Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 22, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-09533 | |
Entity Registrant Name | WORLD FUEL SERVICES CORPORATION | |
Entity Incorporation, State or Country Code | FL | |
Entity Address, Address Line One | 9800 N.W. 41st Street, | |
Entity Address, City or Town | Miami, | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33178 | |
Entity Tax Identification Number | 59-2459427 | |
City Area Code | 305 | |
Local Phone Number | 428-8000 | |
Title of 12(b) Security | Common Stock , $0.01 par value | |
Trading Symbol | INT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 63,015,413 | |
Entity Central Index Key | 0000789460 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 266.2 | $ 652.2 |
Accounts receivable, net of allowance for credit losses of $17.2 million and $26.1 million as of March 31, 2022 and December 31, 2021, respectively | 3,510.2 | 2,355.3 |
Inventories | 680.5 | 477.9 |
Prepaid expenses | 59.3 | 59.2 |
Short-term derivative assets, net | 293.8 | 169.2 |
Other current assets | 215.3 | 305.9 |
Total current assets | 5,025.3 | 4,019.7 |
Property and equipment, net | 473.9 | 348.9 |
Goodwill | 1,244.6 | 861.9 |
Identifiable intangible assets, net | 369.5 | 189.1 |
Other non-current assets | 854.7 | 522.8 |
Total assets | 7,968 | 5,942.4 |
Current liabilities: | ||
Current maturities of long-term debt | 15 | 30.6 |
Accounts payable | 3,447.5 | 2,399.6 |
Short-term derivative liabilities, net | 317.1 | 168.4 |
Customer deposits | 234.9 | 205.5 |
Accrued expenses and other current liabilities | 398 | 292.7 |
Total current liabilities | 4,412.5 | 3,096.7 |
Long-term debt | 869.1 | 478.1 |
Non-current income tax liabilities, net | 208.4 | 213.9 |
Other long-term liabilities | 532.5 | 236.8 |
Total liabilities | 6,022.6 | 4,025.6 |
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, 63.0 and 61.7 issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | 0.6 | 0.6 |
Capital in excess of par value | 206.7 | 168.1 |
Retained earnings | 1,899.4 | 1,880.6 |
Accumulated other comprehensive income (loss) | (165.4) | (136.7) |
Total World Fuel shareholders' equity | 1,941.4 | 1,912.7 |
Noncontrolling interest | 4.1 | 4.1 |
Total equity | 1,945.5 | 1,916.8 |
Total liabilities and equity | $ 7,968 | $ 5,942.4 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 17.2 | $ 26.1 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 0.1 | 0.1 |
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 | 100 |
Common stock, shares issued (in shares) | 63 | 61.7 |
Common stock, shares outstanding (in shares) | 63 | 61.7 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Revenue | $ 12,382 | $ 5,957.9 |
Cost of revenue | 12,151.1 | 5,766.3 |
Gross profit | 230.9 | 191.6 |
Operating expenses: | ||
Compensation and employee benefits | 114.9 | 92.5 |
General and administrative | 74.7 | 59.4 |
Restructuring charges | 0 | 2.1 |
Total operating expenses | 189.6 | 154 |
Income from operations | 41.3 | 37.6 |
Non-operating income (expenses), net: | ||
Interest expense and other financing costs, net | (14.3) | (8.7) |
Other income (expense), net | 5.7 | (1.2) |
Total non-operating income (expense), net | (8.7) | (10) |
Income (loss) before income taxes | 32.6 | 27.6 |
Provision for income taxes | 6.4 | 8.8 |
Net income (loss) including noncontrolling interest | 26.3 | 18.8 |
Net income (loss) attributable to noncontrolling interest | (0.1) | 0 |
Net income (loss) attributable to World Fuel | $ 26.3 | $ 18.9 |
Basic earnings (loss) per common share (in dollars per share) | $ 0.42 | $ 0.30 |
Basic weighted average common shares (in shares) | 63.4 | 63 |
Diluted earnings (loss) per common share (in dollars per share) | $ 0.41 | $ 0.30 |
Diluted weighted average common shares (in shares) | 63.7 | 63.6 |
Comprehensive income: | ||
Net income (loss) including noncontrolling interest | $ 26.3 | $ 18.8 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | (9.4) | (4) |
Cash flow hedges, net of income tax expense (benefit) of ($7.0) and $5.6 for the three months ended March 31, 2022 and 2021, respectively | (19.3) | 16.4 |
Total other comprehensive income (loss) | (28.7) | 12.4 |
Comprehensive income (loss) including noncontrolling interest | (2.4) | 31.2 |
Comprehensive income (loss) attributable to noncontrolling interest | (0.1) | 0 |
Comprehensive income (loss) attributable to World Fuel | $ (2.3) | $ 31.2 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Derivative instruments, income tax expense (benefit) | $ (7) | $ 5.6 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED 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 Income (Loss) | Total World Fuel Shareholders' Equity | Noncontrolling Interest Equity |
Beginning balance (in shares) at Dec. 31, 2020 | 62.9 | ||||||
Beginning balance at Dec. 31, 2020 | $ 1,912.9 | $ 0.6 | $ 204.6 | $ 1,836.7 | $ (132.6) | $ 1,909.3 | $ 3.6 |
Increase (Decrease) in Shareholders' Equity | |||||||
Net income (loss) | 18.8 | 18.9 | 18.9 | ||||
Cash dividends declared | (7.5) | (7.5) | (7.5) | ||||
Amortization of share-based payment awards | 8.7 | 8.7 | 8.7 | ||||
Issuance (cancellation) of common stock related to share-based payment awards (in shares) | 0.1 | ||||||
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards | (2.4) | (2.4) | (2.4) | ||||
Other comprehensive income (loss) | 12.4 | 12.4 | 12.4 | ||||
Other | 0.2 | 0.2 | 0.2 | ||||
Ending balance (in shares) at Mar. 31, 2021 | 63 | ||||||
Ending balance at Mar. 31, 2021 | $ 1,943 | $ 0.6 | 210.8 | 1,848.3 | (120.3) | 1,939.5 | 3.5 |
Beginning balance (in shares) at Dec. 31, 2021 | 61.7 | 61.7 | |||||
Beginning balance at Dec. 31, 2021 | $ 1,916.8 | $ 0.6 | 168.1 | 1,880.6 | (136.7) | 1,912.7 | 4.1 |
Increase (Decrease) in Shareholders' Equity | |||||||
Net income (loss) | 26.3 | 26.3 | 26.3 | (0.1) | |||
Cash dividends declared | (7.6) | (7.6) | (7.6) | ||||
Amortization of share-based payment awards | 3.7 | 3.7 | 3.7 | ||||
Issuance (cancellation) of common stock related to share-based payment awards (in shares) | 0.1 | ||||||
Issuance of common stock for acquisition of a business (in shares) | 1.8 | ||||||
Issuance of common stock for acquisition of a business | 50 | 50 | 50 | ||||
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards | (1.3) | (1.3) | (1.3) | ||||
Purchases of common stock (in shares) | (0.5) | ||||||
Purchases of common stock | (13.7) | (13.7) | (13.7) | ||||
Other comprehensive income (loss) | $ (28.7) | (28.7) | (28.7) | ||||
Ending balance (in shares) at Mar. 31, 2022 | 63 | 63 | |||||
Ending balance at Mar. 31, 2022 | $ 1,945.5 | $ 0.6 | $ 206.7 | $ 1,899.4 | $ (165.4) | $ 1,941.4 | $ 4.1 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) including noncontrolling interest | $ 26.3 | $ 18.8 |
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities: | ||
Depreciation and amortization | 27.2 | 19.8 |
Provision for credit losses | 2 | 3.6 |
Share-based payment award compensation costs | 3.7 | 8.7 |
Deferred income tax expense (benefit) | (4) | (6.8) |
Foreign currency (gains) losses, net | (3.7) | (12.9) |
Other | (16.9) | (5.5) |
Changes in assets and liabilities, net of acquisitions and divestitures: | ||
Accounts receivable, net | (1,051.3) | (438.8) |
Inventories | (140.6) | 11 |
Prepaid expenses | 3.1 | (3) |
Short-term derivative assets, net | (210.6) | 77.3 |
Other current assets | 72.3 | 69.3 |
Cash collateral with counterparties | 56.3 | (4.4) |
Other non-current assets | (108.9) | (4) |
Accounts payable | 996.7 | 394.3 |
Customer deposits | 31.5 | (22.8) |
Accrued expenses and other current liabilities | 158.3 | 0.8 |
Non-current income tax, net and other long-term liabilities | 86.6 | (1.8) |
Total adjustments | (98.3) | 84.6 |
Net cash provided by (used in) operating activities | (72) | 103.4 |
Cash flows from investing activities: | ||
Acquisition of business, net of cash acquired | (639.4) | 0 |
Capital expenditures | (16.7) | (2) |
Other investing activities, net | (1.3) | (0.6) |
Net cash provided by (used in) investing activities | (657.3) | (2.7) |
Cash flows from financing activities: | ||
Borrowings of debt | 1,745.8 | 0.2 |
Repayments of debt | (1,369.7) | (4.5) |
Dividends paid on common stock | (7.4) | (6.1) |
Repurchases of common stock | (13.7) | 0 |
Other financing activities, net | (11.3) | (10.4) |
Net cash provided by (used in) financing activities | 343.7 | (20.8) |
Effect of exchange rate changes on cash and cash equivalents | (0.3) | (3.5) |
Net increase (decrease) in cash and cash equivalents | (386) | 76.5 |
Cash and cash equivalents, as of the beginning of the period | 652.2 | 658.8 |
Cash and cash equivalents, as of the end of the period | $ 266.2 | $ 735.3 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Statement of Cash Flows [Abstract] | ||
Cash dividends declared, but not yet paid | $ 7.6 | $ 7.5 |
Basis of Presentation, New Acco
Basis of Presentation, New Accounting Standards, and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation, New Accounting Standards, and Significant Accounting Policies | 1. Basis of Presentation, New Accounting Standards, and Significant Accounting Policies General 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, land and marine transportation industries. In recent years, we have expanded our land product and service offerings to include energy advisory services and supply fulfillment for natural gas and power to commercial, industrial and government customers. Our intention is to become a leading global energy management company offering a full suite of energy advisory, management and fulfillment services, technology solutions, payment management solutions, as well as sustainability products and services across the energy product spectrum. We will continue to focus on enhancing the portfolio of products and services we provide based on changes in customer demand, including increasing our sustainability offerings and renewable energy solutions in light of the continued global focus on climate change and the related impacts. The Condensed Consolidated Financial Statements and related Notes include our parent company and all subsidiaries where we exercise control, and include the operations of acquired businesses after the completion of their acquisition. The decision of whether or not to consolidate an entity requires consideration of majority voting interests, as well as effective economic or other control over the entity. The Condensed Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes included in our 2021 Annual Report on Form 10-K ("2021 10-K Report"). All intercompany transactions among our businesses have been eliminated. 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 2021 10-K Report. Certain amounts in the Condensed Consolidated Financial Statements and accompanying Notes may not add due to rounding; however, all percentages have been calculated using unrounded amounts. Certain prior period amounts have been reclassified to conform to the current presentation. COVID-19 Throughout 2020 and 2021, the COVID-19 pandemic had a significant impact on the global economy as a whole, and the transportation industries in particular. Many of our customers in these industries, especially commercial airlines, have experienced a substantial decline in business activity arising from the various measures enacted by governments around the world to contain the spread of the virus. While travel and economic activity has begun to improve in various regions, activity in certain parts of the world continues to be negatively impacted by travel restrictions and other quarantine mandates. New Accounting Standards Adoption of New Accounting Standards During 2022, there have been no accounting standards that, upon adoption, had a material impact on the Company's unaudited Condensed Consolidated Financial Statements or processes. Accounting Standards Issued but Not Yet Adopted There have been no recently issued accounting standards not yet adopted by us which are expected, upon adoption, to have a material impact on the Company’s Consolidated Financial Statements or processes. Significant Accounting Policies There have been no significant changes in the Company's accounting policies from those disclosed in our 2021 10-K Report. The significant accounting policies we use for quarterly financial reporting are disclosed in Note 1. Basis of Presentation, New Accounting Standards, and Significant Accounting Policies of the accompanying Notes to the Consolidated Financial Statements included in our 2021 10-K Report. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Accounts Receivable | 2. Accounts Receivable Accounts Receivable and Allowance for Credit Losses When we extend credit on an unsecured basis, our exposure to credit losses depends on the financial condition of our customers and other macroeconomic factors beyond our control, such as global economic conditions or adverse impacts in the industries we serve, changes in oil prices and political instability. We actively monitor and manage our credit exposure and work to respond to both changes in our customers' financial conditions or macroeconomic events. Based on the ongoing credit evaluations of our customers, we adjust credit limits based upon payment history and our customers' current creditworthiness. However, because we extend credit on an unsecured basis to most of our customers, there is a possibility that any accounts receivable not collected may ultimately need to be written off. We had accounts receivable of $3.5 billion and $2.4 billion and an allowance for expected credit losses, primarily related to accounts receivable, of $21.0 million and $29.8 million, as of March 31, 2022 and December 31, 2021, respectively. Changes to the expected credit loss provision during the three months ended March 31, 2022 include global economic outlook considerations as a result of the Company's assessment of reasonable and supportable forward-looking information, including the continued global recovery from the pandemic. Write-offs of uncollectible receivables during the three months ended March 31, 2022 resulted from pre-existing financial difficulties experienced by certain customers. Based on an aging analysis as of March 31, 2022, 96% of our accounts receivable were outstanding less than 60 days. The following table sets forth activities in our allowance for expected credit losses (in millions): For the Three Months Ended March 31, 2022 2021 Balance as of January 1, $ 29.8 $ 57.3 Charges to allowance for credit losses 2.0 3.6 Write-off of uncollectible receivables (11.3) (13.8) Recoveries of credit losses 0.3 0.4 Translation adjustments 0.2 — Balance as of March 31, $ 21.0 $ 47.5 Receivable Sale Programs We have receivable purchase agreements ("RPAs") that allow for the sale of our qualifying accounts receivable in exchange for cash consideration equal to the total balance, less a discount margin, depending on the outstanding accounts receivable at any given time. Accounts receivable sold under the RPAs are accounted for as sales and excluded from Accounts receivable, net of allowance for credit losses on the accompanying Condensed Consolidated Balance Sheets. Fees paid under the RPAs are recorded within Interest expense and other financing costs, net on the Condensed Consolidated Statements of Income and Comprehensive Income . During the three months ended March 31, 2022 and 2021, we sold receivables under the RPAs with an aggregate face value of $2.6 billion and $2.0 billion, respectively, and paid fees of $5.5 million and $4.4 million, respectively. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | 3. Acquisitions 2022 Acquisition On October 28, 2021, we entered into a definitive agreement (the "Purchase Agreement") to acquire all of the outstanding equity interest in Flyers Energy Group, LLC ("Flyers"). Flyers' operations include transportation, commercial fleet fueling, lubricants distribution, and the supply of wholesale, branded and renewable fuels. The acquisition closed on January 3, 2022 for total estimated consideration of $792.2 million, subject to customary adjustments relating to net working capital, indebtedness and transaction expenses. At closing, $642.7 million, inclusive of $19.7 million for estimated net working capital adjustments, was paid in cash and, at the election of the Company, $50.0 million was satisfied through the delivery of 1,768,034 shares of the Company's common stock at a price of $28.28 per share. The remaining $100.0 million was held back to satisfy potential indemnification and other obligations of the seller, with one-half to be released on the first and second anniversary of the closing of the acquisition, in each case subject to reduction in respect to amounts claimed under the Purchase Agreement. The total purchase consideration also includes a receivable of $0.5 million from the seller for the estimated working capital adjustment. The acquisition was accounted for as a business combination and is reported in the land segment. We are in the process of obtaining information to identify and measure all assets acquired and liabilities assumed. The following preliminary purchase price allocation was estimated based on the information obtained to date and is expected to be completed in 2022. The following table summarizes the estimated fair value of the aggregate consideration, and the preliminary allocation of the purchase price to the fair value of the assets acquired and liabilities assumed (in millions): Total Consideration: Cash paid $ 642.7 Estimated working capital adjustment receivable from seller (0.5) Common stock issued to seller 50.0 Amount due to sellers 100.0 Total fair value of consideration $ 792.2 Assets acquired and liabilities assumed: Cash $ 3.3 Accounts receivable 109.2 Inventory 50.9 Property, plant and equipment 126.6 Identifiable intangible assets subject to amortization (1) 162.9 Identifiable intangible assets not subject to amortization (2) 29.3 Accounts payable (38.0) Other assets and liabilities, net (3) (39.0) Net identifiable assets acquired 405.1 Goodwill (4) 387.1 Net assets acquired $ 792.2 (1) Identifiable intangible assets subject to amortization primarily consist of customer and network relationships and other identifiable assets which will be amortized over a weighted average life of 11.6 years. (2) Identifiable intangible assets not subject to amortization include trademarks and trade names acquired. (3) Includes the recognition of right of use assets of $45.0 million and lease liabilities of $46.0 million. (4) Goodwill is attributable primarily to the expected synergies and other benefits that we believe will result from combining the acquired operations with the operations of our land segment. We anticipate that all of the goodwill assigned to the land segment will be deductible for tax purposes. Total revenue and income before income taxes of Flyers included in the Company's Condensed Consolidated Statement of Income for the period from the date of acquisition through March 31, 2022 were $752.5 million and $18.1 million, respectively. The following presents unaudited pro forma combined financial information of the Company for the three months ended March 31, 2021 as if the acquisition of Flyers had been completed on January 1, 2021 (in millions, except per share data): (unaudited) Three Months Ended March 31, 2021 Revenue $ 6,335.6 Net income attributable to World Fuel $ 20.2 The unaudited pro forma combined financial information was based on the historical financial information of World Fuel and Flyers and includes (i) incremental amortization expense to be incurred based on the preliminary fair values of the identifiable intangible assets acquired; (ii) additional interest expense associated with the incremental borrowings under our Credit Facility to finance the acquisition; (iii) nonrecurring transaction costs recognized in connection with the transaction; and (iv) the tax effect of the pro forma adjustments as well as the recognition of income tax expense associated with Flyers' historical statements, calculated using statutory tax rates, as Flyers was comprised of limited liability companies not subject to federal and state income taxes prior to the acquisition. The unaudited pro forma combined financial information does not necessarily reflect what the combined company's financial condition or results of operations would have been had the transaction and the related financing occurred on the dates indicated. The unaudited pro forma financial information also may not be useful in predicting the future financial condition and results of operations of the combined company following the transaction. In addition, the unaudited pro forma combined financial information does not give effect to any cost savings, operating synergies or revenue synergies that may result from the transaction, or the costs to achieve any such synergies. 2021 Acquisition On October 1, 2021, we completed the acquisition of a liquid fuel business which services business and residential customers for a total purchase price of $41.4 million. The transaction was accounted for as a business combination and is reported in our land segment. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 4. Goodwill The following table provides information regarding changes in goodwill during the three months ended March 31, 2022 and 2021 (in millions): Aviation Land Total As of December 31, 2021 $ 400.1 $ 461.8 $ 861.9 2022 acquisition (1) — 387.1 387.1 Foreign currency translation of non-USD functional currency subsidiary goodwill (0.8) (3.5) (4.3) As of March 31, 2022 $ 399.3 $ 845.4 $ 1,244.6 (1) See Note 3. Acquisitions for additional information. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 5. Derivative Instruments We are exposed to a variety of risks including but not limited to, changes in the prices of commodities that we buy or sell, changes in foreign currency exchange rates, changes in interest rates, and the creditworthiness of each of our counterparties. While we attempt to mitigate these fluctuations through hedging, such hedges may not be fully effective. Our risk management program includes the following types of derivative instruments: Fair Value Hedges. Derivative contracts we hold to hedge the risk of changes in the price of our inventory. Cash Flow Hedges. Derivative contracts we execute to mitigate the risk of price and interest rate volatility in forecasted transactions. Non-designated Derivatives. Derivatives we primarily transact to mitigate the risk of market price fluctuations in swaps or futures contracts, as well as certain forward fixed price purchase and sale contracts to hedge the risk of currency rate fluctuations and for portfolio optimization. With the exception of the interest rate swap agreement, which matures in March 2025, the majority of our derivative contracts are expected to settle within the next year. The following table summarizes the gross notional values of our derivative contracts used for risk management purposes (in millions): Unit March 31, 2022 Commodity contracts Long BBL 55.2 Short BBL (51.6) Foreign currency exchange contracts Sell U.S. dollar, buy other currencies USD (301.9) Buy U.S. dollar, sell other currencies USD 536.9 Interest rate contracts Interest rate swap USD 300.0 Assets and Liabilities The following table presents the gross fair value of our derivative instruments and their locations on the Condensed Consolidated Balance Sheets (in millions): Gross Derivative Assets Gross Derivative Liabilities Condensed Consolidated Balance Sheets Location March 31, December 31, March 31, December 31, Derivative Instruments 2022 2021 2022 2021 Derivatives designated as hedging instruments Commodity contracts Short-term derivative assets, net $ 13.6 $ 1.8 $ 12.4 $ 9.7 Short-term derivative liabilities, net 0.4 0.1 1.4 0.4 Interest rate contracts Short-term derivative assets, net 3.7 — — — Other non-current assets 13.3 5.4 — — Short-term derivative liabilities, net — — — 0.3 Total derivatives designated as hedging instruments 31.1 7.3 13.8 10.4 Derivatives not designated as hedging instruments Commodity contracts Short-term derivative assets, net 880.7 516.3 542.6 337.5 Other non-current assets 270.8 112.2 116.2 27.6 Short-term derivative liabilities, net 211.6 117.6 529.8 286.6 Other long-term liabilities 51.8 15.5 192.5 82.1 Foreign currency contracts Short-term derivative assets, net 2.2 3.8 0.6 1.7 Other non-current assets 0.2 0.1 0.1 — Short-term derivative liabilities, net 5.3 0.8 11.1 2.6 Total derivatives not designated as hedging instruments 1,422.7 766.3 1,392.9 738.1 Total derivatives $ 1,453.8 $ 773.6 $ 1,406.8 $ 748.5 For information regarding our derivative instruments measured at fair value after netting and collateral, see Note 8. Fair Value Measurements. The following amounts were recorded on our Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges (in millions): Line item in the Consolidated Balance Sheets in which the hedged item is included Carrying Amount of Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset/(Liabilities) March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Inventory $ 77.5 $ 59.3 $ 14.6 $ 0.6 Earnings and Other Comprehensive Income (Loss) Derivatives Designated as Hedging Instruments The following table presents, on a pre-tax basis, the location and amount of gains (losses) on fair value and cash flow hedges recognized in income in our Condensed Consolidated Statements of Income and Comprehensive Income (in millions): For the Three Months Ended March 31, 2022 March 31, 2021 Revenue Cost of revenue Interest expense and other financing costs, net Revenue Cost of revenue Interest expense and other financing costs, net Total amounts of income and expense line items in which the effects of fair value or cash flow hedged are recorded $ 12,382.0 $ 12,151.1 $ 14.3 $ 5,957.9 $ 5,766.3 $ 11.1 Gains (losses) on fair value hedge relationships: Commodity contracts: Hedged item — 28.6 — — 12.0 — Derivatives designated as hedging instruments — (41.2) — — (8.4) — Gains (losses) on cash flow hedge relationships: Commodity contracts: Amount of gain (loss) reclassified from Accumulated other comprehensive income (loss) into net income (33.0) — — (11.7) 21.0 — Interest rate contracts: Amount of gain (loss) reclassified from Accumulated other comprehensive income (loss) into net income — — (0.3) — — (0.2) Total amount of income and expense line items excluding the impact of hedges $ 12,415.0 $ 12,138.6 $ 14.0 $ 5,969.6 $ 5,791.0 $ 10.8 The following table presents, on a pre-tax basis, the amounts not recorded in Accumulated other comprehensive income (loss) due to intra-period settlement but recognized in Revenue and Cost of revenue in our Condensed Consolidated Statements of Income and Comprehensive Income (in millions): Gain (Loss) Not Recorded in Accumulated other comprehensive income (loss) Due to Intra-Period Settlement For the Three Months Ended March 31, Location 2022 2021 Commodity contracts Revenue $ (75.3) $ (76.8) Commodity contracts Cost of revenue $ 1.4 $ 7.2 For the three months ended March 31, 2022 and 2021, 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. As of March 31, 2022, on a pre-tax basis, $47.3 million is scheduled to be reclassified from Accumulated other comprehensive income (loss) as a decrease to Revenue related to designated commodity cash flow hedges that will mature within the next twelve months. The following tables present the effect and financial statement location of our derivative instruments in cash flow hedging relationships on Accumulated other comprehensive income (loss) and in our Condensed Consolidated Statements of Income and Comprehensive Income (in millions): Amount of Gain (Loss) Recognized in Accumulated other comprehensive income (loss), Net of Income Tax (Expense) Benefit For the Three Months Ended March 31, 2022 2021 Commodity contracts (Revenue) $ (52.7) $ (62.8) Commodity contracts (Cost of revenue) — 84.6 Interest rate contracts (Interest expense and other financing costs, net) 8.6 3.6 Total gain (loss) $ (44.1) $ 25.5 Amount of Gain (Loss) Reclassified from Accumulated other comprehensive income (loss) into Net income (loss), Net of Income Tax (Expense) Benefit For the Three Months Ended March 31, Location 2022 2021 Commodity contracts Revenue $ (24.6) $ (11.7) Commodity contracts Cost of revenue — 21.0 Interest rate contracts Interest expense and other financing costs, net (0.2) (0.2) Total gain (loss) $ (24.8) $ 9.1 Derivatives Not Designated as Hedging Instruments The following table presents the amount and financial statement location in our Condensed Consolidated Statements of Income and Comprehensive Income of realized and unrealized gains (losses) recognized on derivative instruments not designated as hedging instruments (in millions): For the Three Months Ended March 31, Derivative Instruments - Non-designated Location 2022 2021 Commodity contracts Revenue $ 76.9 $ (303.8) Cost of revenue (6.4) 313.0 70.5 9.2 Foreign currency contracts Revenue (0.6) 0.4 Other (expense), net (2.3) 3.3 (2.9) 3.7 Total gain (loss) $ 67.6 $ 12.9 Credit-Risk-Related Contingent Features We enter into derivative contracts which may require us to post collateral periodically. Certain of these derivative contracts contain credit-risk-related contingent clauses which are triggered by credit events. These credit events may include the requirement to post additional collateral or the immediate settlement of the derivative instruments upon the occurrence of a credit downgrade or if certain defined financial ratios fall below an established threshold. The following table presents the potential collateral requirements for derivative liabilities with credit-risk-contingent features (in millions): March 31, 2022 December 31, 2021 Net derivative liability positions with credit contingent features $ 11.0 $ 3.3 Collateral posted and held by our counterparties — — Maximum additional potential collateral requirements $ 11.0 $ 3.3 As of March 31, 2022 and December 31, 2021, there was no collateral held by our counterparties on these derivative contracts with credit-risk-contingent features. |
Debt, Interest Income, Expense,
Debt, Interest Income, Expense, and Other Finance Costs | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt, Interest Income, Expense, and Other Finance Costs | 6. Debt, Interest Income, Expense, and Other Finance Costs Credit Facility On April 1, 2022, the Company entered into Amendment No. 8 to Fourth Amended and Restated Credit Agreement (the "Amendment") to: (i) increase the revolving credit facility to $1.5 billion; (ii) provide a new term loan of $500 million, thereby increasing the total borrowing capacity under the credit facility to $2.0 billion; (iii) modify the pricing of the loans, including the reference rates for various currencies to reflect the discontinuation of LIBOR; (iv) extend the maturity to April 1, 2027; and (v) modify certain financial and other covenants to provide greater operating flexibility. Long-Term Debt Our outstanding debt consists of the following (in millions): March 31, 2022 December 31, 2021 Credit Facility $ 424.8 $ — Term loans 436.7 484.1 Finance leases 19.5 21.2 Other 3.2 3.3 Total debt 884.2 508.7 Less: Current maturities of long-term debt and finance leases (1) 15.0 30.6 Long-term debt $ 869.1 $ 478.1 (1) Current maturities as of March 31, 2022 reflect the terms of the Credit Facility amendment effective April 1, 2022 as discussed above. Interest Expense The following table provides additional information about our Interest income (expense), and other financing costs, net (in millions): For the Three Months Ended March 31, 2022 2021 Interest income $ 2.5 $ 2.3 Interest expense and other financing costs (16.8) (11.1) Interest expense and other financing costs, net $ (14.3) $ (8.7) |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | 7. Shareholders' Equity Cash Dividends During the three months ended March 31, 2022, the Company's Board of Directors declared quarterly cash dividends of $0.12 per common share representing $7.6 million in total dividends, which were paid on April 8, 2022. During the three months ended March 31, 2021, the Company's Board of Directors declared quarterly cash dividends of $0.12 per common share representing $7.5 million in total dividends, which were paid on April 9, 2021. Accumulated Other Comprehensive Income (Loss) Our Accumulated other comprehensive income (loss), consists of foreign currency translation adjustments related to our subsidiaries that have a functional currency other than the U.S. dollar and unrealized gains (losses) from derivative instruments designated as cash flow hedges. The after-tax changes in Accumulated other comprehensive income (loss) by component were as follows (in millions): Balance as of Foreign Currency Translation Adjustments Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Balance as of January 1, 2022 $ (134.0) $ (2.7) $ (136.7) Other comprehensive income (loss) before reclassifications (9.4) (44.1) (53.5) Amounts reclassified from accumulated other comprehensive income (loss) — 24.8 24.8 Less: Net other comprehensive (income) loss attributable to noncontrolling interest — — — Balance as of March 31, 2022 $ (143.4) $ (22.0) $ (165.4) Balance as of January 1, 2021 $ (120.3) $ (12.3) $ (132.6) Other comprehensive income (loss) before reclassifications (4.0) 25.5 21.5 Amounts reclassified from accumulated other comprehensive income (loss) — (9.1) (9.1) Less: Net other comprehensive (income) loss attributable to noncontrolling interest — — — Balance as of March 31, 2021 $ (124.3) $ 4.0 $ (120.3) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8. Fair Value Measurements The carrying amounts of cash and cash equivalents, net accounts receivable, accounts payable and accrued expenses and other current liabilities approximate fair value based on their short-term maturities. The carrying values of our debt and notes receivable approximate fair value as these instruments bear interest either at variable rates or fixed rates, which are not significantly different from market rates. The fair value measurements for our debt and notes receivable are considered to be Level 2 measurements based on the fair value hierarchy. Recurring Fair Value Measurements The following tables present information about our gross assets and liabilities that are measured at fair value on a recurring basis (in millions): Fair Value Measurements as of March 31, 2022 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Commodities contracts $ 873.0 $ 547.9 $ 8.1 $ 1,429.0 Interest rate contract — 17.0 — 17.0 Foreign currency contracts — 7.7 — 7.7 Cash surrender value of life insurance — 14.8 — 14.8 Total assets at fair value $ 873.0 $ 587.4 $ 8.1 $ 1,468.5 Liabilities: Commodities contracts $ 598.5 $ 790.7 $ 5.8 $ 1,395.0 Foreign currency contracts — 11.8 — 11.8 Total liabilities at fair value $ 598.5 $ 802.5 $ 5.8 $ 1,406.8 Fair Value Measurements as of December 31, 2021 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Commodities contracts $ 513.3 $ 247.6 $ 2.6 $ 763.5 Interest rate contract — 5.4 — 5.4 Foreign currency contracts — 4.7 — 4.7 Cash surrender value of life insurance — 14.6 — 14.6 Total assets at fair value $ 513.3 $ 272.3 $ 2.6 $ 788.3 Liabilities: Commodities contracts $ 361.5 $ 378.6 $ 3.8 $ 743.9 Interest rate contract — 0.3 — 0.3 Foreign currency contracts — 4.3 — 4.3 Total liabilities at fair value $ 361.5 $ 383.2 $ 3.8 $ 748.5 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. 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. The following tables summarize those derivative balances subject to the right of offset as presented on our Consolidated Balance Sheets (in millions): Fair Value as of March 31, 2022 Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Cash Collateral Gross Amounts without Right of Offset Net Amounts Assets: Commodities contracts $ 1,429.0 $ 937.2 $ 491.8 $ 70.1 $ — $ 421.7 Interest rate contract 17.0 — 17.0 — — 17.0 Foreign currency contracts 7.7 6.0 1.7 — — 1.7 Total assets at fair value $ 1,453.8 $ 943.3 $ 510.5 $ 70.1 $ — $ 440.5 Liabilities: Commodities contracts $ 1,395.0 $ 937.2 $ 457.8 $ 7.4 $ — $ 450.3 Foreign currency contracts 11.8 6.0 5.8 — — 5.8 Total liabilities at fair value $ 1,406.8 $ 943.3 $ 463.5 $ 7.4 $ — $ 456.1 Fair Value as of December 31, 2021 Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Cash Collateral Gross Amounts without Right of Offset Net Amounts Assets: Commodities contracts $ 763.5 $ 513.1 $ 250.4 $ 7.6 $ — $ 242.8 Interest rate contract 5.4 — 5.4 — — 5.4 Foreign currency contracts 4.7 2.6 2.1 — — 2.1 Total assets at fair value $ 773.6 $ 515.6 $ 258.0 $ 7.6 $ — $ 250.4 Liabilities: Commodities contracts $ 743.9 $ 513.1 $ 230.8 $ 3.2 $ — $ 227.7 Interest rate contract 0.3 — 0.3 — — 0.3 Foreign currency contracts 4.3 2.6 1.7 — — 1.7 Total liabilities at fair value $ 748.5 $ 515.6 $ 232.8 $ 3.2 $ — $ 229.7 At March 31, 2022 and December 31, 2021, we did not present any amounts gross on our Condensed Consolidated Balance Sheets where we had the right of offset. Concentration of Credit Risk Our 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 March 31, 2022, one of our counterparties with a total exposure of $81.5 million represented over 10% of our credit exposure to OTC derivative counterparties. Nonrecurring Fair Value Measurements The fair values of nonrecurring assets or liabilities measured using Level 3 inputs were not material as of March 31, 2022 and December 31, 2021, respectively. The Flyers assets acquired and liabilities assumed were measured and recorded at their acquisition date fair values during the three months ended March 31, 2022 as discussed in Note 3. Acquisitions. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 9. Revenue from Contracts with Customers The following table presents our revenues from contracts with customers disaggregated by major geographic areas in which we conduct business (in millions): For the Three Months Ended March 31, 2022 2021 Aviation $ 225.3 $ 121.4 Land 48.6 5.6 Marine 1,145.4 718.8 Asia Pacific 1,419.3 845.7 Aviation 641.9 266.9 Land 1,038.4 609.9 Marine 831.0 487.2 EMEA 2,511.3 1,363.9 Aviation 953.2 349.1 Land 198.4 122.7 Marine 278.6 125.6 LATAM 1,430.1 597.3 Aviation 3,291.8 1,431.3 Land 3,049.6 1,460.5 Marine 559.4 255.6 North America 6,900.8 3,147.4 Other revenues (excluded from ASC 606) (1) 120.5 3.5 Total revenue $ 12,382.0 $ 5,957.9 (1) Includes revenue from derivatives, leases, and other transactions that we account for under separate guidance. The nature of the receivables related to revenue from contracts with customers and other revenues (excluded from ASC 606) are substantially similar, as they are both generated from transactions with the same type of counterparties (e.g., separate fuel sales and storage lease with the same counterparty) and are entered into utilizing the same credit approval and monitoring procedures for all customers. As such, we believe the risk associated with the cash flows from the different types of receivables is not meaningful to separately disaggregate the accounts receivable balance presented on our Consolidated Balance Sheets. As of March 31, 2022 and December 31, 2021, the contract assets and contract liabilities recognized by the Company were not material. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes Our income tax provision and the respective effective income tax rates are as follows (in millions, except for income tax rates): For the Three Months Ended March 31, 2022 2021 Income tax provision $ 6.4 $ 8.8 Effective income tax rate 19.5 % 31.8 % Our provision for income taxes for the three months ended March 31, 2022 includes a discrete income tax benefit of $1.2 million, net which relates to a tax benefit of $4.1 million for the remeasurement of an uncertain tax position, a tax expense of $2.0 million for changes related to our state apportionment factors and state net operating loss positions, and a tax expense of $0.8 million related to other worldwide adjustments. For the three months ended March 31, 2021, our provision for income taxes included a discrete income tax benefit of $1.2 million, net of which $1.6 million related to a tax adjustment for the final purchase price allocation on the sale of the MultiService payment solutions business ("MSTS"). Our income tax provisions for the three months ended March 31, 2022 and 2021 were calculated based on the estimated annual effective income tax rates for the 2022 and 2021 years, respectively. The actual effective income tax rate for the 2022 year may be materially different for several reasons including differences between estimated versus actual results and the geographic tax jurisdictions in which the results are earned. We have various tax returns under examination both in the U.S. and foreign jurisdictions. The most material of these are in Denmark for the 2013 - 2019 tax years, South Korea for the 2011 - 2014 tax years, and the U.S. for the 2019 tax year. One of our subsidiaries in Denmark has been under audit for its 2013 - 2015 tax years since 2018 and was notified in March 2021 that its 2016 - 2019 tax years were also under examination. Through the three months ended March 31, 2022, we have received final tax assessments for the 2013 and 2014 tax years that were immaterial and a proposed tax assessment for the 2015 tax year of approximately $14.3 million (DKK 96.1 million). In April 2022, we received a proposed tax assessment for the 2016 and 2017 tax years of approximately $19.9 million (DKK 133.8 million) and $23.1 million (DKK 155.5 million), respectively. We believe these assessments are without merit and are vigorously defending against the actions. We have not yet received any proposed assessments related to the 2018 - 2019 tax years, which could be materially larger than the previous assessments if a similar methodology is applied. In March 2022, we received a proposed settlement for the 2011-2014 tax years of the Korean branch of one of our subsidiaries related to income tax assessment notices received in 2017 totaling $9.3 million (KRW 11.3 billion) and revised in 2021 to $8.8 million (KRW 10.6 billion). The proposed settlement reduces the total South Korean assessment for the 2011 - 2014 tax years to approximately $1.6 million (KRW 2.0 billion), including tax, interest, and penalties. We agreed to the settlement on April 25, 2022 and anticipate ultimately resolving the audit in 2022. The U.S. IRS examination for our 2019 tax year began in February 2022 and we are currently responding to information requests. In March 2022, we accepted and agreed to the remaining notices of proposed assessment received from the IRS in December 2021 for our 2017 and 2018 tax years. These assessments did not have a material impact on our income tax or financial results and no additional proposed assessments are expected for the 2017 and 2018 years. An unfavorable resolution of one or more of the above matters could have a material adverse effect on our operating results or cash flows in the quarter or year in which the adjustments are recorded, or the tax is due or paid. As examinations are still in process or have not yet reached the final stages of the appeals process, the timing of the ultimate resolution or payments that may be required cannot be determined at this time. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segments | 11. 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 (businesses and governmental) and the products and services provided to those customers. As discussed in Note 3. Acquisitions, Flyers is reported as part of our land segment subsequent to the acquisition on January 3, 2022. We use Income from operations as our primary measure of profit as we believe it is the most meaningful measure to allocate resources and assess the performance or our segments. Information concerning our Revenue and Income from operations by reportable segment is as follows (in millions): For the Three Months Ended March 31, Revenue: 2022 2021 Aviation segment $ 5,010.5 $ 2,095.0 Land segment 4,380.8 2,188.2 Marine segment 2,990.6 1,674.7 Total revenue $ 12,382.0 $ 5,957.9 Income from operations: Aviation segment $ 7.5 $ 23.0 Land segment 33.4 32.8 Marine segment 23.1 6.4 Corporate overhead - unallocated (22.8) (24.5) Total income from operations $ 41.3 $ 37.6 Information concerning our Accounts receivable, net of allowance for credit losses and Total assets by reportable segment is as follows (in millions): March 31, 2022 December 31, 2021 Accounts receivable, net: Aviation segment, net of allowance for credit losses of $9.6 and $18.4 as of March 31, 2022 and December 31, 2021, respectively $ 1,339.9 $ 972.9 Land segment, net of allowance for credit losses of $4.6 and $3.8 as of March 31, 2022 and December 31, 2021, respectively 1,096.4 664.7 Marine segment, net of allowance for credit losses of $3.0 and $3.9 as of March 31, 2022 and December 31, 2021, respectively 1,073.9 717.7 Total accounts receivable, net $ 3,510.2 $ 2,355.3 Total assets: Aviation segment $ 2,719.5 $ 2,305.6 Land segment 3,516.1 2,106.1 Marine segment 1,403.7 1,022.7 Corporate 328.7 507.9 Total assets $ 7,968.0 $ 5,942.4 |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 12. 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 March 31, 2022 2021 Numerator: Net income attributable to World Fuel $ 26.3 $ 18.9 Denominator: Weighted average common shares for basic earnings per common share 63.4 63.0 Effect of dilutive securities 0.3 0.6 Weighted average common shares for diluted earnings per common share 63.7 63.6 Basic earnings (loss) per common share $ 0.42 $ 0.30 Diluted earnings (loss) per common share $ 0.41 $ 0.30 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 1.5 1.1 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies We are 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. For example, in December 2021, a judgment was entered against one of our subsidiaries in the Singapore High Court in respect of an action filed by a financing bank of two of our subsidiary’s suppliers. The claims arose out of a financing arrangement between the suppliers and the bank and the resulting judgments, including principal and interest, are in the aggregate amount of approximately $33 million. We believe the claims are without merit, have appealed the judgments and are vigorously defending against the claims. From time to time, we are also under review by various domestic and foreign tax authorities regarding indirect tax matters and are involved in various challenges and litigation in a number of countries, including, in particular, South Korea and Brazil, where the amounts under controversy may be material. During 2016 and 2017, the South Korean branch of one of our subsidiaries received assessments totaling approximately $28.2 million (KRW 34.3 billion) from the regional tax authorities of Seoul, South Korea. The assessment 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. We believe that these assessments are without merit and are currently appealing the actions. We are also involved in several tax disputes with federal, state and municipal tax authorities in Brazil, relating primarily to a VAT tax known as ICMS. 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. One of our Brazilian subsidiaries is currently appealing an assessment of approximately $12.6 million (BRL 59.6 million) from the Brazilian tax authorities relating to the ICMS rate used for certain transactions. The assessment primarily consists of interest and penalties. We believe that the assessment is without merit and are pursuing our remedies in the judicial court system. We have established loss provisions for claims and other matters in which losses are probable and can be reasonably estimated. As of March 31, 2022, these reserves were not material. For those matters where a reserve has not been established and for which we believe a loss is reasonably possible, we believe that such losses will not have a material adverse effect on our Condensed 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 Condensed Consolidated Financial Statements or disclosures for that period. |
Basis of Presentation, New Ac_2
Basis of Presentation, New Accounting Standards, and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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, land and marine transportation industries. In recent years, we have expanded our land product and service offerings to include energy advisory services and supply fulfillment for natural gas and power to commercial, industrial and government customers. Our intention is to become a leading global energy management company offering a full suite of energy advisory, management and fulfillment services, technology solutions, payment management solutions, as well as sustainability products and services across the energy product spectrum. We will continue to focus on enhancing the portfolio of products and services we provide based on changes in customer demand, including increasing our sustainability offerings and renewable energy solutions in light of the continued global focus on climate change and the related impacts. The Condensed Consolidated Financial Statements and related Notes include our parent company and all subsidiaries where we exercise control, and include the operations of acquired businesses after the completion of their acquisition. The decision of whether or not to consolidate an entity requires consideration of majority voting interests, as well as effective economic or other control over the entity. The Condensed Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes included in our 2021 Annual Report on Form 10-K ("2021 10-K Report"). All intercompany transactions among our businesses have been eliminated. |
Use of Estimates | Certain amounts in the Condensed Consolidated Financial Statements and accompanying Notes may not add due to rounding; however, all percentages have been calculated using unrounded amounts |
Reclassifications | Certain prior period amounts have been reclassified to conform to the current presentation. |
New Accounting Standards | New Accounting Standards Adoption of New Accounting Standards During 2022, there have been no accounting standards that, upon adoption, had a material impact on the Company's unaudited Condensed Consolidated Financial Statements or processes. Accounting Standards Issued but Not Yet Adopted There have been no recently issued accounting standards not yet adopted by us which are expected, upon adoption, to have a material impact on the Company’s Consolidated Financial Statements or processes. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Summary of Accounts Receivable, Allowance for Expected Credit Losses | The following table sets forth activities in our allowance for expected credit losses (in millions): For the Three Months Ended March 31, 2022 2021 Balance as of January 1, $ 29.8 $ 57.3 Charges to allowance for credit losses 2.0 3.6 Write-off of uncollectible receivables (11.3) (13.8) Recoveries of credit losses 0.3 0.4 Translation adjustments 0.2 — Balance as of March 31, $ 21.0 $ 47.5 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Allocation of the Purchase Price to the Fair Value of the Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of the aggregate consideration, and the preliminary allocation of the purchase price to the fair value of the assets acquired and liabilities assumed (in millions): Total Consideration: Cash paid $ 642.7 Estimated working capital adjustment receivable from seller (0.5) Common stock issued to seller 50.0 Amount due to sellers 100.0 Total fair value of consideration $ 792.2 Assets acquired and liabilities assumed: Cash $ 3.3 Accounts receivable 109.2 Inventory 50.9 Property, plant and equipment 126.6 Identifiable intangible assets subject to amortization (1) 162.9 Identifiable intangible assets not subject to amortization (2) 29.3 Accounts payable (38.0) Other assets and liabilities, net (3) (39.0) Net identifiable assets acquired 405.1 Goodwill (4) 387.1 Net assets acquired $ 792.2 (1) Identifiable intangible assets subject to amortization primarily consist of customer and network relationships and other identifiable assets which will be amortized over a weighted average life of 11.6 years. (2) Identifiable intangible assets not subject to amortization include trademarks and trade names acquired. (3) Includes the recognition of right of use assets of $45.0 million and lease liabilities of $46.0 million. (4) Goodwill is attributable primarily to the expected synergies and other benefits that we believe will result from combining the acquired operations with the operations of our land segment. We anticipate that all of the goodwill assigned to the land segment will be deductible for tax purposes. |
Schedule of Unaudited Pro Forma Combined Financial Information | The following presents unaudited pro forma combined financial information of the Company for the three months ended March 31, 2021 as if the acquisition of Flyers had been completed on January 1, 2021 (in millions, except per share data): (unaudited) Three Months Ended March 31, 2021 Revenue $ 6,335.6 Net income attributable to World Fuel $ 20.2 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | The following table provides information regarding changes in goodwill during the three months ended March 31, 2022 and 2021 (in millions): Aviation Land Total As of December 31, 2021 $ 400.1 $ 461.8 $ 861.9 2022 acquisition (1) — 387.1 387.1 Foreign currency translation of non-USD functional currency subsidiary goodwill (0.8) (3.5) (4.3) As of March 31, 2022 $ 399.3 $ 845.4 $ 1,244.6 (1) See Note 3. Acquisitions for additional information. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value Positions of Derivative Instruments | With the exception of the interest rate swap agreement, which matures in March 2025, the majority of our derivative contracts are expected to settle within the next year. The following table summarizes the gross notional values of our derivative contracts used for risk management purposes (in millions): Unit March 31, 2022 Commodity contracts Long BBL 55.2 Short BBL (51.6) Foreign currency exchange contracts Sell U.S. dollar, buy other currencies USD (301.9) Buy U.S. dollar, sell other currencies USD 536.9 Interest rate contracts Interest rate swap USD 300.0 |
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 Condensed Consolidated Balance Sheets (in millions): Gross Derivative Assets Gross Derivative Liabilities Condensed Consolidated Balance Sheets Location March 31, December 31, March 31, December 31, Derivative Instruments 2022 2021 2022 2021 Derivatives designated as hedging instruments Commodity contracts Short-term derivative assets, net $ 13.6 $ 1.8 $ 12.4 $ 9.7 Short-term derivative liabilities, net 0.4 0.1 1.4 0.4 Interest rate contracts Short-term derivative assets, net 3.7 — — — Other non-current assets 13.3 5.4 — — Short-term derivative liabilities, net — — — 0.3 Total derivatives designated as hedging instruments 31.1 7.3 13.8 10.4 Derivatives not designated as hedging instruments Commodity contracts Short-term derivative assets, net 880.7 516.3 542.6 337.5 Other non-current assets 270.8 112.2 116.2 27.6 Short-term derivative liabilities, net 211.6 117.6 529.8 286.6 Other long-term liabilities 51.8 15.5 192.5 82.1 Foreign currency contracts Short-term derivative assets, net 2.2 3.8 0.6 1.7 Other non-current assets 0.2 0.1 0.1 — Short-term derivative liabilities, net 5.3 0.8 11.1 2.6 Total derivatives not designated as hedging instruments 1,422.7 766.3 1,392.9 738.1 Total derivatives $ 1,453.8 $ 773.6 $ 1,406.8 $ 748.5 |
Impact of Derivatives Designated as Fair Value Hedges on the Consolidated Statements of Income and Comprehensive Income | The following amounts were recorded on our Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges (in millions): Line item in the Consolidated Balance Sheets in which the hedged item is included Carrying Amount of Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset/(Liabilities) March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Inventory $ 77.5 $ 59.3 $ 14.6 $ 0.6 |
Location and Amount of Gains (Losses) on Fair Value and Cash Flow Hedges Recognized in Income | The following table presents, on a pre-tax basis, the location and amount of gains (losses) on fair value and cash flow hedges recognized in income in our Condensed Consolidated Statements of Income and Comprehensive Income (in millions): For the Three Months Ended March 31, 2022 March 31, 2021 Revenue Cost of revenue Interest expense and other financing costs, net Revenue Cost of revenue Interest expense and other financing costs, net Total amounts of income and expense line items in which the effects of fair value or cash flow hedged are recorded $ 12,382.0 $ 12,151.1 $ 14.3 $ 5,957.9 $ 5,766.3 $ 11.1 Gains (losses) on fair value hedge relationships: Commodity contracts: Hedged item — 28.6 — — 12.0 — Derivatives designated as hedging instruments — (41.2) — — (8.4) — Gains (losses) on cash flow hedge relationships: Commodity contracts: Amount of gain (loss) reclassified from Accumulated other comprehensive income (loss) into net income (33.0) — — (11.7) 21.0 — Interest rate contracts: Amount of gain (loss) reclassified from Accumulated other comprehensive income (loss) into net income — — (0.3) — — (0.2) Total amount of income and expense line items excluding the impact of hedges $ 12,415.0 $ 12,138.6 $ 14.0 $ 5,969.6 $ 5,791.0 $ 10.8 The following table presents, on a pre-tax basis, the amounts not recorded in Accumulated other comprehensive income (loss) due to intra-period settlement but recognized in Revenue and Cost of revenue in our Condensed Consolidated Statements of Income and Comprehensive Income (in millions): Gain (Loss) Not Recorded in Accumulated other comprehensive income (loss) Due to Intra-Period Settlement For the Three Months Ended March 31, Location 2022 2021 Commodity contracts Revenue $ (75.3) $ (76.8) Commodity contracts Cost of revenue $ 1.4 $ 7.2 |
Impact of Derivatives Designated as Hedges on the Accumulated Other Comprehensive Income and Consolidated Statements of Income and Comprehensive Income | The following tables present the effect and financial statement location of our derivative instruments in cash flow hedging relationships on Accumulated other comprehensive income (loss) and in our Condensed Consolidated Statements of Income and Comprehensive Income (in millions): Amount of Gain (Loss) Recognized in Accumulated other comprehensive income (loss), Net of Income Tax (Expense) Benefit For the Three Months Ended March 31, 2022 2021 Commodity contracts (Revenue) $ (52.7) $ (62.8) Commodity contracts (Cost of revenue) — 84.6 Interest rate contracts (Interest expense and other financing costs, net) 8.6 3.6 Total gain (loss) $ (44.1) $ 25.5 Amount of Gain (Loss) Reclassified from Accumulated other comprehensive income (loss) into Net income (loss), Net of Income Tax (Expense) Benefit For the Three Months Ended March 31, Location 2022 2021 Commodity contracts Revenue $ (24.6) $ (11.7) Commodity contracts Cost of revenue — 21.0 Interest rate contracts Interest expense and other financing costs, net (0.2) (0.2) Total gain (loss) $ (24.8) $ 9.1 |
Impact of Derivatives not Designated as Hedges on the Consolidated Statements of Income and Comprehensive Income | The following table presents the amount and financial statement location in our Condensed Consolidated Statements of Income and Comprehensive Income of realized and unrealized gains (losses) recognized on derivative instruments not designated as hedging instruments (in millions): For the Three Months Ended March 31, Derivative Instruments - Non-designated Location 2022 2021 Commodity contracts Revenue $ 76.9 $ (303.8) Cost of revenue (6.4) 313.0 70.5 9.2 Foreign currency contracts Revenue (0.6) 0.4 Other (expense), net (2.3) 3.3 (2.9) 3.7 Total gain (loss) $ 67.6 $ 12.9 |
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): March 31, 2022 December 31, 2021 Net derivative liability positions with credit contingent features $ 11.0 $ 3.3 Collateral posted and held by our counterparties — — Maximum additional potential collateral requirements $ 11.0 $ 3.3 |
Debt, Interest Income, Expens_2
Debt, Interest Income, Expense, and Other Finance Costs (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Our outstanding debt consists of the following (in millions): March 31, 2022 December 31, 2021 Credit Facility $ 424.8 $ — Term loans 436.7 484.1 Finance leases 19.5 21.2 Other 3.2 3.3 Total debt 884.2 508.7 Less: Current maturities of long-term debt and finance leases (1) 15.0 30.6 Long-term debt $ 869.1 $ 478.1 (1) Current maturities as of March 31, 2022 reflect the terms of the Credit Facility amendment effective April 1, 2022 as discussed above. |
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 (in millions): For the Three Months Ended March 31, 2022 2021 Interest income $ 2.5 $ 2.3 Interest expense and other financing costs (16.8) (11.1) Interest expense and other financing costs, net $ (14.3) $ (8.7) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of components of other comprehensive income and accumulated other comprehensive income (loss) | The after-tax changes in Accumulated other comprehensive income (loss) by component were as follows (in millions): Balance as of Foreign Currency Translation Adjustments Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Balance as of January 1, 2022 $ (134.0) $ (2.7) $ (136.7) Other comprehensive income (loss) before reclassifications (9.4) (44.1) (53.5) Amounts reclassified from accumulated other comprehensive income (loss) — 24.8 24.8 Less: Net other comprehensive (income) loss attributable to noncontrolling interest — — — Balance as of March 31, 2022 $ (143.4) $ (22.0) $ (165.4) Balance as of January 1, 2021 $ (120.3) $ (12.3) $ (132.6) Other comprehensive income (loss) before reclassifications (4.0) 25.5 21.5 Amounts reclassified from accumulated other comprehensive income (loss) — (9.1) (9.1) Less: Net other comprehensive (income) loss attributable to noncontrolling interest — — — Balance as of March 31, 2021 $ (124.3) $ 4.0 $ (120.3) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Estimated Fair Value on a Recurring Basis | The following tables present information about our gross assets and liabilities that are measured at fair value on a recurring basis (in millions): Fair Value Measurements as of March 31, 2022 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Commodities contracts $ 873.0 $ 547.9 $ 8.1 $ 1,429.0 Interest rate contract — 17.0 — 17.0 Foreign currency contracts — 7.7 — 7.7 Cash surrender value of life insurance — 14.8 — 14.8 Total assets at fair value $ 873.0 $ 587.4 $ 8.1 $ 1,468.5 Liabilities: Commodities contracts $ 598.5 $ 790.7 $ 5.8 $ 1,395.0 Foreign currency contracts — 11.8 — 11.8 Total liabilities at fair value $ 598.5 $ 802.5 $ 5.8 $ 1,406.8 Fair Value Measurements as of December 31, 2021 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Commodities contracts $ 513.3 $ 247.6 $ 2.6 $ 763.5 Interest rate contract — 5.4 — 5.4 Foreign currency contracts — 4.7 — 4.7 Cash surrender value of life insurance — 14.6 — 14.6 Total assets at fair value $ 513.3 $ 272.3 $ 2.6 $ 788.3 Liabilities: Commodities contracts $ 361.5 $ 378.6 $ 3.8 $ 743.9 Interest rate contract — 0.3 — 0.3 Foreign currency contracts — 4.3 — 4.3 Total liabilities at fair value $ 361.5 $ 383.2 $ 3.8 $ 748.5 |
Schedule of Derivative Instruments at Fair Value and Their Locations on the Balance Sheets | 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. The following tables summarize those derivative balances subject to the right of offset as presented on our Consolidated Balance Sheets (in millions): Fair Value as of March 31, 2022 Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Cash Collateral Gross Amounts without Right of Offset Net Amounts Assets: Commodities contracts $ 1,429.0 $ 937.2 $ 491.8 $ 70.1 $ — $ 421.7 Interest rate contract 17.0 — 17.0 — — 17.0 Foreign currency contracts 7.7 6.0 1.7 — — 1.7 Total assets at fair value $ 1,453.8 $ 943.3 $ 510.5 $ 70.1 $ — $ 440.5 Liabilities: Commodities contracts $ 1,395.0 $ 937.2 $ 457.8 $ 7.4 $ — $ 450.3 Foreign currency contracts 11.8 6.0 5.8 — — 5.8 Total liabilities at fair value $ 1,406.8 $ 943.3 $ 463.5 $ 7.4 $ — $ 456.1 Fair Value as of December 31, 2021 Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Cash Collateral Gross Amounts without Right of Offset Net Amounts Assets: Commodities contracts $ 763.5 $ 513.1 $ 250.4 $ 7.6 $ — $ 242.8 Interest rate contract 5.4 — 5.4 — — 5.4 Foreign currency contracts 4.7 2.6 2.1 — — 2.1 Total assets at fair value $ 773.6 $ 515.6 $ 258.0 $ 7.6 $ — $ 250.4 Liabilities: Commodities contracts $ 743.9 $ 513.1 $ 230.8 $ 3.2 $ — $ 227.7 Interest rate contract 0.3 — 0.3 — — 0.3 Foreign currency contracts 4.3 2.6 1.7 — — 1.7 Total liabilities at fair value $ 748.5 $ 515.6 $ 232.8 $ 3.2 $ — $ 229.7 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 in which we conduct business (in millions): For the Three Months Ended March 31, 2022 2021 Aviation $ 225.3 $ 121.4 Land 48.6 5.6 Marine 1,145.4 718.8 Asia Pacific 1,419.3 845.7 Aviation 641.9 266.9 Land 1,038.4 609.9 Marine 831.0 487.2 EMEA 2,511.3 1,363.9 Aviation 953.2 349.1 Land 198.4 122.7 Marine 278.6 125.6 LATAM 1,430.1 597.3 Aviation 3,291.8 1,431.3 Land 3,049.6 1,460.5 Marine 559.4 255.6 North America 6,900.8 3,147.4 Other revenues (excluded from ASC 606) (1) 120.5 3.5 Total revenue $ 12,382.0 $ 5,957.9 (1) Includes revenue from derivatives, leases, and other transactions that we account for under separate guidance. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision and the Respective Effective Income Tax Rates | Our income tax provision and the respective effective income tax rates are as follows (in millions, except for income tax rates): For the Three Months Ended March 31, 2022 2021 Income tax provision $ 6.4 $ 8.8 Effective income tax rate 19.5 % 31.8 % |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenue, Gross Profit and Income from Operations by Segment | Information concerning our Revenue and Income from operations by reportable segment is as follows (in millions): For the Three Months Ended March 31, Revenue: 2022 2021 Aviation segment $ 5,010.5 $ 2,095.0 Land segment 4,380.8 2,188.2 Marine segment 2,990.6 1,674.7 Total revenue $ 12,382.0 $ 5,957.9 Income from operations: Aviation segment $ 7.5 $ 23.0 Land segment 33.4 32.8 Marine segment 23.1 6.4 Corporate overhead - unallocated (22.8) (24.5) Total income from operations $ 41.3 $ 37.6 |
Schedule of Accounts Receivable, Net and Total Assets by Segment | Information concerning our Accounts receivable, net of allowance for credit losses and Total assets by reportable segment is as follows (in millions): March 31, 2022 December 31, 2021 Accounts receivable, net: Aviation segment, net of allowance for credit losses of $9.6 and $18.4 as of March 31, 2022 and December 31, 2021, respectively $ 1,339.9 $ 972.9 Land segment, net of allowance for credit losses of $4.6 and $3.8 as of March 31, 2022 and December 31, 2021, respectively 1,096.4 664.7 Marine segment, net of allowance for credit losses of $3.0 and $3.9 as of March 31, 2022 and December 31, 2021, respectively 1,073.9 717.7 Total accounts receivable, net $ 3,510.2 $ 2,355.3 Total assets: Aviation segment $ 2,719.5 $ 2,305.6 Land segment 3,516.1 2,106.1 Marine segment 1,403.7 1,022.7 Corporate 328.7 507.9 Total assets $ 7,968.0 $ 5,942.4 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Summary 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 March 31, 2022 2021 Numerator: Net income attributable to World Fuel $ 26.3 $ 18.9 Denominator: Weighted average common shares for basic earnings per common share 63.4 63.0 Effect of dilutive securities 0.3 0.6 Weighted average common shares for diluted earnings per common share 63.7 63.6 Basic earnings (loss) per common share $ 0.42 $ 0.30 Diluted earnings (loss) per common share $ 0.41 $ 0.30 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 1.5 1.1 |
Accounts Receivable - Narrative
Accounts Receivable - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||||
Accounts receivable | $ 3,510.2 | $ 2,355.3 | ||
Allowance for credit losses | $ 21 | $ 47.5 | $ 29.8 | $ 57.3 |
Percent accounts receivable outstanding, less than 60 days | 96.00% | |||
Account receivable sold under the RPAs | $ 2,600 | 2,000 | ||
Fees and financing costs under the RPA | $ 5.5 | $ 4.4 |
Accounts Receivable - Allowance
Accounts Receivable - Allowance for Credit Losses for Accounts Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 29.8 | $ 57.3 |
Charges to allowance for credit losses | 2 | 3.6 |
Write-off of uncollectible receivables | (11.3) | (13.8) |
Recoveries of credit losses | 0.3 | 0.4 |
Translation adjustments | 0.2 | 0 |
Ending balance | $ 21 | $ 47.5 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 03, 2022 | Oct. 01, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
Business Acquisition [Line Items] | ||||
Cash paid | $ 639.4 | $ 0 | ||
Flyers Energy Group | ||||
Business Acquisition [Line Items] | ||||
Business combination consideration transferred | $ 792.2 | $ 41.4 | ||
Cash paid | 642.7 | |||
Estimated net working capital adjustments | 19.7 | |||
Common stock issued to seller | $ 50 | |||
Common stock issued (in shares) | 1,768,034 | |||
Share price (in dollars per share) | $ 28.28 | |||
Amount due to sellers | $ 100 | |||
Percent of amount due to sellers to be released | 50.00% | |||
Estimated working capital adjustment receivable from seller | $ (0.5) |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions | Jan. 03, 2022 | Oct. 01, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Consideration: | |||||
Cash paid | $ 639.4 | $ 0 | |||
Assets acquired and liabilities assumed: | |||||
Goodwill | $ 1,244.6 | $ 861.9 | |||
Amortized over a weighted average life | 11 years 7 months 6 days | ||||
Right of use assets | $ 45 | ||||
Right of use liabilities | 46 | ||||
Flyers Energy Group | |||||
Consideration: | |||||
Cash paid | 642.7 | ||||
Estimated working capital adjustment receivable from seller | (0.5) | ||||
Common stock issued to seller | 50 | ||||
Amount due to sellers | 100 | ||||
Total fair value of consideration | 792.2 | $ 41.4 | |||
Assets acquired and liabilities assumed: | |||||
Cash | 3.3 | ||||
Accounts receivable | 109.2 | ||||
Inventory | 50.9 | ||||
Property, plant and equipment | 126.6 | ||||
Identifiable intangible assets subject to amortization | 162.9 | ||||
Identifiable intangible assets not subject to amortization | 29.3 | ||||
Accounts payable | (38) | ||||
Other assets and liabilities, net | (39) | ||||
Net identifiable assets acquired | 405.1 | ||||
Goodwill | 387.1 | ||||
Net assets acquired | $ 792.2 |
Acquisitions - Unaudited Pro Fo
Acquisitions - Unaudited Pro Forma Results (Details) - Flyers Energy Group - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Business Acquisition [Line Items] | ||
Revenues | $ 752.5 | $ 6,335.6 |
Net income attributable to World Fuel | $ 18.1 | $ 20.2 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | $ 861.9 |
Acquisitions | 387.1 |
Foreign currency translation of non-USD functional currency subsidiary goodwill | (4.3) |
Balance at the end of the period | 1,244.6 |
Aviation Segment | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 400.1 |
Acquisitions | 0 |
Foreign currency translation of non-USD functional currency subsidiary goodwill | (0.8) |
Balance at the end of the period | 399.3 |
Land Segment | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 461.8 |
Acquisitions | 387.1 |
Foreign currency translation of non-USD functional currency subsidiary goodwill | (3.5) |
Balance at the end of the period | $ 845.4 |
Derivative Instruments - Gross
Derivative Instruments - Gross Notional Values (Details) bbl in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($)bbl | |
Interest rate contracts | U.S. dollar | |
Derivative instruments, at their respective fair value positions | |
Notional value of foreign currency exchange contracts | $ 300 |
Long | Commodity contracts | |
Derivative instruments, at their respective fair value positions | |
Notional value of commodity contracts (in barrels) | bbl | 55.2 |
Long | Foreign currency exchange contracts | U.S. dollar | |
Derivative instruments, at their respective fair value positions | |
Notional value of foreign currency exchange contracts | $ 536.9 |
Short | Commodity contracts | |
Derivative instruments, at their respective fair value positions | |
Notional value of commodity contracts (in barrels) | bbl | 51.6 |
Short | Foreign currency exchange contracts | U.S. dollar | |
Derivative instruments, at their respective fair value positions | |
Notional value of foreign currency exchange contracts | $ 301.9 |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet Location (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | $ 1,453.8 | $ 773.6 |
Gross Derivative Liabilities | 1,406.8 | 748.5 |
Commodity contracts | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 1,429 | 763.5 |
Gross Derivative Liabilities | 1,395 | 743.9 |
Interest rate contracts | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 17 | 5.4 |
Gross Derivative Liabilities | 0.3 | |
Foreign currency contracts | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 7.7 | 4.7 |
Gross Derivative Liabilities | 11.8 | 4.3 |
Derivatives designated as hedging instruments | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 31.1 | 7.3 |
Gross Derivative Liabilities | 13.8 | 10.4 |
Derivatives designated as hedging instruments | Commodity contracts | Short-term derivative assets, net | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 13.6 | 1.8 |
Gross Derivative Liabilities | 12.4 | 9.7 |
Derivatives designated as hedging instruments | Commodity contracts | Short-term derivative liabilities, net | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 0.4 | 0.1 |
Gross Derivative Liabilities | 1.4 | 0.4 |
Derivatives designated as hedging instruments | Interest rate contracts | Short-term derivative assets, net | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 3.7 | 0 |
Gross Derivative Liabilities | 0 | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | Other non-current assets | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 13.3 | 5.4 |
Gross Derivative Liabilities | 0 | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | Short-term derivative liabilities, net | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 0 | 0 |
Gross Derivative Liabilities | 0 | 0.3 |
Derivatives not designated as hedging instruments | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 1,422.7 | 766.3 |
Gross Derivative Liabilities | 1,392.9 | 738.1 |
Derivatives not designated as hedging instruments | Commodity contracts | Short-term derivative assets, net | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 880.7 | 516.3 |
Gross Derivative Liabilities | 542.6 | 337.5 |
Derivatives not designated as hedging instruments | Commodity contracts | Other non-current assets | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 270.8 | 112.2 |
Gross Derivative Liabilities | 116.2 | 27.6 |
Derivatives not designated as hedging instruments | Commodity contracts | Short-term derivative liabilities, net | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 211.6 | 117.6 |
Gross Derivative Liabilities | 529.8 | 286.6 |
Derivatives not designated as hedging instruments | Commodity contracts | Other long-term liabilities | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 51.8 | 15.5 |
Gross Derivative Liabilities | 192.5 | 82.1 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Short-term derivative assets, net | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 2.2 | 3.8 |
Gross Derivative Liabilities | 0.6 | 1.7 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Other non-current assets | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 0.2 | 0.1 |
Gross Derivative Liabilities | 0.1 | 0 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Short-term derivative liabilities, net | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 5.3 | 0.8 |
Gross Derivative Liabilities | $ 11.1 | $ 2.6 |
Derivative Instruments - Effect
Derivative Instruments - Effect on Income (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Carrying Amount of Hedged Assets/(Liabilities) | $ 77.5 | $ 59.3 | |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset/(Liabilities) | 14.6 | 0.6 | |
Gain (loss) on derivative | |||
Revenue | 12,382 | $ 5,957.9 | |
Cost of revenue | 12,151.1 | 5,766.3 | |
Derivative, Credit Risk Related Contingent Features [Abstract] | |||
Net derivative liability positions with credit contingent features | 11 | 3.3 | |
Collateral posted and held by our counterparties | 0 | 0 | |
Maximum additional potential collateral requirements | 11 | $ 3.3 | |
Revenue | |||
Gain (loss) on derivative | |||
Revenue | 12,382 | 5,957.9 | |
Gains (losses) on fair value hedge relationships: | |||
Total amount of income and expense line items excluding the impact of hedges, Revenue | 12,415 | 5,969.6 | |
Cost of revenue | |||
Gain (loss) on derivative | |||
Cost of revenue | 12,151.1 | 5,766.3 | |
Gains (losses) on fair value hedge relationships: | |||
Total amount of income and expense line items excluding the impact of hedges, Cost of Revenue | 12,138.6 | 5,791 | |
Interest expense and other financing costs, net | |||
Gain (loss) on derivative | |||
Interest expense and other financing costs, net | 14.3 | 11.1 | |
Gains (losses) on fair value hedge relationships: | |||
Total amount of income and expense line items excluding the impact of hedges, Interest expense and other financing costs | 14 | 10.8 | |
Commodity contracts | Revenue | |||
Gains (losses) on fair value hedge relationships: | |||
Hedged item | 0 | 0 | |
Derivatives designated as hedging instruments | 0 | 0 | |
Amount of gain (loss) reclassified from Accumulated other comprehensive income (loss) into net income | (33) | (11.7) | |
Commodity contracts | Cost of revenue | |||
Gains (losses) on fair value hedge relationships: | |||
Hedged item | 28.6 | 12 | |
Derivatives designated as hedging instruments | (41.2) | (8.4) | |
Amount of gain (loss) reclassified from Accumulated other comprehensive income (loss) into net income | 0 | 21 | |
Commodity contracts | Interest expense and other financing costs, net | |||
Gains (losses) on fair value hedge relationships: | |||
Hedged item | 0 | 0 | |
Derivatives designated as hedging instruments | 0 | 0 | |
Amount of gain (loss) reclassified from Accumulated other comprehensive income (loss) into net income | 0 | 0 | |
Interest rate contracts | Revenue | |||
Gains (losses) on fair value hedge relationships: | |||
Amount of gain (loss) reclassified from Accumulated other comprehensive income (loss) into net income | 0 | 0 | |
Interest rate contracts | Cost of revenue | |||
Gains (losses) on fair value hedge relationships: | |||
Amount of gain (loss) reclassified from Accumulated other comprehensive income (loss) into net income | 0 | 0 | |
Interest rate contracts | Interest expense and other financing costs, net | |||
Gains (losses) on fair value hedge relationships: | |||
Amount of gain (loss) reclassified from Accumulated other comprehensive income (loss) into net income | (0.3) | (0.2) | |
Derivatives designated as hedging instruments | |||
Gains (losses) on fair value hedge relationships: | |||
Amount of Gain (Loss) Recognized in Accumulated other comprehensive income (loss), Net of Income Tax (Expense) Benefit | (44.1) | 25.5 | |
Amount of Gain (Loss) Reclassified from Accumulated other comprehensive income (loss) into Net income (loss), Net of Income Tax (Expense) Benefit | (24.8) | 9.1 | |
Derivatives designated as hedging instruments | Commodity contracts | Revenue | |||
Gains (losses) on fair value hedge relationships: | |||
Gain (Loss) Not Recorded in Accumulated other comprehensive income (loss) Due to Intra-Period Settlement | (75.3) | (76.8) | |
Amount of Gain (Loss) Recognized in Accumulated other comprehensive income (loss), Net of Income Tax (Expense) Benefit | (52.7) | (62.8) | |
Amount of Gain (Loss) Reclassified from Accumulated other comprehensive income (loss) into Net income (loss), Net of Income Tax (Expense) Benefit | (24.6) | (11.7) | |
Derivatives designated as hedging instruments | Commodity contracts | Cost of revenue | |||
Gains (losses) on fair value hedge relationships: | |||
Gain (Loss) Not Recorded in Accumulated other comprehensive income (loss) Due to Intra-Period Settlement | 1.4 | 7.2 | |
Amount of Gain (Loss) Recognized in Accumulated other comprehensive income (loss), Net of Income Tax (Expense) Benefit | 0 | 84.6 | |
Amount of Gain (Loss) Reclassified from Accumulated other comprehensive income (loss) into Net income (loss), Net of Income Tax (Expense) Benefit | 0 | 21 | |
Derivatives designated as hedging instruments | Interest rate contracts | Interest expense and other financing costs, net | |||
Gains (losses) on fair value hedge relationships: | |||
Amount of Gain (Loss) Recognized in Accumulated other comprehensive income (loss), Net of Income Tax (Expense) Benefit | 8.6 | 3.6 | |
Amount of Gain (Loss) Reclassified from Accumulated other comprehensive income (loss) into Net income (loss), Net of Income Tax (Expense) Benefit | (0.2) | (0.2) | |
Derivatives not designated as hedging instruments | |||
Gains (losses) on fair value hedge relationships: | |||
Derivative Instruments - Non-designated | 67.6 | 12.9 | |
Derivatives not designated as hedging instruments | Commodity contracts | |||
Gains (losses) on fair value hedge relationships: | |||
Derivative Instruments - Non-designated | 70.5 | 9.2 | |
Derivatives not designated as hedging instruments | Commodity contracts | Revenue | |||
Gains (losses) on fair value hedge relationships: | |||
Derivative Instruments - Non-designated | 76.9 | (303.8) | |
Derivatives not designated as hedging instruments | Commodity contracts | Cost of revenue | |||
Gains (losses) on fair value hedge relationships: | |||
Derivative Instruments - Non-designated | (6.4) | 313 | |
Derivatives not designated as hedging instruments | Foreign currency contracts | |||
Gains (losses) on fair value hedge relationships: | |||
Derivative Instruments - Non-designated | (2.9) | 3.7 | |
Derivatives not designated as hedging instruments | Foreign currency contracts | Revenue | |||
Gains (losses) on fair value hedge relationships: | |||
Derivative Instruments - Non-designated | (0.6) | 0.4 | |
Derivatives not designated as hedging instruments | Foreign currency contracts | Interest expense and other financing costs, net | |||
Gains (losses) on fair value hedge relationships: | |||
Derivative Instruments - Non-designated | $ (2.3) | $ 3.3 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
Gain (loss) recognized in earnings related to fair value or cash flow hedges excluded from assessment of hedge effectiveness | $ 0 | $ 0 | |
Collateral posted and held by our counterparties | 0 | $ 0 | |
Revenue | |||
Derivative [Line Items] | |||
Amount scheduled to be reclassified over the next twelve months, increase (decrease) | $ (47.3) |
Debt, Interest Income, Expens_3
Debt, Interest Income, Expense, and Other Finance Costs - Narrative (Details) - Revolving Credit Facility - Subsequent Event $ in Millions | Apr. 01, 2022USD ($) |
Amended Credit Facility | |
Debt Instrument [Line Items] | |
Borrowing capacity | $ 1,500 |
Credit Facility | |
Debt Instrument [Line Items] | |
Borrowing capacity | 2,000 |
New term loan | $ 500 |
Debt, Interest Income, Expens_4
Debt, Interest Income, Expense, and Other Finance Costs - Schedule of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Finance leases | $ 19.5 | $ 21.2 |
Total debt | 884.2 | 508.7 |
Less: Current maturities of long-term debt and finance leases | 15 | 30.6 |
Long-term debt | 869.1 | 478.1 |
Other | ||
Debt Instrument [Line Items] | ||
Long-term debt | 3.2 | 3.3 |
Term loans | Term loans | ||
Debt Instrument [Line Items] | ||
Long-term debt | 436.7 | 484.1 |
Revolving Credit Facility | Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 424.8 | $ 0 |
Debt, Interest Income, Expens_5
Debt, Interest Income, Expense, and Other Finance Costs - Interest Income (Expense), and Other Financing Costs, net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Disclosure [Abstract] | ||
Interest income | $ 2.5 | $ 2.3 |
Interest expense and other financing costs | (16.8) | (11.1) |
Interest expense and other financing costs, net | $ (14.3) | $ (8.7) |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 09, 2022 | Apr. 08, 2022 | Apr. 09, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
Subsequent Event [Line Items] | |||||
Cash dividends declared (in dollars per share) | $ 0.12 | $ 0.12 | |||
Cash dividends paid (in dollars per share) | $ 0.12 | ||||
Dividends paid on common stock | $ 7.5 | $ 7.4 | $ 6.1 | ||
Cash dividends declared | $ 7.6 | $ 7.5 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Cash dividends paid (in dollars per share) | $ 0.12 | ||||
Dividends paid on common stock | $ 7.6 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Comprehensive (Loss) Income [Roll Forward] | ||
Beginning balance | $ 1,916.8 | $ 1,912.9 |
Other comprehensive income (loss) before reclassifications | (53.5) | 21.5 |
Amounts reclassified from accumulated other comprehensive income (loss) | 24.8 | (9.1) |
Less: Net other comprehensive (income) loss attributable to noncontrolling interest | 0 | 0 |
Ending balance | 1,945.5 | 1,943 |
Foreign Currency Translation Adjustments | ||
Other Comprehensive (Loss) Income [Roll Forward] | ||
Beginning balance | (134) | (120.3) |
Other comprehensive income (loss) before reclassifications | (9.4) | (4) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Less: Net other comprehensive (income) loss attributable to noncontrolling interest | 0 | 0 |
Ending balance | (143.4) | (124.3) |
Cash Flow Hedges | ||
Other Comprehensive (Loss) Income [Roll Forward] | ||
Beginning balance | (2.7) | (12.3) |
Other comprehensive income (loss) before reclassifications | (44.1) | 25.5 |
Amounts reclassified from accumulated other comprehensive income (loss) | 24.8 | (9.1) |
Less: Net other comprehensive (income) loss attributable to noncontrolling interest | 0 | 0 |
Ending balance | (22) | 4 |
Accumulated Other Comprehensive Income (Loss) | ||
Other Comprehensive (Loss) Income [Roll Forward] | ||
Beginning balance | (136.7) | (132.6) |
Ending balance | $ (165.4) | $ (120.3) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Gross derivative assets | $ 1,453.8 | $ 773.6 |
Liabilities: | ||
Gross derivative liabilities | 1,406.8 | 748.5 |
Fair value measured on recurring basis | ||
Assets: | ||
Total assets at fair value | 1,468.5 | 788.3 |
Liabilities: | ||
Total liabilities at fair value | 1,406.8 | 748.5 |
Fair value measured on recurring basis | Level 1 Inputs | ||
Assets: | ||
Total assets at fair value | 873 | 513.3 |
Liabilities: | ||
Total liabilities at fair value | 598.5 | 361.5 |
Fair value measured on recurring basis | Level 2 Inputs | ||
Assets: | ||
Total assets at fair value | 587.4 | 272.3 |
Liabilities: | ||
Total liabilities at fair value | 802.5 | 383.2 |
Fair value measured on recurring basis | Level 3 Inputs | ||
Assets: | ||
Total assets at fair value | 8.1 | 2.6 |
Liabilities: | ||
Total liabilities at fair value | 5.8 | 3.8 |
Commodity contracts | Fair value measured on recurring basis | ||
Assets: | ||
Gross derivative assets | 1,429 | 763.5 |
Liabilities: | ||
Gross derivative liabilities | 1,395 | 743.9 |
Commodity contracts | Fair value measured on recurring basis | Level 1 Inputs | ||
Assets: | ||
Gross derivative assets | 873 | 513.3 |
Liabilities: | ||
Gross derivative liabilities | 598.5 | 361.5 |
Commodity contracts | Fair value measured on recurring basis | Level 2 Inputs | ||
Assets: | ||
Gross derivative assets | 547.9 | 247.6 |
Liabilities: | ||
Gross derivative liabilities | 790.7 | 378.6 |
Commodity contracts | Fair value measured on recurring basis | Level 3 Inputs | ||
Assets: | ||
Gross derivative assets | 8.1 | 2.6 |
Liabilities: | ||
Gross derivative liabilities | 5.8 | 3.8 |
Interest rate contracts | Fair value measured on recurring basis | ||
Assets: | ||
Gross derivative assets | 17 | 5.4 |
Liabilities: | ||
Gross derivative liabilities | 0.3 | |
Interest rate contracts | Fair value measured on recurring basis | Level 1 Inputs | ||
Assets: | ||
Gross derivative assets | 0 | 0 |
Liabilities: | ||
Gross derivative liabilities | 0 | |
Interest rate contracts | Fair value measured on recurring basis | Level 2 Inputs | ||
Assets: | ||
Gross derivative assets | 17 | 5.4 |
Liabilities: | ||
Gross derivative liabilities | 0.3 | |
Interest rate contracts | Fair value measured on recurring basis | Level 3 Inputs | ||
Assets: | ||
Gross derivative assets | 0 | 0 |
Liabilities: | ||
Gross derivative liabilities | 0 | |
Foreign currency contracts | Fair value measured on recurring basis | ||
Assets: | ||
Gross derivative assets | 7.7 | 4.7 |
Liabilities: | ||
Gross derivative liabilities | 11.8 | 4.3 |
Foreign currency contracts | Fair value measured on recurring basis | Level 1 Inputs | ||
Assets: | ||
Gross derivative assets | 0 | 0 |
Liabilities: | ||
Gross derivative liabilities | 0 | 0 |
Foreign currency contracts | Fair value measured on recurring basis | Level 2 Inputs | ||
Assets: | ||
Gross derivative assets | 7.7 | 4.7 |
Liabilities: | ||
Gross derivative liabilities | 11.8 | 4.3 |
Foreign currency contracts | Fair value measured on recurring basis | Level 3 Inputs | ||
Assets: | ||
Gross derivative assets | 0 | 0 |
Liabilities: | ||
Gross derivative liabilities | 0 | 0 |
Cash surrender value of life insurance | Fair value measured on recurring basis | ||
Assets: | ||
Cash surrender value of life insurance | 14.8 | 14.6 |
Cash surrender value of life insurance | Fair value measured on recurring basis | Level 1 Inputs | ||
Assets: | ||
Cash surrender value of life insurance | 0 | 0 |
Cash surrender value of life insurance | Fair value measured on recurring basis | Level 2 Inputs | ||
Assets: | ||
Cash surrender value of life insurance | 14.8 | 14.6 |
Cash surrender value of life insurance | Fair value measured on recurring basis | Level 3 Inputs | ||
Assets: | ||
Cash surrender value of life insurance | $ 0 | $ 0 |
Fair Value Measurements - Commo
Fair Value Measurements - Commodity and Foreign Currency Contracts (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | $ 1,453.8 | $ 773.6 |
Gross Amounts Offset | 943.3 | 515.6 |
Net Amounts Presented | 510.5 | 258 |
Cash Collateral | 70.1 | 7.6 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 440.5 | 250.4 |
Offsetting Liabilities [Line Items] | ||
Gross Derivative Liabilities | 1,406.8 | 748.5 |
Gross Amounts Offset | 943.3 | 515.6 |
Net Amounts Presented | 463.5 | 232.8 |
Cash Collateral | 7.4 | 3.2 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 456.1 | 229.7 |
Commodity contracts | ||
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | 1,429 | 763.5 |
Gross Amounts Offset | 937.2 | 513.1 |
Net Amounts Presented | 491.8 | 250.4 |
Cash Collateral | 70.1 | 7.6 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 421.7 | 242.8 |
Offsetting Liabilities [Line Items] | ||
Gross Derivative Liabilities | 1,395 | 743.9 |
Gross Amounts Offset | 937.2 | 513.1 |
Net Amounts Presented | 457.8 | 230.8 |
Cash Collateral | 7.4 | 3.2 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 450.3 | 227.7 |
Interest rate contracts | ||
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | 17 | 5.4 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented | 17 | 5.4 |
Cash Collateral | 0 | 0 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 17 | 5.4 |
Offsetting Liabilities [Line Items] | ||
Gross Derivative Liabilities | 0.3 | |
Gross Amounts Offset | 0 | |
Net Amounts Presented | 0.3 | |
Cash Collateral | 0 | |
Gross Amounts without Right of Offset | 0 | |
Net Amounts | 0.3 | |
Foreign currency contracts | ||
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | 7.7 | 4.7 |
Gross Amounts Offset | 6 | 2.6 |
Net Amounts Presented | 1.7 | 2.1 |
Cash Collateral | 0 | 0 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 1.7 | 2.1 |
Offsetting Liabilities [Line Items] | ||
Gross Derivative Liabilities | 11.8 | 4.3 |
Gross Amounts Offset | 6 | 2.6 |
Net Amounts Presented | 5.8 | 1.7 |
Cash Collateral | 0 | 0 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | $ 5.8 | $ 1.7 |
Fair Value Measurements - Conce
Fair Value Measurements - Concentration of Credit Risk (Details) - Concentration of credit risk - Credit exposure $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Two Counterparties | |
Concentration Risk [Line Items] | |
Total credit risk | $ 81.5 |
Two OTC Counterparties | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 10.00% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Other revenues (excluded from ASC 606) | $ 120.5 | $ 3.5 |
Total revenue | 12,382 | 5,957.9 |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, ASC 606 | 1,419.3 | 845.7 |
EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, ASC 606 | 2,511.3 | 1,363.9 |
LATAM | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, ASC 606 | 1,430.1 | 597.3 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, ASC 606 | 6,900.8 | 3,147.4 |
Aviation Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 5,010.5 | 2,095 |
Aviation Segment | Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, ASC 606 | 225.3 | 121.4 |
Aviation Segment | EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, ASC 606 | 641.9 | 266.9 |
Aviation Segment | LATAM | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, ASC 606 | 953.2 | 349.1 |
Aviation Segment | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, ASC 606 | 3,291.8 | 1,431.3 |
Land | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 4,380.8 | 2,188.2 |
Land | Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, ASC 606 | 48.6 | 5.6 |
Land | EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, ASC 606 | 1,038.4 | 609.9 |
Land | LATAM | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, ASC 606 | 198.4 | 122.7 |
Land | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, ASC 606 | 3,049.6 | 1,460.5 |
Marine | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 2,990.6 | 1,674.7 |
Marine | Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, ASC 606 | 1,145.4 | 718.8 |
Marine | EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, ASC 606 | 831 | 487.2 |
Marine | LATAM | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, ASC 606 | 278.6 | 125.6 |
Marine | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, ASC 606 | $ 559.4 | $ 255.6 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision | $ 6.4 | $ 8.8 |
Effective income tax rate | 19.50% | 31.80% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) kr in Millions, $ in Millions, ₩ in Billions | Apr. 28, 2021USD ($) | Apr. 28, 2021DKK (kr) | Mar. 31, 2022USD ($) | Mar. 31, 2022KRW (₩) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021KRW (₩) | Dec. 31, 2017USD ($) | Dec. 31, 2017KRW (₩) | Dec. 31, 2016USD ($) | Dec. 31, 2016KRW (₩) |
Income Taxes [Line Items] | |||||||||||
Adjustment for discrete tax expense (benefit), prior year foreign tax return | $ (1.2) | $ (1.2) | |||||||||
Uncertain tax position expense (benefit) | (4.1) | ||||||||||
State apportionment factors and state net operating loss positions | 2 | ||||||||||
Effective income tax rate reconciliation, expense (benefit) from other adjustments, amount | 0.8 | $ 1.6 | |||||||||
Danish Tax Authority | 2015 Tax Year | Foreign Tax Authority | |||||||||||
Income Taxes [Line Items] | |||||||||||
Estimated tax | $ 14.3 | kr 96.1 | |||||||||
Danish Tax Authority | 2016 Tax Year | Foreign Tax Authority | |||||||||||
Income Taxes [Line Items] | |||||||||||
Estimated tax | 19.9 | 133.8 | |||||||||
Danish Tax Authority | 2017 Tax Year | Foreign Tax Authority | |||||||||||
Income Taxes [Line Items] | |||||||||||
Estimated tax | $ 23.1 | kr 155.5 | |||||||||
Tax Authority, South Korea (SRTO) | Foreign Tax Authority | Assessment | |||||||||||
Income Taxes [Line Items] | |||||||||||
Pre-assessment notice, amount | $ 28.2 | ₩ 34.3 | $ 28.2 | ₩ 34.3 | |||||||
Tax Authority, South Korea (SRTO) | Tax Year 2011 To 2014 | Foreign Tax Authority | Assessment | |||||||||||
Income Taxes [Line Items] | |||||||||||
Pre-assessment notice, amount | $ 1.6 | ₩ 2 | $ 8.8 | ₩ 10.6 | $ 9.3 | ₩ 11.3 |
Business Segments - Narrative (
Business Segments - Narrative (Details) | 3 Months Ended |
Mar. 31, 2022segment | |
Segment Reporting [Abstract] | |
Number of reportable operating business segments | 3 |
Business Segments - Income Stat
Business Segments - Income Statement Items (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue: | ||
Revenue | $ 12,382 | $ 5,957.9 |
Income from operations: | ||
Income from operations | 41.3 | 37.6 |
Corporate overhead - unallocated | ||
Income from operations: | ||
Income from operations | (22.8) | (24.5) |
Aviation segment | ||
Revenue: | ||
Revenue | 5,010.5 | 2,095 |
Aviation segment | Operating Segments | ||
Income from operations: | ||
Income from operations | 7.5 | 23 |
Land segment | ||
Revenue: | ||
Revenue | 4,380.8 | 2,188.2 |
Land segment | Operating Segments | ||
Income from operations: | ||
Income from operations | 33.4 | 32.8 |
Marine segment | ||
Revenue: | ||
Revenue | 2,990.6 | 1,674.7 |
Marine segment | Operating Segments | ||
Income from operations: | ||
Income from operations | $ 23.1 | $ 6.4 |
Business Segments - Balance She
Business Segments - Balance Sheet Items (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts receivable, net: | ||
Allowance for credit losses | $ 17.2 | $ 26.1 |
Accounts receivable | 3,510.2 | 2,355.3 |
Total assets: | ||
Total assets | 7,968 | 5,942.4 |
Corporate | ||
Total assets: | ||
Total assets | 328.7 | 507.9 |
Aviation segment | ||
Accounts receivable, net: | ||
Allowance for credit losses | 9.6 | 18.4 |
Accounts receivable | 1,339.9 | 972.9 |
Aviation segment | Operating Segments | ||
Total assets: | ||
Total assets | 2,719.5 | 2,305.6 |
Land segment | ||
Accounts receivable, net: | ||
Allowance for credit losses | 4.6 | 3.8 |
Accounts receivable | 1,096.4 | 664.7 |
Land segment | Operating Segments | ||
Total assets: | ||
Total assets | 3,516.1 | 2,106.1 |
Marine segment | ||
Accounts receivable, net: | ||
Allowance for credit losses | 3 | 3.9 |
Accounts receivable | 1,073.9 | 717.7 |
Marine segment | Operating Segments | ||
Total assets: | ||
Total assets | $ 1,403.7 | $ 1,022.7 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator: | ||
Net income attributable to World Fuel | $ 26.3 | $ 18.9 |
Denominator: | ||
Weighted average common shares for basic earnings per common share (in shares) | 63.4 | 63 |
Effect of dilutive securities (in shares) | 0.3 | 0.6 |
Weighted average common shares for diluted earnings per common share (in shares) | 63.7 | 63.6 |
Basic earnings (loss) per common share (in dollars per share) | $ 0.42 | $ 0.30 |
Diluted earnings (loss) per common share (in dollars per share) | $ 0.41 | $ 0.30 |
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) | 1.5 | 1.1 |
Commitments and Contingencies (
Commitments and Contingencies (Details) R$ in Millions, $ in Millions, ₩ in Billions | 12 Months Ended | ||||||
Dec. 31, 2017USD ($) | Dec. 31, 2017KRW (₩) | Dec. 31, 2016USD ($) | Dec. 31, 2016KRW (₩) | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Mar. 31, 2021BRL (R$) | |
Loss Contingencies [Line Items] | |||||||
Aggregate amount including principal and interest | $ 33 | ||||||
Tax Authority, South Korea (SRTO) | Assessment | Foreign Tax Authority | |||||||
Loss Contingencies [Line Items] | |||||||
Pre-assessment notice, amount | $ 28.2 | ₩ 34.3 | $ 28.2 | ₩ 34.3 | |||
Federal, State and Municipal Tax Authorities in Brazil | Assessment | Foreign Tax Authority | |||||||
Loss Contingencies [Line Items] | |||||||
Estimate of possible loss | $ 12.6 | R$ 59.6 |