Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 18, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | WORLD FUEL SERVICES CORP | |
Entity Central Index Key | 0000789460 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 65,381,871 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Stock , $0.01 par value | |
Trading Symbol | INT | |
Security Exchange Name | NYSE | |
Entity File Number | 1-9533 | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 59-2459427 | |
Entity Address, Address Line One | 9800 N.W. 41st Street, | |
Entity Address, City or Town | Miami, | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33178 | |
City Area Code | 305 | |
Local Phone Number | 428-8000 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 218.1 | $ 211.7 |
Accounts receivable, net | 2,747.9 | 2,739.6 |
Inventories | 555.8 | 523.1 |
Prepaid expenses | 70.6 | 65.7 |
Short-term derivative assets, net | 43.7 | 155.2 |
Other current assets | 288.9 | 279.5 |
Total current assets | 3,925 | 3,974.8 |
Property and equipment, net | 359.3 | 350.3 |
Goodwill | 850.6 | 852.7 |
Identifiable intangible and other non-current assets | 616.4 | 499 |
Total assets | 5,751.2 | 5,676.9 |
Current liabilities: | ||
Current maturities of long-term debt and finance leases | 16.8 | 41.1 |
Accounts payable | 2,441.4 | 2,399.6 |
Customer deposits | 137.8 | 118.2 |
Accrued expenses and other current liabilities | 306.2 | 377 |
Total current liabilities | 2,902.3 | 2,935.9 |
Long-term debt | 666.5 | 659.9 |
Non-current income tax liabilities, net | 202.7 | 194.6 |
Other long-term liabilities | 164.1 | 54.9 |
Total liabilities | 3,935.6 | 3,845.3 |
Commitments and contingencies | ||
World Fuel shareholders' equity: | ||
Preferred stock, $1.00 par value; 0.1 shares authorized, none issued | 0 | 0 |
Common stock, $0.01 par value; 100.0 shares authorized, 65.2 and 67.0 issued and outstanding as of June 30, 2019 and December 31, 2018, respectively | 0.7 | 0.7 |
Capital in excess of par value | 280.7 | 340.4 |
Retained earnings | 1,669.7 | 1,606.1 |
Accumulated other comprehensive loss | (151.6) | (131.7) |
Total World Fuel shareholders' equity | 1,799.4 | 1,815.4 |
Noncontrolling interest | 16.1 | 16.1 |
Total equity | 1,815.6 | 1,831.6 |
Total liabilities and equity | $ 5,751.2 | $ 5,676.9 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 100,000 | 100,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 65,200,000 | 67,000,000 |
Common stock, shares outstanding (in shares) | 65,200,000 | 67,000,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 9,459.4 | $ 10,150.8 | $ 18,138.2 | $ 19,332.2 |
Cost of revenue | 9,190.8 | 9,904.7 | 17,618.5 | 18,842.6 |
Gross profit | 268.6 | 246.2 | 519.7 | 489.6 |
Operating expenses: | ||||
Compensation and employee benefits | 113.9 | 110.2 | 224 | 224.1 |
General and administrative | 79.5 | 74.9 | 150.1 | 147.2 |
Total operating expenses | 193.4 | 185.1 | 374.1 | 371.3 |
Income from operations | 75.2 | 61.1 | 145.6 | 118.3 |
Non-operating expenses, net: | ||||
Interest expense and other financing costs, net | (20.2) | (17.9) | (39.6) | (34.2) |
Other income (expense), net | 2.6 | (1.6) | 3 | (3.9) |
Total non-operating expenses, net | (17.6) | (19.5) | (36.6) | (38.1) |
Income before income taxes | 57.6 | 41.6 | 109 | 80.2 |
Provision for income taxes | 20 | 12.4 | 34 | 19.7 |
Net income including noncontrolling interest | 37.6 | 29.2 | 74.9 | 60.5 |
Net income attributable to noncontrolling interest | 0.6 | 0.5 | 0.7 | 0.6 |
Net income attributable to World Fuel | $ 37 | $ 28.7 | $ 74.2 | $ 59.9 |
Basic earnings per common share (in dollars per share) | $ 0.56 | $ 0.42 | $ 1.11 | $ 0.89 |
Basic weighted average common shares (in shares) | 66.7 | 67.7 | 66.9 | 67.6 |
Diluted earnings per common share (in dollars per share) | $ 0.55 | $ 0.42 | $ 1.10 | $ 0.88 |
Diluted weighted average common shares (in shares) | 67 | 68 | 67.2 | 67.9 |
Comprehensive income: | ||||
Net income including noncontrolling interest | $ 37.6 | $ 29.2 | $ 74.9 | $ 60.5 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (6) | (28.6) | (5.9) | (18.3) |
Cash flow hedges, net of income tax benefit of $1.1 and net of income tax expense of $3.1 for the three months ended June 30, 2019 and 2018 respectively and net of income tax benefit of $5.2 and $1.1 for the six months ended June 30, 2019 and 2018, respectively | (2.9) | 6.9 | (14.7) | (2.8) |
Other comprehensive income (loss) | (8.9) | (21.7) | (20.6) | (21.1) |
Comprehensive income including noncontrolling interest | 28.7 | 7.5 | 54.3 | 39.3 |
Comprehensive income (loss) attributable to noncontrolling interest | 0 | (1.1) | (0.7) | (1.3) |
Comprehensive income attributable to World Fuel | $ 28.7 | $ 8.6 | $ 55 | $ 40.7 |
Consolidated Statements of In_2
Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Derivative instruments, income tax expense (benefit) | $ (1.1) | $ 3.1 | $ (5.2) | $ (1.1) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Total World Fuel Shareholders' Equity | Noncontrolling Interest Equity |
Balance as of beginning of period at Dec. 31, 2017 | $ 1,738 | $ 0.7 | $ 354.9 | $ 1,492.8 | $ (126.5) | $ 1,721.9 | $ 16 |
Balance (in shares) at Dec. 31, 2017 | 67.7 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | 31.3 | 31.2 | 31.2 | 0.1 | |||
Cash dividends declared | (4) | (4) | (4) | ||||
Amortization of share-based payment awards | 4.2 | 4.2 | 4.2 | ||||
Issuance (cancellation) of common stock related to share-based payment awards | (0.3) | (0.3) | (0.3) | ||||
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards | (0.3) | (0.3) | (0.3) | ||||
Other comprehensive income (loss) | 0.5 | 0.8 | 0.8 | (0.3) | |||
Reclassification of certain tax effects from U.S. Tax Reform | 1.6 | 1.6 | 1.6 | ||||
Balance as of end of period at Mar. 31, 2018 | 1,771 | $ 0.7 | 358.6 | 1,521.6 | (125.7) | 1,755.1 | 15.9 |
Balance (in shares) at Mar. 31, 2018 | 67.7 | ||||||
Balance as of beginning of period at Dec. 31, 2017 | 1,738 | $ 0.7 | 354.9 | 1,492.8 | (126.5) | 1,721.9 | 16 |
Balance (in shares) at Dec. 31, 2017 | 67.7 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | 60.5 | ||||||
Other comprehensive income (loss) | (21.1) | ||||||
Balance as of end of period at Jun. 30, 2018 | 1,775.3 | $ 0.7 | 359.3 | 1,546.3 | (146.3) | 1,760 | 15.3 |
Balance (in shares) at Jun. 30, 2018 | 67.8 | ||||||
Balance as of beginning of period at Mar. 31, 2018 | 1,771 | $ 0.7 | 358.6 | 1,521.6 | (125.7) | 1,755.1 | 15.9 |
Balance (in shares) at Mar. 31, 2018 | 67.7 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | 29.2 | 28.7 | 28.7 | 0.5 | |||
Cash dividends declared | (4.1) | (4.1) | (4.1) | ||||
Amortization of share-based payment awards | 2.3 | 2.3 | 2.3 | ||||
Issuance (cancellation) of common stock related to share-based payment awards | 0.3 | 0.3 | 0.3 | ||||
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 | (1.8) | (1.8) | (1.8) | ||||
Other comprehensive income (loss) | (21.7) | (20.6) | (20.6) | (1.1) | |||
Balance as of end of period at Jun. 30, 2018 | 1,775.3 | $ 0.7 | 359.3 | 1,546.3 | (146.3) | 1,760 | 15.3 |
Balance (in shares) at Jun. 30, 2018 | 67.8 | ||||||
Balance as of beginning of period at Dec. 31, 2018 | $ 1,831.6 | $ 0.7 | 340.4 | 1,606.1 | (131.7) | 1,815.4 | 16.1 |
Balance (in shares) at Dec. 31, 2018 | 67 | 67 | |||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | $ 37.3 | 37.2 | 37.2 | 0.1 | |||
Cash dividends declared | (4) | (4) | (4) | ||||
Amortization of share-based payment awards | 4 | 4 | 4 | ||||
Issuance (cancellation) of common stock related to share-based payment awards | 0 | ||||||
Issuance (cancellation) of common stock related to share-based payment awards (in shares) | 0.1 | ||||||
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards | (1.4) | (1.4) | (1.4) | ||||
Other comprehensive income (loss) | (11.7) | (11) | (11) | (0.8) | |||
Other | 0 | ||||||
Balance as of end of period at Mar. 31, 2019 | 1,855.8 | $ 0.7 | 343 | 1,639.3 | (142.7) | 1,840.3 | 15.5 |
Balance (in shares) at Mar. 31, 2019 | 67.1 | ||||||
Balance as of beginning of period at Dec. 31, 2018 | $ 1,831.6 | $ 0.7 | 340.4 | 1,606.1 | (131.7) | 1,815.4 | 16.1 |
Balance (in shares) at Dec. 31, 2018 | 67 | 67 | |||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | $ 74.9 | ||||||
Other comprehensive income (loss) | (20.6) | ||||||
Balance as of end of period at Jun. 30, 2019 | $ 1,815.6 | $ 0.7 | 280.7 | 1,669.7 | (151.6) | 1,799.4 | 16.1 |
Balance (in shares) at Jun. 30, 2019 | 65.2 | 65.2 | |||||
Balance as of beginning of period at Mar. 31, 2019 | $ 1,855.8 | $ 0.7 | 343 | 1,639.3 | (142.7) | 1,840.3 | 15.5 |
Balance (in shares) at Mar. 31, 2019 | 67.1 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | 37.6 | 37 | 37 | 0.6 | |||
Cash dividends declared | (6.6) | (6.6) | (6.6) | ||||
Amortization of share-based payment awards | 3.5 | 3.5 | 3.5 | ||||
Issuance (cancellation) of common stock related to share-based payment awards | 0.7 | 0.7 | 0.7 | ||||
Issuance (cancellation) of common stock related to share-based payment awards (in shares) | 0.2 | ||||||
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards | (1.2) | (1.2) | (1.2) | ||||
Purchases of common stock | (65.4) | (65.4) | (65.4) | ||||
Purchases of common stock (in shares) | (2.1) | ||||||
Other comprehensive income (loss) | (8.9) | (8.9) | (8.9) | ||||
Balance as of end of period at Jun. 30, 2019 | $ 1,815.6 | $ 0.7 | $ 280.7 | $ 1,669.7 | $ (151.6) | $ 1,799.4 | $ 16.1 |
Balance (in shares) at Jun. 30, 2019 | 65.2 | 65.2 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | Jul. 05, 2019 | Apr. 12, 2019 | Jul. 06, 2018 | Apr. 06, 2018 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 |
Cash dividends declared (in dollars per share) | $ 0.10 | $ 0.06 | $ 0.06 | $ 0.06 | ||||
Cash dividends declared | $ 6.6 | $ 4 | $ 4.1 | $ 4 | ||||
Cash dividends paid (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.06 | |||||
Dividends paid on common stock | $ 4 | $ 4.1 | $ 4 | |||||
Subsequent Event | ||||||||
Cash dividends paid (in dollars per share) | $ 0.10 | |||||||
Dividends paid on common stock | $ 6.6 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income including noncontrolling interest | $ 74.9 | $ 60.5 |
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities: | ||
Depreciation and amortization | 43.1 | 38.4 |
Provision for bad debt | 5.7 | 4 |
Share-based payment award compensation costs | 7.7 | 6.4 |
Deferred income tax expense (benefit) | 4.8 | (1) |
Foreign currency losses, net | 2.1 | (2.5) |
Other | (0.3) | 0.4 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable, net (reduced by beneficial interests received in exchange for accounts receivables sold of $121.8 and $241.9 for the three and six months ended June 30, 2018, respectively.) | (12.5) | (499.7) |
Inventories | (40.4) | (56.7) |
Prepaid expenses | (7.2) | 2.1 |
Short-term derivative assets, net | 167.6 | (22) |
Other current assets | 8.9 | (32.2) |
Cash collateral with financial counterparties | (38) | 41.7 |
Other non-current assets | 33.9 | (32.8) |
Accounts payable | 70 | 301 |
Customer deposits | 19.5 | (12.2) |
Accrued expenses and other current liabilities | (143.7) | (22.5) |
Non-current income tax, net and other long-term liabilities | (60.4) | (1.4) |
Total adjustments | 60.8 | (289.1) |
Net cash provided by (used in) operating activities | 135.8 | (228.6) |
Cash flows from investing activities: | ||
Cash receipts of retained beneficial interests in receivable sales | 0 | 241.9 |
Acquisition of businesses, net of cash acquired | 0 | (21) |
Capital expenditures | (37.3) | (28.9) |
Other investing activities, net | 3.8 | 7.6 |
Net cash (used in) provided by investing activities | (33.6) | 199.5 |
Cash flows from financing activities: | ||
Borrowings | 3,197.6 | 2,875 |
Repayments of debt | (3,218.6) | (3,019.5) |
Dividends paid on common stock | (8) | (8.1) |
Repurchases of common stock | (65.4) | 0 |
Other financing activities, net | (2.6) | (2.1) |
Net cash (used in) financing activities | (97.1) | (154.7) |
Effect of exchange rate changes on cash and cash equivalents | 1.2 | (1.1) |
Net increase (decrease) in cash and cash equivalents | 6.3 | (184.8) |
Cash and cash equivalents, as of the beginning of the period | 211.7 | 372.3 |
Cash and cash equivalents, as of the end of the period | $ 218.1 | $ 187.6 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | |
Supplemental Schedule of Noncash Investing and Financing Activities | |||
Beneficial interest obtained in exchange for accounts receivable sold | $ 121.8 | $ 241.9 | |
Cash dividends declared, but not yet paid | $ 4.1 | $ 4.1 | $ 6.6 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies World Fuel Services Corporation (the “Company”) was incorporated in Florida in July 1984 and along with its consolidated subsidiaries is referred to collectively in this Quarterly Report on Form 10‑Q (“10-Q Report”) as “World Fuel,” “we,” “our” and “us.” We are a leading global fuel services company, principally engaged in the distribution of fuel and related products and services in the aviation, marine and land transportation industries. In recent years, we have expanded our product and service offerings to include energy advisory services and supply fulfillment with respect to natural gas and power and transaction and payment management solutions to commercial and industrial customers. Our intention is to become a leading global energy management company offering a full suite of energy advisory, management and fulfillment services and technology solutions across the energy product spectrum. We also seek to become a leading transaction and payment management company, offering payment management solutions to commercial and industrial customers, principally in the aviation, land and marine transportation industries. We prepared the consolidated financial statements following the requirements of the United States (“U.S.”) Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by accounting principles generally accepted in the U.S. (“U.S. GAAP”) can be condensed or omitted. Revenues, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be representative of those for the full year. In our opinion, all adjustments necessary for a fair statement of the financial statements, which are of a normal and recurring nature, have been made for the interim periods reported. The information included in this 10-Q Report should be read in conjunction with the consolidated financial statements and accompanying notes included in our 2018 Annual Report on Form 10-K (“ 2018 10-K Report”). Certain amounts in the consolidated financial statements and associated notes may not add due to rounding. All percentages have been calculated using unrounded amounts. Our net income for the six months ending June 30, 2019 of $74.2 million , or $1.10 per diluted common share, includes a net discrete tax benefit of $3.2 million with respect to a foreign tax filing and $3.4 million of operating income ( $2.3 million after-tax), which were recorded during the first quarter ending March 31, 2019, both of which should have been recognized in 2018 . Excluding these misstatements, which we have determined were not material to the three months ending March 31, 2019 and the six months ending June 30, 2019 or 2018 , our net income would have been $68.8 million , or $1.02 per diluted common share. There have been no significant changes, other than those related to the adopted new accounting standards below, in the Company's accounting policies from those disclosed in our 2018 10‑K Report. The significant accounting policies we use for quarterly financial reporting are disclosed in Note 1 of the “Notes to the Consolidated Financial Statements” included in our 2018 10‑K Report, and in the adopted accounting standards below. Adoption of New Accounting Standard Leases (Topic 842). In February 2016, ASU 2016-02 was issued. The primary objective of the new standard, which amends the existing lease guidance and adds additional disclosures, is to increase transparency and comparability among organizations by recognizing nearly all lease assets and lease liabilities on the balance sheet, including operating leases that under the prior standard were off-balance sheet. Topic 842 defines a lease as a contract that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control over the use of the identified asset means that the customer has the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 (including interim periods within those periods) and early adoption is permitted. The Company adopted ASU 2016-02 in the first quarter of 2019 utilizing the modified retrospective transition method and applying the transition provisions at the effective date. We implemented the new standard using the package of practical expedients under the transition provisions that allows us not to reassess whether a contract contains a lease, how the lease is classified and if initial direct costs can be capitalized. For all the lessee arrangements, we have elected an accounting policy to combine non-lease components with the related lease components and treat the combined items as a lease for accounting purposes. Lastly, we have elected not to recognize the lease asset and related lease liability for leases with a lease term of 12 months or less. As of the date of implementation on January 1, 2019, the impact of the adoption of the new lease standard resulted in the recognition of the right of use assets of $167.3 million and lease liability of $173.6 million on the Company’s consolidated balance sheet. The difference between the right of use assets and lease liabilities is primarily the result of accrued lease payments and cumulative lease prepayments as well as the remaining balance of lease incentives received. Subsequent to adoption, the Company does not anticipate the impact on its results of operations and cash flows to be material. Accounting Standards Issued but Not Yet Adopted Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . In June 2016, ASU 2016-13 was issued. The amendments in this update will change how entities account for credit impairment from trade and other receivables, net investments arising from sales-type and direct financing leases, debt securities, purchased-credit impaired financial assets and other instruments in addition to loans. ASU 2018-19 issued in November 2018, clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. For receivables and certain other instruments that are not measured at fair value, entities will be required to estimate expected credit losses. Under the expected loss model, an entity recognizes a loss upon initial recognition of the asset that reflects all future events that will lead to a loss being realized, regardless of whether it is probable that the future event will occur. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. An entity will apply most of the amendments in this update using a modified-retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We are currently evaluating the impact that the new standard would have on our consolidated financial statements and disclosures. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable We have receivables purchase agreements (“RPAs”) with Wells Fargo and Citibank that allow for the sale of up to an aggregate limit of $725.0 million of our accounts receivable. For the six months ended June 30, 2019 and 2018 , cash payments to the owners of accounts receivable were $4.2 billion and $4.0 billion respectively, and cash proceeds from the sale of accounts receivable were $4.2 billion and $3.9 billion, respectively. The fees and financing costs under the RPA were $13.3 million and $8.8 million for the six months ended June 30, 2019 and 2018 , respectively. As of June 30, 2019 and December 31, 2018 , our sold accounts receivable under the RPAs was $531.4 million and $508.2 million , respectively. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2018 Acquisitions During the first quarter of 2018 , we completed one acquisition in the land segment. The financial position, results of operations and cash flows of the 2018 acquisition, has been included in our consolidated financial statements since its acquisition date and it did not have a material impact on our consolidated revenue and net income for the six months ended June 30, 2018 |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives We enter into financial derivative contracts to mitigate the risk of market price fluctuations in aviation, land and marine fuel, to offer our customers fuel pricing alternatives to meet their needs and to mitigate the risk of fluctuations in foreign currency exchange rates. If the derivative instrument is not designated in a hedge relationship, changes in the estimated fair market value are recognized as a component of revenue, cost of revenue, or other income (expense) in the consolidated statements of income and comprehensive income. Derivatives which qualify for hedge accounting may be designated as either a fair value or cash flow hedge. For our fair value hedges, changes in the estimated fair market value of the hedging instrument and the hedged item are recognized in the same line item as the underlying transaction type in the consolidated statements of income and comprehensive income. The gains or losses on derivative instruments designated as cash flow hedges of forecasted transactions are initially reported as a component of accumulated other comprehensive income (AOCI) and subsequently reclassified into earnings once the future transactions affect earnings. Cash flows for our hedging instruments are classified in the same category as the underlying hedged items. If for any reason hedge accounting is discontinued, then any cash flows subsequent to the date of discontinuance will be classified in a manner consistent with the nature of the instrument. The following describes our derivative classifications: Fair Value Hedges. Includes derivative contracts we hold to hedge the risk of changes in the price of our inventory. Cash Flow Hedges. Includes certain derivative contracts we execute to mitigate the risk of price or foreign currency volatility in forecasted transactions. Non-designated Derivatives. Includes derivatives we primarily transact to mitigate the risk of market price fluctuations in the form of swaps or futures contracts, certain forward fixed price purchase and sale contracts, and for portfolio optimization. In addition, non-designated derivatives are held to hedge the risk of currency rate fluctuations. The following table presents the gross fair value of our derivative instruments and their locations on the consolidated balance sheets (in millions): Gross Derivative Assets Gross Derivative Liabilities As of As of June 30, December 31, June 30, December 31, 2019 2018 2019 2018 Derivative Instruments Consolidated Balance Sheets location Derivatives designated as hedging instruments Commodity contracts Short-term derivative assets, net $ — $ 168.5 $ — $ 122.5 Identifiable intangible and other non-current assets — 19.7 — 9.6 Accrued expenses and other current liabilities 50.3 0.1 59.4 — Total derivatives designated as hedging instruments $ 50.5 $ 188.2 $ 59.4 $ 132.2 Derivatives not designated as hedging instruments Commodity contracts Short-term derivative assets, net $ 61.6 $ 537.6 $ 18.0 $ 429.0 Identifiable intangible and other non-current assets 19.2 71.7 4.5 40.0 Accrued expenses and other current liabilities 229.9 30.7 271.7 126.4 Other long-term liabilities 31.7 12.9 41.2 40.4 $ 342.5 $ 652.9 $ 335.5 $ 635.8 Foreign currency contracts Short-term derivative assets, net $ — $ 4.4 $ — $ 0.8 Identifiable intangible and other non-current assets 0.1 0.1 — — Accrued expenses and other current liabilities 2.0 0.1 3.8 0.4 $ 2.1 $ 4.6 $ 3.8 $ 1.2 Total derivatives not designated as hedging instruments $ 344.6 $ 657.5 $ 339.3 $ 637.0 Total derivatives $ 395.0 $ 845.8 $ 398.7 $ 769.1 For information regarding our derivative instruments measured at fair value after netting and collateral see Note 7. The following table summarizes the gross notional values of our commodity and foreign currency exchange derivative contracts used for risk management purposes that were outstanding as of June 30, 2019 (in millions): As of June 30, Derivative Instruments Units 2019 Commodity contracts Long BBL 98.8 Short BBL (89.2 ) Foreign currency exchange contracts Sell U.S. dollar, buy other currencies USD (117.5 ) Buy U.S. dollar, sell other currencies USD 398.3 As of June 30, 2019 , and December 31, 2018 , the following amounts were recorded on the 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 Asset/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset/(Liabilities) As of As of June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Inventory $ 48.5 $ 44.7 $ 1.1 $ (6.6 ) The following table presents the effect of fair value and cash flow hedges on income and expense line items in our Consolidated Statements of Income and Comprehensive Income (in millions): Location and Amount of Gain and (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships For the Three Months Ended June 30, 2019 June 30, 2018 Revenue Cost of Revenue Revenue Cost of Revenue Total amounts of income and expense line items in which the effects of fair value or cash flow hedged are recorded $ 9,459.4 $ 9,190.8 $ 10,150.8 $ 9,904.7 Gains or Loss on fair value hedge relationships Commodity contracts Hedged Item — (0.9 ) — 11.3 Derivatives designated as hedging instruments — (0.6 ) — (10.9 ) Gains or Loss on cash flow hedge relationships Commodity contracts Amount of Gain (Loss) Reclassified from AOCI into Income (2.5 ) 25.8 (20.3 ) 10.2 Total amount of income and expense line items excluding the impact of hedges $ 9,461.9 $ 9,215.1 $ 10,171.2 $ 9,915.2 Location and Amount of Gain and (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships For the Six Months Ended June 30, 2019 June 30, 2018 Revenue Cost of Revenue Revenue Cost of Revenue Total amounts of income and expense line items in which the effects of fair value or cash flow hedged are recorded $ 18,138.2 $ 17,618.5 $ 19,332.2 $ 18,842.6 Gains or Loss on fair value hedge relationships Commodity contracts Hedged Item — 15.4 — 16.7 Derivatives designated as hedging instruments — (14.1 ) — (16.5 ) Gains or Loss on cash flow hedge relationships Commodity contracts Amount of Gain (Loss) Reclassified from AOCI into Income (6.3 ) 17.4 (23.9 ) 28.4 Total amount of income and expense line items excluding the impact of hedges $ 18,144.5 $ 17,637.2 $ 19,356.1 $ 18,871.2 For the three and six months ended June 30, 2019 and 2018 , there were no gains or losses recognized in earnings related to our fair value or cash flow hedges that were excluded from the assessment of hedge effectiveness. The following table presents the effect and financial statement location of our derivative instruments in cash flow hedging relationships on our accumulated other comprehensive income, Consolidated Statements of Income and Comprehensive Income (in millions): Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income For the Three Months Ended Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income For the Three Months Ended June 30, June 30, Derivative Instruments 2019 2018 Location 2019 2018 Commodity contracts $ 42.8 $ (25.3 ) Revenue $ (2.5 ) $ (20.3 ) Commodity contracts (22.7 ) 19.5 Cost of Revenue 25.8 10.2 Foreign Currency contracts — 2.1 Other Income (expense) net — — Total (Loss) Gain $ 20.1 $ (3.7 ) Total (Loss) Gain $ 23.3 $ (10.2 ) Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income For the Six Months Ended Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income For the Six Months Ended June 30, June 30, Derivative Instruments 2019 2018 Location 2019 2018 Commodity contracts $ (177.7 ) $ (27.6 ) Revenue $ (6.3 ) $ (23.9 ) Commodity contracts 173.7 29.7 Cost of Revenue 17.4 28.4 Foreign Currency contracts — (0.8 ) Other Income (expense) net — — Total Gain $ (4.0 ) $ 1.3 Total Gain $ 11.1 $ 4.5 The following table presents the effect and financial statement location of our derivative instruments not designated as hedging instruments on our Consolidated Statements of Income and Comprehensive Income (in millions): Amount of Realized and Unrealized Gain (Loss) For the Three Months Ended June 30, Derivative Instruments - Non-designated Location 2019 2018 Commodity contracts Revenue $ 69.4 $ (3.6 ) Cost of revenue (57.1 ) (6.8 ) $ 12.4 $ (10.4 ) Foreign currency contracts Revenue $ — $ 1.5 Other (expense), net (1.3 ) 6.2 $ (1.3 ) $ 7.7 Total Gain (Loss) $ 11.1 $ (2.7 ) Amount of Realized and Unrealized Gain (Loss) For the Six Months Ended June 30, Derivative Instruments - Non-designated Location 2019 2018 Commodity contracts Revenue $ 144.5 $ 44.0 Cost of revenue (123.0 ) (43.8 ) $ 21.5 $ 0.3 Foreign currency contracts Revenue $ (0.1 ) $ 0.9 Other (expense), net (0.8 ) 3.4 $ (0.9 ) $ 4.2 Total Gain $ 20.6 $ 4.5 Credit-Risk-Related Contingent Features We enter into derivative instrument contracts which may require us to provide collateral periodically. Certain derivative contracts contain credit-risk-related contingent clauses which are triggered by credit events. These credit events may include the requirement to provide additional collateral or the immediate settlement of the derivative instruments upon the occurrence of a credit downgrade or if certain defined financial ratios fall below an established threshold. The following table presents the potential collateral requirements for derivative liabilities with credit-risk-contingent features (in millions): Potential Collateral Requirements for Derivative Liabilities with Credit-Risk-Contingent Features As of June 30, 2019 As of December 31, 2018 Net derivatives liability positions with credit contingent features $ 3.2 $ 7.2 Maximum potential collateral requirements $ 3.2 $ 7.2 At June 30, 2019 and December 31, 2018 , there was no collateral held by our counterparties on these derivative contracts with credit-risk-contingent features. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill arises because the purchase price paid for our acquisitions reflects numerous factors, including the strategic fit and expected synergies these acquisitions bring to our existing operations. Goodwill is recorded at fair value and is reviewed at least annually for impairment. The following table provides the components of and changes in the carrying amount of goodwill (in millions): Aviation Land Total Balance as of December 31, 2018 $ 322.9 $ 529.7 $ 852.7 Additions — — — Foreign exchange and other adjustments (1.2 ) (0.9 ) (2.1 ) Balance as of June 30, 2019 $ 321.8 $ 528.8 $ 850.6 |
Debt, Interest Income, Expense
Debt, Interest Income, Expense and Other Finance Costs | 6 Months Ended |
Jun. 30, 2019 | |
Debt, Interest Income, Expense and Other Finance Costs [Abstract] | |
Debt, Interest Income, Expense and Other Finance Costs | Debt, Interest Income, Expense and Other Finance Costs Our Credit Facility consisted of a revolving loan with a borrowing capacity of $1.2 billion and a Term Loan with outstanding principal as of June 30, 2019 and December 31, 2018 of $498.0 million and $514.8 million , respectively. On July 23, 2019, we amended our Credit Facility to, among other things, (i) increase the borrowing capacity to $1.3 billion, (ii) increase the Term Loans to $525.0 million, (iii) modify and extend the final maturity date to July 2024, and (iv) modify certain financial and other covenants to reduce costs and provide greater operating flexibility. Accordingly, based on the terms of the modified Credit Facility, the current maturities of long-term debt is $13.1 million as of June 30, 2019 . Our debt consisted of the following (in millions): As of June 30, December 31, 2019 2018 Credit Facility $ 167.0 $ 170.0 Term Loans 498.0 514.8 Finance Leases 16.0 13.8 Other 2.3 2.3 Total debt $ 683.3 $ 701.0 Current maturities of long-term debt and capital leases $ 16.8 $ 41.1 Long-term debt $ 666.5 $ 659.9 The following table provides additional information about our interest income (expense), and other financing costs, net, for the periods presented (in millions): For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Interest income $ 1.5 $ 1.3 $ 2.6 $ 1.9 Interest expense and other financing costs (21.7 ) (19.2 ) (42.2 ) (36.1 ) $ (20.2 ) $ (17.9 ) $ (39.6 ) $ (34.2 ) t |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The carrying amounts of cash and cash equivalents, accounts receivable, net, accounts payable and accrued expenses and other current liabilities approximate fair value based on the short-term maturities of these instruments. The carrying values of our debt and notes receivables approximate fair value since these instruments bear interest either at variable rates or fixed rates which are not significantly different from market rates. Based on the fair value hierarchy, our total debt of $0.7 billion and $0.7 billion as of June 30, 2019 and December 31, 2018 , respectively, and our notes receivable of $27.5 million and $28.2 million as of June 30, 2019 and December 31, 2018 , respectively, are categorized in Level 2. The following table presents information about our gross assets and liabilities that are measured at fair value on a recurring basis (in millions): Fair Value Measurements as of June 30, 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Commodities contracts $ 282.2 $ 106.2 $ 4.5 $ 393.0 Foreign currency contracts — 2.1 — 2.1 Cash surrender value of life insurance — 8.0 — 8.0 Total assets at fair value $ 282.2 $ 116.4 $ 4.5 $ 403.1 Liabilities: Commodities contracts $ 302.1 $ 91.5 $ 1.2 $ 394.8 Foreign currency contracts — 3.8 — 3.8 Total liabilities at fair value $ 302.1 $ 95.4 $ 1.2 $ 398.7 Fair Value Measurements as of December 31, 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Commodities contracts $ 585.6 $ 254.6 $ 0.9 $ 841.2 Foreign currency contracts — 4.6 — 4.6 Cash surrender value of life insurance — 6.3 — 6.3 Total assets at fair value $ 585.6 $ 265.6 $ 0.9 $ 852.1 Liabilities: Commodities contracts $ 556.5 $ 211.2 $ 0.2 $ 767.9 Foreign currency contracts — 1.2 — 1.2 Total liabilities at fair value $ 556.5 $ 212.4 $ 0.2 $ 769.1 There were no transfers between Level 1 and Level 2 during the periods presented. Additionally, the fair values of our commodity contracts measured using Level 3 inputs were not material at June 30, 2019 and December 31, 2018 , respectively. For our derivative contracts, we may enter into master netting, collateral and offset agreements with counterparties. These agreements provide us the ability to offset a counterparty’s rights and obligations, request additional collateral when necessary or liquidate the collateral in the event of counterparty default. We net the fair value of cash collateral paid or received against fair value amounts recognized for net derivative positions executed with the same counterparty under the same master netting or offset agreement. The following tables summarize those commodity derivative balances subject to the right of offset as presented on our consolidated balance sheet. We have elected to offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements when a legal right of offset exists. Fair Value as of June 30, 2019 Gross Amounts Gross Amounts Gross Amounts Net Amounts Cash without Recognized Offset Presented Collateral Right of Offset Net Amounts Assets: Commodities contracts $ 393.0 $ 335.9 $ 57.0 $ — $ — $ 57.0 Foreign currency contracts 2.1 2.1 — — — — Total assets at fair value $ 395.0 $ 338.0 $ 57.0 $ — $ — $ 57.0 Liabilities: Commodities contracts $ 394.8 $ 335.9 $ 58.9 $ 19.4 $ — $ 39.5 Foreign currency contracts 3.8 2.1 1.7 — — 1.7 Total liabilities at fair value $ 398.7 $ 338.0 $ 60.7 $ 19.4 $ — $ 41.3 Fair Value as of December 31, 2018 Gross Amounts Gross Amounts Gross Amounts Net Amounts Cash without Recognized Offset Presented Collateral Right of Offset Net Amounts Assets: Commodities contracts $ 841.2 $ 646.0 $ 195.1 $ 3.0 $ — $ 192.1 Foreign currency contracts 4.6 0.9 3.7 — — 3.7 Total assets at fair value $ 845.8 $ 647.0 $ 198.8 $ 3.0 $ — $ 195.8 Liabilities: Commodities contracts $ 767.9 $ 646.0 $ 121.9 $ — $ — $ 121.9 Foreign currency contracts 1.2 0.9 0.3 — — 0.3 Total liabilities at fair value $ 769.1 $ 647.0 $ 122.2 $ — $ — $ 122.2 At June 30, 2019 and December 31, 2018 , we did not present any amounts gross on our consolidated balance sheet where we had the right of offset. Concentration of Credit Risk The individual over-the-counter (OTC) counterparty exposure is managed within predetermined credit limits and includes the use of cash-call margins when appropriate, thereby reducing the risk of significant nonperformance. At June 30, 2019 , one counterparty with an exposure amount of 4.1 million represented over 10% of our total credit exposure to OTC derivative counterparties. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax provision for the periods presented and the respective effective income tax rates for such periods are as follows (in millions, except for income tax rates): For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Income tax provision $ 20.0 $ 12.4 $ 34.0 $ 19.7 Effective income tax rate 34.7 % 29.7 % 31.2 % 24.6 % Our provision for income taxes for the three months ended June 30, 2019 was $20.0 million , resulting in an effective income tax rate of 34.7% . The provision includes a $3.0 million discrete tax expense relating to a change in legislation in several states, which together with other discrete tax items, resulted in a net discrete tax expense of $0.8 million for the period. Without the $0.8 million in net discrete tax expense, the effective income tax rate would have been 33.3% for the three months ended June 30, 2019 . Our provision for income taxes for the three months ended June 30, 2018 was $12.4 million resulting in an effective tax rate of 29.7% . Our provision for income taxes was adjusted for an income tax benefit of $3.9 million , net, for discrete items related to an adjustment for stock based compensation in accordance with ASU 2016-09, an adjustment pursuant to the accounting of the Act, and changes in the valuation allowance in various jurisdictions. Without the $3.9 million in discrete items, the effective income tax rate would have been 39.2% for the three months ended June 30, 2018 . Our provision for income taxes for the six months ended June 30, 2019 was $34.0 million, which included a $3.2 million discrete tax benefit recorded during the three months ended March 31, 2019 that should have been recognized in a prior period and which, together with all other discrete tax items, resulted in a net discrete tax benefit of $2.0 million, for the six months ended June 30, 2019. Without the $2.0 million net discrete tax benefit, the effective income tax rate would have been 33.1% . See Note 1 - Basis of Presentation and Significant Accounting Policies for additional information. Our provision for income taxes for the six months ended June 30, 2018 was $19.7 million and was adjusted for an income tax benefit of $8.8 million , net, for discrete items primarily related to an adjustment pursuant to the accounting of the Act, changes in estimates in uncertain tax positions, and adjustment for stock based compensation in accordance with ASU 2016-09, and changes in the valuation allowance in various jurisdictions. Without the $8.8 million benefit in discrete items, the effective income tax rate would have been 35.6% . Our provision for income taxes for each of the three and six months ended June 30, 2019 and 2018 was calculated based on the estimated annual effective income tax rate for the 2019 and 2018 fiscal years. The actual effective income tax rate for the 2019 fiscal year may be materially different as a result of differences between estimated versus actual results and the geographic tax jurisdictions in which the results are earned. We have various income tax returns under examination both in the U.S. and foreign jurisdictions. The most significant of these are in South Korea for the 2011 to 2014 tax years, Denmark for the 2013 to 2015 tax years and the U.S. for the 2013 to 2016 tax years. In 2016, the South Korean branch of one of our subsidiaries received income tax assessment notices for the years 2011 to 2014 totaling $9.8 million (KRW 11.3 billion ). We believe that these assessments are without merit and are currently appealing the actions. In addition, during the quarter ended March 31, 2018, one of our Danish subsidiaries received an audit inquiry from the Danish tax authority relating to transfer pricing and related issues for the tax years 2013 to 2015. We have been responding to the request and related questions and in April 2019, we received a proposed tax adjustment for the 2013 tax year which is not material. We have not yet received any proposed tax adjustments with respect to the 2014 or 2015 tax years. We believe that the proposed adjustment received for the 2013 tax year is without merit and intend to defend our positions. Finally, in 2017, we received a notice of examination from the U.S. Internal Revenue Service for the 2013 to 2016 tax years. We have responded to all requests and are awaiting further communication from the U.S. Internal Revenue Service. An unfavorable resolution of one or more of the above matters could have a material adverse effect on our results of operations or cash flows in the quarter and year in which an adjustment is recorded or the tax is due or paid. As audits and examinations are still in process or we have not yet reached the final stages of the appeals process, the timing of the ultimate resolution and any payments that may be required for the above matters cannot be determined at this time. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Our contracts with customers primarily require us to deliver fuel and fuel-related products, while other arrangements require us to complete agreed-upon services. Revenue from the sale of fuel is recognized when our customers obtain control of the fuel, which is typically upon delivery of each promised gallon or barrel to an agreed-upon delivery point. We generally recognize revenue for services provided over the contract period when services have been performed based on our right to invoice for those services. Our contracts may contain fixed or variable pricing (such as market or index-based pricing) or some combination of those. Within our land and aviation segments, contracts with customers may include multi-year sales contracts, which are priced at market-based indices and require minimum volume purchase commitments from our customers. The consideration expected from these contracts is considered variable due to the market-based pricing and the variability is not resolved until delivery is made to our customers. We have elected to apply the optional exemption from estimating and disclosing the variable consideration from our remaining performance obligations under these contracts. We also have fixed price fuel and fuel-related product sale contracts with a contract term of less than one year (typically one month). For these contracts, we apply the optional exemption, to not disclose the amount of transaction price allocated to remaining performance obligations. We also apply this exemption to those contracts in which the right to consideration corresponds directly with the value to the customer of the entity's performance to date. In limited cases, we may have multi-period fixed price contracts. Because our long-term supply arrangements that exceed one year are typically based on market index prices as previously discussed, the transaction price associated with remaining performance obligations under multi-year fixed price fuel sale contracts are not significant. The following table presents our revenues from contracts with customers disaggregated by major geographic areas we conduct business in. Prior period amounts have not been adjusted under the modified retrospective method (in millions). For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Aviation $ 340.8 $ 363.6 $ 705.2 $ 755.6 Land 4.1 0.8 9.0 1.9 Marine 719.5 804.1 1,428.4 1,603.6 Asia Pacific $ 1,064.5 $ 1,168.5 $ 2,142.6 $ 2,361.1 Aviation $ 1,008.8 $ 962.8 $ 1,727.9 $ 1,632.8 Land 569.7 635.7 1,210.2 1,315.5 Marine 736.3 832.2 1,391.1 1,469.6 EMEA $ 2,314.9 $ 2,430.6 $ 4,329.2 $ 4,417.9 Aviation $ 614.6 $ 477.2 $ 1,160.3 $ 967.4 Land 149.6 156.3 288.5 340.6 Marine 143.4 128.1 334.9 283.3 LATAM $ 907.6 $ 761.6 $ 1,783.7 $ 1,591.3 Aviation $ 2,828.5 $ 3,157.6 $ 5,476.5 $ 5,920.6 Land 1,884.6 2,142.6 3,519.0 4,100.9 Marine 347.9 358.0 682.4 637.9 North America $ 5,061.0 $ 5,658.2 $ 9,677.9 $ 10,659.4 Other revenues (excluded from ASC 606) $ 111.3 $ 131.9 $ 204.8 $ 302.5 $ 9,459.4 $ 10,150.8 $ 18,138.2 $ 19,332.2 Other revenues (excluded from ASC 606) in the table above includes revenue from leases and other transactions that we account for following separate guidance. Our contract assets and liabilities balances, and the changes in these balances, were not material for the six months ended June 30, 2019 . The nature of the receivables related to revenue from contracts with customers and other revenue are substantially similar, given that they are 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 considering 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 Sheet. Furthermore, the contract assets and contract liabilities recognized by the Company were not material. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments We operate in three reportable segments consisting of aviation, land and marine. Corporate expenses are allocated to the segments based on usage, where possible, or on other factors according to the nature of the activity. Our operating segments are determined based on the different markets in which we provide products and services, which are defined primarily by the customers and the products and services provided to those customers. Accordingly, our aviation, land and marine segments are organized based on the specific markets their functional business components serve, which are primarily businesses and governmental customers operating in those respective markets. In our aviation segment, we offer fuel and related products and services to major commercial airlines, second and third-tier airlines, cargo carriers, regional and low-cost carriers, airports, fixed based operators, corporate fleets, fractional operators, private aircraft. In addition, we supply products and services to U.S. and foreign government, intergovernmental and military customers, such as the North Atlantic Treaty Organization (NATO) and the U.S. Defense Logistics Agency. In our land segment, we offer fuel, lubricants, power and natural gas solutions through Kinect, our global energy management services platform, and related products and services to customers including petroleum distributors operating in the land transportation market, retail petroleum operators, and industrial, commercial, residential and government customers. Our marine segment product and service offerings include fuel, lubricants and related products and services to a broad base of customers, including international container and tanker fleets, commercial cruise lines, yachts and time charter operators, offshore rig owners and operators, the U.S. and foreign governments as well as other fuel suppliers. Within each of our segments, we may enter into derivative contracts to mitigate the risk of market price fluctuations and also to offer our customers fuel pricing alternatives to meet their needs. Information concerning our revenue, gross profit and income from operations by segment is as follows (in millions): For the Three Months Ended For the Six Months Ended June 30, June 30, Revenue: 2019 2018 2019 2018 Aviation segment $ 4,785.0 $ 4,900.7 $ 9,037.7 $ 9,193.6 Land segment 2,663.0 2,960.2 5,156.6 5,820.9 Marine segment 2,011.4 2,289.9 3,943.9 4,317.7 $ 9,459.4 $ 10,150.8 $ 18,138.2 $ 19,332.2 Gross profit: Aviation segment $ 140.5 $ 127.4 $ 254.8 $ 237.3 Land segment 91.7 88.6 193.2 190.8 Marine segment 36.4 30.2 71.6 61.5 $ 268.6 $ 246.2 $ 519.7 $ 489.6 Income from operations: Aviation segment $ 73.5 $ 64.2 $ 129.1 $ 112.0 Land segment 11.8 10.2 32.8 29.9 Marine segment 10.1 7.9 23.6 16.4 95.4 82.3 185.5 158.3 Corporate overhead - unallocated (20.2 ) (21.2 ) (40.0 ) (40.0 ) $ 75.2 $ 61.1 $ 145.6 $ 118.3 Information concerning our accounts receivable, net and total assets by segment is as follows (in millions): As of June 30, December 31, 2019 2018 Accounts receivable, net: Aviation segment, net of allowance for bad debt of $14.4 and $17.7 as of June 30, 2019 and December 31, 2018, respectively $ 1,099.1 $ 992.2 Land segment, net of allowance for bad debt of $3.3 and $2.7 as of June 30, 2019 and December 31, 2018, respectively 872.2 846.1 Marine segment, net of allowance for bad debt of $20.3 and $19.0 as of June 30, 2019 and December 31, 2018, respectively 776.5 901.2 $ 2,747.9 $ 2,739.6 Total assets: Aviation segment $ 2,400.6 $ 2,261.0 Land segment 2,123.6 2,178.1 Marine segment 1,014.3 1,124.2 Corporate 212.7 113.6 $ 5,751.2 $ 5,676.9 During each of the periods presented on the consolidated statements of income and comprehensive income, none of our customers accounted for more than 10% of total consolidated revenue. Sales to government customers, which principally consist of sales to NATO in support of military operations in Afghanistan, have accounted for a material portion of our profitability in recent years. The profitability associated with our government business can be significantly impacted by supply disruptions, border closures, road blockages, hostility-related product losses, inventory shortages and other logistical difficulties that can arise when sourcing and delivering fuel in areas that are actively engaged in war or other military conflicts. Our sales to government customers may fluctuate significantly from time to time as a result of the foregoing factors, as well as the level of troop deployments and related activity in a particular region or area or the commencement, extension, renewal or completion of existing and new government contracts. See "Item 1A - Risk Factors” of our 2018 10-K Report. |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share The following table sets forth the computation of basic and diluted earnings per common share for the periods presented (in millions, except per share amounts): For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Numerator: Net income attributable to World Fuel $ 37.0 $ 28.7 $ 74.2 $ 59.9 Denominator: Weighted average common shares for basic earnings per common share 66.7 67.7 66.9 67.6 Effect of dilutive securities 0.3 0.3 0.3 0.4 Weighted average common shares for diluted earnings per common share 67.0 68.0 67.2 67.9 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 1.2 2.3 1.4 Basic earnings per common share $ 0.56 $ 0.42 $ 1.11 $ 0.89 Diluted earnings per common share $ 0.55 $ 0.42 $ 1.10 $ 0.88 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Tax Matters From time to time, we are under review by various domestic and foreign tax authorities with regard to indirect tax matters and are involved in various challenges and litigation in a number of countries, including, in particular, Brazil and South Korea, where the amounts under controversy may be material. We believe that these assessments are without merit and are currently appealing the actions. During the quarter ended December 31, 2016, the South Korean branch of one of our subsidiaries received assessments of approximately $10.3 million (KRW 11.9 billion ) and during the quarter ended June 30, 2017, an assessment for an additional $17.4 million (KRW 20.1 billion ) from the regional tax authorities of Seoul, South Korea. The assessments primarily consist of fines and penalties for allegedly failing to issue Value Added Tax ("VAT") invoices and report certain transactions during the period 2011-2014. These assessments do not involve failure to pay or collect VAT. We believe that these assessments are without merit and are currently appealing the actions. We are also involved in a number of tax disputes with federal, state and municipal tax authorities in Brazil, relating primarily to 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 from the Brazilian tax authorities relating to the ICMS rate used for certain transactions. The total amount of approximately $14.1 million (BRL 54.1 million ) primarily consists of interest and penalties. We believe that the assessment is without merit and are pursuing our remedies in the judicial court system. When we deem it appropriate and the amounts are reasonably estimable, we establish reserves for potential adjustments to our provision for the accrual of indirect taxes that may result from examinations or other actions by tax authorities. If events occur which indicate payment of these amounts is unnecessary, the reversal of the liabilities would result in the recognition of benefits in the period we determine the liabilities are no longer necessary. If our estimates of any of our federal, state, and foreign indirect tax liabilities are less than the ultimate assessment, it could result in a further charge to expense. Except with respect to the matters described above, we believe that the final outcome of any pending examinations, agreements, administrative or judicial proceedings will not have a material effect on our results of operations or cash flows. Other Matters We are also a party to various claims, complaints and proceedings arising in the ordinary course of our business including, but not limited to, environmental claims, commercial and governmental contract claims, such as property damage, demurrage, personal injury, billing and fuel quality claims, as well as bankruptcy preference claims and tax and administrative claims. We have established loss provisions for these ordinary course claims as well as other matters in which losses are probable and can be reasonably estimated. As of June 30, 2019 , we had recorded certain reserves which were not material. For those matters where a reserve has not been established and for which we believe a loss is reasonably possible, as well as for matters where a reserve has been recorded but for which an exposure to loss in excess of the amount accrued is reasonably possible, we believe that such losses will not have a material adverse effect on our consolidated financial statements. However, any adverse resolution of one or more such claims, complaints or proceedings during a particular period could have a material adverse effect on our consolidated financial statements or disclosures for that period. Our estimates regarding potential losses and materiality are based on our judgment and assessment of the claims utilizing currently available information. Although we will continue to reassess our reserves and estimates based on future developments, our objective assessment of the legal merits of such claims may not always be predictive of the outcome and actual results may vary from our current estimates. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the fourth quarter of 2017, we initiated an enterprise-wide restructuring plan that was designed to streamline the organization and reallocate resources to better align our organizational structure and costs with our strategy. While these activities are ongoing, we expect the majority of these activities to be completed in 2019. The restructuring plan involves reviewing non-core businesses and assets, our organizational structure, and expected business prospects in the markets we serve, as well as our existing technology platforms. Accordingly, based on the nature of the activities being reviewed, we cannot reasonably estimate the ultimate cost that will be incurred. We are currently assessing the strategic fit of certain international operations where it has become increasingly more challenging to conduct our core operations and generate profits. For the six months ended June 30, 2019 , we incurred $3.7 million in restructuring charges, comprised principally of employee-related costs and included in compensation and employee benefits in our consolidated statements of income and comprehensive income. Our accrued restructuring charges as of June 30, 2019 , are included in accrued expenses and other current liabilities on our consolidated balance sheet. The following table provides a summary of our restructuring activities during the six months ended June 30, 2019 (in millions): Aviation Land Marine Corporate Consolidated Balance as of December 31, 2018 $ 1.4 $ 12.6 $ 2.6 $ 4.0 $ 20.7 Restructuring-related costs 0.4 1.0 1.0 1.2 3.7 Paid during the period (1.5 ) (6.4 ) (1.9 ) (4.7 ) (14.5 ) Restructuring charges as of June 30, 2019 $ 0.4 $ 7.2 $ 1.7 $ 0.5 $ 9.8 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases We enter into lease arrangements for the use of offices, operational facilities, vehicles, vessels, storage tanks and other assets for our operations around the world. Some of these leases are embedded within other arrangements. When an arrangement includes both lease and non-lease components, we have elected to combine them and treat them as a lease component for all of our current leased asset classes. Determining whether a contract contains a lease includes judgment regarding whether the contract conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Assessing whether we have obtained the right to substantially all of the economic benefits and the ability to direct how, and for what purpose, the asset is used requires more judgment in storage arrangements where we must determine whether our rights to capacity may represent substantially all of the available capacity at a location. Some of these arrangements are for periods of twelve months or less, while others are for longer periods, and may include optional renewals, terminations or purchase options, which are considered in our assessments when they are reasonably certain to occur. In addition, certain of these arrangements contain payments based on an index, market-based escalation or volume which may impact future payments. Most of our leases typically contain general covenants, restrictions or requirements such as maintaining minimum insurance coverage. We account for our lease-related assets and liabilities based on their classification as operating leases or finance leases, following the relevant accounting guidance. We measure lease related assets and liabilities based on the present value of lease payments, including in-substance fixed payments, variable payments that depend on an index or rate measured at the commencement date, and the amount we believe is probable we will pay the lessor under residual value guarantees when applicable. We discount lease payments based on our estimated incremental borrowing rate at lease commencement (or modification), which is primarily based on our estimated credit rating, the lease term at commencement, and the contract currency of the lease arrangement. We have elected to exclude short term leases (leases with an original lease term less than one year) from the measurement of lease related assets and liabilities. For the quarter ended June 30, 2019 , we recognized the following related to our lease arrangements (in millions): For the Three Months Ended For the Six Months Ended June 30, 2019 June 30, 2019 Finance lease cost: Amortization of right-of-use assets $ 1.1 $ 2.4 Interest on lease liabilities 0.2 0.4 Operating lease cost 13.4 26.5 Short-term lease cost 5.0 9.5 Variable lease cost (1.3 ) 2.3 Sublease income (2.5 ) (5.0 ) Total lease cost $ 15.9 $ 36.1 As of June 30, 2019 , our remaining lease payments were as follows (in millions): Operating Leases Finance Leases 2019 (excluding the six months ended June 30, 2019) $ 25.5 $ 2.1 2020 40.5 4.1 2021 32.2 3.2 2022 25.6 2.8 2023 20.7 2.2 Thereafter 61.0 3.2 Total remaining lease payments (undiscounted) 205.5 17.6 Less: imputed interest 36.8 1.6 Present value of lease liabilities $ 168.7 $ 16.0 As of December 31, 2018 , our future minimum lease payments under noncancelable operating leases were as follows (in millions): Year Ended December 31, 2019 $ 50.7 2020 37.1 2021 30.7 2022 23.7 2023 17.8 Thereafter 48.5 $ 208.6 Supplemental balance sheet information related to leases (in millions): Classification As of June 30, 2019 Assets Operating Lease Assets Identifiable intangible and other non-current assets $ 161.9 Finance Lease Assets Property and equipment, net 15.5 Liabilities Operating Lease Liability - Current Accrued expenses and other current liabilities 33.4 Operating Lease Liability - Long Term Other long-term liabilities 135.3 Finance Lease Liability - Current Current maturities of long-term debt and capital leases 3.7 Finance Lease Liability - Long Term Long-term debt 12.3 Other information related to leases as of June 30, 2019 : Operating Leases Finance Leases Weighted-average remaining lease term (years) 6.4 5.5 Weighted-average discount rate 6.0 % 2.7 % Cash paid for amounts included in the measurement of lease liabilities (in millions): Operating cash flows from finance leases $ — $ 0.3 Operating cash flows from operating leases 26.5 — Financing cash flows from finance leases — 1.8 Right of use assets obtained in exchange for new operating lease liability (noncash in millions) 15.8 — Right of use assets obtained in exchange for new financing lease liability (noncash in millions) — 4.0 |
Leases | Leases We enter into lease arrangements for the use of offices, operational facilities, vehicles, vessels, storage tanks and other assets for our operations around the world. Some of these leases are embedded within other arrangements. When an arrangement includes both lease and non-lease components, we have elected to combine them and treat them as a lease component for all of our current leased asset classes. Determining whether a contract contains a lease includes judgment regarding whether the contract conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Assessing whether we have obtained the right to substantially all of the economic benefits and the ability to direct how, and for what purpose, the asset is used requires more judgment in storage arrangements where we must determine whether our rights to capacity may represent substantially all of the available capacity at a location. Some of these arrangements are for periods of twelve months or less, while others are for longer periods, and may include optional renewals, terminations or purchase options, which are considered in our assessments when they are reasonably certain to occur. In addition, certain of these arrangements contain payments based on an index, market-based escalation or volume which may impact future payments. Most of our leases typically contain general covenants, restrictions or requirements such as maintaining minimum insurance coverage. We account for our lease-related assets and liabilities based on their classification as operating leases or finance leases, following the relevant accounting guidance. We measure lease related assets and liabilities based on the present value of lease payments, including in-substance fixed payments, variable payments that depend on an index or rate measured at the commencement date, and the amount we believe is probable we will pay the lessor under residual value guarantees when applicable. We discount lease payments based on our estimated incremental borrowing rate at lease commencement (or modification), which is primarily based on our estimated credit rating, the lease term at commencement, and the contract currency of the lease arrangement. We have elected to exclude short term leases (leases with an original lease term less than one year) from the measurement of lease related assets and liabilities. For the quarter ended June 30, 2019 , we recognized the following related to our lease arrangements (in millions): For the Three Months Ended For the Six Months Ended June 30, 2019 June 30, 2019 Finance lease cost: Amortization of right-of-use assets $ 1.1 $ 2.4 Interest on lease liabilities 0.2 0.4 Operating lease cost 13.4 26.5 Short-term lease cost 5.0 9.5 Variable lease cost (1.3 ) 2.3 Sublease income (2.5 ) (5.0 ) Total lease cost $ 15.9 $ 36.1 As of June 30, 2019 , our remaining lease payments were as follows (in millions): Operating Leases Finance Leases 2019 (excluding the six months ended June 30, 2019) $ 25.5 $ 2.1 2020 40.5 4.1 2021 32.2 3.2 2022 25.6 2.8 2023 20.7 2.2 Thereafter 61.0 3.2 Total remaining lease payments (undiscounted) 205.5 17.6 Less: imputed interest 36.8 1.6 Present value of lease liabilities $ 168.7 $ 16.0 As of December 31, 2018 , our future minimum lease payments under noncancelable operating leases were as follows (in millions): Year Ended December 31, 2019 $ 50.7 2020 37.1 2021 30.7 2022 23.7 2023 17.8 Thereafter 48.5 $ 208.6 Supplemental balance sheet information related to leases (in millions): Classification As of June 30, 2019 Assets Operating Lease Assets Identifiable intangible and other non-current assets $ 161.9 Finance Lease Assets Property and equipment, net 15.5 Liabilities Operating Lease Liability - Current Accrued expenses and other current liabilities 33.4 Operating Lease Liability - Long Term Other long-term liabilities 135.3 Finance Lease Liability - Current Current maturities of long-term debt and capital leases 3.7 Finance Lease Liability - Long Term Long-term debt 12.3 Other information related to leases as of June 30, 2019 : Operating Leases Finance Leases Weighted-average remaining lease term (years) 6.4 5.5 Weighted-average discount rate 6.0 % 2.7 % Cash paid for amounts included in the measurement of lease liabilities (in millions): Operating cash flows from finance leases $ — $ 0.3 Operating cash flows from operating leases 26.5 — Financing cash flows from finance leases — 1.8 Right of use assets obtained in exchange for new operating lease liability (noncash in millions) 15.8 — Right of use assets obtained in exchange for new financing lease liability (noncash in millions) — 4.0 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | World Fuel Services Corporation (the “Company”) was incorporated in Florida in July 1984 and along with its consolidated subsidiaries is referred to collectively in this Quarterly Report on Form 10‑Q (“10-Q Report”) as “World Fuel,” “we,” “our” and “us.” We are a leading global fuel services company, principally engaged in the distribution of fuel and related products and services in the aviation, marine and land transportation industries. In recent years, we have expanded our product and service offerings to include energy advisory services and supply fulfillment with respect to natural gas and power and transaction and payment management solutions to commercial and industrial customers. Our intention is to become a leading global energy management company offering a full suite of energy advisory, management and fulfillment services and technology solutions across the energy product spectrum. We also seek to become a leading transaction and payment management company, offering payment management solutions to commercial and industrial customers, principally in the aviation, land and marine transportation industries. We prepared the consolidated financial statements following the requirements of the United States (“U.S.”) Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by accounting principles generally accepted in the U.S. (“U.S. GAAP”) can be condensed or omitted. |
Use of Estimates | Certain amounts in the consolidated financial statements and associated notes may not add due to rounding. All percentages have been calculated using unrounded amounts. |
Adoption of New Accounting Standard and Accounting Standards Issued but Not Yet Adopted | Adoption of New Accounting Standard Leases (Topic 842). In February 2016, ASU 2016-02 was issued. The primary objective of the new standard, which amends the existing lease guidance and adds additional disclosures, is to increase transparency and comparability among organizations by recognizing nearly all lease assets and lease liabilities on the balance sheet, including operating leases that under the prior standard were off-balance sheet. Topic 842 defines a lease as a contract that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control over the use of the identified asset means that the customer has the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 (including interim periods within those periods) and early adoption is permitted. The Company adopted ASU 2016-02 in the first quarter of 2019 utilizing the modified retrospective transition method and applying the transition provisions at the effective date. We implemented the new standard using the package of practical expedients under the transition provisions that allows us not to reassess whether a contract contains a lease, how the lease is classified and if initial direct costs can be capitalized. For all the lessee arrangements, we have elected an accounting policy to combine non-lease components with the related lease components and treat the combined items as a lease for accounting purposes. Lastly, we have elected not to recognize the lease asset and related lease liability for leases with a lease term of 12 months or less. As of the date of implementation on January 1, 2019, the impact of the adoption of the new lease standard resulted in the recognition of the right of use assets of $167.3 million and lease liability of $173.6 million on the Company’s consolidated balance sheet. The difference between the right of use assets and lease liabilities is primarily the result of accrued lease payments and cumulative lease prepayments as well as the remaining balance of lease incentives received. Subsequent to adoption, the Company does not anticipate the impact on its results of operations and cash flows to be material. Accounting Standards Issued but Not Yet Adopted Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . In June 2016, ASU 2016-13 was issued. The amendments in this update will change how entities account for credit impairment from trade and other receivables, net investments arising from sales-type and direct financing leases, debt securities, purchased-credit impaired financial assets and other instruments in addition to loans. ASU 2018-19 issued in November 2018, clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. For receivables and certain other instruments that are not measured at fair value, entities will be required to estimate expected credit losses. Under the expected loss model, an entity recognizes a loss upon initial recognition of the asset that reflects all future events that will lead to a loss being realized, regardless of whether it is probable that the future event will occur. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. An entity will apply most of the amendments in this update using a modified-retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We are currently evaluating the impact that the new standard would have on our consolidated financial statements and disclosures. |
Revenue from Contracts with Customers | Our contracts with customers primarily require us to deliver fuel and fuel-related products, while other arrangements require us to complete agreed-upon services. Revenue from the sale of fuel is recognized when our customers obtain control of the fuel, which is typically upon delivery of each promised gallon or barrel to an agreed-upon delivery point. We generally recognize revenue for services provided over the contract period when services have been performed based on our right to invoice for those services. Our contracts may contain fixed or variable pricing (such as market or index-based pricing) or some combination of those. Within our land and aviation segments, contracts with customers may include multi-year sales contracts, which are priced at market-based indices and require minimum volume purchase commitments from our customers. The consideration expected from these contracts is considered variable due to the market-based pricing and the variability is not resolved until delivery is made to our customers. We have elected to apply the optional exemption from estimating and disclosing the variable consideration from our remaining performance obligations under these contracts. We also have fixed price fuel and fuel-related product sale contracts with a contract term of less than one year (typically one month). For these contracts, we apply the optional exemption, to not disclose the amount of transaction price allocated to remaining performance obligations. We also apply this exemption to those contracts in which the right to consideration corresponds directly with the value to the customer of the entity's performance to date. In limited cases, we may have multi-period fixed price contracts. Because our long-term supply arrangements that exceed one year are typically based on market index prices as previously discussed, the transaction price associated with remaining performance obligations under multi-year fixed price fuel sale contracts are not significant. |
Leases | We enter into lease arrangements for the use of offices, operational facilities, vehicles, vessels, storage tanks and other assets for our operations around the world. Some of these leases are embedded within other arrangements. When an arrangement includes both lease and non-lease components, we have elected to combine them and treat them as a lease component for all of our current leased asset classes. Determining whether a contract contains a lease includes judgment regarding whether the contract conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Assessing whether we have obtained the right to substantially all of the economic benefits and the ability to direct how, and for what purpose, the asset is used requires more judgment in storage arrangements where we must determine whether our rights to capacity may represent substantially all of the available capacity at a location. Some of these arrangements are for periods of twelve months or less, while others are for longer periods, and may include optional renewals, terminations or purchase options, which are considered in our assessments when they are reasonably certain to occur. In addition, certain of these arrangements contain payments based on an index, market-based escalation or volume which may impact future payments. Most of our leases typically contain general covenants, restrictions or requirements such as maintaining minimum insurance coverage. We account for our lease-related assets and liabilities based on their classification as operating leases or finance leases, following the relevant accounting guidance. We measure lease related assets and liabilities based on the present value of lease payments, including in-substance fixed payments, variable payments that depend on an index or rate measured at the commencement date, and the amount we believe is probable we will pay the lessor under residual value guarantees when applicable. We discount lease payments based on our estimated incremental borrowing rate at lease commencement (or modification), which is primarily based on our estimated credit rating, the lease term at commencement, and the contract currency of the lease arrangement. We have elected to exclude short term leases (leases with an original lease term less than one year) from the measurement of lease related assets and liabilities. |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments measured at fair value and their locations on the consolidated balance sheets | The following table presents the gross fair value of our derivative instruments and their locations on the consolidated balance sheets (in millions): Gross Derivative Assets Gross Derivative Liabilities As of As of June 30, December 31, June 30, December 31, 2019 2018 2019 2018 Derivative Instruments Consolidated Balance Sheets location Derivatives designated as hedging instruments Commodity contracts Short-term derivative assets, net $ — $ 168.5 $ — $ 122.5 Identifiable intangible and other non-current assets — 19.7 — 9.6 Accrued expenses and other current liabilities 50.3 0.1 59.4 — Total derivatives designated as hedging instruments $ 50.5 $ 188.2 $ 59.4 $ 132.2 Derivatives not designated as hedging instruments Commodity contracts Short-term derivative assets, net $ 61.6 $ 537.6 $ 18.0 $ 429.0 Identifiable intangible and other non-current assets 19.2 71.7 4.5 40.0 Accrued expenses and other current liabilities 229.9 30.7 271.7 126.4 Other long-term liabilities 31.7 12.9 41.2 40.4 $ 342.5 $ 652.9 $ 335.5 $ 635.8 Foreign currency contracts Short-term derivative assets, net $ — $ 4.4 $ — $ 0.8 Identifiable intangible and other non-current assets 0.1 0.1 — — Accrued expenses and other current liabilities 2.0 0.1 3.8 0.4 $ 2.1 $ 4.6 $ 3.8 $ 1.2 Total derivatives not designated as hedging instruments $ 344.6 $ 657.5 $ 339.3 $ 637.0 Total derivatives $ 395.0 $ 845.8 $ 398.7 $ 769.1 |
Schedule of fair value positions of derivative instruments | The following table summarizes the gross notional values of our commodity and foreign currency exchange derivative contracts used for risk management purposes that were outstanding as of June 30, 2019 (in millions): As of June 30, Derivative Instruments Units 2019 Commodity contracts Long BBL 98.8 Short BBL (89.2 ) Foreign currency exchange contracts Sell U.S. dollar, buy other currencies USD (117.5 ) Buy U.S. dollar, sell other currencies USD 398.3 |
Impact of derivatives designated as fair value hedges on the consolidated statements of income and comprehensive income | As of June 30, 2019 , and December 31, 2018 , the following amounts were recorded on the 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 Asset/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset/(Liabilities) As of As of June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Inventory $ 48.5 $ 44.7 $ 1.1 $ (6.6 ) |
Effect of fair value and cash flow hedges on income and expense | The following table presents the effect of fair value and cash flow hedges on income and expense line items in our Consolidated Statements of Income and Comprehensive Income (in millions): Location and Amount of Gain and (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships For the Three Months Ended June 30, 2019 June 30, 2018 Revenue Cost of Revenue Revenue Cost of Revenue Total amounts of income and expense line items in which the effects of fair value or cash flow hedged are recorded $ 9,459.4 $ 9,190.8 $ 10,150.8 $ 9,904.7 Gains or Loss on fair value hedge relationships Commodity contracts Hedged Item — (0.9 ) — 11.3 Derivatives designated as hedging instruments — (0.6 ) — (10.9 ) Gains or Loss on cash flow hedge relationships Commodity contracts Amount of Gain (Loss) Reclassified from AOCI into Income (2.5 ) 25.8 (20.3 ) 10.2 Total amount of income and expense line items excluding the impact of hedges $ 9,461.9 $ 9,215.1 $ 10,171.2 $ 9,915.2 Location and Amount of Gain and (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships For the Six Months Ended June 30, 2019 June 30, 2018 Revenue Cost of Revenue Revenue Cost of Revenue Total amounts of income and expense line items in which the effects of fair value or cash flow hedged are recorded $ 18,138.2 $ 17,618.5 $ 19,332.2 $ 18,842.6 Gains or Loss on fair value hedge relationships Commodity contracts Hedged Item — 15.4 — 16.7 Derivatives designated as hedging instruments — (14.1 ) — (16.5 ) Gains or Loss on cash flow hedge relationships Commodity contracts Amount of Gain (Loss) Reclassified from AOCI into Income (6.3 ) 17.4 (23.9 ) 28.4 Total amount of income and expense line items excluding the impact of hedges $ 18,144.5 $ 17,637.2 $ 19,356.1 $ 18,871.2 |
Impact of derivatives designated as hedges on the accumulated other comprehensive income and consolidated statements of income and comprehensive income | The following table presents the effect and financial statement location of our derivative instruments in cash flow hedging relationships on our accumulated other comprehensive income, Consolidated Statements of Income and Comprehensive Income (in millions): Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income For the Three Months Ended Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income For the Three Months Ended June 30, June 30, Derivative Instruments 2019 2018 Location 2019 2018 Commodity contracts $ 42.8 $ (25.3 ) Revenue $ (2.5 ) $ (20.3 ) Commodity contracts (22.7 ) 19.5 Cost of Revenue 25.8 10.2 Foreign Currency contracts — 2.1 Other Income (expense) net — — Total (Loss) Gain $ 20.1 $ (3.7 ) Total (Loss) Gain $ 23.3 $ (10.2 ) Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income For the Six Months Ended Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income For the Six Months Ended June 30, June 30, Derivative Instruments 2019 2018 Location 2019 2018 Commodity contracts $ (177.7 ) $ (27.6 ) Revenue $ (6.3 ) $ (23.9 ) Commodity contracts 173.7 29.7 Cost of Revenue 17.4 28.4 Foreign Currency contracts — (0.8 ) Other Income (expense) net — — Total Gain $ (4.0 ) $ 1.3 Total Gain $ 11.1 $ 4.5 |
Impact of derivatives not designated as hedges on the consolidated statements of income and comprehensive income | The following table presents the effect and financial statement location of our derivative instruments not designated as hedging instruments on our Consolidated Statements of Income and Comprehensive Income (in millions): Amount of Realized and Unrealized Gain (Loss) For the Three Months Ended June 30, Derivative Instruments - Non-designated Location 2019 2018 Commodity contracts Revenue $ 69.4 $ (3.6 ) Cost of revenue (57.1 ) (6.8 ) $ 12.4 $ (10.4 ) Foreign currency contracts Revenue $ — $ 1.5 Other (expense), net (1.3 ) 6.2 $ (1.3 ) $ 7.7 Total Gain (Loss) $ 11.1 $ (2.7 ) Amount of Realized and Unrealized Gain (Loss) For the Six Months Ended June 30, Derivative Instruments - Non-designated Location 2019 2018 Commodity contracts Revenue $ 144.5 $ 44.0 Cost of revenue (123.0 ) (43.8 ) $ 21.5 $ 0.3 Foreign currency contracts Revenue $ (0.1 ) $ 0.9 Other (expense), net (0.8 ) 3.4 $ (0.9 ) $ 4.2 Total Gain $ 20.6 $ 4.5 |
Schedule of potential collateral requirements for derivative liabilities | The following table presents the potential collateral requirements for derivative liabilities with credit-risk-contingent features (in millions): Potential Collateral Requirements for Derivative Liabilities with Credit-Risk-Contingent Features As of June 30, 2019 As of December 31, 2018 Net derivatives liability positions with credit contingent features $ 3.2 $ 7.2 Maximum potential collateral requirements $ 3.2 $ 7.2 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | The following table provides the components of and changes in the carrying amount of goodwill (in millions): Aviation Land Total Balance as of December 31, 2018 $ 322.9 $ 529.7 $ 852.7 Additions — — — Foreign exchange and other adjustments (1.2 ) (0.9 ) (2.1 ) Balance as of June 30, 2019 $ 321.8 $ 528.8 $ 850.6 |
Debt, Interest Income, Expens_2
Debt, Interest Income, Expense and Other Finance Costs (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt, Interest Income, Expense and Other Finance Costs [Abstract] | |
Schedule of debt | Our debt consisted of the following (in millions): As of June 30, December 31, 2019 2018 Credit Facility $ 167.0 $ 170.0 Term Loans 498.0 514.8 Finance Leases 16.0 13.8 Other 2.3 2.3 Total debt $ 683.3 $ 701.0 Current maturities of long-term debt and capital leases $ 16.8 $ 41.1 Long-term debt $ 666.5 $ 659.9 |
Schedule of interest expense and other financing costs, net | The following table provides additional information about our interest income (expense), and other financing costs, net, for the periods presented (in millions): For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Interest income $ 1.5 $ 1.3 $ 2.6 $ 1.9 Interest expense and other financing costs (21.7 ) (19.2 ) (42.2 ) (36.1 ) $ (20.2 ) $ (17.9 ) $ (39.6 ) $ (34.2 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at estimated fair value on a recurring basis | The following table presents information about our gross assets and liabilities that are measured at fair value on a recurring basis (in millions): Fair Value Measurements as of June 30, 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Commodities contracts $ 282.2 $ 106.2 $ 4.5 $ 393.0 Foreign currency contracts — 2.1 — 2.1 Cash surrender value of life insurance — 8.0 — 8.0 Total assets at fair value $ 282.2 $ 116.4 $ 4.5 $ 403.1 Liabilities: Commodities contracts $ 302.1 $ 91.5 $ 1.2 $ 394.8 Foreign currency contracts — 3.8 — 3.8 Total liabilities at fair value $ 302.1 $ 95.4 $ 1.2 $ 398.7 Fair Value Measurements as of December 31, 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Commodities contracts $ 585.6 $ 254.6 $ 0.9 $ 841.2 Foreign currency contracts — 4.6 — 4.6 Cash surrender value of life insurance — 6.3 — 6.3 Total assets at fair value $ 585.6 $ 265.6 $ 0.9 $ 852.1 Liabilities: Commodities contracts $ 556.5 $ 211.2 $ 0.2 $ 767.9 Foreign currency contracts — 1.2 — 1.2 Total liabilities at fair value $ 556.5 $ 212.4 $ 0.2 $ 769.1 |
Schedule of derivative instruments at fair value and their locations on the balance sheets | The following tables summarize those commodity derivative balances subject to the right of offset as presented on our consolidated balance sheet. We have elected to offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements when a legal right of offset exists. Fair Value as of June 30, 2019 Gross Amounts Gross Amounts Gross Amounts Net Amounts Cash without Recognized Offset Presented Collateral Right of Offset Net Amounts Assets: Commodities contracts $ 393.0 $ 335.9 $ 57.0 $ — $ — $ 57.0 Foreign currency contracts 2.1 2.1 — — — — Total assets at fair value $ 395.0 $ 338.0 $ 57.0 $ — $ — $ 57.0 Liabilities: Commodities contracts $ 394.8 $ 335.9 $ 58.9 $ 19.4 $ — $ 39.5 Foreign currency contracts 3.8 2.1 1.7 — — 1.7 Total liabilities at fair value $ 398.7 $ 338.0 $ 60.7 $ 19.4 $ — $ 41.3 Fair Value as of December 31, 2018 Gross Amounts Gross Amounts Gross Amounts Net Amounts Cash without Recognized Offset Presented Collateral Right of Offset Net Amounts Assets: Commodities contracts $ 841.2 $ 646.0 $ 195.1 $ 3.0 $ — $ 192.1 Foreign currency contracts 4.6 0.9 3.7 — — 3.7 Total assets at fair value $ 845.8 $ 647.0 $ 198.8 $ 3.0 $ — $ 195.8 Liabilities: Commodities contracts $ 767.9 $ 646.0 $ 121.9 $ — $ — $ 121.9 Foreign currency contracts 1.2 0.9 0.3 — — 0.3 Total liabilities at fair value $ 769.1 $ 647.0 $ 122.2 $ — $ — $ 122.2 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax provision and the respective effective income tax rates | Our income tax provision for the periods presented and the respective effective income tax rates for such periods are as follows (in millions, except for income tax rates): For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Income tax provision $ 20.0 $ 12.4 $ 34.0 $ 19.7 Effective income tax rate 34.7 % 29.7 % 31.2 % 24.6 % |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue disaggregated by major geographic areas | The following table presents our revenues from contracts with customers disaggregated by major geographic areas we conduct business in. Prior period amounts have not been adjusted under the modified retrospective method (in millions). For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Aviation $ 340.8 $ 363.6 $ 705.2 $ 755.6 Land 4.1 0.8 9.0 1.9 Marine 719.5 804.1 1,428.4 1,603.6 Asia Pacific $ 1,064.5 $ 1,168.5 $ 2,142.6 $ 2,361.1 Aviation $ 1,008.8 $ 962.8 $ 1,727.9 $ 1,632.8 Land 569.7 635.7 1,210.2 1,315.5 Marine 736.3 832.2 1,391.1 1,469.6 EMEA $ 2,314.9 $ 2,430.6 $ 4,329.2 $ 4,417.9 Aviation $ 614.6 $ 477.2 $ 1,160.3 $ 967.4 Land 149.6 156.3 288.5 340.6 Marine 143.4 128.1 334.9 283.3 LATAM $ 907.6 $ 761.6 $ 1,783.7 $ 1,591.3 Aviation $ 2,828.5 $ 3,157.6 $ 5,476.5 $ 5,920.6 Land 1,884.6 2,142.6 3,519.0 4,100.9 Marine 347.9 358.0 682.4 637.9 North America $ 5,061.0 $ 5,658.2 $ 9,677.9 $ 10,659.4 Other revenues (excluded from ASC 606) $ 111.3 $ 131.9 $ 204.8 $ 302.5 $ 9,459.4 $ 10,150.8 $ 18,138.2 $ 19,332.2 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of revenue, gross profit and income from operations by segment | Information concerning our revenue, gross profit and income from operations by segment is as follows (in millions): For the Three Months Ended For the Six Months Ended June 30, June 30, Revenue: 2019 2018 2019 2018 Aviation segment $ 4,785.0 $ 4,900.7 $ 9,037.7 $ 9,193.6 Land segment 2,663.0 2,960.2 5,156.6 5,820.9 Marine segment 2,011.4 2,289.9 3,943.9 4,317.7 $ 9,459.4 $ 10,150.8 $ 18,138.2 $ 19,332.2 Gross profit: Aviation segment $ 140.5 $ 127.4 $ 254.8 $ 237.3 Land segment 91.7 88.6 193.2 190.8 Marine segment 36.4 30.2 71.6 61.5 $ 268.6 $ 246.2 $ 519.7 $ 489.6 Income from operations: Aviation segment $ 73.5 $ 64.2 $ 129.1 $ 112.0 Land segment 11.8 10.2 32.8 29.9 Marine segment 10.1 7.9 23.6 16.4 95.4 82.3 185.5 158.3 Corporate overhead - unallocated (20.2 ) (21.2 ) (40.0 ) (40.0 ) $ 75.2 $ 61.1 $ 145.6 $ 118.3 |
Schedule of accounts receivable, net and total assets by segment | Information concerning our accounts receivable, net and total assets by segment is as follows (in millions): As of June 30, December 31, 2019 2018 Accounts receivable, net: Aviation segment, net of allowance for bad debt of $14.4 and $17.7 as of June 30, 2019 and December 31, 2018, respectively $ 1,099.1 $ 992.2 Land segment, net of allowance for bad debt of $3.3 and $2.7 as of June 30, 2019 and December 31, 2018, respectively 872.2 846.1 Marine segment, net of allowance for bad debt of $20.3 and $19.0 as of June 30, 2019 and December 31, 2018, respectively 776.5 901.2 $ 2,747.9 $ 2,739.6 Total assets: Aviation segment $ 2,400.6 $ 2,261.0 Land segment 2,123.6 2,178.1 Marine segment 1,014.3 1,124.2 Corporate 212.7 113.6 $ 5,751.2 $ 5,676.9 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per common share | The following table sets forth the computation of basic and diluted earnings per common share for the periods presented (in millions, except per share amounts): For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Numerator: Net income attributable to World Fuel $ 37.0 $ 28.7 $ 74.2 $ 59.9 Denominator: Weighted average common shares for basic earnings per common share 66.7 67.7 66.9 67.6 Effect of dilutive securities 0.3 0.3 0.3 0.4 Weighted average common shares for diluted earnings per common share 67.0 68.0 67.2 67.9 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 1.2 2.3 1.4 Basic earnings per common share $ 0.56 $ 0.42 $ 1.11 $ 0.89 Diluted earnings per common share $ 0.55 $ 0.42 $ 1.10 $ 0.88 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of restructuring activities included in accrued expenses other current liabilities | The following table provides a summary of our restructuring activities during the six months ended June 30, 2019 (in millions): Aviation Land Marine Corporate Consolidated Balance as of December 31, 2018 $ 1.4 $ 12.6 $ 2.6 $ 4.0 $ 20.7 Restructuring-related costs 0.4 1.0 1.0 1.2 3.7 Paid during the period (1.5 ) (6.4 ) (1.9 ) (4.7 ) (14.5 ) Restructuring charges as of June 30, 2019 $ 0.4 $ 7.2 $ 1.7 $ 0.5 $ 9.8 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease costs and other information related to leases | Other information related to leases as of June 30, 2019 : Operating Leases Finance Leases Weighted-average remaining lease term (years) 6.4 5.5 Weighted-average discount rate 6.0 % 2.7 % Cash paid for amounts included in the measurement of lease liabilities (in millions): Operating cash flows from finance leases $ — $ 0.3 Operating cash flows from operating leases 26.5 — Financing cash flows from finance leases — 1.8 Right of use assets obtained in exchange for new operating lease liability (noncash in millions) 15.8 — Right of use assets obtained in exchange for new financing lease liability (noncash in millions) — 4.0 For the quarter ended June 30, 2019 , we recognized the following related to our lease arrangements (in millions): For the Three Months Ended For the Six Months Ended June 30, 2019 June 30, 2019 Finance lease cost: Amortization of right-of-use assets $ 1.1 $ 2.4 Interest on lease liabilities 0.2 0.4 Operating lease cost 13.4 26.5 Short-term lease cost 5.0 9.5 Variable lease cost (1.3 ) 2.3 Sublease income (2.5 ) (5.0 ) Total lease cost $ 15.9 $ 36.1 |
Remaining lease payments | As of June 30, 2019 , our remaining lease payments were as follows (in millions): Operating Leases Finance Leases 2019 (excluding the six months ended June 30, 2019) $ 25.5 $ 2.1 2020 40.5 4.1 2021 32.2 3.2 2022 25.6 2.8 2023 20.7 2.2 Thereafter 61.0 3.2 Total remaining lease payments (undiscounted) 205.5 17.6 Less: imputed interest 36.8 1.6 Present value of lease liabilities $ 168.7 $ 16.0 |
Remaining lease payments | As of June 30, 2019 , our remaining lease payments were as follows (in millions): Operating Leases Finance Leases 2019 (excluding the six months ended June 30, 2019) $ 25.5 $ 2.1 2020 40.5 4.1 2021 32.2 3.2 2022 25.6 2.8 2023 20.7 2.2 Thereafter 61.0 3.2 Total remaining lease payments (undiscounted) 205.5 17.6 Less: imputed interest 36.8 1.6 Present value of lease liabilities $ 168.7 $ 16.0 |
Future minimum lease payments under non-cancelable operating leases | As of December 31, 2018 , our future minimum lease payments under noncancelable operating leases were as follows (in millions): Year Ended December 31, 2019 $ 50.7 2020 37.1 2021 30.7 2022 23.7 2023 17.8 Thereafter 48.5 $ 208.6 |
Supplemental balance sheet information related to leases | Supplemental balance sheet information related to leases (in millions): Classification As of June 30, 2019 Assets Operating Lease Assets Identifiable intangible and other non-current assets $ 161.9 Finance Lease Assets Property and equipment, net 15.5 Liabilities Operating Lease Liability - Current Accrued expenses and other current liabilities 33.4 Operating Lease Liability - Long Term Other long-term liabilities 135.3 Finance Lease Liability - Current Current maturities of long-term debt and capital leases 3.7 Finance Lease Liability - Long Term Long-term debt 12.3 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net income attributable to World Fuel | $ 37 | $ 28.7 | $ 74.2 | $ 59.9 | ||
Diluted earnings per common share (in dollars per share) | $ 0.55 | $ 0.42 | $ 1.10 | $ 0.88 | ||
Discrete tax benefit, prior year foreign tax return | $ (3.2) | |||||
Income from operations | $ 75.2 | $ 61.1 | 145.6 | $ 118.3 | ||
Accounting Standards Update 2016-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Right of use assets | $ 167.3 | |||||
Lease liabilities | $ 173.6 | |||||
Recognized from Prior Period | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Income from operations | $ 3.4 | |||||
Income from operations, net of tax | 2.3 | |||||
Pro forma | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net income attributable to World Fuel | $ 68.8 | |||||
Diluted earnings per common share (in dollars per share) | $ 1.02 | |||||
Discrete tax benefit, prior year foreign tax return | $ 3.2 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Receivables [Abstract] | |||
Authorized amount of receivables sold under RPAs | $ 725 | ||
Accounts receivable sold under RPAs | 4,200 | $ 4,000 | |
Cash proceeds from sale of accounts receivables | 4,200 | 3,900 | |
Fees and financing costs under the RPA | 13.3 | $ 8.8 | |
Account receivable sold under the RPAs | $ 531.4 | $ 508.2 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) | 3 Months Ended |
Mar. 31, 2018acquisition | |
Acquisitions 2018 | |
Acquisitions | |
Number of businesses acquired | 1 |
Derivatives - Balance Sheet Loc
Derivatives - Balance Sheet Location (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | $ 395 | $ 845.8 |
Derivative liabilities | 398.7 | 769.1 |
Derivatives designated as hedging instruments | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | 50.5 | 188.2 |
Derivative liabilities | 59.4 | 132.2 |
Derivatives designated as hedging instruments | Commodity contracts | Short-term derivative assets, net | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | 0 | 168.5 |
Derivative liabilities | 0 | 122.5 |
Derivatives designated as hedging instruments | Commodity contracts | Identifiable intangible and other non-current assets | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | 0 | 19.7 |
Derivative liabilities | 0 | 9.6 |
Derivatives designated as hedging instruments | Commodity contracts | Accrued expenses and other current liabilities | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | 50.3 | 0.1 |
Derivative liabilities | 59.4 | 0 |
Derivatives not designated as hedging instruments | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | 344.6 | 657.5 |
Derivative liabilities | 339.3 | 637 |
Derivatives not designated as hedging instruments | Commodity contracts | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | 342.5 | 652.9 |
Derivative liabilities | 335.5 | 635.8 |
Derivatives not designated as hedging instruments | Commodity contracts | Short-term derivative assets, net | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | 61.6 | 537.6 |
Derivative liabilities | 18 | 429 |
Derivatives not designated as hedging instruments | Commodity contracts | Identifiable intangible and other non-current assets | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | 19.2 | 71.7 |
Derivative liabilities | 4.5 | 40 |
Derivatives not designated as hedging instruments | Commodity contracts | Accrued expenses and other current liabilities | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | 229.9 | 30.7 |
Derivative liabilities | 271.7 | 126.4 |
Derivatives not designated as hedging instruments | Commodity contracts | Other long-term liabilities | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | 31.7 | 12.9 |
Derivative liabilities | 41.2 | 40.4 |
Derivatives not designated as hedging instruments | Foreign currency contracts | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | 2.1 | 4.6 |
Derivative liabilities | 3.8 | 1.2 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Short-term derivative assets, net | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | 0 | 4.4 |
Derivative liabilities | 0 | 0.8 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Identifiable intangible and other non-current assets | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | 0.1 | 0.1 |
Derivative liabilities | 0 | 0 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Accrued expenses and other current liabilities | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Derivative assets | 2 | 0.1 |
Derivative liabilities | $ 3.8 | $ 0.4 |
Derivatives - Gross Notional Va
Derivatives - Gross Notional Values (Details) bbl in Millions, $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($)bbl | |
Long | Commodity contracts | |
Derivative instruments, at their respective fair value positions | |
Notional value of commodity contracts (in barrels) | bbl | 98.8 |
Long | Foreign currency exchange contracts | USD | |
Derivative instruments, at their respective fair value positions | |
Notional amount of foreign currency exchange contracts | $ | $ 398.3 |
Short | Commodity contracts | |
Derivative instruments, at their respective fair value positions | |
Notional value of commodity contracts (in barrels) | bbl | 89.2 |
Short | Foreign currency exchange contracts | USD | |
Derivative instruments, at their respective fair value positions | |
Notional amount of foreign currency exchange contracts | $ | $ 117.5 |
Derivatives - Effect on Income
Derivatives - Effect on Income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Gain (loss) on derivative | |||||
Carrying Amount of Hedged Asset/(Liabilities) | $ 48,500,000 | $ 48,500,000 | $ 44,700,000 | ||
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset/(Liabilities) | 1,100,000 | 1,100,000 | (6,600,000) | ||
Revenue | 9,459,400,000 | $ 10,150,800,000 | 18,138,200,000 | $ 19,332,200,000 | |
Cost of Revenue | 9,190,800,000 | 9,904,700,000 | 17,618,500,000 | 18,842,600,000 | |
Gains or Loss on fair value hedge relationships | |||||
Gain (Loss) recognized in earnings related to fair value or cash flow hedges excluded from assessment of hedge effectiveness | 0 | 0 | 0 | 0 | |
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | 20,100,000 | (3,700,000) | (4,000,000) | 1,300,000 | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 23,300,000 | (10,200,000) | 11,100,000 | 4,500,000 | |
Potential Collateral Requirements for Derivative Liabilities with Credit-Risk-Contingent Features | |||||
Net derivatives liability positions with credit contingent features | 3,200,000 | 3,200,000 | 7,200,000 | ||
Maximum potential collateral requirements | 3,200,000 | 3,200,000 | 7,200,000 | ||
Collateral posted and held by our counterparties | 0 | 0 | $ 0 | ||
Revenue | |||||
Gain (loss) on derivative | |||||
Revenue | 9,459,400,000 | 10,150,800,000 | 18,138,200,000 | 19,332,200,000 | |
Gains or Loss on fair value hedge relationships | |||||
Hedged Item | 0 | 0 | 0 | 0 | |
Derivatives designated as hedging instruments | 0 | 0 | 0 | 0 | |
Total amount of income and expense line items excluding the impact of hedges, Revenue | 9,461,900,000 | 10,171,200,000 | 18,144,500,000 | 19,356,100,000 | |
Cost of revenue | |||||
Gain (loss) on derivative | |||||
Cost of Revenue | 9,190,800,000 | 9,904,700,000 | 17,618,500,000 | 18,842,600,000 | |
Gains or Loss on fair value hedge relationships | |||||
Hedged Item | (900,000) | 11,300,000 | 15,400,000 | 16,700,000 | |
Derivatives designated as hedging instruments | (600,000) | (10,900,000) | (14,100,000) | (16,500,000) | |
Total amount of income and expense line items excluding the impact of hedges, Cost of Revenue | 9,215,100,000 | 9,915,200,000 | 17,637,200,000 | 18,871,200,000 | |
Commodity contracts | Revenue | |||||
Gains or Loss on fair value hedge relationships | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | 42,800,000 | (25,300,000) | (177,700,000) | (27,600,000) | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (2,500,000) | (20,300,000) | (6,300,000) | (23,900,000) | |
Commodity contracts | Cost of revenue | |||||
Gains or Loss on fair value hedge relationships | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | (22,700,000) | 19,500,000 | 173,700,000 | 29,700,000 | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 25,800,000 | 10,200,000 | 17,400,000 | 28,400,000 | |
Foreign currency contracts | Other Income (expense) net | |||||
Gains or Loss on fair value hedge relationships | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | 0 | 2,100,000 | 0 | (800,000) | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 0 | 0 | 0 | 0 | |
Derivatives not designated as hedging instruments | |||||
Gains or Loss on fair value hedge relationships | |||||
Amount of Realized and Unrealized Gain (Loss) | 11,100,000 | (2,700,000) | 20,600,000 | 4,500,000 | |
Derivatives not designated as hedging instruments | Commodity contracts | |||||
Gains or Loss on fair value hedge relationships | |||||
Amount of Realized and Unrealized Gain (Loss) | 12,400,000 | (10,400,000) | 21,500,000 | 300,000 | |
Derivatives not designated as hedging instruments | Commodity contracts | Revenue | |||||
Gains or Loss on fair value hedge relationships | |||||
Amount of Realized and Unrealized Gain (Loss) | 69,400,000 | (3,600,000) | 144,500,000 | 44,000,000 | |
Derivatives not designated as hedging instruments | Commodity contracts | Cost of revenue | |||||
Gains or Loss on fair value hedge relationships | |||||
Amount of Realized and Unrealized Gain (Loss) | (57,100,000) | (6,800,000) | (123,000,000) | (43,800,000) | |
Derivatives not designated as hedging instruments | Foreign currency contracts | |||||
Gains or Loss on fair value hedge relationships | |||||
Amount of Realized and Unrealized Gain (Loss) | (1,300,000) | 7,700,000 | (900,000) | 4,200,000 | |
Derivatives not designated as hedging instruments | Foreign currency contracts | Revenue | |||||
Gains or Loss on fair value hedge relationships | |||||
Amount of Realized and Unrealized Gain (Loss) | 0 | 1,500,000 | (100,000) | 900,000 | |
Derivatives not designated as hedging instruments | Foreign currency contracts | Other Income (expense) net | |||||
Gains or Loss on fair value hedge relationships | |||||
Amount of Realized and Unrealized Gain (Loss) | (1,300,000) | 6,200,000 | (800,000) | 3,400,000 | |
Accumulated gain (loss), cash flow hedge, including noncontrolling interest | Reclassification out of AOCI | Revenue | |||||
Gain (loss) on derivative | |||||
Revenue | (2,500,000) | (20,300,000) | (6,300,000) | (23,900,000) | |
Accumulated gain (loss), cash flow hedge, including noncontrolling interest | Reclassification out of AOCI | Cost of revenue | |||||
Gain (loss) on derivative | |||||
Cost of Revenue | $ 25,800,000 | $ 10,200,000 | $ 17,400,000 | $ 28,400,000 |
Goodwill - Goodwill (Details)
Goodwill - Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2018 | $ 852.7 |
Additions | 0 |
Foreign exchange and other adjustments | (2.1) |
Balance as of June 30, 2019 | 850.6 |
Aviation | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2018 | 322.9 |
Additions | 0 |
Foreign exchange and other adjustments | (1.2) |
Balance as of June 30, 2019 | 321.8 |
Land | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2018 | 529.7 |
Additions | 0 |
Foreign exchange and other adjustments | (0.9) |
Balance as of June 30, 2019 | $ 528.8 |
Debt, Interest Income, Expens_3
Debt, Interest Income, Expense and Other Finance Costs - Additional Information (Details) - USD ($) | Jul. 23, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Long-term debt, current maturities | $ 13,100,000 | ||
Line of Credit | Credit Facility | |||
Debt Instrument [Line Items] | |||
Borrowing capacity | 1,200,000,000 | ||
Long-term debt | 167,000,000 | $ 170,000,000 | |
Line of Credit | Credit Facility | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Borrowing capacity | $ 1,300,000,000 | ||
Senior Notes | Term Loans | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 498,000,000 | $ 514,800,000 | |
Senior Notes | Term Loans | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 525,000,000 |
Debt, Interest Income, Expens_4
Debt, Interest Income, Expense and Other Finance Costs - Schedule of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Finance Leases | $ 16 | |
Finance Leases | $ 13.8 | |
Total debt | 683.3 | 701 |
Current maturities of long-term debt and finance leases | 16.8 | 41.1 |
Long-term debt | 666.5 | 659.9 |
Other | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2.3 | 2.3 |
Line of Credit | Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 167 | 170 |
Senior Notes | Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 498 | $ 514.8 |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Debt, Interest Income, Expense and Other Finance Costs [Abstract] | ||||
Interest income | $ 1.5 | $ 1.3 | $ 2.6 | $ 1.9 |
Interest expense and other financing costs | (21.7) | (19.2) | (42.2) | (36.1) |
Interest income (expense) and other financing costs, net | $ (20.2) | $ (17.9) | $ (39.6) | $ (34.2) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Derivative assets | $ 395,000,000 | $ 845,800,000 |
Liabilities: | ||
Derivative liabilities | 398,700,000 | 769,100,000 |
Transfers from Level 1 to Level 2, assets | 0 | 0 |
Transfers from Level 2 to Level 1, assets | 0 | 0 |
Transfers from Level 1 to Level 2, liabilities | 0 | 0 |
Transfers from Level 2 to Level 1, liabilities | 0 | 0 |
Commodity contracts | ||
Assets: | ||
Derivative assets | 393,000,000 | 841,200,000 |
Liabilities: | ||
Derivative liabilities | 394,800,000 | 767,900,000 |
Foreign currency contracts | ||
Assets: | ||
Derivative assets | 2,100,000 | 4,600,000 |
Liabilities: | ||
Derivative liabilities | 3,800,000 | 1,200,000 |
Fair value measured on recurring basis | ||
Assets: | ||
Total assets at fair value | 403,100,000 | 852,100,000 |
Liabilities: | ||
Total liabilities at fair value | 398,700,000 | 769,100,000 |
Fair value measured on recurring basis | Cash surrender value of life insurance | ||
Assets: | ||
Cash surrender value of life insurance | 8,000,000 | 6,300,000 |
Fair value measured on recurring basis | Commodity contracts | ||
Assets: | ||
Derivative assets | 393,000,000 | 841,200,000 |
Liabilities: | ||
Derivative liabilities | 394,800,000 | 767,900,000 |
Fair value measured on recurring basis | Foreign currency contracts | ||
Assets: | ||
Derivative assets | 2,100,000 | 4,600,000 |
Liabilities: | ||
Derivative liabilities | 3,800,000 | 1,200,000 |
Fair value measured on recurring basis | Level 1 Inputs | ||
Assets: | ||
Total assets at fair value | 282,200,000 | 585,600,000 |
Liabilities: | ||
Total liabilities at fair value | 302,100,000 | 556,500,000 |
Fair value measured on recurring basis | Level 1 Inputs | Cash surrender value of life insurance | ||
Assets: | ||
Cash surrender value of life insurance | 0 | 0 |
Fair value measured on recurring basis | Level 1 Inputs | Commodity contracts | ||
Assets: | ||
Derivative assets | 282,200,000 | 585,600,000 |
Liabilities: | ||
Derivative liabilities | 302,100,000 | 556,500,000 |
Fair value measured on recurring basis | Level 1 Inputs | Foreign currency contracts | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair value measured on recurring basis | Level 2 Inputs | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Debt | 700,000,000 | 700,000,000 |
Notes receivable | 27,500,000 | 28,200,000 |
Assets: | ||
Total assets at fair value | 116,400,000 | 265,600,000 |
Liabilities: | ||
Total liabilities at fair value | 95,400,000 | 212,400,000 |
Fair value measured on recurring basis | Level 2 Inputs | Cash surrender value of life insurance | ||
Assets: | ||
Cash surrender value of life insurance | 8,000,000 | 6,300,000 |
Fair value measured on recurring basis | Level 2 Inputs | Commodity contracts | ||
Assets: | ||
Derivative assets | 106,200,000 | 254,600,000 |
Liabilities: | ||
Derivative liabilities | 91,500,000 | 211,200,000 |
Fair value measured on recurring basis | Level 2 Inputs | Foreign currency contracts | ||
Assets: | ||
Derivative assets | 2,100,000 | 4,600,000 |
Liabilities: | ||
Derivative liabilities | 3,800,000 | 1,200,000 |
Fair value measured on recurring basis | Level 3 Inputs | ||
Assets: | ||
Total assets at fair value | 4,500,000 | 900,000 |
Liabilities: | ||
Total liabilities at fair value | 1,200,000 | 200,000 |
Fair value measured on recurring basis | Level 3 Inputs | Cash surrender value of life insurance | ||
Assets: | ||
Cash surrender value of life insurance | 0 | 0 |
Fair value measured on recurring basis | Level 3 Inputs | Commodity contracts | ||
Assets: | ||
Derivative assets | 4,500,000 | 900,000 |
Liabilities: | ||
Derivative liabilities | 1,200,000 | 200,000 |
Fair value measured on recurring basis | Level 3 Inputs | Foreign currency contracts | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
Fair Value Measurements - Commo
Fair Value Measurements - Commodity and Foreign Currency Contracts (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | $ 395 | $ 845.8 |
Gross Amounts Offset | 338 | 647 |
Net Amounts Presented | 57 | 198.8 |
Cash Collateral | 0 | 3 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 57 | 195.8 |
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 398.7 | 769.1 |
Gross Amounts Offset | 338 | 647 |
Net Amounts Presented | 60.7 | 122.2 |
Cash Collateral | 19.4 | 0 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 41.3 | 122.2 |
Commodity contracts | ||
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | 393 | 841.2 |
Gross Amounts Offset | 335.9 | 646 |
Net Amounts Presented | 57 | 195.1 |
Cash Collateral | 0 | 3 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 57 | 192.1 |
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 394.8 | 767.9 |
Gross Amounts Offset | 335.9 | 646 |
Net Amounts Presented | 58.9 | 121.9 |
Cash Collateral | 19.4 | 0 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 39.5 | 121.9 |
Foreign currency contracts | ||
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | 2.1 | 4.6 |
Gross Amounts Offset | 2.1 | 0.9 |
Net Amounts Presented | 0 | 3.7 |
Cash Collateral | 0 | 0 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 0 | 3.7 |
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 3.8 | 1.2 |
Gross Amounts Offset | 2.1 | 0.9 |
Net Amounts Presented | 1.7 | 0.3 |
Cash Collateral | 0 | 0 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | $ 1.7 | $ 0.3 |
Fair Value Measurements - Conce
Fair Value Measurements - Concentration of Credit Risk (Details) $ in Millions | Jun. 30, 2019USD ($) |
Credit Concentration Risk | Credit Exposure | Largest Counterparty | |
Concentration Risk [Line Items] | |
Total credit risk | $ 4.1 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions, ₩ in Billions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016KRW (₩) | |
Income Taxes [Line Items] | |||||||
Income tax provision | $ 20 | $ 12.4 | $ 34 | $ 19.7 | |||
Effective income tax rate | 34.70% | 29.70% | 31.20% | 24.60% | |||
Adjustment for discrete tax expense, change in legislation in several states | $ 3 | ||||||
Adjustment for discrete tax expense, change in legislation and other discrete tax items | $ 0.8 | ||||||
Adjustment for income tax benefit, adjustment for stock-based compensation and change in valuation allowance | $ 3.9 | ||||||
Adjustment for income tax benefit, amounts that should have been recognized in a prior period | $ 3.2 | ||||||
Adjustment for income tax benefit, amounts that should have been recognized in a prior period and other discrete tax items | $ 2 | ||||||
Adjustment for income tax benefit, adjustment pursuant to SAB-118, uncertain tax positions, adjustments for ASU 2016-09, and changes in valuation allowance | $ 8.8 | ||||||
Tax Authority, South Korea (SRTO) | |||||||
Income Taxes [Line Items] | |||||||
Income tax assessment notice, amount | $ 9.8 | ₩ 11.3 | |||||
Pro forma | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 33.30% | 39.20% | 33.10% | 35.60% | |||
Adjustment for income tax benefit, amounts that should have been recognized in a prior period | $ (3.2) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Other revenues (excluded from ASC 606) | $ 111.3 | $ 131.9 | $ 204.8 | $ 302.5 |
Revenue | 9,459.4 | 10,150.8 | 18,138.2 | 19,332.2 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 1,064.5 | 1,168.5 | 2,142.6 | 2,361.1 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 2,314.9 | 2,430.6 | 4,329.2 | 4,417.9 |
LATAM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 907.6 | 761.6 | 1,783.7 | 1,591.3 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 5,061 | 5,658.2 | 9,677.9 | 10,659.4 |
Aviation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,785 | 4,900.7 | 9,037.7 | 9,193.6 |
Aviation | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 340.8 | 363.6 | 705.2 | 755.6 |
Aviation | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 1,008.8 | 962.8 | 1,727.9 | 1,632.8 |
Aviation | LATAM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 614.6 | 477.2 | 1,160.3 | 967.4 |
Aviation | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 2,828.5 | 3,157.6 | 5,476.5 | 5,920.6 |
Land | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,663 | 2,960.2 | 5,156.6 | 5,820.9 |
Land | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 4.1 | 0.8 | 9 | 1.9 |
Land | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 569.7 | 635.7 | 1,210.2 | 1,315.5 |
Land | LATAM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 149.6 | 156.3 | 288.5 | 340.6 |
Land | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 1,884.6 | 2,142.6 | 3,519 | 4,100.9 |
Marine | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,011.4 | 2,289.9 | 3,943.9 | 4,317.7 |
Marine | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 719.5 | 804.1 | 1,428.4 | 1,603.6 |
Marine | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 736.3 | 832.2 | 1,391.1 | 1,469.6 |
Marine | LATAM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 143.4 | 128.1 | 334.9 | 283.3 |
Marine | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | $ 347.9 | $ 358 | $ 682.4 | $ 637.9 |
Business Segments - Income Stat
Business Segments - Income Statement Items (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | |
Information concerning revenue, gross profit and income from operations by segment | ||||
Number of reportable operating business segments | segment | 3 | |||
Revenue: | ||||
Revenue | $ 9,459.4 | $ 10,150.8 | $ 18,138.2 | $ 19,332.2 |
Gross profit: | ||||
Gross profit | 268.6 | 246.2 | 519.7 | 489.6 |
Income from operations: | ||||
Income from operations | 75.2 | 61.1 | 145.6 | 118.3 |
Operating Segments | ||||
Income from operations: | ||||
Income from operations | 95.4 | 82.3 | 185.5 | 158.3 |
Corporate | ||||
Income from operations: | ||||
Income from operations | (20.2) | (21.2) | (40) | (40) |
Aviation segment | ||||
Revenue: | ||||
Revenue | 4,785 | 4,900.7 | 9,037.7 | 9,193.6 |
Gross profit: | ||||
Gross profit | 140.5 | 127.4 | 254.8 | 237.3 |
Aviation segment | Operating Segments | ||||
Income from operations: | ||||
Income from operations | 73.5 | 64.2 | 129.1 | 112 |
Land segment | ||||
Revenue: | ||||
Revenue | 2,663 | 2,960.2 | 5,156.6 | 5,820.9 |
Gross profit: | ||||
Gross profit | 91.7 | 88.6 | 193.2 | 190.8 |
Land segment | Operating Segments | ||||
Income from operations: | ||||
Income from operations | 11.8 | 10.2 | 32.8 | 29.9 |
Marine segment | ||||
Revenue: | ||||
Revenue | 2,011.4 | 2,289.9 | 3,943.9 | 4,317.7 |
Gross profit: | ||||
Gross profit | 36.4 | 30.2 | 71.6 | 61.5 |
Marine segment | Operating Segments | ||||
Income from operations: | ||||
Income from operations | $ 10.1 | $ 7.9 | $ 23.6 | $ 16.4 |
Business Segments - Balance She
Business Segments - Balance Sheet Items (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts receivable, net: | ||
Accounts receivable, net | $ 2,747.9 | $ 2,739.6 |
Total assets: | ||
Total assets | 5,751.2 | 5,676.9 |
Aviation segment | ||
Accounts receivable, net: | ||
Accounts receivable, net | 1,099.1 | 992.2 |
Land segment | ||
Accounts receivable, net: | ||
Accounts receivable, net | 872.2 | 846.1 |
Marine segment | ||
Accounts receivable, net: | ||
Accounts receivable, net | 776.5 | 901.2 |
Operating Segments | Aviation segment | ||
Accounts receivable, net: | ||
Allowance for bad debt | 14.4 | 17.7 |
Total assets: | ||
Total assets | 2,400.6 | 2,261 |
Operating Segments | Land segment | ||
Accounts receivable, net: | ||
Allowance for bad debt | 3.3 | 2.7 |
Total assets: | ||
Total assets | 2,123.6 | 2,178.1 |
Operating Segments | Marine segment | ||
Accounts receivable, net: | ||
Allowance for bad debt | 20.3 | 19 |
Total assets: | ||
Total assets | 1,014.3 | 1,124.2 |
Corporate | ||
Total assets: | ||
Total assets | $ 212.7 | $ 113.6 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net income attributable to World Fuel | $ 37 | $ 28.7 | $ 74.2 | $ 59.9 |
Denominator: | ||||
Weighted average common shares for basic earnings per common share (in shares) | 66.7 | 67.7 | 66.9 | 67.6 |
Effect of dilutive securities (in shares) | 0.3 | 0.3 | 0.3 | 0.4 |
Weighted average common shares for diluted earnings per common share (in shares) | 67 | 68 | 67.2 | 67.9 |
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 | 1.2 | 2.3 | 1.4 |
Basic earnings per common share (in dollars per share) | $ 0.56 | $ 0.42 | $ 1.11 | $ 0.89 |
Diluted earnings per common share (in dollars per share) | $ 0.55 | $ 0.42 | $ 1.10 | $ 0.88 |
Commitments and Contingencies (
Commitments and Contingencies (Details) R$ in Millions, $ in Millions, ₩ in Billions | Jun. 30, 2019USD ($) | Jun. 30, 2019BRL (R$) | Jun. 30, 2017USD ($) | Jun. 30, 2017KRW (₩) | Dec. 31, 2016USD ($) | Dec. 31, 2016KRW (₩) |
Assessment | ||||||
Loss Contingencies [Line Items] | ||||||
Estimate of possible loss | $ 10.3 | ₩ 11.9 | ||||
Additional Assessment | ||||||
Loss Contingencies [Line Items] | ||||||
Estimate of possible loss | $ 17.4 | ₩ 20.1 | ||||
Federal, state and municipal tax authorities in Brazil | Assessment | ||||||
Loss Contingencies [Line Items] | ||||||
Estimate of possible loss | $ 14.1 | R$ 54.1 |
Restructuring (Details)
Restructuring (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2018 | $ 20.7 |
Restructuring-related costs | 3.7 |
Paid during the period | (14.5) |
Restructuring charges as of June 30, 2019 | 9.8 |
Operating Segments | Aviation | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2018 | 1.4 |
Restructuring-related costs | 0.4 |
Paid during the period | (1.5) |
Restructuring charges as of June 30, 2019 | 0.4 |
Operating Segments | Land | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2018 | 12.6 |
Restructuring-related costs | 1 |
Paid during the period | (6.4) |
Restructuring charges as of June 30, 2019 | 7.2 |
Operating Segments | Marine | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2018 | 2.6 |
Restructuring-related costs | 1 |
Paid during the period | (1.9) |
Restructuring charges as of June 30, 2019 | 1.7 |
Corporate | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2018 | 4 |
Restructuring-related costs | 1.2 |
Paid during the period | (4.7) |
Restructuring charges as of June 30, 2019 | $ 0.5 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Finance lease cost, Amortization of right-of-use assets | $ 1.1 | $ 2.4 |
Finance lease cost, Interest on lease liabilities | 0.2 | 0.4 |
Operating lease cost | 13.4 | 26.5 |
Short-term lease cost | 5 | 9.5 |
Variable lease cost | (1.3) | 2.3 |
Sublease income | (2.5) | (5) |
Total lease cost | $ 15.9 | $ 36.1 |
Leases - Remaining Lease Paymen
Leases - Remaining Lease Payments (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Operating Leases | ||
2019 (excluding the six months ended June 30, 2019) | $ 25.5 | |
2020 | 40.5 | |
2021 | 32.2 | |
2022 | 25.6 | |
2023 | 20.7 | |
Thereafter | 61 | |
Total remaining lease payments (undiscounted) | 205.5 | |
Less: imputed interest | 36.8 | |
Present value of lease liabilities | 168.7 | |
Finance Leases | ||
2019 (excluding the six months ended June 30, 2019) | 2.1 | |
2020 | 4.1 | |
2021 | 3.2 | |
2022 | 2.8 | |
2023 | 2.2 | |
Thereafter | 3.2 | |
Total remaining lease payments (undiscounted) | 17.6 | |
Less: imputed interest | 1.6 | |
Present value of lease liabilities | $ 16 | |
Operating Leases, Before Adoption of 842 | ||
2019 | $ 50.7 | |
2020 | 37.1 | |
2021 | 30.7 | |
2022 | 23.7 | |
2023 | 17.8 | |
Thereafter | 48.5 | |
Total future minimum lease payments | $ 208.6 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) $ in Millions | Jun. 30, 2019USD ($) |
Assets | |
Operating Lease Assets | $ 161.9 |
Finance Lease Assets | 15.5 |
Liabilities | |
Operating Lease Liability - Current | 33.4 |
Operating Lease Liability - Long Term | 135.3 |
Finance Lease Liability - Current | 3.7 |
Finance Lease Liability - Long Term | $ 12.3 |
Leases - Other Information Rela
Leases - Other Information Related to Leases (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Operating Leases | |
Weighted-average remaining lease term (years) | 6 years 4 months 24 days |
Weighted-average discount rate | 6.00% |
Finance Leases | |
Weighted-average remaining lease term (years) | 5 years 6 months |
Weighted-average discount rate | 2.70% |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from finance leases | $ 0.3 |
Operating cash flows from operating leases | 26.5 |
Cash paid for amounts included in the measurement of lease liabilities: | |
Financing cash flows from finance leases | 1.8 |
Right of use assets obtained in exchange for new operating lease liability | 15.8 |
Right of use assets obtained in exchange for new operating lease liability | $ 4 |