 |
Total equity | 1,781.2 | 1,738 |
Total liabilities and equity | $ 6,008 | $ 5,587.8 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
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) | 67,000,000 | 67,700,000 |
Common stock, shares outstanding (in shares) | 67,000,000 | 67,700,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 10,429.5 | $ 8,543 | $ 29,761.7 | $ 24,823.4 |
Cost of revenue | 10,162.8 | 8,303.1 | 29,005.4 | 24,121.1 |
Gross profit | 266.7 | 239.9 | 756.3 | 702.3 |
Operating expenses: | ||||
Compensation and employee benefits | 117.9 | 107.6 | 342 | 314.5 |
General and administrative | 70.6 | 71 | 217.8 | 225 |
Total operating expenses | 188.5 | 178.6 | 559.8 | 539.5 |
Income from operations | 78.2 | 61.3 | 196.4 | 162.8 |
Non-operating expenses, net: | ||||
Interest expense and other financing costs, net | (18.3) | (15.8) | (52.5) | (42.2) |
Other income (expense), net | 1.9 | (0.9) | (2) | (5) |
Total non-operating expenses, net | (16.4) | (16.7) | (54.5) | (47.3) |
Income before income taxes | 61.8 | 44.6 | 142 | 115.6 |
Provision for income taxes | 23 | 82.6 | 42.7 | 92.2 |
Net income (loss) including noncontrolling interest | 38.7 | (37.9) | 99.2 | 23.4 |
Net income attributable to noncontrolling interest | 0.6 | 0.6 | 1.1 | 0.6 |
Net income (loss) attributable to World Fuel | $ 38.2 | $ (38.5) | $ 98.1 | $ 22.8 |
Basic earnings per common share (in dollars per share) | $ 0.57 | $ (0.57) | $ 1.45 | $ 0.33 |
Basic weighted average common shares (in shares) | 67.5 | 67.9 | 67.5 | 68.3 |
Diluted earnings per common share (in dollars per share) | $ 0.56 | $ (0.57) | $ 1.45 | $ 0.33 |
Diluted weighted average common shares (in shares) | 67.7 | 68.2 | 67.8 | 68.6 |
Comprehensive income: | ||||
Net income including noncontrolling interest | $ 38.7 | $ (37.9) | $ 99.2 | $ 23.4 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (4.7) | 12.2 | (23) | 29.8 |
Cash flow hedges, net of income tax benefit of $3.5 and $5.5 for the three months ended September 30, 2018 and 2017, respectively, and net of income tax benefit of $5.2 and income tax expense of $1.1 for the nine months ended September 30, 2018 and 2017, respectively | (5.6) | (8.7) | (8.4) | 1.8 |
Other comprehensive income (loss) | (10.3) | 3.5 | (31.4) | 31.6 |
Comprehensive income (loss) including noncontrolling interest | 28.5 | (34.4) | 67.8 | 55 |
Comprehensive income (loss) attributable to noncontrolling interest | 0.1 | 1.1 | (1.2) | 2.2 |
Comprehensive income (loss) attributable to World Fuel | $ 28.4 | $ (35.5) | $ 69.1 | $ 52.8 |
Consolidated Statements of In_2
Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Derivative instruments, income tax expense (benefit) | $ (3.5) | $ (5.5) | $ (5.2) | $ 1.1 |
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 Equity |
Balance as of beginning 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 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | 23.4 | 22.8 | 22.8 | ||||
Cash dividends declared | (8.2) | (8.2) | (8.2) | ||||
Distribution of noncontrolling interest | (0.4) | (0.4) | |||||
Amortization of share-based payment awards | 15.3 | 15.3 | 15.3 | ||||
Issuance (cancellation) of common stock related to share-based payment awards | 0 | ||||||
Issuance (cancellation) of common stock related to share-based payment awards (in shares) | (0.4) | ||||||
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards | (4) | (4) | (4) | ||||
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards (in shares) | 0 | ||||||
Purchases of common stock | (61.9) | (61.9) | (61.9) | ||||
Purchases of common stock (in shares) | (1.7) | ||||||
Other comprehensive income (loss) | 31.6 | 30 | 30 | 1.6 | |||
Balance as of end of period at Sep. 30, 2017 | 1,935.8 | $ 0.7 | 349.3 | 1,693.9 | (124.8) | 1,919 | 16.8 |
Balance (in shares) at Sep. 30, 2017 | 67.7 | ||||||
Balance as of beginning 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 | |||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | $ 99.2 | 98.1 | 98.1 | 1.1 | |||
Cash dividends declared | (12.1) | (12.1) | (12.1) | ||||
Amortization of share-based payment awards | 8 | 8 | 8 | ||||
Issuance (cancellation) of common stock related to share-based payment awards | 0 | ||||||
Issuance (cancellation) of common stock related to share-based payment awards (in shares) | 0.2 | ||||||
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards | (2.2) | (2.2) | (2.2) | ||||
Purchases of common stock | (20) | (20) | (20) | ||||
Purchases of common stock (in shares) | (0.7) | ||||||
Other comprehensive income (loss) | (31.4) | (30.2) | (30.2) | (1.2) | |||
Reclassification of certain tax effects from U.S. Tax Reform | 1.6 | 1.6 | 1.6 | ||||
Balance as of end of period at Sep. 30, 2018 | $ 1,781.2 | $ 0.7 | $ 340.8 | $ 1,580.4 | $ (156.7) | $ 1,765.2 | $ 16 |
Balance (in shares) at Sep. 30, 2018 | 67 | 67 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income including noncontrolling interest | $ 99.2 | $ 23.4 |
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities: | ||
Depreciation and amortization | 59 | 64.1 |
Provision for bad debt | 7.6 | 6.3 |
Valuation allowance against the net U.S. deferred tax assets | 0 | 76.9 |
Share-based payment award compensation costs | 8 | 15.3 |
Deferred income tax benefit | (1.8) | (21.2) |
Foreign currency losses, net | 4.9 | 8.4 |
Other | (0.8) | (2.4) |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable, net (reduced by beneficial interests received in exchange for accounts receivables sold of $109.3 million and $82.1 million for the three months ended September 30, 2018 and 2017, respectively, and $353.0 million and $239.2 million for the nine months ended September 30, 2018 and 2017, respectively.) | (775.5) | (492.6) |
Inventories | (177.1) | (69.5) |
Prepaid expenses | (17.2) | (9.8) |
Short-term derivative assets, net | (35.7) | 28.4 |
Other current assets | (36.9) | (49.7) |
Cash collateral with financial counterparties | 40 | (15.6) |
Other non-current assets | (39.3) | (19.3) |
Accounts payable | 554 | 253.7 |
Customer deposits | (1.1) | 6.4 |
Accrued expenses and other current liabilities | (6.4) | 0 |
Non-current income tax, net and other long-term liabilities | 3.2 | 5.9 |
Total adjustments | (415.2) | (214.5) |
Net cash used in operating activities | (316) | (191.1) |
Cash flows from investing activities: | ||
Cash receipts of retained beneficial interests in receivable sales | 357.5 | 236.3 |
Acquisition of businesses, net of cash acquired | (21) | (94.6) |
Capital expenditures | (44.7) | (37.8) |
Other investing activities, net | 7.3 | (0.5) |
Net cash provided by investing activities | 299 | 103.4 |
Cash flows from financing activities: | ||
Borrowings of debt | 4,663.5 | 3,500.1 |
Repayments of debt | (4,841.2) | (3,492.6) |
Dividends paid on common stock | (12.1) | (12.3) |
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards | (2.2) | (4) |
Purchases of common stock | (20) | (61.9) |
Other financing activities, net | 0 | (2) |
Net cash used in financing activities | (212) | (72.7) |
Effect of exchange rate changes on cash and cash equivalents | (1.3) | 7.8 |
Net decrease in cash and cash equivalents | (230.3) | (152.6) |
Cash and cash equivalents, as of beginning of period | 372.3 | 698.6 |
Cash and cash equivalents, as of end of period | $ 142.1 | $ 546 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Supplemental Schedule of Noncash Investing and Financing Activities | ||||
Cash dividends declared, but not yet paid | $ 4.1 | $ 4.1 | ||
Beneficial interest obtained in exchange for accounts receivable sold | $ 109.3 | $ 82.1 | $ 353 | $ 239.2 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
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 Quarterly Report on Form 10‑Q ("10-Q 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. 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. We prepared the consolidated financial statements following the requirements of the United States (“U.S.”) Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by accounting principles generally accepted in the U.S. (“U.S. GAAP”) can be condensed or omitted. Revenues, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be representative of those for the full year. In our opinion, all adjustments necessary for a fair statement of the financial statements, which are of a normal and recurring nature, have been made for the interim periods reported. The information included in this 10-Q Report should be read in conjunction with the consolidated financial statements and accompanying notes included in our 2017 Annual Report on Form 10-K (“ 2017 10-K Report”). Certain amounts in the consolidated financial statements and associated notes may not add due to rounding. All percentages have been calculated using unrounded amounts. There have been no significant changes, other than those related to the adopted new accounting standards below, in the Company's accounting policies from those disclosed in our 2017 10‑K Report. The significant accounting policies we use for quarterly financial reporting are disclosed in Note 1 of the “Notes to the Consolidated Financial Statements” included in our 2017 10‑K Report, and in the adopted accounting standards below. Adoption of New Accounting Standard Revenue Recognition (Topic 606): Revenue from Contracts with Customers. In May 2014, ASU 2014-09 was issued. Under this ASU and subsequently issued amendments, we recognize the amount of revenue when delivery is made and our customer obtains control, and we are entitled to compensation for performance completed. The updated standard replaced most existing revenue recognition guidance in U.S. GAAP. We adopted this standard as of January 1, 2018 using the modified retrospective adoption approach, and elected to apply it only to those contracts that were not considered completed contracts as of this adoption date. This approach required us to recognize the cumulative effect of initially applying the new standard as an adjustment to the opening balance of retained earnings. This cumulative adjustment did not have a material impact on our financial statements. Income Statement - Reporting Comprehensive Income (Topic 220). In February 2018, ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, was issued. ASU 2018-02 provides the option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate tax rate in the U.S. Tax Cuts and Jobs Act ("Tax Reform Act") is recorded. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted. This updated standard allows for adoption in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Reform Act is recognized. We adopted this updated standard in the first quarter of 2018 , and subsequently reclassified the tax rate disparity to retained earnings. Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) . In August 2018, ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, was issued. The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The standard also requires the entity (customer) to expense the capitalized implementation costs over the term of the hosting arrangement. We early adopted this updated standard, which did not have a material impact on our consolidated financial statements. Income Taxes (Topic 740). In March 2018, ASU 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, was issued. ASU 2018-05 amends certain SEC material in Topic 740 for the income tax accounting implications of the recently issued U.S. Tax Cuts and Jobs Act ("Tax Reform Act"). We have adopted these amendments and where the accounting under Topic 740 is incomplete for certain specific income tax effects of the Tax Reform Act, we reported provisional amounts. 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 after adoption. This standard was effective at the beginning of our 2018 fiscal year and did not have a material impact on our consolidated financial statements and 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 hedge accounting requirements, creating more transparency around how economic results are presented and disclosed on the consolidated financial statements and accompanying footnote disclosures. We early adopted this updated standard, which did not have a material impact on our consolidated financial statements. We have provided updated disclosures in Note 3. Derivatives. Cash Flows: 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 and we have provided an updated line item attributable to retained beneficial interests associated with our receivables purchase agreements on our consolidated statements of cash flows. The adoption resulted in a $ 236.3 million retrospective reclassification of the beneficial interest received in exchange for accounts receivable sales for the nine months ended September 30, 2017 from cash flows from operating activities to cash flows from investing activities. Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory. In October 2016, ASU 2016-16 was issued. The update prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. This standard is effective at the beginning of our 2018 fiscal year. The adoption of this ASU did not have a material impact on our consolidated financial statements and disclosures. Cash Flows: Statement of Cash Flows (Topic 230): Restricted Cash. In November 2016, ASU 2016-18 was issued. The update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This standard is effective at the beginning of our 2018 fiscal year. The adoption of this ASU did not have a material impact on our consolidated financial statements and disclosures. Accounting Standards Issued but Not Yet Adopted Leases (Topic 842). |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2018 Acquisition During the first quarter of 2018 , we completed one acquisition in the land segment. The financial position, results of operations and cash flows of the 2018 acquisition has been included in our consolidated financial statements since its acquisition date and did not have a material impact on our consolidated revenue and net income for the nine months ended September 30, 2018 . 2017 Acquisitions 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 ("U.K."), Germany, Italy, France, Australia and New Zealand. During 2016, we completed the acquisitions of the aviation fueling operations in Canada, the U.K. and France. During the first quarter of 2017 , we completed the acquisition of substantially all of the remaining airport locations in Italy, Germany, Australia and New Zealand. In addition to the above acquisitions, we completed two acquisitions during the first quarter of 2017 which were not significant individually or in the aggregate. The following table summarizes the aggregate consideration paid for acquisitions during the nine months ended September 30, 2017 and the amounts of the assets acquired and liabilities assumed, recognized at the acquisition date. (In millions) Cash paid for acquisition of businesses $ 87.6 Non-monetary consideration 4.3 Purchase price $ 91.9 Assets acquired: Property and equipment 10.3 Goodwill and identifiable intangible assets 79.8 Other current and long-term assets 8.8 Liabilities assumed: Long-term liabilities and deferred tax liabilities (7.0 ) Purchase price $ 91.9 The goodwill assigned, of which $22.4 million is anticipated to be deductible for tax purposes, is attributable primarily to the expected synergies and other benefits that we believe will result from combining the operations acquired with the operations of our aviation segment. The identifiable intangible assets consists of $33.4 million of customer relationships with weighted average lives of 9.9 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 significant impact on our revenue and net income for the three and nine months ended September 30, 2017 . Pro forma information for the 2017 |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable We have receivables purchase agreements (“RPAs”) with Wells Fargo and Citibank that allow for the sale of up to an aggregate of $725.0 million of our accounts receivable. Under the RPAs, we sold $6.1 billion and $4.6 billion of accounts receivables and collected $6.0 billion and $4.5 billion of accounts receivables for the nine months ended September 30, 2018 and September 30, 2017 , respectively. The fees and financing costs under the RPA were $14.2 million and $8.7 million, for the nine months ended September 30, 2018 and September 30, 2017 , respectively. As of September 30, 2018 and December 31, 2017 , our sold accounts receivable under the RPAs was $553.7 million and $377.3 million |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 of fluctuations in foreign currency exchange rates. If the derivative instrument is not designated in a hedge relationship, changes in the estimated fair market value are recognized as a component of revenue, cost of revenue, or other income (expense) 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. 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 transactions affect earnings. Cash flows for our hedging instruments are classified in the same category as the underlying 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. The following describes our derivative classifications: Fair Value Hedges. Includes derivative contracts we hold to hedge the risk of changes in the price of our inventory. Cash Flow Hedges. Includes certain derivative contracts we execute to mitigate the risk of price or foreign currency volatility in forecasted transactions. Non-designated Derivatives. Includes derivatives we primarily transact to mitigate the risk of market price fluctuations in the form of swaps or futures contracts, 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 As of September 30, December 31, September 30, December 31, 2018 2017 2018 2017 Derivative Instruments Consolidated Balance Sheets location Derivatives designated as hedging instruments Commodity contracts Short-term derivative assets, net $ 56.9 $ 0.4 $ 93.3 $ 0.5 Accrued expenses and other current liabilities — 2.3 — 43.1 $ 56.9 $ 2.7 $ 93.3 $ 43.6 Foreign currency contracts Short-term derivative assets, net $ — $ — $ 0.4 $ — Accrued expenses and other current liabilities 0.1 — — — $ 0.1 $ — $ 0.4 $ — Total derivatives designated as hedging instruments $ 56.9 $ 2.7 $ 93.7 $ 43.6 Derivatives not designated as hedging instruments Commodity contracts Short-term derivative assets, net $ 322.8 $ 191.4 $ 225.8 $ 123.3 Identifiable intangible and other non-current assets 76.1 18.2 49.9 5.2 Accrued expenses and other current liabilities 89.8 86.1 179.0 138.2 Other long-term liabilities 11.2 5.2 31.0 13.5 $ 499.9 $ 300.9 $ 485.7 $ 280.2 Foreign currency contracts Short-term derivative assets, net $ 1.8 $ 4.5 $ 0.3 $ 2.8 Accrued expenses and other current liabilities 0.5 3.9 2.0 5.7 Other long-term liabilities — — — 0.2 $ 2.3 $ 8.5 $ 2.3 $ 8.7 Total derivatives not designated as hedging instruments $ 502.2 $ 309.4 $ 488.0 $ 288.9 Total derivatives $ 559.1 $ 312.0 $ 581.6 $ 332.5 For information regarding our derivative instruments measured at fair value after netting and collateral see Note 6. 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 September 30, 2018 (in millions): As of September 30, Derivative Instruments Units 2018 Commodity contracts Long BBL 77.2 Short BBL (74.3 ) Foreign currency exchange contracts Sell U.S. dollar, buy other currencies USD (96.9 ) Buy U.S. dollar, sell other currencies USD 188.4 As of September 30, 2018 , and December 31, 2017 , the following amounts were recorded on the consolidated balance sheets related to cumulative basis adjustments for fair value hedges (in million): Line item in the Consolidated Balance Sheets in which the hedged item is included Carrying Amount of Hedged Asset/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset/(Liabilities) As of As of September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Inventory $ 68.5 $ 50.9 $ 4.7 $ 2.7 The following table presents the effect of fair value and cash flow hedges on income and expense line items in our Consolidated Statements of Income and Comprehensive Income (in millions): Location and Amount of Gain and (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships For the Three Months Ended September 30, 2018 September 30, 2017 Revenue Cost of Revenue Revenue Cost of Revenue Total amounts of income and expense line items in which the effects of fair value or cash flow hedged are recorded $ 10,429.5 $ 10,162.8 $ 8,543.0 $ 8,303.1 Gains or Loss on fair value hedge relationships Commodity contracts Hedged Item — 8.7 — 0.8 Derivatives designated as hedging instruments — (7.1 ) — (23.1 ) Gains or Loss on cash flow hedge relationships Commodity contracts Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (6.6 ) 12.7 (8.4 ) 2.8 Total amount of income and expense line items excluding the impact of hedges $ 10,436.1 $ 10,177.2 $ 8,551.4 $ 8,283.6 Location and Amount of Gain and (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships For the Nine Months Ended September 30, 2018 September 30, 2017 Revenue Cost of Revenue Revenue Cost of Revenue Total amounts of income and expense line items in which the effects of fair value or cash flow hedged are recorded $ 29,761.7 $ 29,005.4 $ 24,823.4 $ 24,121.1 Gains or Loss on fair value hedge relationships Commodity contracts Hedged Item — 25.4 — (1.3 ) Derivatives designated as hedging instruments — (23.5 ) — (16.4 ) Gains or Loss on cash flow hedge relationships Commodity contracts Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (30.6 ) 41.1 (2.6 ) (1.0 ) Total amount of income and expense line items excluding the impact of hedges $ 29,792.3 $ 29,048.4 $ 24,826.0 $ 24,102.5 For the three and nine months ended September 30, 2018 and 2017 , there were no gains or losses recognized in earnings related to our fair value or cash flow hedges that were excluded from the assessment of hedge effectiveness. 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, Consolidated Statements of Income and Comprehensive Income (in millions): Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income For the Three Months Ended Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income For the Three Months Ended September 30, September 30, Derivative Instruments 2018 2017 Location 2018 2017 Commodity contracts $ (46.4 ) $ (83.0 ) Revenue $ (6.6 ) $ (8.4 ) Commodity contracts 46.9 68.7 Cost of Revenue 12.7 2.8 Foreign Currency contracts (0.1 ) — Other Income (expense) net (0.7 ) — Total (Loss) Gain $ 0.3 $ (14.3 ) Total (Loss) Gain $ 5.5 $ (5.6 ) Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income For the Nine Months Ended Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income For the Nine Months Ended September 30, September 30, Derivative Instruments 2018 2017 Location 2018 2017 Commodity contracts $ (74.1 ) $ 23.3 Revenue $ (30.6 ) $ (2.6 ) Commodity contracts 77.0 (25.2 ) Cost of Revenue 41.1 (1.0 ) Foreign Currency contracts (1.3 ) — Other Income (expense) net (0.7 ) — Total Gain $ 1.6 $ (1.8 ) Total Gain $ 9.9 $ (3.6 ) 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 Three Months Ended September 30, Derivative Instruments - Non-designated Location 2018 2017 Commodity contracts Revenue $ 17.5 $ (31.2 ) Cost of revenue (21.4 ) 47.9 $ (3.9 ) $ 16.7 Foreign currency contracts Revenue $ 0.2 $ (1.0 ) Other (expense), net (2.1 ) (2.5 ) $ (1.9 ) $ (3.5 ) Total (Loss) Gain $ (5.8 ) $ 13.2 Amount of Realized and Unrealized Gain (Loss) For the Nine Months Ended September 30, Derivative Instruments - Non-designated Location 2018 2017 Commodity contracts Revenue $ 61.6 $ 37.1 Cost of revenue (65.2 ) 11.7 $ (3.6 ) $ 48.8 Foreign currency contracts Revenue $ 1.1 $ (3.1 ) Other (expense), net 1.2 (8.9 ) $ 2.3 $ (12.0 ) Total Gain $ (1.3 ) $ 36.8 Credit-Risk-Related Contingent Features We enter into derivative instrument contracts which may require us to periodically provide collateral. Certain derivative contracts contain credit-risk-related contingent clauses which are triggered by credit events. These credit events may include the requirement to provide 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 September 30, 2018 As of December 31, 2017 Net derivatives liability positions with credit contingent features $ 11.1 $ 11.8 Maximum potential collateral requirements $ 11.1 $ 11.8 At September 30, 2018 and December 31, 2017 , there was no |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill arises because the purchase price paid for our acquisitions 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 for impairment. The following table provides the components of and changes in the carrying amount of goodwill (in millions): Aviation Land Total Balance as of December 31, 2017 $ 326.9 $ 518.5 $ 845.5 Additions — 13.4 13.4 Foreign exchange and other adjustments (4.1 ) 0.9 (3.2 ) Balance as of September 30, 2018 $ 322.8 $ 532.8 $ 855.6 |
Debt, Interest Income, Expense
Debt, Interest Income, Expense and Other Finance Costs | 9 Months Ended |
Sep. 30, 2018 | |
Debt, Interest Income, Expense and Other Finance Costs [Abstract] | |
Debt, Interest Income, Expense and Other Finance Costs | Debt, Interest Income, Expense and Other Finance Costs Our debt consisted of the following (in millions): As of September 30, December 31, 2018 2017 Credit Facility $ 209.0 $ 60.0 Term Loans 523.2 835.8 Capital leases 7.7 10.4 Other 2.4 4.0 Total debt $ 742.3 $ 910.2 Current maturities of long-term debt and capital leases $ 35.7 $ 25.6 Long-term debt $ 706.6 $ 884.6 The following table provides additional information about our interest income (expense), and other financing costs, net, for the periods presented (in millions): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Interest income $ 0.8 $ 1.2 $ 2.7 $ 3.9 Interest expense and other financing costs (19.1 ) (17.0 ) (55.1 ) (46.2 ) $ (18.3 ) $ (15.8 ) $ (52.5 ) $ (42.2 ) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
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 significantly different than market rates. Based on the fair value hierarchy, our debt of $742.3 million and $910.2 million as of September 30, 2018 and December 31, 2017 , respectively, and our notes receivable of $26.9 million and $44.9 million as of September 30, 2018 and December 31, 2017 , respectively, are categorized in Level 2. The following table presents information about our gross assets and liabilities that are measured at fair value on a recurring basis (in millions): Fair Value measurements as of September 30, 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Assets: Commodities contracts $ 421.8 $ 131.4 $ 3.5 $ 556.7 Foreign currency contracts — 2.4 — 2.4 Cash surrender value of life insurance — 6.4 — 6.4 Total assets at fair value $ 421.8 $ 140.2 $ 3.5 $ 565.5 Liabilities: Commodities contracts $ 414.7 $ 161.7 $ 2.5 $ 579.0 Foreign currency contracts — 2.6 — 2.6 Total liabilities at fair value $ 414.7 $ 164.3 $ 2.5 $ 581.6 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 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 September 30, 2018 and December 31, 2017 , 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 the 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 September 30, 2018 Gross Amounts Gross Amounts Gross Amounts Net Amounts Cash without Recognized Offset Presented Collateral Right of Offset Net Amounts Assets: Commodities contracts $ 556.7 $ 474.2 $ 82.5 $ — $ — $ 82.5 Foreign currency contracts 2.4 1.2 1.2 — — 1.2 Total assets at fair value $ 559.1 $ 475.4 $ 83.7 $ — $ — $ 83.7 Liabilities: Commodities contracts $ 579.0 $ 474.2 $ 104.8 $ — $ — $ 104.8 Foreign currency contracts 2.6 1.2 1.4 — — 1.4 Total liabilities at fair value $ 581.6 $ 475.4 $ 106.2 $ — $ — $ 106.2 Fair Value as of December 31, 2017 Gross Amounts Gross Amounts Gross Amounts Net Amounts Cash without Recognized Offset Presented Collateral 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 At September 30, 2018 and December 31, 2017 , we did not present any amounts gross on our consolidated balance sheet where we had the right of offset. 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 September 30, 2018 , one counterparty, with credit risk in the amount of $3.8 million |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax provision for the periods presented and the respective effective income tax rates for such periods are as follows (in millions, except for income tax rates): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Income tax provision $ 23.0 $ 82.6 $ 42.7 $ 92.2 Effective income tax rate 37.3 % 185.0 % 30.1 % 79.8 % Our provision for income taxes for the three months ended September 30, 2018 was $23.0 million resulting in an effective income tax rate of 37.3% . The provision includes an adjustment for an income tax expense of $1.5 million , net, for discrete items primarily related to a change in valuation allowance in the U.S. Without the $1.5 million in discrete items, the effective income tax rate would have been 34.9% for the three months ended September 30, 2018 . Our provision for income taxes for the three months ended September 30, 2017 was $82.6 million resulting in an effective tax rate of 185% . The provision includes a valuation allowance recorded against our U.S. deferred tax assets of $76.9 million . The valuation allowance was comprised of $24.0 million of deferred tax assets generated during 2017 and $52.9 million related to deferred tax assets generated in previous years. In addition, the provision also included an income tax expense of $1.7 million , net, for discrete items related to changes in estimates in uncertain tax positions, and an adjustment for stock based compensation. Without the $76.9 million valuation allowance and the $1.7 million in discrete items, the three months ended September 30, 2017 . effective income tax rate would have been 12.5% . Our provision for income taxes for the nine months ended September 30, 2018 was $42.7 million resulting in an effective income tax rate of 30.1% . The provision includes an adjustment for an income tax benefit of $7.4 million , net, for discrete items primarily related to an adjustment pursuant to the accounting of the Tax Reform Act, changes in the valuation allowance in various jurisdictions, and an adjustment for stock based compensation in accordance with ASU 2016-09. Without the $7.4 million benefit in discrete items, the effective income tax rate would have been 35.3% for the nine months ended September 30, 2018. Our provision for income taxes for the nine months ended September 30, 2017 was $92.2 million resulting in an effective tax rate of 79.8% . The provision includes a valuation allowance of $76.9 million and other discrete amounts, net, of $5.6 million related to changes in estimates in uncertain tax positions, and an adjustment for stock based compensation in accordance with ASU 2016-09. Without the valuation allowance of $76.9 million and other discrete items, the effective income tax rate would have been 8.3% for the nine months ended September 30, 2017. Our provision for income taxes for each of the three and nine months ended September 30, 2018 and 2017 was calculated based on the estimated annual effective income tax rate for 2018 and 2017 fiscal years. The actual effective income tax rate for the 2018 fiscal year may be materially different as a result of differences between estimated versus actual results and the geographic tax jurisdictions in which the results are earned. We have various income tax returns under examination both in the U.S. and foreign jurisdictions. The most significant of these are in South Korea for the 2011 to 2014 tax years, Denmark for the 2013 to 2015 tax years and the U.S. for the 2013 to 2016 tax years. In 2017 , the South Korean branch of one of our subsidiaries received income tax assessment notices for the years 2011 to 2014 totaling $10.2 million (KRW 11.3 billion ). We believe that these assessments are without merit and are currently appealing the actions. During the quarter ended March 31, 2018, one of our subsidiaries in Denmark received an audit inquiry from the Danish tax authority relating to transfer pricing and related issues for the tax years 2013 to 2015. In addition, in 2017, we received a notice of examination from the U.S. Internal Revenue Service for the 2013 to 2016 tax years. We are currently responding to the requests from the U.S. and Danish tax authorities. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers We enter into contracts with customers in various ways including via master supply or blanket sales agreement when combined with some form of nomination and acceptance such as a purchase order or delivery ticket, stand-alone agreements, 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 they obtain control, the sales price is determinable, and collectability is reasonably assured. Fulfillment costs, including those associated with certain transportation costs are included in the transaction price, while taxes assessed by a government authority and certain fees charged by third parties are excluded. Revenue from services, including energy procurement advisory services, 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 generally charge a nominal fixed monthly fee coupled with a per transaction fee for the services we provide our customers. For our service contracts, we have applied the practical expedient to recognize revenue in the amount to which we have a right to invoice if we have a right to consideration from a customer in an amount that corresponds directly with the value to the customer of our performance completed to date. We record fuel sales and services, except revenue from merchant 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 the customer has obtained control are 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. The following table presents our revenues from contracts with customers disaggregated by major geographic areas we conduct business in. Prior period amounts have not been adjusted under the modified retrospective method (in millions). For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Aviation $ 379.8 $ 257.1 $ 1,135.5 $ 764.1 Land 0.7 0.8 2.6 1.5 Marine 978.3 808.8 2,581.9 2,547.5 Asia Pacific $ 1,358.9 $ 1,066.7 $ 3,720.0 $ 3,313.1 Aviation $ 1,122.1 $ 752.0 $ 2,754.9 $ 1,821.8 Land 605.1 548.6 1,920.6 1,680.9 Marine 914.7 652.6 2,384.3 1,993.3 EMEA $ 2,641.9 $ 1,953.2 $ 7,059.8 $ 5,496.1 Aviation $ 468.0 $ 331.9 $ 1,435.5 $ 964.4 Land 136.1 179.3 476.7 508.3 Marine 156.6 127.9 439.9 416.4 LATAM $ 760.8 $ 639.1 $ 2,352.1 $ 1,889.1 Aviation $ 3,098.7 $ 2,420.7 $ 9,019.3 $ 6,972.2 Land 2,078.4 2,031.4 6,179.3 5,893.2 Marine 433.6 307.3 1,071.5 784.1 North America $ 5,610.7 $ 4,759.4 $ 16,270.1 $ 13,649.5 Other revenues (excluded from ASC 606) $ 57.3 $ 124.6 $ 359.8 $ 475.7 $ 10,429.5 $ 8,543.0 $ 29,761.7 $ 24,823.4 Our contract assets and liabilities balances and the changes in these balances were not material for the three and nine months ended September 30, 2018 . Within our land and aviation segments, contracts with customers, include multi-year fuel sales contracts, which are priced at market-based indices and require minimum volume purchase commitments from our customers. The consideration expected from these contracts is considered variable due to the market-based pricing and the variability is not resolved until delivery is made to our customers. The variable consideration is allocated entirely to the respective performance obligation. We applied the optional exemptions from disclosing the information about our remaining performance obligations from these contracts. Additionally, we applied the optional exemptions from disclosing the information about our remaining performance obligations for contracts from our service contracts in the amount to which we have the right to invoice or for contracts with customers that have an original expected duration of one year or less. Other practical expedients applied affecting our measurement and recognition of revenue as well as our disclosures relate to our treatment of shipping and handling and taxes. If we perform shipping and handling activities after our customer obtains control |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | 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 fuel-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, and private aircraft. In addition, we supply products and services to U.S. and foreign government, intergovernmental and military customers, such as the North Atlantic Treaty Organization (NATO) and the U.S. Defense Logistics Agency. 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 and income from operations by segment is as follows (in millions): For the Three Months Ended For the Nine Months Ended September 30, September 30, Revenue: 2018 2017 2018 2017 Aviation segment $ 5,025.3 $ 3,705.8 $ 14,218.9 $ 10,531.6 Land segment 2,854.4 2,770.5 8,675.3 8,117.9 Marine segment 2,549.8 2,066.7 6,867.5 6,173.9 $ 10,429.5 $ 8,543.0 $ 29,761.7 $ 24,823.4 Gross profit: Aviation segment $ 140.7 $ 123.9 $ 378.0 $ 334.8 Land segment 83.0 85.5 273.8 270.5 Marine segment 43.0 30.5 104.5 97.0 $ 266.7 $ 239.9 $ 756.3 $ 702.3 Income from operations: Aviation segment $ 76.4 $ 61.6 $ 188.3 $ 151.7 Land segment 7.8 13.1 37.7 46.7 Marine segment 14.4 4.3 30.9 19.9 98.6 79.1 256.9 218.4 Corporate overhead - unallocated (20.5 ) (17.8 ) (60.4 ) (55.5 ) $ 78.2 $ 61.3 $ 196.4 $ 162.8 Information concerning our accounts receivable, net and total assets by segment is as follows (in millions): As of September 30, December 31, 2018 2017 Accounts receivable, net: Aviation segment, net of allowance for bad debt of $11.1 and $10.8 as of September 30, 2018 and December 31, 2017, respectively $ 1,107.9 $ 1,013.0 Land segment, net of allowance for bad debt of $2.8 and $6.6 as of September 30, 2018 and December 31, 2017, respectively 955.4 874.7 Marine segment, net of allowance for bad debt of $10.7 and $10.4 as of September 30, 2018 and December 31, 2017, respectively 1,043.6 817.9 $ 3,106.9 $ 2,705.6 Total assets: Aviation segment $ 2,397.8 $ 2,240.4 Land segment 2,171.3 2,091.4 Marine segment 1,277.4 1,097.1 Corporate 161.5 158.9 $ 6,008.0 $ 5,587.8 |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | 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): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Numerator: Net income attributable to World Fuel $ 38.2 $ (38.5 ) $ 98.1 $ 22.8 Denominator: Weighted average common shares for basic earnings per common share 67.5 67.9 67.5 68.3 Effect of dilutive securities 0.2 0.3 0.3 0.3 Weighted average common shares for diluted earnings per common share 67.7 68.2 67.8 68.6 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 1.0 1.6 1.3 1.4 Basic earnings per common share $ 0.57 $ (0.57 ) $ 1.45 $ 0.33 Diluted earnings per common share $ 0.56 $ (0.57 ) $ 1.45 $ 0.33 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Tax Matters We are regularly 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, Brazil and South Korea, where the amounts under controversy may be material. In certain cases, we may be required to pay the assessed amount prior to final determination while we are challenging the assessment and the timing of these payments may have an adverse effect on our cash flows during the relevant period. During the quarter ended December 31, 2016, the South Korean branch (“WFSK”) of one of our subsidiaries received assessments of approximately $10.2 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 September 30, 2018 , 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. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring We previously initiated an enterprise-wide restructuring plan that was 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 in 2019. The restructuring plan involves reviewing non-core businesses and assets, our organizational structure, and expected business prospects in the markets we serve, as well as our existing technology platforms. Accordingly, based on the nature of the activities being reviewed, we cannot reasonably estimate the ultimate cost that will be incurred. We are currently assessing the strategic fit of certain international operations where it has become increasingly more challenging to conduct our core operations and generate profits. During the nine months ended September 30, 2018 , we incurred $12.2 million in restructuring charges, comprised primarily of employee-related costs, which are included in compensation and employee benefits on our consolidated statement of income and in accrued expenses and other current liabilities on our consolidated balance sheet. The following table provides a summary of our restructuring activities during the nine months ended September 30, 2018 and our accrued restructuring charges as of September 30, 2018, which is included in accrued expenses and other current liabilities on our consolidated balance sheet (in millions): Aviation Land Marine Corporate Consolidated Balance as of December 31, 2017 $ 0.7 $ 25.0 $ 1.3 $ 5.0 $ 32.0 Employee-related costs incurred 1.6 5.6 1.4 3.6 12.2 Paid during the period (0.5 ) (12.5 ) (1.0 ) (4.2 ) (18.2 ) Restructuring charges as of September 30, 2018 $ 1.8 $ 18.1 $ 1.8 $ 4.4 $ 26.1 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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 Quarterly Report on Form 10‑Q ("10-Q 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. 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. |
Use of Estimates | Certain amounts in the consolidated financial statements and associated notes may not add due to rounding. All percentages have been calculated using unrounded amounts |
Adoption of New Accounting Standard and Accounting Standards Issued but Not Yet Adopted | Adoption of New Accounting Standard Revenue Recognition (Topic 606): Revenue from Contracts with Customers. In May 2014, ASU 2014-09 was issued. Under this ASU and subsequently issued amendments, we recognize the amount of revenue when delivery is made and our customer obtains control, and we are entitled to compensation for performance completed. The updated standard replaced most existing revenue recognition guidance in U.S. GAAP. We adopted this standard as of January 1, 2018 using the modified retrospective adoption approach, and elected to apply it only to those contracts that were not considered completed contracts as of this adoption date. This approach required us to recognize the cumulative effect of initially applying the new standard as an adjustment to the opening balance of retained earnings. This cumulative adjustment did not have a material impact on our financial statements. Income Statement - Reporting Comprehensive Income (Topic 220). In February 2018, ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, was issued. ASU 2018-02 provides the option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate tax rate in the U.S. Tax Cuts and Jobs Act ("Tax Reform Act") is recorded. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted. This updated standard allows for adoption in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Reform Act is recognized. We adopted this updated standard in the first quarter of 2018 , and subsequently reclassified the tax rate disparity to retained earnings. Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) . In August 2018, ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, was issued. The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The standard also requires the entity (customer) to expense the capitalized implementation costs over the term of the hosting arrangement. We early adopted this updated standard, which did not have a material impact on our consolidated financial statements. Income Taxes (Topic 740). In March 2018, ASU 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, was issued. ASU 2018-05 amends certain SEC material in Topic 740 for the income tax accounting implications of the recently issued U.S. Tax Cuts and Jobs Act ("Tax Reform Act"). We have adopted these amendments and where the accounting under Topic 740 is incomplete for certain specific income tax effects of the Tax Reform Act, we reported provisional amounts. 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 after adoption. This standard was effective at the beginning of our 2018 fiscal year and did not have a material impact on our consolidated financial statements and 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 hedge accounting requirements, creating more transparency around how economic results are presented and disclosed on the consolidated financial statements and accompanying footnote disclosures. We early adopted this updated standard, which did not have a material impact on our consolidated financial statements. We have provided updated disclosures in Note 3. Derivatives. Cash Flows: 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 and we have provided an updated line item attributable to retained beneficial interests associated with our receivables purchase agreements on our consolidated statements of cash flows. The adoption resulted in a $ 236.3 million retrospective reclassification of the beneficial interest received in exchange for accounts receivable sales for the nine months ended September 30, 2017 from cash flows from operating activities to cash flows from investing activities. Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory. In October 2016, ASU 2016-16 was issued. The update prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. This standard is effective at the beginning of our 2018 fiscal year. The adoption of this ASU did not have a material impact on our consolidated financial statements and disclosures. Cash Flows: Statement of Cash Flows (Topic 230): Restricted Cash. In November 2016, ASU 2016-18 was issued. The update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This standard is effective at the beginning of our 2018 fiscal year. The adoption of this ASU did not have a material impact on our consolidated financial statements and disclosures. Accounting Standards Issued but Not Yet Adopted Leases (Topic 842). In February 2016, ASU 2016-02, Leases, was issued. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for direct financing and operating leases. Upon adoption, this standard will require all lessees to recognize a right of use asset and a liability to make lease payments (lease liability) on the balance sheet, except for leases with durations of twelve months or less. Lessees (for capital and operating leases) must apply a modified retrospective transition approach for leases existing at or after the beginning of the earliest comparative period presented in the consolidated financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. This standard is effective at the beginning of our 2019 fiscal year. In preparation for adoption of the standard, we developed a cross-functional team and engaged a third-party service provider to assist us throughout our evaluation, including the selection of a lease software and contract administration platform. We continue to evaluate the overall impact the adoption of this new guidance will have on our consolidated financial statements and related disclosures. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of estimated purchase price allocation for the acquisition | The following table summarizes the aggregate consideration paid for acquisitions during the nine months ended September 30, 2017 and the amounts of the assets acquired and liabilities assumed, recognized at the acquisition date. (In millions) Cash paid for acquisition of businesses $ 87.6 Non-monetary consideration 4.3 Purchase price $ 91.9 Assets acquired: Property and equipment 10.3 Goodwill and identifiable intangible assets 79.8 Other current and long-term assets 8.8 Liabilities assumed: Long-term liabilities and deferred tax liabilities (7.0 ) Purchase price $ 91.9 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 As of September 30, December 31, September 30, December 31, 2018 2017 2018 2017 Derivative Instruments Consolidated Balance Sheets location Derivatives designated as hedging instruments Commodity contracts Short-term derivative assets, net $ 56.9 $ 0.4 $ 93.3 $ 0.5 Accrued expenses and other current liabilities — 2.3 — 43.1 $ 56.9 $ 2.7 $ 93.3 $ 43.6 Foreign currency contracts Short-term derivative assets, net $ — $ — $ 0.4 $ — Accrued expenses and other current liabilities 0.1 — — — $ 0.1 $ — $ 0.4 $ — Total derivatives designated as hedging instruments $ 56.9 $ 2.7 $ 93.7 $ 43.6 Derivatives not designated as hedging instruments Commodity contracts Short-term derivative assets, net $ 322.8 $ 191.4 $ 225.8 $ 123.3 Identifiable intangible and other non-current assets 76.1 18.2 49.9 5.2 Accrued expenses and other current liabilities 89.8 86.1 179.0 138.2 Other long-term liabilities 11.2 5.2 31.0 13.5 $ 499.9 $ 300.9 $ 485.7 $ 280.2 Foreign currency contracts Short-term derivative assets, net $ 1.8 $ 4.5 $ 0.3 $ 2.8 Accrued expenses and other current liabilities 0.5 3.9 2.0 5.7 Other long-term liabilities — — — 0.2 $ 2.3 $ 8.5 $ 2.3 $ 8.7 Total derivatives not designated as hedging instruments $ 502.2 $ 309.4 $ 488.0 $ 288.9 Total derivatives $ 559.1 $ 312.0 $ 581.6 $ 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 September 30, 2018 (in millions): As of September 30, Derivative Instruments Units 2018 Commodity contracts Long BBL 77.2 Short BBL (74.3 ) Foreign currency exchange contracts Sell U.S. dollar, buy other currencies USD (96.9 ) Buy U.S. dollar, sell other currencies USD 188.4 |
Impact of derivatives designated as fair value hedges on the consolidated statements of income and comprehensive income | As of September 30, 2018 , and December 31, 2017 , the following amounts were recorded on the consolidated balance sheets related to cumulative basis adjustments for fair value hedges (in million): Line item in the Consolidated Balance Sheets in which the hedged item is included Carrying Amount of Hedged Asset/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset/(Liabilities) As of As of September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Inventory $ 68.5 $ 50.9 $ 4.7 $ 2.7 |
Effect of fair value and cash flow hedges on income and expense | The following table presents the effect of fair value and cash flow hedges on income and expense line items in our Consolidated Statements of Income and Comprehensive Income (in millions): Location and Amount of Gain and (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships For the Three Months Ended September 30, 2018 September 30, 2017 Revenue Cost of Revenue Revenue Cost of Revenue Total amounts of income and expense line items in which the effects of fair value or cash flow hedged are recorded $ 10,429.5 $ 10,162.8 $ 8,543.0 $ 8,303.1 Gains or Loss on fair value hedge relationships Commodity contracts Hedged Item — 8.7 — 0.8 Derivatives designated as hedging instruments — (7.1 ) — (23.1 ) Gains or Loss on cash flow hedge relationships Commodity contracts Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (6.6 ) 12.7 (8.4 ) 2.8 Total amount of income and expense line items excluding the impact of hedges $ 10,436.1 $ 10,177.2 $ 8,551.4 $ 8,283.6 Location and Amount of Gain and (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships For the Nine Months Ended September 30, 2018 September 30, 2017 Revenue Cost of Revenue Revenue Cost of Revenue Total amounts of income and expense line items in which the effects of fair value or cash flow hedged are recorded $ 29,761.7 $ 29,005.4 $ 24,823.4 $ 24,121.1 Gains or Loss on fair value hedge relationships Commodity contracts Hedged Item — 25.4 — (1.3 ) Derivatives designated as hedging instruments — (23.5 ) — (16.4 ) Gains or Loss on cash flow hedge relationships Commodity contracts Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (30.6 ) 41.1 (2.6 ) (1.0 ) Total amount of income and expense line items excluding the impact of hedges $ 29,792.3 $ 29,048.4 $ 24,826.0 $ 24,102.5 |
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, Consolidated Statements of Income and Comprehensive Income (in millions): Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income For the Three Months Ended Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income For the Three Months Ended September 30, September 30, Derivative Instruments 2018 2017 Location 2018 2017 Commodity contracts $ (46.4 ) $ (83.0 ) Revenue $ (6.6 ) $ (8.4 ) Commodity contracts 46.9 68.7 Cost of Revenue 12.7 2.8 Foreign Currency contracts (0.1 ) — Other Income (expense) net (0.7 ) — Total (Loss) Gain $ 0.3 $ (14.3 ) Total (Loss) Gain $ 5.5 $ (5.6 ) Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income For the Nine Months Ended Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income For the Nine Months Ended September 30, September 30, Derivative Instruments 2018 2017 Location 2018 2017 Commodity contracts $ (74.1 ) $ 23.3 Revenue $ (30.6 ) $ (2.6 ) Commodity contracts 77.0 (25.2 ) Cost of Revenue 41.1 (1.0 ) Foreign Currency contracts (1.3 ) — Other Income (expense) net (0.7 ) — Total Gain $ 1.6 $ (1.8 ) Total Gain $ 9.9 $ (3.6 ) |
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 Three Months Ended September 30, Derivative Instruments - Non-designated Location 2018 2017 Commodity contracts Revenue $ 17.5 $ (31.2 ) Cost of revenue (21.4 ) 47.9 $ (3.9 ) $ 16.7 Foreign currency contracts Revenue $ 0.2 $ (1.0 ) Other (expense), net (2.1 ) (2.5 ) $ (1.9 ) $ (3.5 ) Total (Loss) Gain $ (5.8 ) $ 13.2 Amount of Realized and Unrealized Gain (Loss) For the Nine Months Ended September 30, Derivative Instruments - Non-designated Location 2018 2017 Commodity contracts Revenue $ 61.6 $ 37.1 Cost of revenue (65.2 ) 11.7 $ (3.6 ) $ 48.8 Foreign currency contracts Revenue $ 1.1 $ (3.1 ) Other (expense), net 1.2 (8.9 ) $ 2.3 $ (12.0 ) Total Gain $ (1.3 ) $ 36.8 |
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 September 30, 2018 As of December 31, 2017 Net derivatives liability positions with credit contingent features $ 11.1 $ 11.8 Maximum potential collateral requirements $ 11.1 $ 11.8 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | The following table provides the components of and changes in the carrying amount of goodwill (in millions): Aviation Land Total Balance as of December 31, 2017 $ 326.9 $ 518.5 $ 845.5 Additions — 13.4 13.4 Foreign exchange and other adjustments (4.1 ) 0.9 (3.2 ) Balance as of September 30, 2018 $ 322.8 $ 532.8 $ 855.6 |
Debt, Interest Income, Expens_2
Debt, Interest Income, Expense and Other Finance Costs (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt, Interest Income, Expense and Other Finance Costs [Abstract] | |
Schedule of debt | Our debt consisted of the following (in millions): As of September 30, December 31, 2018 2017 Credit Facility $ 209.0 $ 60.0 Term Loans 523.2 835.8 Capital leases 7.7 10.4 Other 2.4 4.0 Total debt $ 742.3 $ 910.2 Current maturities of long-term debt and capital leases $ 35.7 $ 25.6 Long-term debt $ 706.6 $ 884.6 |
Schedule of interest expense and other financing costs, net | The following table provides additional information about our interest income (expense), and other financing costs, net, for the periods presented (in millions): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Interest income $ 0.8 $ 1.2 $ 2.7 $ 3.9 Interest expense and other financing costs (19.1 ) (17.0 ) (55.1 ) (46.2 ) $ (18.3 ) $ (15.8 ) $ (52.5 ) $ (42.2 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 (in millions): Fair Value measurements as of September 30, 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Assets: Commodities contracts $ 421.8 $ 131.4 $ 3.5 $ 556.7 Foreign currency contracts — 2.4 — 2.4 Cash surrender value of life insurance — 6.4 — 6.4 Total assets at fair value $ 421.8 $ 140.2 $ 3.5 $ 565.5 Liabilities: Commodities contracts $ 414.7 $ 161.7 $ 2.5 $ 579.0 Foreign currency contracts — 2.6 — 2.6 Total liabilities at fair value $ 414.7 $ 164.3 $ 2.5 $ 581.6 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 |
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 September 30, 2018 Gross Amounts Gross Amounts Gross Amounts Net Amounts Cash without Recognized Offset Presented Collateral Right of Offset Net Amounts Assets: Commodities contracts $ 556.7 $ 474.2 $ 82.5 $ — $ — $ 82.5 Foreign currency contracts 2.4 1.2 1.2 — — 1.2 Total assets at fair value $ 559.1 $ 475.4 $ 83.7 $ — $ — $ 83.7 Liabilities: Commodities contracts $ 579.0 $ 474.2 $ 104.8 $ — $ — $ 104.8 Foreign currency contracts 2.6 1.2 1.4 — — 1.4 Total liabilities at fair value $ 581.6 $ 475.4 $ 106.2 $ — $ — $ 106.2 Fair Value as of December 31, 2017 Gross Amounts Gross Amounts Gross Amounts Net Amounts Cash without Recognized Offset Presented Collateral 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 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax provision and the respective effective income tax rates | Our income tax provision for the periods presented and the respective effective income tax rates for such periods are as follows (in millions, except for income tax rates): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Income tax provision $ 23.0 $ 82.6 $ 42.7 $ 92.2 Effective income tax rate 37.3 % 185.0 % 30.1 % 79.8 % |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue disaggregated by major geographic areas | The following table presents our revenues from contracts with customers disaggregated by major geographic areas we conduct business in. Prior period amounts have not been adjusted under the modified retrospective method (in millions). For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Aviation $ 379.8 $ 257.1 $ 1,135.5 $ 764.1 Land 0.7 0.8 2.6 1.5 Marine 978.3 808.8 2,581.9 2,547.5 Asia Pacific $ 1,358.9 $ 1,066.7 $ 3,720.0 $ 3,313.1 Aviation $ 1,122.1 $ 752.0 $ 2,754.9 $ 1,821.8 Land 605.1 548.6 1,920.6 1,680.9 Marine 914.7 652.6 2,384.3 1,993.3 EMEA $ 2,641.9 $ 1,953.2 $ 7,059.8 $ 5,496.1 Aviation $ 468.0 $ 331.9 $ 1,435.5 $ 964.4 Land 136.1 179.3 476.7 508.3 Marine 156.6 127.9 439.9 416.4 LATAM $ 760.8 $ 639.1 $ 2,352.1 $ 1,889.1 Aviation $ 3,098.7 $ 2,420.7 $ 9,019.3 $ 6,972.2 Land 2,078.4 2,031.4 6,179.3 5,893.2 Marine 433.6 307.3 1,071.5 784.1 North America $ 5,610.7 $ 4,759.4 $ 16,270.1 $ 13,649.5 Other revenues (excluded from ASC 606) $ 57.3 $ 124.6 $ 359.8 $ 475.7 $ 10,429.5 $ 8,543.0 $ 29,761.7 $ 24,823.4 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of revenue, gross profit and income from operations by segment | Information concerning our revenue, gross profit and income from operations by segment is as follows (in millions): For the Three Months Ended For the Nine Months Ended September 30, September 30, Revenue: 2018 2017 2018 2017 Aviation segment $ 5,025.3 $ 3,705.8 $ 14,218.9 $ 10,531.6 Land segment 2,854.4 2,770.5 8,675.3 8,117.9 Marine segment 2,549.8 2,066.7 6,867.5 6,173.9 $ 10,429.5 $ 8,543.0 $ 29,761.7 $ 24,823.4 Gross profit: Aviation segment $ 140.7 $ 123.9 $ 378.0 $ 334.8 Land segment 83.0 85.5 273.8 270.5 Marine segment 43.0 30.5 104.5 97.0 $ 266.7 $ 239.9 $ 756.3 $ 702.3 Income from operations: Aviation segment $ 76.4 $ 61.6 $ 188.3 $ 151.7 Land segment 7.8 13.1 37.7 46.7 Marine segment 14.4 4.3 30.9 19.9 98.6 79.1 256.9 218.4 Corporate overhead - unallocated (20.5 ) (17.8 ) (60.4 ) (55.5 ) $ 78.2 $ 61.3 $ 196.4 $ 162.8 |
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 September 30, December 31, 2018 2017 Accounts receivable, net: Aviation segment, net of allowance for bad debt of $11.1 and $10.8 as of September 30, 2018 and December 31, 2017, respectively $ 1,107.9 $ 1,013.0 Land segment, net of allowance for bad debt of $2.8 and $6.6 as of September 30, 2018 and December 31, 2017, respectively 955.4 874.7 Marine segment, net of allowance for bad debt of $10.7 and $10.4 as of September 30, 2018 and December 31, 2017, respectively 1,043.6 817.9 $ 3,106.9 $ 2,705.6 Total assets: Aviation segment $ 2,397.8 $ 2,240.4 Land segment 2,171.3 2,091.4 Marine segment 1,277.4 1,097.1 Corporate 161.5 158.9 $ 6,008.0 $ 5,587.8 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
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): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Numerator: Net income attributable to World Fuel $ 38.2 $ (38.5 ) $ 98.1 $ 22.8 Denominator: Weighted average common shares for basic earnings per common share 67.5 67.9 67.5 68.3 Effect of dilutive securities 0.2 0.3 0.3 0.3 Weighted average common shares for diluted earnings per common share 67.7 68.2 67.8 68.6 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 1.0 1.6 1.3 1.4 Basic earnings per common share $ 0.57 $ (0.57 ) $ 1.45 $ 0.33 Diluted earnings per common share $ 0.56 $ (0.57 ) $ 1.45 $ 0.33 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Summary of restructuring activities included in accrued expenses other current liabilities | The following table provides a summary of our restructuring activities during the nine months ended September 30, 2018 and our accrued restructuring charges as of September 30, 2018, which is included in accrued expenses and other current liabilities on our consolidated balance sheet (in millions): Aviation Land Marine Corporate Consolidated Balance as of December 31, 2017 $ 0.7 $ 25.0 $ 1.3 $ 5.0 $ 32.0 Employee-related costs incurred 1.6 5.6 1.4 3.6 12.2 Paid during the period (0.5 ) (12.5 ) (1.0 ) (4.2 ) (18.2 ) Restructuring charges as of September 30, 2018 $ 1.8 $ 18.1 $ 1.8 $ 4.4 $ 26.1 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cash receipts of retained beneficial interests in receivable sales | $ 357.5 | $ 236.3 |
Reclassification from cash flows from operating activities | 316 | 191.1 |
Reclassification to cash flows from investing activities | $ 299 | 103.4 |
ASU 2016-15 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification from cash flows from operating activities | (236.3) | |
Reclassification to cash flows from investing activities | $ 236.3 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018acquisition | Mar. 31, 2017acquisition | Mar. 31, 2016airport | Sep. 30, 2017USD ($) | |
Acquisitions 2,017 | ||||
Acquisitions | ||||
Number of businesses acquired | acquisition | 1 | 2 | ||
Goodwill anticipated to be deductible for tax purposes | $ 22.4 | |||
Acquisitions 2017 | Customer relationships | ||||
Acquisitions | ||||
Identifiable intangible assets | $ 33.4 | |||
Weighted average amortizable lives of identifiable intangible assets | 9 years 10 months 24 days | |||
Aviation fueling operations of certain ExxonMobil affiliates | ||||
Acquisitions | ||||
Number of airports to be acquired (more than) | airport | 80 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Business Acquisition [Line Items] | ||
Cash paid for acquisition of businesses | $ 21 | $ 94.6 |
Acquisitions 2,017 | ||
Business Acquisition [Line Items] | ||
Cash paid for acquisition of businesses | 87.6 | |
Non-monetary consideration | 4.3 | |
Estimated purchase price | 91.9 | |
Assets acquired: | ||
Property and equipment | 10.3 | |
Goodwill and identifiable intangible assets | 79.8 | |
Other current and long-term assets | 8.8 | |
Liabilities assumed: | ||
Long-term liabilities and deferred tax liabilities | (7) | |
Estimated purchase price | $ 91.9 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Receivables [Abstract] | ||
Authorized amount of receivables sold under RPAs | $ 725,000,000 | |
Accounts receivable sold under RPAs | 6,100,000,000 | $ 4,600,000,000 |
Amount collected of accounts receivables under repurchase agreement | 6,000,000,000 | 4,500,000,000 |
Fees and financing costs under the RPA | 14,200,000 | 8,700,000 |
Account receivable sold | $ 553,700,000 | $ 377,300,000 |
Derivatives - Balance Sheet Loc
Derivatives - Balance Sheet Location (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | $ 559.1 | $ 312 |
Derivative liabilities | 581.6 | 332.5 |
Derivatives designated as hedging instruments | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | 56.9 | 2.7 |
Derivative liabilities | 93.7 | 43.6 |
Derivatives designated as hedging instruments | Commodity contracts | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | 56.9 | 2.7 |
Derivative liabilities | 93.3 | 43.6 |
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 | ||
Derivative assets | 56.9 | 0.4 |
Derivative liabilities | 93.3 | 0.5 |
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 | ||
Derivative assets | 0 | 2.3 |
Derivative liabilities | 0 | 43.1 |
Derivatives designated as hedging instruments | Foreign currency contracts | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | 0.1 | 0 |
Derivative liabilities | 0.4 | 0 |
Derivatives 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 | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0.4 | 0 |
Derivatives 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 | ||
Derivative assets | 0.1 | 0 |
Derivative liabilities | 0 | 0 |
Derivatives not designated as hedging instruments | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | 502.2 | 309.4 |
Derivative liabilities | 488 | 288.9 |
Derivatives not designated as hedging instruments | Commodity contracts | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | 499.9 | 300.9 |
Derivative liabilities | 485.7 | 280.2 |
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 | ||
Derivative assets | 322.8 | 191.4 |
Derivative liabilities | 225.8 | 123.3 |
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 | ||
Derivative assets | 76.1 | 18.2 |
Derivative liabilities | 49.9 | 5.2 |
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 | ||
Derivative assets | 89.8 | 86.1 |
Derivative liabilities | 179 | 138.2 |
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 | ||
Derivative assets | 11.2 | 5.2 |
Derivative liabilities | 31 | 13.5 |
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 | ||
Derivative assets | 2.3 | 8.5 |
Derivative liabilities | 2.3 | 8.7 |
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 | ||
Derivative assets | 1.8 | 4.5 |
Derivative liabilities | 0.3 | 2.8 |
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 | ||
Derivative assets | 0.5 | 3.9 |
Derivative liabilities | 2 | 5.7 |
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 | ||
Derivative assets | 0 | 0 |
Derivative liabilities | $ 0 | $ 0.2 |
Derivatives - Gross Notional Va
Derivatives - Gross Notional Values (Details) bbl in Millions, $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($)bbl | |
Long | Commodity contracts | |
Derivative instruments, at their respective fair value positions | |
Notional value of commodity contracts (in barrels) | bbl | 77.2 |
Long | Foreign currency contracts | USD | |
Derivative instruments, at their respective fair value positions | |
Notional amount of foreign currency exchange contracts | $ | $ 188.4 |
Short | Commodity contracts | |
Derivative instruments, at their respective fair value positions | |
Notional value of commodity contracts (in barrels) | bbl | 74.3 |
Short | Foreign currency contracts | USD | |
Derivative instruments, at their respective fair value positions | |
Notional amount of foreign currency exchange contracts | $ | $ 96.9 |
Derivatives - Effect on Income
Derivatives - Effect on Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Gain (loss) on derivative | |||||
Carrying Amount of Hedged Asset/(Liabilities) | $ 68,500,000 | $ 50,900,000 | $ 68,500,000 | $ 50,900,000 | |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset/(Liabilities) | 4,700,000 | 2,700,000 | 4,700,000 | 2,700,000 | |
Revenue | 10,429,500,000 | 8,543,000,000 | 29,761,700,000 | 24,823,400,000 | |
Cost of revenue | 10,162,800,000 | 8,303,100,000 | 29,005,400,000 | 24,121,100,000 | |
Gains or Loss on fair value hedge relationships | |||||
Gain (Loss) recognized in earnings related to fair value or cash flow hedges excluded from assessment of hedge effectiveness | 0 | 0 | 0 | 0 | |
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | 300,000 | (14,300,000) | 1,600,000 | (1,800,000) | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 5,500,000 | (5,600,000) | 9,900,000 | (3,600,000) | |
Potential Collateral Requirements for Derivative Liabilities with Credit-Risk-Contingent Features | |||||
Net derivatives liability positions with credit contingent features | 11,100,000 | 11,100,000 | $ 11,800,000 | ||
Maximum potential collateral requirements | 11,100,000 | 11,100,000 | 11,800,000 | ||
Collateral posted and held by our counterparties | 0 | 0 | $ 0 | ||
Revenue | |||||
Gain (loss) on derivative | |||||
Revenue | 10,429,500,000 | 8,543,000,000 | 29,761,700,000 | 24,823,400,000 | |
Gains or Loss on fair value hedge relationships | |||||
Hedged Item | 0 | 0 | 0 | 0 | |
Derivatives designated as hedging instruments | 0 | 0 | 0 | 0 | |
Total amount of income and expense line items excluding the impact of hedges, Revenue | 10,436,100,000 | 8,551,400,000 | 29,792,300,000 | 24,826,000,000 | |
Cost of revenue | |||||
Gain (loss) on derivative | |||||
Cost of revenue | 10,162,800,000 | 8,303,100,000 | 29,005,400,000 | 24,121,100,000 | |
Gains or Loss on fair value hedge relationships | |||||
Hedged Item | 8,700,000 | 800,000 | 25,400,000 | (1,300,000) | |
Derivatives designated as hedging instruments | (7,100,000) | (23,100,000) | (23,500,000) | (16,400,000) | |
Total amount of income and expense line items excluding the impact of hedges, Cost of Revenue | 10,177,200,000 | 8,283,600,000 | 29,048,400,000 | 24,102,500,000 | |
Commodity contracts | Revenue | |||||
Gains or Loss on fair value hedge relationships | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | (46,400,000) | (83,000,000) | (74,100,000) | 23,300,000 | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (6,600,000) | (8,400,000) | (30,600,000) | (2,600,000) | |
Commodity contracts | Cost of revenue | |||||
Gains or Loss on fair value hedge relationships | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | 46,900,000 | 68,700,000 | 77,000,000 | (25,200,000) | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 12,700,000 | 2,800,000 | 41,100,000 | (1,000,000) | |
Foreign currency contracts | Other Income (expense) net | |||||
Gains or Loss on fair value hedge relationships | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | (100,000) | 0 | (1,300,000) | 0 | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (700,000) | 0 | (700,000) | 0 | |
Derivatives not designated as hedging instruments | |||||
Gains or Loss on fair value hedge relationships | |||||
Amount of Realized and Unrealized Gain (Loss) | (5,800,000) | 13,200,000 | (1,300,000) | 36,800,000 | |
Derivatives not designated as hedging instruments | Commodity contracts | |||||
Gains or Loss on fair value hedge relationships | |||||
Amount of Realized and Unrealized Gain (Loss) | (3,900,000) | 16,700,000 | (3,600,000) | 48,800,000 | |
Derivatives not designated as hedging instruments | Commodity contracts | Revenue | |||||
Gains or Loss on fair value hedge relationships | |||||
Amount of Realized and Unrealized Gain (Loss) | 17,500,000 | (31,200,000) | 61,600,000 | 37,100,000 | |
Derivatives not designated as hedging instruments | Commodity contracts | Cost of revenue | |||||
Gains or Loss on fair value hedge relationships | |||||
Amount of Realized and Unrealized Gain (Loss) | (21,400,000) | 47,900,000 | (65,200,000) | 11,700,000 | |
Derivatives not designated as hedging instruments | Foreign currency contracts | |||||
Gains or Loss on fair value hedge relationships | |||||
Amount of Realized and Unrealized Gain (Loss) | (1,900,000) | (3,500,000) | 2,300,000 | (12,000,000) | |
Derivatives not designated as hedging instruments | Foreign currency contracts | Revenue | |||||
Gains or Loss on fair value hedge relationships | |||||
Amount of Realized and Unrealized Gain (Loss) | 200,000 | (1,000,000) | 1,100,000 | (3,100,000) | |
Derivatives not designated as hedging instruments | Foreign currency contracts | Other Income (expense) net | |||||
Gains or Loss on fair value hedge relationships | |||||
Amount of Realized and Unrealized Gain (Loss) | (2,100,000) | (2,500,000) | 1,200,000 | (8,900,000) | |
Accumulated gain (loss), cash flow hedge, including noncontrolling interest | Reclassification out of AOCI | Revenue | |||||
Gain (loss) on derivative | |||||
Revenue | (6,600,000) | (8,400,000) | (30,600,000) | (2,600,000) | |
Accumulated gain (loss), cash flow hedge, including noncontrolling interest | Reclassification out of AOCI | Cost of revenue | |||||
Gain (loss) on derivative | |||||
Cost of revenue | $ 12,700,000 | $ 2,800,000 | $ 41,100,000 | $ (1,000,000) |
Goodwill - Goodwill (Details)
Goodwill - Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2017 | $ 845.5 |
Additions | 13.4 |
Foreign exchange and other adjustments | (3.2) |
Balance as of September 30, 2018 | 855.6 |
Aviation segment | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2017 | 326.9 |
Additions | 0 |
Foreign exchange and other adjustments | (4.1) |
Balance as of September 30, 2018 | 322.8 |
Land segment | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2017 | 518.5 |
Additions | 13.4 |
Foreign exchange and other adjustments | 0.9 |
Balance as of September 30, 2018 | $ 532.8 |
Debt, Interest Income, Expens_3
Debt, Interest Income, Expense and Other Finance Costs - Schedule of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total debt | $ 742.3 | $ 910.2 |
Current maturities of long-term debt and capital leases | 35.7 | 25.6 |
Long-term debt | 706.6 | 884.6 |
Credit Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 209 | 60 |
Term Loans | ||
Debt Instrument [Line Items] | ||
Total debt | 523.2 | 835.8 |
Capital leases | ||
Debt Instrument [Line Items] | ||
Total debt | 7.7 | 10.4 |
Other | ||
Debt Instrument [Line Items] | ||
Total debt | $ 2.4 | $ 4 |
Debt, Interest Income, Expens_4
Debt, Interest Income, Expense and Other Finance Costs - Interest Income (Expense), and Other Financing Costs, net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Debt, Interest Income, Expense and Other Finance Costs [Abstract] | ||||
Interest income | $ 0.8 | $ 1.2 | $ 2.7 | $ 3.9 |
Interest expense and other financing costs | (19.1) | (17) | (55.1) | (46.2) |
Interest income (expense) and other financing costs, net | $ (18.3) | $ (15.8) | $ (52.5) | $ (42.2) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Debt | $ 742,300,000 | $ 910,200,000 |
Assets: | ||
Derivative assets | 559,100,000 | 312,000,000 |
Liabilities: | ||
Derivative liabilities | 581,600,000 | 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: | ||
Derivative assets | 556,700,000 | 303,600,000 |
Liabilities: | ||
Derivative liabilities | 579,000,000 | 323,900,000 |
Foreign currency contracts | ||
Assets: | ||
Derivative assets | 2,400,000 | 8,500,000 |
Liabilities: | ||
Derivative liabilities | 2,600,000 | 8,700,000 |
Fair value measured on recurring basis | ||
Assets: | ||
Total assets at fair value | 565,500,000 | 317,700,000 |
Liabilities: | ||
Total liabilities at fair value | 581,600,000 | 332,500,000 |
Fair value measured on recurring basis | Cash surrender value of life insurance | ||
Assets: | ||
Cash surrender value of life insurance | 6,400,000 | 5,600,000 |
Fair value measured on recurring basis | Commodity contracts | ||
Assets: | ||
Derivative assets | 556,700,000 | 303,600,000 |
Liabilities: | ||
Derivative liabilities | 579,000,000 | 323,900,000 |
Fair value measured on recurring basis | Foreign currency contracts | ||
Assets: | ||
Derivative assets | 2,400,000 | 8,500,000 |
Liabilities: | ||
Derivative liabilities | 2,600,000 | 8,700,000 |
Level 1 Inputs | Fair value measured on recurring basis | ||
Assets: | ||
Total assets at fair value | 421,800,000 | 196,300,000 |
Liabilities: | ||
Total liabilities at fair value | 414,700,000 | 210,600,000 |
Level 1 Inputs | Fair value measured on recurring basis | Cash surrender value of life insurance | ||
Assets: | ||
Cash surrender value of life insurance | 0 | 0 |
Level 1 Inputs | Fair value measured on recurring basis | Commodity contracts | ||
Assets: | ||
Derivative assets | 421,800,000 | 196,300,000 |
Liabilities: | ||
Derivative liabilities | 414,700,000 | 210,600,000 |
Level 1 Inputs | Fair value measured on recurring basis | Foreign currency contracts | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 2 Inputs | Fair value measured on recurring basis | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Debt | 742,300,000 | 910,200,000 |
Notes receivable | 26,900,000 | 44,900,000 |
Assets: | ||
Total assets at fair value | 140,200,000 | 120,200,000 |
Liabilities: | ||
Total liabilities at fair value | 164,300,000 | 120,500,000 |
Level 2 Inputs | Fair value measured on recurring basis | Cash surrender value of life insurance | ||
Assets: | ||
Cash surrender value of life insurance | 6,400,000 | 5,600,000 |
Level 2 Inputs | Fair value measured on recurring basis | Commodity contracts | ||
Assets: | ||
Derivative assets | 131,400,000 | 106,100,000 |
Liabilities: | ||
Derivative liabilities | 161,700,000 | 111,800,000 |
Level 2 Inputs | Fair value measured on recurring basis | Foreign currency contracts | ||
Assets: | ||
Derivative assets | 2,400,000 | 8,500,000 |
Liabilities: | ||
Derivative liabilities | 2,600,000 | 8,700,000 |
Level 3 Inputs | Fair value measured on recurring basis | ||
Assets: | ||
Total assets at fair value | 3,500,000 | 1,200,000 |
Liabilities: | ||
Total liabilities at fair value | 2,500,000 | 1,400,000 |
Level 3 Inputs | Fair value measured on recurring basis | Cash surrender value of life insurance | ||
Assets: | ||
Cash surrender value of life insurance | 0 | 0 |
Level 3 Inputs | Fair value measured on recurring basis | Commodity contracts | ||
Assets: | ||
Derivative assets | 3,500,000 | 1,200,000 |
Liabilities: | ||
Derivative liabilities | 2,500,000 | 1,400,000 |
Level 3 Inputs | Fair value measured on recurring basis | Foreign currency contracts | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
Fair Value Measurements - Commo
Fair Value Measurements - Commodity and Foreign Currency Contracts (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | $ 559.1 | $ 312 |
Gross Amounts Offset | 475.4 | 235.2 |
Net Amounts Presented | 83.7 | 76.9 |
Cash Collateral | 0 | 21.2 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 83.7 | 55.7 |
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 581.6 | 332.5 |
Gross Amounts Offset | 475.4 | 235.2 |
Net Amounts Presented | 106.2 | 97.4 |
Cash Collateral | 0 | 39.2 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 106.2 | 58.2 |
Commodity contracts | ||
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | 556.7 | 303.6 |
Gross Amounts Offset | 474.2 | 228.4 |
Net Amounts Presented | 82.5 | 75.1 |
Cash Collateral | 0 | 21.2 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 82.5 | 53.9 |
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 579 | 323.9 |
Gross Amounts Offset | 474.2 | 228.4 |
Net Amounts Presented | 104.8 | 95.4 |
Cash Collateral | 0 | 39.2 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 104.8 | 56.2 |
Foreign currency contracts | ||
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | 2.4 | 8.5 |
Gross Amounts Offset | 1.2 | 6.7 |
Net Amounts Presented | 1.2 | 1.7 |
Cash Collateral | 0 | 0 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 1.2 | 1.7 |
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 2.6 | 8.7 |
Gross Amounts Offset | 1.2 | 6.7 |
Net Amounts Presented | 1.4 | 2 |
Cash Collateral | 0 | 0 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | $ 1.4 | $ 2 |
Fair Value Measurements - Conce
Fair Value Measurements - Concentration of Credit Risk (Details) $ in Millions | Sep. 30, 2018USD ($) |
Three largest counterparties | Concentration of Credit Risk | Credit Exposure | |
Concentration Risk [Line Items] | |
Total credit risk | $ 3.8 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions, ₩ in Billions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017KRW (₩) | |
Income tax provision | $ 23 | $ 82.6 | $ 42.7 | $ 92.2 | ||
Effective income tax rate | 37.30% | 185.00% | 30.10% | 79.80% | ||
Income tax expense, adjustments for ASU 2016-09, adjustment pursuant to SAB-118, and changes in valuation allowance | $ 1.5 | |||||
Effective income tax rate reconciliation, valuation allowance on U.S. deferred tax assets | $ 76.9 | $ 76.9 | ||||
Income tax expense, uncertain tax positions | 1.7 | |||||
Income tax benefit, adjustment pursuant to SAB-118, uncertain tax positions, adjustments for ASU 2016-09, and changes in valuation allowance | $ 7.4 | |||||
Income tax expense due to change in estimate related to uncertain tax position and adjustment for ASU 2016-09 | $ 5.6 | |||||
Tax Authority, South Korea (SRTO) | ||||||
Income tax assessment notice, amount | $ 10.2 | ₩ 11.3 | ||||
2,017 | ||||||
Effective income tax rate reconciliation, valuation allowance on U.S. deferred tax assets | 24 | |||||
2016 and previous | ||||||
Effective income tax rate reconciliation, valuation allowance on U.S. deferred tax assets | $ 52.9 | |||||
Without income tax benefit adjustment and valuation allowance | ||||||
Effective income tax rate | 34.90% | 12.50% | 35.30% | 8.30% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Other revenues (excluded from ASC 606) | $ 57.3 | $ 124.6 | $ 359.8 | $ 475.7 |
Revenue | 10,429.5 | 8,543 | 29,761.7 | 24,823.4 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 1,358.9 | 1,066.7 | 3,720 | 3,313.1 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 2,641.9 | 1,953.2 | 7,059.8 | 5,496.1 |
LATAM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 760.8 | 639.1 | 2,352.1 | 1,889.1 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 5,610.7 | 4,759.4 | 16,270.1 | 13,649.5 |
Aviation segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,025.3 | 3,705.8 | 14,218.9 | 10,531.6 |
Aviation segment | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 379.8 | 257.1 | 1,135.5 | 764.1 |
Aviation segment | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 1,122.1 | 752 | 2,754.9 | 1,821.8 |
Aviation segment | LATAM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 468 | 331.9 | 1,435.5 | 964.4 |
Aviation segment | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 3,098.7 | 2,420.7 | 9,019.3 | 6,972.2 |
Land segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,854.4 | 2,770.5 | 8,675.3 | 8,117.9 |
Land segment | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 0.7 | 0.8 | 2.6 | 1.5 |
Land segment | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 605.1 | 548.6 | 1,920.6 | 1,680.9 |
Land segment | LATAM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 136.1 | 179.3 | 476.7 | 508.3 |
Land segment | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 2,078.4 | 2,031.4 | 6,179.3 | 5,893.2 |
Marine segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,549.8 | 2,066.7 | 6,867.5 | 6,173.9 |
Marine segment | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 978.3 | 808.8 | 2,581.9 | 2,547.5 |
Marine segment | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 914.7 | 652.6 | 2,384.3 | 1,993.3 |
Marine segment | LATAM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 156.6 | 127.9 | 439.9 | 416.4 |
Marine segment | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | $ 433.6 | $ 307.3 | $ 1,071.5 | $ 784.1 |
Business Segments - Income Stat
Business Segments - Income Statement Items (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | |
Information concerning revenue, gross profit and income from operations by segment | ||||
Number of reportable operating business segments | segment | 3 | |||
Revenue: | ||||
Total revenue | $ 10,429.5 | $ 8,543 | $ 29,761.7 | $ 24,823.4 |
Gross profit: | ||||
Gross profit | 266.7 | 239.9 | 756.3 | 702.3 |
Income from operations: | ||||
Income from operations | 78.2 | 61.3 | 196.4 | 162.8 |
Aviation segment | ||||
Revenue: | ||||
Total revenue | 5,025.3 | 3,705.8 | 14,218.9 | 10,531.6 |
Gross profit: | ||||
Gross profit | 140.7 | 123.9 | 378 | 334.8 |
Land segment | ||||
Revenue: | ||||
Total revenue | 2,854.4 | 2,770.5 | 8,675.3 | 8,117.9 |
Gross profit: | ||||
Gross profit | 83 | 85.5 | 273.8 | 270.5 |
Marine segment | ||||
Revenue: | ||||
Total revenue | 2,549.8 | 2,066.7 | 6,867.5 | 6,173.9 |
Gross profit: | ||||
Gross profit | 43 | 30.5 | 104.5 | 97 |
Operating Segments | ||||
Income from operations: | ||||
Income from operations | 98.6 | 79.1 | 256.9 | 218.4 |
Operating Segments | Aviation segment | ||||
Income from operations: | ||||
Income from operations | 76.4 | 61.6 | 188.3 | 151.7 |
Operating Segments | Land segment | ||||
Income from operations: | ||||
Income from operations | 7.8 | 13.1 | 37.7 | 46.7 |
Operating Segments | Marine segment | ||||
Income from operations: | ||||
Income from operations | 14.4 | 4.3 | 30.9 | 19.9 |
Corporate | ||||
Income from operations: | ||||
Income from operations | $ (20.5) | $ (17.8) | $ (60.4) | $ (55.5) |
Business Segments - Balance She
Business Segments - Balance Sheet Items (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts receivable, net: | ||
Accounts receivable, net | $ 3,106.9 | $ 2,705.6 |
Total assets: | ||
Total assets | 6,008 | 5,587.8 |
Aviation segment | ||
Accounts receivable, net: | ||
Accounts receivable, net | 1,107.9 | 1,013 |
Allowance for bad debt | 11.1 | 10.8 |
Land segment | ||
Accounts receivable, net: | ||
Accounts receivable, net | 955.4 | 874.7 |
Allowance for bad debt | 2.8 | 6.6 |
Marine segment | ||
Accounts receivable, net: | ||
Accounts receivable, net | 1,043.6 | 817.9 |
Allowance for bad debt | 10.7 | 10.4 |
Operating Segments | Aviation segment | ||
Total assets: | ||
Total assets | 2,397.8 | 2,240.4 |
Operating Segments | Land segment | ||
Total assets: | ||
Total assets | 2,171.3 | 2,091.4 |
Operating Segments | Marine segment | ||
Total assets: | ||
Total assets | 1,277.4 | 1,097.1 |
Corporate | ||
Total assets: | ||
Total assets | $ 161.5 | $ 158.9 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Net income attributable to World Fuel | $ 38.2 | $ (38.5) | $ 98.1 | $ 22.8 |
Denominator: | ||||
Weighted average common shares for basic earnings per common share (in shares) | 67.5 | 67.9 | 67.5 | 68.3 |
Effect of dilutive securities (in shares) | 0.2 | 0.3 | 0.3 | 0.3 |
Weighted average common shares for diluted earnings per common share (in shares) | 67.7 | 68.2 | 67.8 | 68.6 |
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 | 1.6 | 1.3 | 1.4 |
Basic earnings per common share (in dollars per share) | $ 0.57 | $ (0.57) | $ 1.45 | $ 0.33 |
Diluted earnings per common share (in dollars per share) | $ 0.56 | $ (0.57) | $ 1.45 | $ 0.33 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions, ₩ in Billions | Jun. 30, 2017USD ($) | Jun. 30, 2017KRW (₩) | Dec. 31, 2016USD ($) | Dec. 31, 2016KRW (₩) |
Assessment | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | $ 10.2 | ₩ 11.9 | ||
Additional Assessment | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | $ 17.9 | ₩ 20.1 |
Restructuring (Details)
Restructuring (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2017 | $ 32 |
Employee-related costs incurred | 12.2 |
Paid during the period | (18.2) |
Restructuring charges as of September 30, 2018 | 26.1 |
Operating Segments | Aviation segment | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2017 | 0.7 |
Employee-related costs incurred | 1.6 |
Paid during the period | (0.5) |
Restructuring charges as of September 30, 2018 | 1.8 |
Operating Segments | Land segment | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2017 | 25 |
Employee-related costs incurred | 5.6 |
Paid during the period | (12.5) |
Restructuring charges as of September 30, 2018 | 18.1 |
Operating Segments | Marine segment | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2017 | 1.3 |
Employee-related costs incurred | 1.4 |
Paid during the period | (1) |
Restructuring charges as of September 30, 2018 | 1.8 |
Corporate | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2017 | 5 |
Employee-related costs incurred | 3.6 |
Paid during the period | (4.2) |
Restructuring charges as of September 30, 2018 | $ 4.4 |