Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 24, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-9533 | |
Entity Registrant Name | WORLD FUEL SERVICES CORPORATION | |
Entity Incorporation, State or Country Code | FL | |
Entity Address, Address Line One | 9800 N.W. 41st Street, | |
Entity Address, City or Town | Miami, | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33178 | |
Entity Tax Identification Number | 59-2459427 | |
City Area Code | 305 | |
Local Phone Number | 428-8000 | |
Title of 12(b) Security | Common Stock , $0.01 par value | |
Trading Symbol | INT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 63,489,928 | |
Amendment Flag | false | |
Entity Central Index Key | 0000789460 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 645.7 | $ 186.1 |
Accounts receivable, net | 1,415.9 | 2,891.9 |
Inventories | 308.8 | 593.3 |
Prepaid expenses | 72.7 | 80.6 |
Short-term derivative assets, net | 146.5 | 59.5 |
Other current assets | 341.8 | 358.8 |
Total current assets | 2,931.4 | 4,170.1 |
Property and equipment, net | 368.4 | 360.9 |
Goodwill | 913.5 | 843.7 |
Identifiable intangible and other non-current assets | 667.6 | 617.7 |
Total assets | 4,881 | 5,992.4 |
Current liabilities: | ||
Current maturities of long-term debt | 53.8 | 54.1 |
Accounts payable | 1,090.4 | 2,602.7 |
Customer deposits | 124.4 | 126.7 |
Accrued expenses and other current liabilities | 337.9 | 378.9 |
Total current liabilities | 1,606.6 | 3,162.4 |
Long-term debt | 1,043.3 | 574.7 |
Non-current income tax liabilities, net | 211.2 | 210.1 |
Other long-term liabilities | 201.6 | 151.3 |
Total liabilities | 3,062.7 | 4,098.5 |
Commitments and contingencies (Note 12) | ||
World Fuel shareholders' equity: | ||
Preferred stock, $1.00 par value; 0.1 shares authorized, none issued | 0 | 0 |
Common stock, $0.01 par value; 100.0 shares authorized, 63.3 and 65.2 issued and outstanding as of June 30, 2020 and December 31, 2019, respectively | 0.6 | 0.7 |
Capital in excess of par value | 219.3 | 274.7 |
Retained earnings | 1,768.6 | 1,761.3 |
Accumulated other comprehensive loss | (173.5) | (146.3) |
Total World Fuel shareholders' equity | 1,815 | 1,890.4 |
Noncontrolling interest | 3.3 | 3.5 |
Total equity | 1,818.3 | 1,893.9 |
Total liabilities and equity | $ 4,881 | $ 5,992.4 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
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) | 63,300,000 | 65,200,000 |
Common stock, shares outstanding (in shares) | 63,300,000 | 65,200,000 |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 3,158.3 | $ 9,459.4 | $ 11,173.5 | $ 18,138.2 |
Cost of revenue | 2,944.5 | 9,190.8 | 10,700.9 | 17,618.5 |
Gross profit | 213.9 | 268.6 | 472.6 | 519.7 |
Operating expenses: | ||||
Compensation and employee benefits | 95.9 | 112 | 198.3 | 220.3 |
General and administrative | 84.4 | 79.5 | 168.2 | 150.1 |
Asset impairments | 18.6 | 0 | 18.6 | 0 |
Restructuring charges | 3.1 | 1.9 | 4.8 | 3.7 |
Total operating expenses | 202 | 193.4 | 389.9 | 374.1 |
Income from operations | 11.9 | 75.2 | 82.7 | 145.6 |
Non-operating expenses, net: | ||||
Interest expense and other financing costs, net | (10) | (20.2) | (25.3) | (39.6) |
Other income (expense), net | (4.9) | 2.6 | (2.7) | 3 |
Total non-operating expenses, net | (14.9) | (17.6) | (28.1) | (36.6) |
Income (loss) before income taxes | (3) | 57.6 | 54.6 | 109 |
Provision for income taxes | 7.7 | 20 | 23.7 | 34 |
Net income (loss) including noncontrolling interest | (10.7) | 37.6 | 31 | 74.9 |
Net income (loss) attributable to noncontrolling interest | (0.4) | 0.6 | (0.2) | 0.7 |
Net income (loss) attributable to World Fuel | $ (10.2) | $ 37 | $ 31.2 | $ 74.2 |
Basic earnings per common share (in dollars per share) | $ (0.16) | $ 0.56 | $ 0.49 | $ 1.11 |
Basic weighted average common shares (in shares) | 63.3 | 66.7 | 64.1 | 66.9 |
Diluted earnings per common share (in dollars per share) | $ (0.16) | $ 0.55 | $ 0.48 | $ 1.10 |
Diluted weighted average common shares (in shares) | 63.3 | 67 | 64.4 | 67.2 |
Comprehensive income: | ||||
Net income (loss) including noncontrolling interest | $ (10.7) | $ 37.6 | $ 31 | $ 74.9 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 5.1 | (6) | (27.9) | (5.9) |
Cash flow hedges, net of income tax benefit of $7.2 and benefit of $1.1 for the three months ended June 30, 2020 and 2019, respectively, and net of income tax expense of $0.2 and benefit of $5.2 for the six months ended June 30, 2020 and 2019, respectively | (21) | (2.9) | 0.7 | (14.7) |
Other comprehensive income (loss) | (16) | (8.9) | (27.2) | (20.6) |
Comprehensive income (loss) including noncontrolling interest | (26.7) | 28.7 | 3.7 | 54.3 |
Comprehensive income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | (0.7) |
Comprehensive income (loss) attributable to World Fuel | $ (26.7) | $ 28.7 | $ 3.7 | $ 55 |
Consolidated Statements of In_2
Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Derivative instruments, income tax expense (benefit) | $ 7.2 | $ 1.1 | $ 0.2 | $ 5.2 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Cumulative effect of change in accounting principle | Common Stock | Capital in Excess of Par Value | Retained Earnings | Retained EarningsCumulative effect of change in accounting principle | Accumulated Other Comprehensive Loss | Total World Fuel Shareholders' Equity | Total World Fuel Shareholders' EquityCumulative effect of change in accounting principle | Noncontrolling Interest Equity |
Beginning balance (in shares) at Dec. 31, 2018 | 67 | |||||||||
Beginning balance at Dec. 31, 2018 | $ 1,831.6 | $ 0.7 | $ 340.4 | $ 1,606.1 | $ (131.7) | $ 1,815.4 | $ 16.1 | |||
Increase (Decrease) in Shareholders' Equity | ||||||||||
Net income (loss) | 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 (in shares) | 0.1 | |||||||||
Issuance (cancellation) of common stock related to share-based payment awards | 0 | |||||||||
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) | ||||||
Ending balance (in shares) at Mar. 31, 2019 | 67.1 | |||||||||
Ending balance at Mar. 31, 2019 | 1,855.8 | $ 0.7 | 343 | 1,639.3 | (142.7) | 1,840.3 | 15.5 | |||
Beginning balance (in shares) at Dec. 31, 2018 | 67 | |||||||||
Beginning balance at Dec. 31, 2018 | 1,831.6 | $ 0.7 | 340.4 | 1,606.1 | (131.7) | 1,815.4 | 16.1 | |||
Increase (Decrease) in Shareholders' Equity | ||||||||||
Net income (loss) | 74.9 | |||||||||
Other comprehensive income (loss) | (20.6) | |||||||||
Ending balance (in shares) at Jun. 30, 2019 | 65.2 | |||||||||
Ending balance at Jun. 30, 2019 | 1,815.6 | $ 0.7 | 280.7 | 1,669.7 | (151.6) | 1,799.4 | 16.1 | |||
Beginning balance (in shares) at Mar. 31, 2019 | 67.1 | |||||||||
Beginning balance at Mar. 31, 2019 | 1,855.8 | $ 0.7 | 343 | 1,639.3 | (142.7) | 1,840.3 | 15.5 | |||
Increase (Decrease) in Shareholders' Equity | ||||||||||
Net income (loss) | 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 (in shares) | 0.2 | |||||||||
Issuance (cancellation) of common stock related to share-based payment awards | 0.7 | 0.7 | 0.7 | |||||||
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 (in shares) | (2.1) | |||||||||
Purchases of common stock | (65.4) | (65.4) | (65.4) | |||||||
Other comprehensive income (loss) | (8.9) | (8.9) | (8.9) | |||||||
Ending balance (in shares) at Jun. 30, 2019 | 65.2 | |||||||||
Ending balance at Jun. 30, 2019 | $ 1,815.6 | $ 0.7 | 280.7 | 1,669.7 | (151.6) | 1,799.4 | 16.1 | |||
Beginning balance (in shares) at Dec. 31, 2019 | 65.2 | 65.2 | ||||||||
Beginning balance at Dec. 31, 2019 | $ 1,893.9 | $ (11.1) | $ 0.7 | 274.7 | 1,761.3 | $ (11.1) | (146.3) | 1,890.4 | $ (11.1) | 3.5 |
Increase (Decrease) in Shareholders' Equity | ||||||||||
Net income (loss) | 41.6 | 41.4 | 41.4 | 0.2 | ||||||
Cash dividends declared | (6.5) | (6.5) | (6.5) | |||||||
Amortization of share-based payment awards | (1.8) | (1.8) | (1.8) | |||||||
Issuance (cancellation) of common stock related to share-based payment awards (in shares) | 0.2 | |||||||||
Issuance (cancellation) of common stock related to share-based payment awards | 1.2 | 1.2 | 1.2 | |||||||
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards | (1.5) | (1.5) | (1.5) | |||||||
Purchases of common stock (in shares) | (2.2) | |||||||||
Purchases of common stock | (55.6) | (55.6) | (55.6) | |||||||
Other comprehensive income (loss) | (11.3) | (11.3) | (11.3) | |||||||
Other | 1.2 | $ (0.1) | 1.2 | 1.2 | ||||||
Ending balance (in shares) at Mar. 31, 2020 | 63.2 | |||||||||
Ending balance at Mar. 31, 2020 | $ 1,850.1 | $ 0.6 | 218.2 | 1,785.1 | (157.5) | 1,846.4 | 3.7 | |||
Beginning balance (in shares) at Dec. 31, 2019 | 65.2 | 65.2 | ||||||||
Beginning balance at Dec. 31, 2019 | $ 1,893.9 | $ (11.1) | $ 0.7 | 274.7 | 1,761.3 | $ (11.1) | (146.3) | 1,890.4 | $ (11.1) | 3.5 |
Increase (Decrease) in Shareholders' Equity | ||||||||||
Net income (loss) | 31 | |||||||||
Other comprehensive income (loss) | $ (27.2) | |||||||||
Ending balance (in shares) at Jun. 30, 2020 | 63.3 | 63.3 | ||||||||
Ending balance at Jun. 30, 2020 | $ 1,818.3 | $ 0.6 | 219.3 | 1,768.6 | (173.5) | 1,815 | 3.3 | |||
Beginning balance (in shares) at Mar. 31, 2020 | 63.2 | |||||||||
Beginning balance at Mar. 31, 2020 | 1,850.1 | $ 0.6 | 218.2 | 1,785.1 | (157.5) | 1,846.4 | 3.7 | |||
Increase (Decrease) in Shareholders' Equity | ||||||||||
Net income (loss) | (10.7) | (10.2) | (10.2) | (0.4) | ||||||
Cash dividends declared | (6.3) | (6.3) | (6.3) | |||||||
Amortization of share-based payment awards | 2.3 | 2.3 | 2.3 | |||||||
Issuance (cancellation) of common stock related to share-based payment awards (in shares) | 0.1 | |||||||||
Issuance (cancellation) of common stock related to share-based payment awards | 0 | 0 | 0 | |||||||
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) | |||||||
Other comprehensive income (loss) | $ (16) | (16) | (16) | 0 | ||||||
Ending balance (in shares) at Jun. 30, 2020 | 63.3 | 63.3 | ||||||||
Ending balance at Jun. 30, 2020 | $ 1,818.3 | $ 0.6 | $ 219.3 | $ 1,768.6 | $ (173.5) | $ 1,815 | $ 3.3 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | Jul. 02, 2020 | Apr. 09, 2020 | Jul. 05, 2019 | Apr. 12, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 |
Cash dividends declared (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.06 | ||||
Cash dividends declared | $ 6.3 | $ 6.5 | $ 6.6 | $ 4 | ||||
Cash dividends paid (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.06 | |||||
Dividends paid on common stock | $ 6.5 | $ 6.6 | $ 4 | |||||
Subsequent Event | ||||||||
Cash dividends paid (in dollars per share) | $ 0.10 | |||||||
Dividends paid on common stock | $ 6.3 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income including noncontrolling interest | $ 31 | $ 74.9 |
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities: | ||
Depreciation and amortization | 44.2 | 43.1 |
Provision for bad debt | 34.6 | 5.7 |
Share-based payment award compensation costs | 0.6 | 7.7 |
Deferred income tax expense (benefit) | (5.3) | 4.8 |
Foreign currency (gains) losses, net | 3 | 2.1 |
Other | 0.2 | (0.3) |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable, net | 1,462.6 | (12.5) |
Inventories | 282.8 | (40.4) |
Prepaid expenses | 6.4 | (7.2) |
Short-term derivative assets, net | (110.4) | 167.6 |
Other current assets | 17.2 | 8.9 |
Cash collateral with counterparties | 17.6 | (38) |
Other non-current assets | (18.4) | 33.9 |
Accounts payable | (1,527.1) | 70 |
Customer deposits | (2.3) | 19.5 |
Accrued expenses and other current liabilities | (25.2) | (143.7) |
Non-current income tax, net and other long-term liabilities | 33.7 | (60.4) |
Total adjustments | 214.1 | 60.8 |
Net cash provided by (used in) operating activities | 245.1 | 135.8 |
Cash flows from investing activities: | ||
Acquisition of business, net of cash acquired | (130.6) | 0 |
Capital expenditures | (32.9) | (37.3) |
Other investing activities, net | (5.3) | 3.8 |
Net cash (used in) provided by investing activities | (168.7) | (33.6) |
Cash flows from financing activities: | ||
Borrowings of debt | 2,080 | 3,197.6 |
Repayments of debt | (1,613.7) | (3,218.6) |
Dividends paid on common stock | (13) | (8) |
Repurchases of common stock | (55.6) | (65.4) |
Other financing activities, net | (2.8) | (2.6) |
Net cash provided by (used in) financing activities | 394.9 | (97.1) |
Effect of exchange rate changes on cash and cash equivalents | (11.6) | 1.2 |
Net increase (decrease) in cash and cash equivalents | 459.6 | 6.3 |
Cash and cash equivalents, as of the beginning of the period | 186.1 | 211.7 |
Cash and cash equivalents, as of the end of the period | $ 645.7 | $ 218.1 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash dividends declared, but not yet paid | $ 6.3 | $ 6.6 |
Universal Weather and Aviation, Inc. | ||
Deferred consideration | $ 38.9 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies General World Fuel Services Corporation (the “Company”) was incorporated in Florida in July 1984 and along with its consolidated subsidiaries is referred to collectively in this Quarterly Report on Form 10-Q (“10-Q Report”) as “World Fuel,” “we,” “our” and “us.” We are a leading global fuel services company, principally engaged in the distribution of fuel and related products and services in the aviation, 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, technology solutions as well as sustainability products and services across the energy product spectrum. We also offer payment management solutions to commercial and industrial customers, principally in the aviation, land and marine transportation industries. We will continue to focus on enhancing the portfolio of products and services we provide based on changes in customer demand, including sustainability offerings and renewable fuel products. We prepared our 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 2019 Annual Report on Form 10-K (“2019 10-K Report”). Certain amounts in the Consolidated Financial Statements and accompanying notes may not add due to rounding. All percentages have been calculated using unrounded amounts. COVID-19 The outbreak of COVID-19, which was declared a pandemic by the World Health Organization in March 2020, has created significant volatility, uncertainty and disruption in the global economy. The rapid spread of the virus has caused governments around the world to implement stringent measures to help control its spread, including, without limitation, quarantines, “stay-at-home” or “shelter-in-place” orders, social-distancing mandates, travel restrictions, and closures or reduced operations for businesses, governmental agencies, schools and other institutions, among others. Beginning in the quarterly period ended March 31, 2020, the aviation, marine and land transportation industries, along with global economic conditions generally, have been significantly disrupted by the pandemic. A large number of our customers in these industries have experienced substantial reductions in their operations due to travel restrictions and stay-at-home orders, as well as the extended shutdown of various businesses in affected regions. Furthermore, government measures also led to a precipitous decline and historic volatility in fuel prices in response to concerns about demand for fuel, further exacerbated by recent disagreements regarding crude oil production levels between the Organization of Petroleum Exporting Countries ("OPEC") members and other oil-producing countries such as Russia, as well as related global storage considerations. In response to these developments, in March 2020, we took swift action to ensure the safety of our employees and other stakeholders and initiated a number of initiatives relating to cost reduction, liquidity and operating efficiencies. While the pandemic and associated impacts on economic activity had a limited adverse effect on our results of operations and financial condition for the first quarter of 2020, we have since seen a sharp decline in demand and related sales as large sectors of the global economy have been adversely impacted by the crisis. Accordingly, our results of operations during the second quarter of 2020 were significantly impacted due to the effects of the pandemic. As a result, during the second quarter of 2020, we took additional steps and expanded the restructuring of our operations to include the rationalization of our global office footprint, including the transition of select offices to smaller or more cost-effective locations. We make estimates and assumptions that affect the reported amounts on our financial statements and accompanying notes as of the date of the financial statements. We assessed accounting estimates that require consideration of forecasted financial information, including, but not limited to, our allowance for credit losses, the carrying value of our goodwill, intangible assets, and other long-lived assets. This assessment was conducted in the context of information reasonably available to us, as well as our consideration of the future potential impacts of COVID-19 on our business as of June 30, 2020. At this time, we are unable to predict with specificity the ultimate impact of the crisis, as it will depend on the magnitude, severity and duration of the pandemic, as well as how quickly, and to what extent, normal economic and operating conditions resume on a sustainable basis globally. Accordingly, if the impact is more severe or longer in duration than we have assumed, such impact could potentially result in additional impairments and increases in credit allowances. Significant Accounting Policies 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 2019 10-K Report. The significant accounting policies we use for quarterly financial reporting are disclosed in Note 1. Basis of Presentation, New Accounting Standards and Significant Accounting Policies of the accompanying notes to the Consolidated Financial Statements included in our 2019 10-K Report, and in the section below Adoption of New Accounting Standards. Adoption of New Accounting Standards We included below a description of recent new accounting standards or accounting standards updates that had an impact on the Company’s Consolidated Financial Statements. New accounting standards or accounting standards updates not listed below were assessed and determined to be either not applicable or did not have a material impact on the Company’s Consolidated Financial Statements or processes. Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In June 2016, Accounting Standards Update ("ASU") 2016-13 was issued, which replaced the incurred loss impairment model with a model that reflects expected credit losses over the lifetime of the asset and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. The guidance in this update, including the subsequent related codification amendments, changed 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. For receivables and certain other instruments that are not measured at fair value, entities are 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 could lead to a loss being realized, regardless of whether it is probable that the future event will occur. The Company adopted ASU 2016-13 The Company implemented changes to business processes and internal controls that support the new standard. As of the date of implementation on January 1, 2020, the Company recognized $11.1 million as a reduction to the opening retained earnings balance. The main drivers of the consolidated impact at transition are related to the inclusion of future economic conditions, the exclusion of freestanding credit enhancements when estimating the expected credit loss and estimating the lifetime credit losses of notes receivable. Accounting Standards Issued but Not Yet Adopted There have been no recently issued accounting standards not yet adopted by us which are expected, upon adoption, to have a material impact on the Company’s Consolidated Financial Statements or processes. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable and allowance for credit losses We extend credit on an unsecured basis to most of our customers. Our exposure to expected credit losses depends on the financial condition of our customers and other macroeconomic factors beyond our control, such as deteriorating conditions in the world economy or in the industries we serve, changes in oil prices and political instability. While we actively manage our credit exposure and work to respond to both changes in our customers’ financial conditions or macroeconomic events, there can be no guarantee we will be able to mitigate all of these risks successfully. We perform ongoing credit evaluations of our customers and adjust credit limits based upon payment history and the customer’s current creditworthiness based on expected exposure. Our payment terms with customers are based on each customers' creditworthiness and are generally 30-60 days, although certain markets and other customer-specific factors may warrant longer payment terms. Accounts receivable balances that are not paid within the terms of the sales agreement may be subject to finance fees based on the outstanding balance. Although we analyze customers’ payment history and expected creditworthiness, since we extend credit on an unsecured basis to most of our customers, there is a possibility that any accounts receivable not collected may ultimately need to be written off. Accounts receivable are measured at amortized cost. The health of our receivables is continuously monitored using a risk-based model, taking into consideration both the timeliness and predictability of collections from our customers. We maintain a provision for expected credit losses based upon our historical experience with our customers, along with any specific customer collection issues that we have identified from current financial information and business prospects, as well as any political or economic conditions or other market factors, including certain assumptions based on reasonable forward-looking information from market sources. Principally, based on these credit risk factors, portfolio segments are defined and an internally derived risk-based credit loss reserve is established and applied to each portfolio segment. Customer account balances that are deemed to be at high risk of collectability are reserved at higher rates than customer account balances which we expect to collect without difficulty. We had accounts receivable of $1.4 billion and $2.9 billion as of June 30, 2020 and December 31, 2019, respectively. We also had an allowance for credit losses related to accounts receivables and other insignificant financing receivables of $48.6 million (including the $11.1 million cumulative transition adjustment to retained earnings related to the implementation of ASU 2016-13 $35.5 million , as of June 30, 2020 and December 31, 2019, respectively. Changes to the expected credit loss provision during the six months ended June 30, 2020 include global economic outlook considerations as a result of the Company’s assessment of reasonable and supportable forward-looking information including the expected overall impact of the pandemic mainly to the aviation segment. Write-off of uncollectible receivables during the six months ended June 30, 2020 resulted from negative impacts of the pandemic combined with pre-existing financial difficulties experienced by certain customers. Based on an aging analysis as of June 30, 2020, 91% of our net accounts receivable were outstanding less than 60 days. The following table sets forth activities in our allowance for credit losses (in millions): Total Balance as of January 1, 2020 $ 46.6 Charges to provision for credit losses 34.6 Write-off of uncollectible receivables (32.9) Recoveries of credit losses 0.4 Translation adjustments (0.1) Balance as of June 30, 2020 $ 48.6 Financing programs We have accounts receivable financing programs under receivables purchase agreements (“RPAs”) with Wells Fargo Bank, N.A. and Citibank, N.A. that allow for the sale of our accounts receivable in an amount up to 100% of our outstanding qualifying accounts receivable balances and receive cash consideration equal to the total balance, less a discount margin equal to LIBOR plus 1% to 3%. Accounts receivable sold under the RPAs are accounted for as sales, in accordance with FASB ASC Topic 860, Transfers and Servicing , and excluded from Accounts receivable, net on the accompanying Consolidated Balance Sheets. Fees and interest paid under the RPAs are recorded within Interest expense and other financing costs, net on the Consolidated Statements of Comprehensive Income. Under the RPAs, accounts receivable sold, which remained outstanding as of June 30, 2020 and December 31, 2019, were $92.6 million and $405.9 million , respectively. The fees and inte rest paid under the RPAs were $5.5 million and $13.3 million for the six months ended June 30, 2020 and 2019, respectively. For the six months ended June 30, 2020 and 2019, cash payments to the owners of account receivables were $2.5 billion and $4.2 billion, respectively, and cash proceeds from the sale of account receivables were $2.2 billion and $4.2 billion, respectively. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2020 Acquisitions During the second quarter of 2020, we acquired an additional interest in a software company in our aviation segment and obtained control. The transaction was accounted for as an asset acquisition and did not have a material impact on our Consolidated Financial Statements. During the first quarter of 2020, we completed the acquisition of the aviation fuel business from Universal Weather and Aviation, Inc. (“UVair fuel business”), which serves business and general aviation customers worldwide. The acquisition was accounted for as a business combination. The following table summarizes the aggregate consideration paid for this acquisition, updated as of June 30, 2020 for certain working capital items, and the provisional amounts of the assets acquired and liabilities assumed, recognized at the acquisition date. The Company is in the process of obtaining information to finalize the valuations of certain acquired assets and assumed liabilities and expects to complete the process in the third quarter 2020. Thus, the provisional measurements of these acquired assets and assumed liabilities are subject to change (amounts in millions): Total Cash paid for acquisition of business $ 128.6 Amounts due to sellers 30.0 Estimated purchase price $ 158.6 Assets acquired: Accounts receivable $ 42.8 Goodwill and identifiable intangible assets 123.0 Other current and long-term assets 3.8 Liabilities assumed: Accounts payable (9.9) Other current and long-term liabilities (1.0) Estimated purchase price $ 158.6 The goodwill of $78.7 million included the adjustments made to certain working capital items during the quarter ended June 30, 2020 and was assigned to the aviation segment. The company anticipates $70.3 million of the goodwill assigned to be deductible for tax purposes and is attributable primarily to the expected synergies and other benefits that we believe will result from combining the acquired operations with the aviation segment operations. The identifiable intangible assets were $44.3 million and primarily consisted of customer relationships and other identifiable assets. The financial position, results of operations and cash flows of these acquisitions have been included in our Consolidated Financial Statements since their acquisition dates and did not have a material impact on our consolidated revenue and net income for the three and six months ended June 30, 2020; accordingly, pro forma information for these acquisitions have not been provided as the impact was not considered material. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments 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 derivative contracts we execute to mitigate the risk of price and interest rate volatility in forecasted transactions. Non-designated Derivatives. Includes derivatives we primarily transact to mitigate the risk of market price fluctuations in swaps or futures contracts, as well as certain forward fixed price purchase and sale contracts to hedge the risk of currency rate fluctuations and for portfolio optimization. In March 2020, we entered into a $300 million, one-month LIBOR, floating-for-fixed non-amortizing interest rate swap contract ("IR Swap") with a maturity date in March 2025. The IR Swap was designated as a cash flow hedge to mitigate potential adverse changes in interest rates related to certain variable rate debt obligations. Changes in the IR Swap's fair value recorded periodically in Accumulated other comprehensive income, are subsequently reclassified to our Consolidated Statements of Income and Comprehensive Income within Interest expense and other financing costs, net when the underlying hedged variable rate interest payments are accrued. 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, 2020 2019 2020 2019 Derivative Instruments Consolidated Balance Sheets location Derivatives designated as hedging instruments Commodity contracts Short-term derivative assets, net $ — $ — $ — $ — Identifiable intangible and other non-current assets — — — — Accrued expenses and other current liabilities 204.0 1.7 177.0 20.0 Other long-term liabilities 0.1 — 0.4 — 204.1 1.7 177.3 20.0 Interest rate contracts Short-term derivative assets, net — — — — Identifiable intangible and other non-current assets — — — — Accrued expenses and other current liabilities — — 1.2 — Other long-term liabilities — — 3.7 — Total derivatives designated as hedging instruments $ 204.1 $ 1.7 $ 182.2 $ 20.0 Derivatives not designated as hedging instruments Commodity contracts Short-term derivative assets, net $ 217.8 $ 65.7 $ 64.5 $ 7.2 Identifiable intangible and other non-current assets 45.1 23.0 12.3 4.8 Accrued expenses and other current liabilities 206.5 161.0 328.5 203.4 Other long-term liabilities 18.9 7.7 40.6 19.7 488.3 257.3 445.9 235.0 Foreign currency contracts Short-term derivative assets, net 0.6 1.2 0.3 0.2 Identifiable intangible and other non-current assets — — — — Accrued expenses and other current liabilities 1.8 0.9 10.6 11.4 2.4 2.0 10.9 11.6 Total derivatives not designated as hedging instruments $ 490.7 $ 259.4 $ 456.9 $ 246.6 Total derivatives $ 694.8 $ 261.1 $ 639.1 $ 266.6 For information regarding our derivative instruments measured at fair value after netting and collateral, see Note 7. Fair Value Measurements. 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, 2020 (in millions): As of June 30, Derivative Instruments Units 2020 Commodity contracts Long BBL 65.0 Short BBL (49.2) Foreign currency exchange contracts Sell U.S. dollar, buy other currencies USD (70.3) Buy U.S. dollar, sell other currencies USD 422.6 As of June 30, 2020, and December 31, 2019 , the following amounts were recorded on our Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges (in millions): Line item in the Consolidated Balance Sheets in which the hedged item is included Carrying Amount of Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset/(Liabilities) As of As of June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Inventory $ 32.1 $ 30.7 $ 2.3 $ 2.3 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, 2020 June 30, 2019 Revenue Cost of Revenue Interest expense and other financing costs, net Revenue Cost of Revenue Interest expense and other financing costs, net Total amounts of income and expense line items in which the effects of fair value or cash flow hedged are recorded $ 3,158.3 $ 2,944.5 $ 10.7 $ 9,459.4 $ 9,190.8 $ 21.7 Gains or Loss on fair value hedge relationships: Commodity contracts: Hedged Item — 8.9 — — (0.9) — Derivatives designated as hedging instruments — (4.6) — — (0.6) — Gains or Loss on cash flow hedge relationships: Commodity contracts: Amount of Gain (Loss) Reclassified from AOCI into Income 27.0 (56.2) — (2.5) 25.8 — Interest rate contracts: Amount of Gain (Loss) Reclassified from AOCI into Income — — — — — — Total amount of income and expense line items excluding the impact of hedges $ 3,131.4 $ 2,892.6 $ 10.7 $ 9,461.9 $ 9,215.1 $ 21.7 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, 2020 June 30, 2019 Revenue Cost of Revenue Interest expense and other financing costs, net Revenue Cost of Revenue Interest expense and other financing costs, net Total amounts of income and expense line items in which the effects of fair value or cash flow hedged are recorded $ 11,173.5 $ 10,700.9 $ 26.9 $ 18,138.2 $ 17,618.5 $ 42.2 Gains or Loss on fair value hedge relationships: Commodity contracts: Hedged Item — (14.3) — — 15.4 — Derivatives designated as hedging instruments — 13.8 — — (14.1) — Gains or Loss on cash flow hedge relationships: Commodity contracts: Amount of Gain (Loss) Reclassified from AOCI into Income 41.0 (57.3) — (6.3) 17.4 — Interest rate contracts: Amount of Gain (Loss) Reclassified from AOCI into Income — — — — — — Total amount of income and expense line items excluding the impact of hedges $ 11,132.5 $ 10,643.1 $ 26.9 $ 18,144.5 $ 17,637.2 $ 42.2 For the three and six months ended June 30, 2020 and 2019, there were no gains or losses recognized in earnings related to our fair value or cash flow hedges that were excluded from the assessment of hedge effectiveness. As of June 30, 2020, on a pre-tax basis for commodity cash flow hedges, $160.8 million and $170.8 million is scheduled to be reclassified from Accumulated other comprehensive loss as an increase to Revenue and increase to Cost of revenue, respectively, over the next twelve months. The following table presents the effect and financial statement location of our derivative instruments in cash flow hedging relationships on Accumulated other comprehensive income and 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 2020 2019 Location 2020 2019 Commodity contracts $ (148.5) $ 42.8 Revenue $ 27.0 $ (2.5) Commodity contracts 100.3 (22.7) Cost of revenue (56.2) 25.8 Interest rate contracts (2.2) — Interest expense and other financing costs, net — — Total Gain (Loss) $ (50.3) $ 20.1 Total Gain (Loss) $ (29.2) $ 23.3 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 2020 2019 Location 2020 2019 Commodity contracts $ 185.6 $ (177.7) Revenue $ 41.0 $ (6.3) Commodity contracts (197.4) 173.7 Cost of Revenue (57.3) 17.4 Interest rate contracts (3.7) — Interest expense and other financing costs, net — — Total Gain (Loss) $ (15.5) $ (4.0) Total Gain (Loss) $ (16.3) $ 11.1 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 2020 2019 Commodity contracts Revenue $ 34.1 $ 69.4 Cost of revenue (25.8) (57.1) 8.4 12.4 Foreign currency contracts Revenue (0.5) — Other (expense), net (7.8) (1.3) (8.3) (1.3) Total Gain (Loss) $ 0.2 $ 11.1 Amount of Realized and Unrealized Gain (Loss) For the Six Months Ended June 30, Derivative Instruments - Non-designated Location 2020 2019 Commodity contracts Revenue $ 113.3 $ 144.5 Cost of revenue (10.3) (123.0) 102.9 21.5 Foreign currency contracts Revenue — (0.1) Other (expense), net 10.7 (0.8) 10.7 (0.9) Total Gain (Loss) $ 113.6 $ 20.6 Credit-Risk-Related Contingent Features We enter into derivative contracts, which may require us to provide collateral periodically. Additionally, certain derivative contracts contain credit-risk-related contingent clauses that 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 such credit event or default. The following table presents the potential collateral requirements for derivative liabilities with credit-risk-contingent features as of June 30, 2020 and December 31, 2019 (in millions): Potential Collateral Requirements for As of June 30, 2020 As of December 31, 2019 Net derivative liability positions with credit contingent features $ 65.2 $ 45.6 Collateral posted and held by our counterparties — — Maximum additional potential collateral requirements $ 65.2 $ 45.6 |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2020 | |
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 for the six months ended June 30, 2020 (in millions): Aviation Land (1) Total Balance as of December 31, 2019 $ 323.6 $ 520.1 $ 843.7 Additions 78.7 — 78.7 Foreign exchange and other adjustments (0.1) (8.8) (8.9) Balance as of June 30, 2020 $ 402.2 $ 511.3 $ 913.5 (1) At June 30, 2020, $446.7 million of the land segment's goodwill amount relates to the land reporting unit. |
Debt, Interest Income, Expense
Debt, Interest Income, Expense and Other Finance Costs | 6 Months Ended |
Jun. 30, 2020 | |
Debt, Interest Income, Expense and Other Finance Costs [Abstract] | |
Debt, Interest Income, Expense and Other Finance Costs | Debt, Interest Income, Expense and Other Finance Costs Our debt consisted of the following as of June 30, 2020 and December 31, 2019 (in millions): As of June 30, December 31, 2020 2019 Credit Facility $ 530.0 $ 55.0 Term Loans 509.5 515.6 Finance Leases 17.7 18.7 Other (1) 40.0 39.5 Total debt 1,097.2 628.8 Current maturities of long-term debt 53.8 54.1 Long-term debt $ 1,043.3 $ 574.7 (1) Includes secured borrowings of $37.7 million (EUR 33.6 million), due within 12 months, for the transfer of tax receivables as of June 30, 2020. The following table provides additional information about our interest income (expense), and other financing costs, net, for the periods presented for the three and six months ended June 30, 2020 and 2019 (in millions): For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Interest income $ 0.7 $ 1.5 $ 1.6 $ 2.6 Interest expense and other financing costs (10.7) (21.7) (26.9) (42.2) $ (10.0) $ (20.2) $ (25.3) $ (39.6) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The carrying amounts of cash and cash equivalents, net accounts receivable, accounts payable and accrued expenses and other current liabilities approximate fair value based on their short-term maturities. The carrying values of our debt and notes receivable approximate fair value 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 $1.1 billion and $628.8 million as of June 30, 2020 and December 31, 2019, respectively, and our notes receivable of $23.4 million and $21.0 million as of June 30, 2020 and December 31, 2019, respectively, were categorized as Level 2. The following tables present information about our gross assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019 (in millions): Fair Value Measurements as of June 30, 2020 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Commodities contracts $ 417.8 $ 259.7 $ 14.8 $ 692.4 Foreign currency contracts — 2.4 — 2.4 Interest rate contract — — — — Cash surrender value of life insurance — 9.2 — 9.2 Total assets at fair value $ 417.8 $ 271.3 $ 14.8 $ 704.0 Liabilities: Commodities contracts $ 437.7 $ 181.7 $ 3.8 $ 623.2 Foreign currency contracts — 10.9 — 10.9 Interest rate contract — 4.9 — 4.9 Total liabilities at fair value $ 437.7 $ 197.6 $ 3.8 $ 639.1 Fair Value Measurements as of December 31, 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Commodities contracts $ 148.3 $ 100.0 $ 10.7 $ 259.0 Foreign currency contracts — 2.0 — 2.0 Cash surrender value of life insurance — 9.4 — 9.4 Total assets at fair value $ 148.3 $ 111.4 $ 10.7 $ 270.4 Liabilities: Commodities contracts $ 177.6 $ 69.3 $ 8.1 $ 255.0 Foreign currency contracts — 11.6 — 11.6 Total liabilities at fair value $ 177.6 $ 80.9 $ 8.1 $ 266.6 The fair values of our commodity contracts measured using Level 3 inputs were not material at June 30, 2020 and December 31, 2019, 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 derivative balances subject to the right of offset as presented on our Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 . 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, 2020 Gross Amounts Gross Amounts Gross Amounts Net Amounts Cash without Recognized Offset Presented Collateral Right of Offset Net Amounts Assets: Commodities contracts $ 692.4 $ 507.5 $ 184.9 $ 7.5 $ — $ 177.4 Interest rate contract — — — — — — Foreign currency contracts 2.4 2.2 0.3 — — 0.3 Total assets at fair value $ 694.8 $ 509.7 $ 185.1 $ 7.5 $ — $ 177.7 Liabilities: Commodities contracts $ 623.2 $ 507.5 $ 115.7 $ 19.5 $ — $ 96.2 Interest rate contract 4.9 — 4.9 — — 4.9 Foreign currency contracts 10.9 2.2 8.8 — — 8.8 Total liabilities at fair value $ 639.1 $ 509.7 $ 129.4 $ 19.5 $ — $ 109.9 Fair Value as of December 31, 2019 Gross Amounts Gross Amounts Gross Amounts Net Amounts Cash without Recognized Offset Presented Collateral Right of Offset Net Amounts Assets: Commodities contracts $ 259.0 $ 130.0 $ 129.0 $ — $ — $ 129.0 Foreign currency contracts 2.0 1.0 1.0 — — 1.0 Total assets at fair value $ 261.1 $ 131.1 $ 130.0 $ — $ — $ 130.0 Liabilities: Commodities contracts $ 255.0 $ 130.0 $ 125.0 $ 29.3 $ — $ 95.7 Foreign currency contracts 11.6 1.0 10.5 — — 10.5 Total liabilities at fair value $ 266.6 $ 131.1 $ 135.5 $ 29.3 $ — $ 106.3 At June 30, 2020 and December 31, 2019, we did not present any amounts gross on our Consolidated Balance Sheets where we had the right of offset. Concentration of Credit Risk Our individual over-the-counter ("OTC") counterparty exposure is managed within predetermined credit limits and includes the use of cash-call margins when appropriate, thereby reducing the risk of significant nonperformance. At June 30, 2020, one of our counterparties, with an exposure amount of $18.7 million, represented over 10% of our credit exposure to OTC derivative counterparties. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax provision and the respective effective income tax rates are as follows (in millions, except for income tax rates): For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Income tax provision $ 7.7 $ 20.0 $ 23.7 $ 34.0 Effective income tax rate (258) % 35 % 43 % 31 % Our provision for income taxes for the three months ended June 30, 2020, was $7.7 million, resulting in an effective income tax rate of (258%). The provision includes a net discrete tax expense of $3.4 million for the period related primarily to return to provision adjustments resulting from tax return filings in several foreign jurisdictions. Without the $3.4 million in discrete items, the effective income tax rate would have been (144)%. Our provision for inc ome taxes for the three months ended June 30, 2019, was $20.0 million resulting in an effective tax rate of 35%. The provision includes a net discrete income tax expense of $0.8 million for the period. Without the $0.8 million in discrete items, the effective income tax rate would have been 33%. Our provision for income taxes for the six months ended June 30, 2020, was $23.7 million, resulting in an effective income tax rate of 43%. The provision includes a net discrete tax expense of $4.4 million for the period related primarily to return to provision adjustments resulting from tax return filings in several foreign jurisdictions. Without the $4.4 million in discrete items, the effective income tax rate would have been 35%. Our provision for income taxes for the six months ended June 30, 2019, was $34.0 million resulting in an effective tax rate of 31%. The provision includes a net discrete income tax benefit of $2.0 million for the period. Without the $2.0 million in discrete items, the effective income tax rate would have been 33%. Our income tax concession in Singapore, which reduces the income tax rate on qualified sales and derivative gains and losses decreased foreign income taxes by $0.8 million and $0.6 million for the three months ended June 30, 2020 and 2019, respectively. The impact of the income tax concession on basic earnings per common share was $0.01 and $0.01 for the three months ended June 30, 2020 and 2019, respectively and $0.01 and $0.01 on a diluted earnings per common share basis, respectively. Our income tax concession decreased foreign income taxes by $2.7 million and $1.5 million for the six months ended June 30, 2020 and 2019, respectively. The impact of the income tax concession on basic earnings per common share was $0.04 and $0.02 for the six months ended June 30, 2020 and 2019, respectively and $0.04 and $0.02 on a diluted earnings per common share basis, respectively. Our provision for income taxes for the three and six months ended June 30, 2020 and 2019 was calculated based on the estimated annual effective income tax rate for the 2020 and 2019 fiscal years. The actual effective income tax rate for the 2020 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. On July 20, 2020, the Internal Revenue Service (“IRS”) released final regulations relating to the high tax exception rules under the global intangible low-tax income ("GILTI") and Subpart F income provisions of the Code which are effective for years beginning after July 23, 2020; however taxpayers may choose to apply the regulations for tax years beginning after December 31, 2017. The company is in the process of reviewing the final regulations and determining the potential impact if any. We have various tax returns under examination both in the U.S. and foreign jurisdictions. The most significant of these are in Denmark for the 2013 to 2015 tax years, South Korea for the 2011 to 2014 tax years, and the U.S. for the 2017 to 2018 tax years. In 2018, one of our subsidiaries in Denmark received an audit inquiry from the Danish tax authorities regarding transfer pricing and other related matters for the tax years 2013 to 2015. In the second quarter 2019, it received a proposed tax adjustment of approximately $1.7 million (DKK 11.2 million) related to the 2013 tax year and on April 30, 2020, it received a proposed tax adjustment of approximately $1.3 million (DKK 8.6 million) related to the 2014 tax year. We are responding to the proposed income adjustments and other information requests from the Danish tax authorities. In 2017, the Korean Branch of one of our subsidiaries received income tax assessment notices for $9.4 million (KRW 11.3 billion) from the South Korea tax authorities. We believe that these assessments are without merit and are currently appealing the actions. On March 11, 2020, the U.S. Internal Revenue Service began the audit of our 2017 and 2018 tax years, and we are currently responding to their information requests. An unfavorable resolution of one or more of the above matters could have a material adverse effect on our result of operations or cash flows in the quarter or year in which the adjustments are recorded, or the tax is due or paid. As examinations are still in process or have not yet reached the final stages of the appeals process, the timing of the ultimate resolution or payments that may be required cannot be determined at this time. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2020 | |
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 is not significant. The following table presents our revenues from contracts with customers disaggregated by major geographic areas we conduct business in for the three and six months ended June 30, 2020 and 2019 (in millions): For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Aviation $ 103.9 $ 340.8 $ 357.9 $ 705.2 Land 0.8 4.1 5.6 9.0 Marine 441.0 719.5 1,365.7 1,428.4 Asia Pacific 545.8 1,064.5 1,729.1 2,142.6 Aviation 157.8 1,008.8 796.6 1,727.9 Land 313.9 569.7 932.1 1,210.2 Marine 285.0 736.3 896.2 1,391.1 EMEA 756.7 2,314.9 2,625.0 4,329.2 Aviation 77.2 614.6 656.7 1,160.3 Land 76.4 149.6 206.8 288.5 Marine 83.1 143.4 316.4 334.9 LATAM 236.7 907.6 1,179.9 1,783.7 Aviation 500.6 2,828.5 2,607.1 5,476.5 Land 804.9 1,884.6 2,134.2 3,519.0 Marine 134.2 347.9 476.4 682.4 North America 1,439.7 5,061.0 5,217.7 9,677.9 Other revenues (excluded from ASC 606) (1) 179.6 111.3 421.9 204.8 $ 3,158.3 $ 9,459.4 $ 11,173.5 $ 18,138.2 (1) Includes revenue from leases and other transactions that we account for under separate guidance. The nature of the receivables related to revenue from contracts with customers and Other revenues (excluded from ASC 606) are substantially similar, as they are both generated from transactions with the same type of counterparties (e.g., separate fuel sales and storage lease with the same counterparty) and are entered into utilizing the same credit approval and monitoring procedures for all customers. As such, we believe the risk associated with the cash flows from the different types of receivables is not meaningful to separately disaggregate the accounts receivable balance presented on our Consolidated Balance Sheet. Furthermore, as of June 30, 2020 and December 31, 2019 , the contract assets and contract liabilities recognized by the Company were not material. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2020 | |
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 World Kinect global energy management brand, our 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 reportable segment is as follows for the three and six months ended June 30, 2020 and 2019 (in millions): For the Three Months Ended For the Six Months Ended June 30, June 30, Revenue: 2020 2019 2020 2019 Aviation segment $ 1,020.6 $ 4,785.0 $ 4,784.8 $ 9,037.7 Land segment 1,197.6 2,663.0 3,303.6 5,156.6 Marine segment 940.2 2,011.4 3,085.2 3,943.9 $ 3,158.3 $ 9,459.4 $ 11,173.5 $ 18,138.2 Gross profit: Aviation segment $ 91.9 $ 140.5 $ 185.0 $ 254.8 Land segment 84.8 91.7 191.0 193.2 Marine segment 37.2 36.4 96.6 71.6 $ 213.9 $ 268.6 $ 472.6 $ 519.7 Income from operations: Aviation segment $ 9.0 $ 73.5 $ 38.1 $ 129.1 Land segment 9.7 11.8 35.3 32.8 Marine segment 13.3 10.1 47.2 23.6 32.0 95.4 120.6 185.5 Corporate overhead - unallocated (20.1) (20.2) (37.9) (40.0) $ 11.9 $ 75.2 $ 82.7 $ 145.6 Information concerning our accounts receivable, net and total assets by segment is as follows as of June 30, 2020 and December 31, 2019 (in millions): As of June 30, December 31 2020 2019 Accounts receivable, net: Aviation segment, net of allowance for credit losses of $33.0 and $14.6 as of June 30, 2020 and December 31, 2019, respectively $ 412.6 $ 1,098.2 Land segment, net of allowance for credit losses of $8.3 and $2.8 as of June 30, 2020 and December 31, 2019, respectively 590.9 863.2 Marine segment, net of allowance for credit losses of $4.3 and $18.0 as of June 30, 2020 and December 31, 2019, respectively 412.5 930.5 $ 1,415.9 $ 2,891.9 Total assets: Aviation segment $ 1,817.4 $ 2,416.5 Land segment 1,881.6 2,089.4 Marine segment 812.6 1,189.7 Corporate 369.3 296.8 $ 4,881.0 $ 5,992.4 |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 2019 2020 2019 Numerator: Net income attributable to World Fuel $ (10.2) $ 37.0 $ 31.2 $ 74.2 Denominator: Weighted average common shares for basic earnings per common share 63.3 66.7 64.1 66.9 Effect of dilutive securities — 0.3 0.3 0.3 Weighted average common shares for diluted earnings per common share 63.3 67.0 64.4 67.2 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 3.4 1.5 2.8 2.3 Basic earnings per common share $ (0.16) $ 0.56 $ 0.49 $ 1.11 Diluted earnings per common share $ (0.16) $ 0.55 $ 0.48 $ 1.10 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
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 Korean branch of one of our subsidiaries received assessments of approximately $9.4 million (KRW 11.3 billion) and during the quarter ended June 30, 2017, an assessment for an additional $16.8 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 of approximately $9.0 million (BRL 49.1 million) from the Brazilian tax authorities relating to the ICMS rate used for certain transactions. The assessment primarily consists of interest and penalties. We believe that the assessment is without merit and are pursuing our remedies in the judicial court system. 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 will 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, 2020, we had recorded certain reserves that 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 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, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring As a result of the continued review of our land business and changes in the overall economic landscape for all reportable segments as a result of the COVID-19 pandemic, we are implementing a restructuring initiative focused on further streamlining our operations and sharpening our deployment of resources in 2020. While the company took several actions during the second quarter of 2020, we continue to evaluate and define the overall restructuring plan as the full impact of COVID-19 on our business and our customers is unknown. For the six months ended June 30, 2020, we incurred $4.8 million in restructuring costs, comprised principally of certain severance costs included in Restructuring charges in our Consolidated Statements of Income and Comprehensive Income. Our accrued restructuring charges as of June 30, 2020 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, 2020 (in millions): Aviation Land Marine Corporate Consolidated Balance as of December 31, 2019 $ 0.5 $ 7.5 $ 1.3 $ 0.2 $ 9.5 Severance costs 0.7 2.7 0.4 1.0 4.8 Payments (0.5) (4.5) (1.0) (0.5) (6.5) Restructuring charges as of June 30, 2020 $ 0.7 $ 5.7 $ 0.7 $ 0.8 $ 7.9 During the second quarter of 2020, we implemented a cost reduction initiative to rationalize our global office footprint and approved the abandonment of certain office leases, including the transition of select offices to smaller or more cost-effective locations. These asset groups, consisting mainly of right-of-use assets and leasehold improvements, were tested for impairment. We concluded that the carrying amounts of these asset groups were not recoverable and the fair value determined was concluded to be nominal based on a discounted cash flow model. As a result, an $18.6 million impairment charge was recognized and is included within Asset impairments on our Consolidated Statements of Income and Comprehensive Income. The following table provides a summary of this impairment by reportable business segment (in millions): Aviation Land Marine Corporate Consolidated Asset impairments $ 6.9 $ 5.9 $ 4.0 $ 1.8 $ 18.6 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 30, 2020, we entered into a definitive agreement to sell our Multi Service payment solutions business. Subject to certain closing adjustments, we will receive a total of approximately $350.0 million in cash, consisting of approximately $275.0 million at closing and $75.0 million deferred for future payment, of which $50.0 million will be conditioned on MSTS' achievement of financial targets in 2021 and 2022. The closing is subject to customary conditions, including regulatory approvals. We expect the sale to be completed within 90 days from the date of the agreement. Multi Service, which is mainly reported within the land segment, did not qualify as held for sale as of June 30, 2020 and will not meet the criteria to be reported as a discontinued operation. The net carrying amount of Multi Service as of June 30, 2020 was $222.5 million. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
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, technology solutions as well as sustainability products and services across the energy product spectrum. We also offer payment management solutions to commercial and industrial customers, principally in the aviation, land and marine transportation industries. We will continue to focus on enhancing the portfolio of products and services we provide based on changes in customer demand, including sustainability offerings and renewable fuel products.We prepared our 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 accompanying 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 Standards We included below a description of recent new accounting standards or accounting standards updates that had an impact on the Company’s Consolidated Financial Statements. New accounting standards or accounting standards updates not listed below were assessed and determined to be either not applicable or did not have a material impact on the Company’s Consolidated Financial Statements or processes. Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In June 2016, Accounting Standards Update ("ASU") 2016-13 was issued, which replaced the incurred loss impairment model with a model that reflects expected credit losses over the lifetime of the asset and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. The guidance in this update, including the subsequent related codification amendments, changed 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. For receivables and certain other instruments that are not measured at fair value, entities are 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 could lead to a loss being realized, regardless of whether it is probable that the future event will occur. The Company adopted ASU 2016-13 The Company implemented changes to business processes and internal controls that support the new standard. As of the date of implementation on January 1, 2020, the Company recognized $11.1 million as a reduction to the opening retained earnings balance. The main drivers of the consolidated impact at transition are related to the inclusion of future economic conditions, the exclusion of freestanding credit enhancements when estimating the expected credit loss and estimating the lifetime credit losses of notes receivable. Accounting Standards Issued but Not Yet Adopted There have been no recently issued accounting standards not yet adopted by us which are expected, upon adoption, to have a material impact on the Company’s Consolidated Financial Statements or processes. |
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 is not significant. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Summary of Accounts Receivable, Allowance for Credit Loss | The following table sets forth activities in our allowance for credit losses (in millions): Total Balance as of January 1, 2020 $ 46.6 Charges to provision for credit losses 34.6 Write-off of uncollectible receivables (32.9) Recoveries of credit losses 0.4 Translation adjustments (0.1) Balance as of June 30, 2020 $ 48.6 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the aggregate consideration paid for this acquisition, updated as of June 30, 2020 for certain working capital items, and the provisional amounts of the assets acquired and liabilities assumed, recognized at the acquisition date. The Company is in the process of obtaining information to finalize the valuations of certain acquired assets and assumed liabilities and expects to complete the process in the third quarter 2020. Thus, the provisional measurements of these acquired assets and assumed liabilities are subject to change (amounts in millions): Total Cash paid for acquisition of business $ 128.6 Amounts due to sellers 30.0 Estimated purchase price $ 158.6 Assets acquired: Accounts receivable $ 42.8 Goodwill and identifiable intangible assets 123.0 Other current and long-term assets 3.8 Liabilities assumed: Accounts payable (9.9) Other current and long-term liabilities (1.0) Estimated purchase price $ 158.6 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 2019 2020 2019 Derivative Instruments Consolidated Balance Sheets location Derivatives designated as hedging instruments Commodity contracts Short-term derivative assets, net $ — $ — $ — $ — Identifiable intangible and other non-current assets — — — — Accrued expenses and other current liabilities 204.0 1.7 177.0 20.0 Other long-term liabilities 0.1 — 0.4 — 204.1 1.7 177.3 20.0 Interest rate contracts Short-term derivative assets, net — — — — Identifiable intangible and other non-current assets — — — — Accrued expenses and other current liabilities — — 1.2 — Other long-term liabilities — — 3.7 — Total derivatives designated as hedging instruments $ 204.1 $ 1.7 $ 182.2 $ 20.0 Derivatives not designated as hedging instruments Commodity contracts Short-term derivative assets, net $ 217.8 $ 65.7 $ 64.5 $ 7.2 Identifiable intangible and other non-current assets 45.1 23.0 12.3 4.8 Accrued expenses and other current liabilities 206.5 161.0 328.5 203.4 Other long-term liabilities 18.9 7.7 40.6 19.7 488.3 257.3 445.9 235.0 Foreign currency contracts Short-term derivative assets, net 0.6 1.2 0.3 0.2 Identifiable intangible and other non-current assets — — — — Accrued expenses and other current liabilities 1.8 0.9 10.6 11.4 2.4 2.0 10.9 11.6 Total derivatives not designated as hedging instruments $ 490.7 $ 259.4 $ 456.9 $ 246.6 Total derivatives $ 694.8 $ 261.1 $ 639.1 $ 266.6 |
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, 2020 (in millions): As of June 30, Derivative Instruments Units 2020 Commodity contracts Long BBL 65.0 Short BBL (49.2) Foreign currency exchange contracts Sell U.S. dollar, buy other currencies USD (70.3) Buy U.S. dollar, sell other currencies USD 422.6 |
Impact of Derivatives Designated as Fair Value Hedges on the Consolidated Statements of Income and Comprehensive Income | As of June 30, 2020, and December 31, 2019 , the following amounts were recorded on our Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges (in millions): Line item in the Consolidated Balance Sheets in which the hedged item is included Carrying Amount of Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset/(Liabilities) As of As of June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Inventory $ 32.1 $ 30.7 $ 2.3 $ 2.3 |
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, 2020 June 30, 2019 Revenue Cost of Revenue Interest expense and other financing costs, net Revenue Cost of Revenue Interest expense and other financing costs, net Total amounts of income and expense line items in which the effects of fair value or cash flow hedged are recorded $ 3,158.3 $ 2,944.5 $ 10.7 $ 9,459.4 $ 9,190.8 $ 21.7 Gains or Loss on fair value hedge relationships: Commodity contracts: Hedged Item — 8.9 — — (0.9) — Derivatives designated as hedging instruments — (4.6) — — (0.6) — Gains or Loss on cash flow hedge relationships: Commodity contracts: Amount of Gain (Loss) Reclassified from AOCI into Income 27.0 (56.2) — (2.5) 25.8 — Interest rate contracts: Amount of Gain (Loss) Reclassified from AOCI into Income — — — — — — Total amount of income and expense line items excluding the impact of hedges $ 3,131.4 $ 2,892.6 $ 10.7 $ 9,461.9 $ 9,215.1 $ 21.7 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, 2020 June 30, 2019 Revenue Cost of Revenue Interest expense and other financing costs, net Revenue Cost of Revenue Interest expense and other financing costs, net Total amounts of income and expense line items in which the effects of fair value or cash flow hedged are recorded $ 11,173.5 $ 10,700.9 $ 26.9 $ 18,138.2 $ 17,618.5 $ 42.2 Gains or Loss on fair value hedge relationships: Commodity contracts: Hedged Item — (14.3) — — 15.4 — Derivatives designated as hedging instruments — 13.8 — — (14.1) — Gains or Loss on cash flow hedge relationships: Commodity contracts: Amount of Gain (Loss) Reclassified from AOCI into Income 41.0 (57.3) — (6.3) 17.4 — Interest rate contracts: Amount of Gain (Loss) Reclassified from AOCI into Income — — — — — — Total amount of income and expense line items excluding the impact of hedges $ 11,132.5 $ 10,643.1 $ 26.9 $ 18,144.5 $ 17,637.2 $ 42.2 |
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 Accumulated other comprehensive income and 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 2020 2019 Location 2020 2019 Commodity contracts $ (148.5) $ 42.8 Revenue $ 27.0 $ (2.5) Commodity contracts 100.3 (22.7) Cost of revenue (56.2) 25.8 Interest rate contracts (2.2) — Interest expense and other financing costs, net — — Total Gain (Loss) $ (50.3) $ 20.1 Total Gain (Loss) $ (29.2) $ 23.3 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 2020 2019 Location 2020 2019 Commodity contracts $ 185.6 $ (177.7) Revenue $ 41.0 $ (6.3) Commodity contracts (197.4) 173.7 Cost of Revenue (57.3) 17.4 Interest rate contracts (3.7) — Interest expense and other financing costs, net — — Total Gain (Loss) $ (15.5) $ (4.0) Total Gain (Loss) $ (16.3) $ 11.1 |
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 2020 2019 Commodity contracts Revenue $ 34.1 $ 69.4 Cost of revenue (25.8) (57.1) 8.4 12.4 Foreign currency contracts Revenue (0.5) — Other (expense), net (7.8) (1.3) (8.3) (1.3) Total Gain (Loss) $ 0.2 $ 11.1 Amount of Realized and Unrealized Gain (Loss) For the Six Months Ended June 30, Derivative Instruments - Non-designated Location 2020 2019 Commodity contracts Revenue $ 113.3 $ 144.5 Cost of revenue (10.3) (123.0) 102.9 21.5 Foreign currency contracts Revenue — (0.1) Other (expense), net 10.7 (0.8) 10.7 (0.9) Total Gain (Loss) $ 113.6 $ 20.6 |
Schedule of Potential Collateral Requirements for Derivative Liabilities | The following table presents the potential collateral requirements for derivative liabilities with credit-risk-contingent features as of June 30, 2020 and December 31, 2019 (in millions): Potential Collateral Requirements for As of June 30, 2020 As of December 31, 2019 Net derivative liability positions with credit contingent features $ 65.2 $ 45.6 Collateral posted and held by our counterparties — — Maximum additional potential collateral requirements $ 65.2 $ 45.6 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 for the six months ended June 30, 2020 (in millions): Aviation Land (1) Total Balance as of December 31, 2019 $ 323.6 $ 520.1 $ 843.7 Additions 78.7 — 78.7 Foreign exchange and other adjustments (0.1) (8.8) (8.9) Balance as of June 30, 2020 $ 402.2 $ 511.3 $ 913.5 (1) At June 30, 2020, $446.7 million of the land segment's goodwill amount relates to the land reporting unit. |
Debt, Interest Income, Expens_2
Debt, Interest Income, Expense and Other Finance Costs (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt, Interest Income, Expense and Other Finance Costs [Abstract] | |
Schedule of Debt | Our debt consisted of the following as of June 30, 2020 and December 31, 2019 (in millions): As of June 30, December 31, 2020 2019 Credit Facility $ 530.0 $ 55.0 Term Loans 509.5 515.6 Finance Leases 17.7 18.7 Other (1) 40.0 39.5 Total debt 1,097.2 628.8 Current maturities of long-term debt 53.8 54.1 Long-term debt $ 1,043.3 $ 574.7 (1) Includes secured borrowings of $37.7 million (EUR 33.6 million), due within 12 months, for the transfer of tax receivables as of June 30, 2020. |
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 for the three and six months ended June 30, 2020 and 2019 (in millions): For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Interest income $ 0.7 $ 1.5 $ 1.6 $ 2.6 Interest expense and other financing costs (10.7) (21.7) (26.9) (42.2) $ (10.0) $ (20.2) $ (25.3) $ (39.6) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Estimated Fair Value on a Recurring Basis | The following tables present information about our gross assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019 (in millions): Fair Value Measurements as of June 30, 2020 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Commodities contracts $ 417.8 $ 259.7 $ 14.8 $ 692.4 Foreign currency contracts — 2.4 — 2.4 Interest rate contract — — — — Cash surrender value of life insurance — 9.2 — 9.2 Total assets at fair value $ 417.8 $ 271.3 $ 14.8 $ 704.0 Liabilities: Commodities contracts $ 437.7 $ 181.7 $ 3.8 $ 623.2 Foreign currency contracts — 10.9 — 10.9 Interest rate contract — 4.9 — 4.9 Total liabilities at fair value $ 437.7 $ 197.6 $ 3.8 $ 639.1 Fair Value Measurements as of December 31, 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Commodities contracts $ 148.3 $ 100.0 $ 10.7 $ 259.0 Foreign currency contracts — 2.0 — 2.0 Cash surrender value of life insurance — 9.4 — 9.4 Total assets at fair value $ 148.3 $ 111.4 $ 10.7 $ 270.4 Liabilities: Commodities contracts $ 177.6 $ 69.3 $ 8.1 $ 255.0 Foreign currency contracts — 11.6 — 11.6 Total liabilities at fair value $ 177.6 $ 80.9 $ 8.1 $ 266.6 |
Schedule of Derivative Instruments at Fair Value and Their Locations on the Balance Sheets | The following tables summarize those derivative balances subject to the right of offset as presented on our Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 . 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, 2020 Gross Amounts Gross Amounts Gross Amounts Net Amounts Cash without Recognized Offset Presented Collateral Right of Offset Net Amounts Assets: Commodities contracts $ 692.4 $ 507.5 $ 184.9 $ 7.5 $ — $ 177.4 Interest rate contract — — — — — — Foreign currency contracts 2.4 2.2 0.3 — — 0.3 Total assets at fair value $ 694.8 $ 509.7 $ 185.1 $ 7.5 $ — $ 177.7 Liabilities: Commodities contracts $ 623.2 $ 507.5 $ 115.7 $ 19.5 $ — $ 96.2 Interest rate contract 4.9 — 4.9 — — 4.9 Foreign currency contracts 10.9 2.2 8.8 — — 8.8 Total liabilities at fair value $ 639.1 $ 509.7 $ 129.4 $ 19.5 $ — $ 109.9 Fair Value as of December 31, 2019 Gross Amounts Gross Amounts Gross Amounts Net Amounts Cash without Recognized Offset Presented Collateral Right of Offset Net Amounts Assets: Commodities contracts $ 259.0 $ 130.0 $ 129.0 $ — $ — $ 129.0 Foreign currency contracts 2.0 1.0 1.0 — — 1.0 Total assets at fair value $ 261.1 $ 131.1 $ 130.0 $ — $ — $ 130.0 Liabilities: Commodities contracts $ 255.0 $ 130.0 $ 125.0 $ 29.3 $ — $ 95.7 Foreign currency contracts 11.6 1.0 10.5 — — 10.5 Total liabilities at fair value $ 266.6 $ 131.1 $ 135.5 $ 29.3 $ — $ 106.3 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision and the Respective Effective Income Tax Rates | Our income tax provision and the respective effective income tax rates are as follows (in millions, except for income tax rates): For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Income tax provision $ 7.7 $ 20.0 $ 23.7 $ 34.0 Effective income tax rate (258) % 35 % 43 % 31 % |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 for the three and six months ended June 30, 2020 and 2019 (in millions): For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Aviation $ 103.9 $ 340.8 $ 357.9 $ 705.2 Land 0.8 4.1 5.6 9.0 Marine 441.0 719.5 1,365.7 1,428.4 Asia Pacific 545.8 1,064.5 1,729.1 2,142.6 Aviation 157.8 1,008.8 796.6 1,727.9 Land 313.9 569.7 932.1 1,210.2 Marine 285.0 736.3 896.2 1,391.1 EMEA 756.7 2,314.9 2,625.0 4,329.2 Aviation 77.2 614.6 656.7 1,160.3 Land 76.4 149.6 206.8 288.5 Marine 83.1 143.4 316.4 334.9 LATAM 236.7 907.6 1,179.9 1,783.7 Aviation 500.6 2,828.5 2,607.1 5,476.5 Land 804.9 1,884.6 2,134.2 3,519.0 Marine 134.2 347.9 476.4 682.4 North America 1,439.7 5,061.0 5,217.7 9,677.9 Other revenues (excluded from ASC 606) (1) 179.6 111.3 421.9 204.8 $ 3,158.3 $ 9,459.4 $ 11,173.5 $ 18,138.2 (1) Includes revenue from leases and other transactions that we account for under separate guidance. |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 reportable segment is as follows for the three and six months ended June 30, 2020 and 2019 (in millions): For the Three Months Ended For the Six Months Ended June 30, June 30, Revenue: 2020 2019 2020 2019 Aviation segment $ 1,020.6 $ 4,785.0 $ 4,784.8 $ 9,037.7 Land segment 1,197.6 2,663.0 3,303.6 5,156.6 Marine segment 940.2 2,011.4 3,085.2 3,943.9 $ 3,158.3 $ 9,459.4 $ 11,173.5 $ 18,138.2 Gross profit: Aviation segment $ 91.9 $ 140.5 $ 185.0 $ 254.8 Land segment 84.8 91.7 191.0 193.2 Marine segment 37.2 36.4 96.6 71.6 $ 213.9 $ 268.6 $ 472.6 $ 519.7 Income from operations: Aviation segment $ 9.0 $ 73.5 $ 38.1 $ 129.1 Land segment 9.7 11.8 35.3 32.8 Marine segment 13.3 10.1 47.2 23.6 32.0 95.4 120.6 185.5 Corporate overhead - unallocated (20.1) (20.2) (37.9) (40.0) $ 11.9 $ 75.2 $ 82.7 $ 145.6 |
Schedule of Accounts Receivable, Net and Total Assets by Segment | Information concerning our accounts receivable, net and total assets by segment is as follows as of June 30, 2020 and December 31, 2019 (in millions): As of June 30, December 31 2020 2019 Accounts receivable, net: Aviation segment, net of allowance for credit losses of $33.0 and $14.6 as of June 30, 2020 and December 31, 2019, respectively $ 412.6 $ 1,098.2 Land segment, net of allowance for credit losses of $8.3 and $2.8 as of June 30, 2020 and December 31, 2019, respectively 590.9 863.2 Marine segment, net of allowance for credit losses of $4.3 and $18.0 as of June 30, 2020 and December 31, 2019, respectively 412.5 930.5 $ 1,415.9 $ 2,891.9 Total assets: Aviation segment $ 1,817.4 $ 2,416.5 Land segment 1,881.6 2,089.4 Marine segment 812.6 1,189.7 Corporate 369.3 296.8 $ 4,881.0 $ 5,992.4 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Earnings per Common Share | The following table sets forth the computation of basic and diluted earnings per common share for the periods presented (in millions, except per share amounts): For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Numerator: Net income attributable to World Fuel $ (10.2) $ 37.0 $ 31.2 $ 74.2 Denominator: Weighted average common shares for basic earnings per common share 63.3 66.7 64.1 66.9 Effect of dilutive securities — 0.3 0.3 0.3 Weighted average common shares for diluted earnings per common share 63.3 67.0 64.4 67.2 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 3.4 1.5 2.8 2.3 Basic earnings per common share $ (0.16) $ 0.56 $ 0.49 $ 1.11 Diluted earnings per common share $ (0.16) $ 0.55 $ 0.48 $ 1.10 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 (in millions): Aviation Land Marine Corporate Consolidated Balance as of December 31, 2019 $ 0.5 $ 7.5 $ 1.3 $ 0.2 $ 9.5 Severance costs 0.7 2.7 0.4 1.0 4.8 Payments (0.5) (4.5) (1.0) (0.5) (6.5) Restructuring charges as of June 30, 2020 $ 0.7 $ 5.7 $ 0.7 $ 0.8 $ 7.9 |
Summary of Impairment by Reportable Business Segment | The following table provides a summary of this impairment by reportable business segment (in millions): Aviation Land Marine Corporate Consolidated Asset impairments $ 6.9 $ 5.9 $ 4.0 $ 1.8 $ 18.6 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Millions | 6 Months Ended | |||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||
Reduction to opening retained earnings | $ 1,818.3 | $ 1,850.1 | $ 1,893.9 | $ 1,815.6 | $ 1,855.8 | $ 1,831.6 |
Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reduction to opening retained earnings | $ 1,768.6 | $ 1,785.1 | 1,761.3 | $ 1,669.7 | $ 1,639.3 | $ 1,606.1 |
Cumulative Effect, Period of Adoption, Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reduction to opening retained earnings | (11.1) | |||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reduction to opening retained earnings | $ (11.1) |
Accounts Receivable - Narrative
Accounts Receivable - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable, net | $ 1,415.9 | $ 2,891.9 | ||||
Accounts receivable, allowance for credit losses | 48.6 | 35.5 | ||||
Cumulative transition adjustment to retained earnings | $ 1,818.3 | $ 1,815.6 | 1,893.9 | $ 1,850.1 | $ 1,855.8 | $ 1,831.6 |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||
Percent accounts receivable outstanding, less than 60 days | 91.00% | |||||
Account receivable sold under the RPAs | $ 92.6 | $ 405.9 | ||||
Fees and financing costs under the RPA | 5.5 | 13.3 | ||||
Accounts receivable sold under RPAs | 2,200 | 4,200 | ||||
Cash proceeds from sale of accounts receivables | $ 2,500 | 4,200 | ||||
Maximum | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Sale price of receivables, percentage of sold amount | 100.00% | |||||
London Interbank Offered Rate (LIBOR) | Maximum | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Receivable, basis spread on variable rate | 3.00% | |||||
London Interbank Offered Rate (LIBOR) | Minimum | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Receivable, basis spread on variable rate | 1.00% | |||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Cumulative transition adjustment to retained earnings | $ (11.1) | |||||
Retained Earnings | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Cumulative transition adjustment to retained earnings | $ 1,768.6 | $ 1,669.7 | 1,761.3 | $ 1,785.1 | $ 1,639.3 | $ 1,606.1 |
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Cumulative transition adjustment to retained earnings | $ (11.1) |
Accounts Receivable - Allowance
Accounts Receivable - Allowance for Credit Losses for Accounts Receivable (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 35.5 | |
Charges to provision for credit losses | 34.6 | $ 5.7 |
Write-off of uncollectible receivables | (32.9) | |
Recoveries of credit losses | 0.4 | |
Translation adjustments | (0.1) | |
Ending balance | 48.6 | |
Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 46.6 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Acquisitions | |||
Goodwill | $ 913.5 | $ 843.7 | |
Universal Weather and Aviation, Inc. | |||
Acquisitions | |||
Goodwill | $ 78.7 | ||
Goodwill, expected to be tax deductible | 70.3 | ||
Identifiable intangible assets acquired | $ 44.3 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Business Acquisition [Line Items] | |||
Cash paid for acquisition of business | $ 130.6 | $ 0 | |
Universal Weather and Aviation, Inc. | |||
Business Acquisition [Line Items] | |||
Cash paid for acquisition of business | $ 128.6 | ||
Amounts due to sellers | 30 | $ 38.9 | |
Estimated purchase price | 158.6 | ||
Assets acquired: | |||
Accounts receivable | 42.8 | ||
Goodwill and identifiable intangible assets | 123 | ||
Other current and long-term assets | 3.8 | ||
Liabilities assumed: | |||
Accounts payable | (9.9) | ||
Other current and long-term liabilities | (1) | ||
Estimated purchase price | $ 158.6 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | |
Derivative [Line Items] | |||||
Gain (loss) recognized in earnings related to fair value or cash flow hedges excluded from assessment of hedge effectiveness | $ 0 | $ 0 | $ 0 | $ 0 | |
Revenue | |||||
Derivative [Line Items] | |||||
Amount scheduled to be reclassified over the next twelve months | 160,800,000 | ||||
Cost of Revenue | |||||
Derivative [Line Items] | |||||
Amount scheduled to be reclassified over the next twelve months | $ 170,800,000 | ||||
Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Notional amount | $ 300,000,000 |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet Location (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | $ 694.8 | $ 261.1 |
Gross Derivative Liabilities | 639.1 | 266.6 |
Commodity contracts | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 692.4 | 259 |
Gross Derivative Liabilities | 623.2 | 255 |
Interest rate contracts | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 0 | |
Gross Derivative Liabilities | 4.9 | |
Foreign currency contracts | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 2.4 | 2 |
Gross Derivative Liabilities | 10.9 | 11.6 |
Derivatives designated as hedging instruments | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 204.1 | 1.7 |
Gross Derivative Liabilities | 182.2 | 20 |
Derivatives designated as hedging instruments | Commodity contracts | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 204.1 | 1.7 |
Gross Derivative Liabilities | 177.3 | 20 |
Derivatives designated as hedging instruments | Commodity contracts | Short-term derivative assets, net | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 0 | 0 |
Gross Derivative Liabilities | 0 | 0 |
Derivatives designated as hedging instruments | Commodity contracts | Identifiable intangible and other non-current assets | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 0 | 0 |
Gross Derivative Liabilities | 0 | 0 |
Derivatives designated as hedging instruments | Commodity contracts | Accrued expenses and other current liabilities | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 204 | 1.7 |
Gross Derivative Liabilities | 177 | 20 |
Derivatives designated as hedging instruments | Commodity contracts | Other long-term liabilities | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 0.1 | 0 |
Gross Derivative Liabilities | 0.4 | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | Short-term derivative assets, net | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 0 | 0 |
Gross Derivative Liabilities | 0 | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | Identifiable intangible and other non-current assets | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 0 | 0 |
Gross Derivative Liabilities | 0 | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | Accrued expenses and other current liabilities | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 0 | 0 |
Gross Derivative Liabilities | 1.2 | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | Other long-term liabilities | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 0 | 0 |
Gross Derivative Liabilities | 3.7 | 0 |
Derivatives not designated as hedging instruments | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 490.7 | 259.4 |
Gross Derivative Liabilities | 456.9 | 246.6 |
Derivatives not designated as hedging instruments | Commodity contracts | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 488.3 | 257.3 |
Gross Derivative Liabilities | 445.9 | 235 |
Derivatives not designated as hedging instruments | Commodity contracts | Short-term derivative assets, net | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 217.8 | 65.7 |
Gross Derivative Liabilities | 64.5 | 7.2 |
Derivatives not designated as hedging instruments | Commodity contracts | Identifiable intangible and other non-current assets | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 45.1 | 23 |
Gross Derivative Liabilities | 12.3 | 4.8 |
Derivatives not designated as hedging instruments | Commodity contracts | Accrued expenses and other current liabilities | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 206.5 | 161 |
Gross Derivative Liabilities | 328.5 | 203.4 |
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 | ||
Gross Derivative Assets | 18.9 | 7.7 |
Gross Derivative Liabilities | 40.6 | 19.7 |
Derivatives not designated as hedging instruments | Foreign currency contracts | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 2.4 | 2 |
Gross Derivative Liabilities | 10.9 | 11.6 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Short-term derivative assets, net | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 0.6 | 1.2 |
Gross Derivative Liabilities | 0.3 | 0.2 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Identifiable intangible and other non-current assets | ||
Information about derivative instruments measured at fair value and their locations on the consolidated balance sheet | ||
Gross Derivative Assets | 0 | 0 |
Gross 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 | ||
Gross Derivative Assets | 1.8 | 0.9 |
Gross Derivative Liabilities | $ 10.6 | $ 11.4 |
Derivative Instruments - Gross
Derivative Instruments - Gross Notional Values (Details) bbl in Millions, $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($)bbl | |
Long | Commodity contracts | |
Derivative instruments, at their respective fair value positions | |
Notional value of commodity contracts (in barrels) | bbl | 65 |
Long | Foreign currency contracts | USD | |
Derivative instruments, at their respective fair value positions | |
Notional value of foreign currency exchange contracts | $ | $ 422.6 |
Short | Commodity contracts | |
Derivative instruments, at their respective fair value positions | |
Notional value of commodity contracts (in barrels) | bbl | 49.2 |
Short | Foreign currency contracts | USD | |
Derivative instruments, at their respective fair value positions | |
Notional value of foreign currency exchange contracts | $ | $ 70.3 |
Derivative Instruments - Effect
Derivative Instruments - Effect on Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Carrying Amount of Hedged Assets/(Liabilities) | $ 32.1 | $ 32.1 | $ 30.7 | ||
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset/(Liabilities) | 2.3 | 2.3 | 2.3 | ||
Gain (loss) on derivative | |||||
Revenue | 3,158.3 | $ 9,459.4 | 11,173.5 | $ 18,138.2 | |
Cost of revenue | 2,944.5 | 9,190.8 | 10,700.9 | 17,618.5 | |
Potential Collateral Requirements for Derivative Liabilities with Credit-Risk-Contingent Features | |||||
Net derivative liability positions with credit contingent features | 65.2 | 65.2 | 45.6 | ||
Collateral posted and held by our counterparties | 0 | 0 | 0 | ||
Maximum additional potential collateral requirements | 65.2 | 65.2 | $ 45.6 | ||
Revenue | |||||
Gain (loss) on derivative | |||||
Revenue | 3,158.3 | 9,459.4 | 11,173.5 | 18,138.2 | |
Gains or Loss on fair value hedge relationships: | |||||
Total amount of income and expense line items excluding the impact of hedges, Revenue | 3,131.4 | 9,461.9 | 11,132.5 | 18,144.5 | |
Cost of Revenue | |||||
Gain (loss) on derivative | |||||
Cost of revenue | 2,944.5 | 9,190.8 | 10,700.9 | 17,618.5 | |
Gains or Loss on fair value hedge relationships: | |||||
Total amount of income and expense line items excluding the impact of hedges, Cost of Revenue | 2,892.6 | 9,215.1 | 10,643.1 | 17,637.2 | |
Interest expense and other financing costs, net | |||||
Gain (loss) on derivative | |||||
Interest expense and other financing costs, net | 10.7 | 21.7 | 26.9 | 42.2 | |
Gains or Loss on fair value hedge relationships: | |||||
Total amount of income and expense line items excluding the impact of hedges, Interest expense and other financing costs | 10.7 | 21.7 | 26.9 | 42.2 | |
Commodity contracts | Revenue | |||||
Gains or Loss on fair value hedge relationships: | |||||
Hedged Item | 0 | 0 | 0 | 0 | |
Derivatives designated as hedging instruments | 0 | 0 | 0 | 0 | |
Amount of Gain (Loss) Reclassified from AOCI into Income | 27 | (2.5) | 41 | (6.3) | |
Commodity contracts | Cost of Revenue | |||||
Gains or Loss on fair value hedge relationships: | |||||
Hedged Item | 8.9 | (0.9) | (14.3) | 15.4 | |
Derivatives designated as hedging instruments | (4.6) | (0.6) | 13.8 | (14.1) | |
Amount of Gain (Loss) Reclassified from AOCI into Income | (56.2) | 25.8 | (57.3) | 17.4 | |
Commodity contracts | Interest expense and other financing costs, net | |||||
Gains or Loss on fair value hedge relationships: | |||||
Hedged Item | 0 | 0 | 0 | 0 | |
Derivatives designated as hedging instruments | 0 | 0 | 0 | 0 | |
Amount of Gain (Loss) Reclassified from AOCI into Income | 0 | 0 | 0 | 0 | |
Interest rate contracts | Revenue | |||||
Gains or Loss on fair value hedge relationships: | |||||
Amount of Gain (Loss) Reclassified from AOCI into Income | 0 | 0 | 0 | 0 | |
Interest rate contracts | Cost of Revenue | |||||
Gains or Loss on fair value hedge relationships: | |||||
Amount of Gain (Loss) Reclassified from AOCI into Income | 0 | 0 | 0 | 0 | |
Interest rate contracts | Interest expense and other financing costs, net | |||||
Gains or Loss on fair value hedge relationships: | |||||
Amount of Gain (Loss) Reclassified from AOCI into Income | 0 | 0 | 0 | 0 | |
Derivatives designated as hedging instruments | |||||
Gains or Loss on fair value hedge relationships: | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | (50.3) | 20.1 | (15.5) | (4) | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (29.2) | 23.3 | (16.3) | 11.1 | |
Derivatives designated as hedging instruments | Commodity contracts | Revenue | |||||
Gains or Loss on fair value hedge relationships: | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | (148.5) | 42.8 | 185.6 | (177.7) | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 27 | (2.5) | 41 | (6.3) | |
Derivatives designated as hedging instruments | Commodity contracts | Cost of Revenue | |||||
Gains or Loss on fair value hedge relationships: | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | 100.3 | (22.7) | (197.4) | 173.7 | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (56.2) | 25.8 | (57.3) | 17.4 | |
Derivatives designated as hedging instruments | Interest rate contracts | Interest expense and other financing costs, net | |||||
Gains or Loss on fair value hedge relationships: | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | (2.2) | 0 | (3.7) | 0 | |
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) | 0.2 | 11.1 | 113.6 | 20.6 | |
Derivatives not designated as hedging instruments | Commodity contracts | |||||
Gains or Loss on fair value hedge relationships: | |||||
Amount of Realized and Unrealized Gain (Loss) | 8.4 | 12.4 | 102.9 | 21.5 | |
Derivatives not designated as hedging instruments | Commodity contracts | Revenue | |||||
Gains or Loss on fair value hedge relationships: | |||||
Amount of Realized and Unrealized Gain (Loss) | 34.1 | 69.4 | 113.3 | 144.5 | |
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) | (25.8) | (57.1) | (10.3) | (123) | |
Derivatives not designated as hedging instruments | Foreign currency contracts | |||||
Gains or Loss on fair value hedge relationships: | |||||
Amount of Realized and Unrealized Gain (Loss) | (8.3) | (1.3) | 10.7 | (0.9) | |
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) | (0.5) | 0 | 0 | (0.1) | |
Derivatives not designated as hedging instruments | Foreign currency contracts | Interest expense and other financing costs, net | |||||
Gains or Loss on fair value hedge relationships: | |||||
Amount of Realized and Unrealized Gain (Loss) | $ (7.8) | $ (1.3) | $ 10.7 | $ (0.8) |
Goodwill - Components of and Ch
Goodwill - Components of and Changes in Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2019 | $ 843.7 |
Additions | 78.7 |
Foreign exchange and other adjustments | (8.9) |
Balance as of June 30, 2020 | 913.5 |
Aviation | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2019 | 323.6 |
Additions | 78.7 |
Foreign exchange and other adjustments | (0.1) |
Balance as of June 30, 2020 | 402.2 |
Land | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2019 | 520.1 |
Additions | 0 |
Foreign exchange and other adjustments | (8.8) |
Balance as of June 30, 2020 | 511.3 |
Land | Land Reporting Unit | |
Goodwill [Roll Forward] | |
Balance as of June 30, 2020 | $ 446.7 |
Debt, Interest Income, Expens_3
Debt, Interest Income, Expense and Other Finance Costs - Schedule of Debt (Details) € in Millions, $ in Millions | Jun. 30, 2020USD ($) | Jun. 30, 2020EUR (€) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |||
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations | us-gaap:LongTermDebtAndCapitalLeaseObligations | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Finance Leases | $ 17.7 | $ 18.7 | |
Total debt | 1,097.2 | 628.8 | |
Current maturities of long-term debt | 53.8 | 54.1 | |
Long-term debt | 1,043.3 | 574.7 | |
Other Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | 40 | 39.5 | |
Term Loans | Term Loans | |||
Debt Instrument [Line Items] | |||
Long-term debt | 509.5 | 515.6 | |
Secured Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | 37.7 | € 33.6 | |
Credit Facility | Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 530 | $ 55 |
Debt, Interest Income, Expens_4
Debt, Interest Income, Expense and Other Finance Costs - Interest Income (Expense), and Other Financing Costs, net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Debt, Interest Income, Expense and Other Finance Costs [Abstract] | ||||
Interest income | $ 0.7 | $ 1.5 | $ 1.6 | $ 2.6 |
Interest expense and other financing costs | (10.7) | (21.7) | (26.9) | (42.2) |
Interest income (expense) and other financing costs, net | $ (10) | $ (20.2) | $ (25.3) | $ (39.6) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Gross derivative assets | $ 694.8 | $ 261.1 |
Liabilities: | ||
Gross derivative liabilities | 639.1 | 266.6 |
Fair value measured on recurring basis | ||
Assets: | ||
Total assets at fair value | 704 | 270.4 |
Liabilities: | ||
Total liabilities at fair value | 639.1 | 266.6 |
Fair value measured on recurring basis | Level 1 Inputs | ||
Assets: | ||
Total assets at fair value | 417.8 | 148.3 |
Liabilities: | ||
Total liabilities at fair value | 437.7 | 177.6 |
Fair value measured on recurring basis | Level 2 Inputs | ||
Assets and liabilities measured at estimated fair value on a recurring basis | ||
Debt | 1,100 | 628.8 |
Notes receivable | 23.4 | 21 |
Assets: | ||
Total assets at fair value | 271.3 | 111.4 |
Liabilities: | ||
Total liabilities at fair value | 197.6 | 80.9 |
Fair value measured on recurring basis | Level 3 Inputs | ||
Assets: | ||
Total assets at fair value | 14.8 | 10.7 |
Liabilities: | ||
Total liabilities at fair value | 3.8 | 8.1 |
Commodity contracts | Fair value measured on recurring basis | ||
Assets: | ||
Gross derivative assets | 692.4 | 259 |
Liabilities: | ||
Gross derivative liabilities | 623.2 | 255 |
Commodity contracts | Fair value measured on recurring basis | Level 1 Inputs | ||
Assets: | ||
Gross derivative assets | 417.8 | 148.3 |
Liabilities: | ||
Gross derivative liabilities | 437.7 | 177.6 |
Commodity contracts | Fair value measured on recurring basis | Level 2 Inputs | ||
Assets: | ||
Gross derivative assets | 259.7 | 100 |
Liabilities: | ||
Gross derivative liabilities | 181.7 | 69.3 |
Commodity contracts | Fair value measured on recurring basis | Level 3 Inputs | ||
Assets: | ||
Gross derivative assets | 14.8 | 10.7 |
Liabilities: | ||
Gross derivative liabilities | 3.8 | 8.1 |
Foreign currency contracts | Fair value measured on recurring basis | ||
Assets: | ||
Gross derivative assets | 2.4 | 2 |
Liabilities: | ||
Gross derivative liabilities | 10.9 | 11.6 |
Foreign currency contracts | Fair value measured on recurring basis | Level 1 Inputs | ||
Assets: | ||
Gross derivative assets | 0 | 0 |
Liabilities: | ||
Gross derivative liabilities | 0 | 0 |
Foreign currency contracts | Fair value measured on recurring basis | Level 2 Inputs | ||
Assets: | ||
Gross derivative assets | 2.4 | 2 |
Liabilities: | ||
Gross derivative liabilities | 10.9 | 11.6 |
Foreign currency contracts | Fair value measured on recurring basis | Level 3 Inputs | ||
Assets: | ||
Gross derivative assets | 0 | 0 |
Liabilities: | ||
Gross derivative liabilities | 0 | 0 |
Interest rate contracts | Fair value measured on recurring basis | ||
Assets: | ||
Gross derivative assets | 0 | |
Liabilities: | ||
Gross derivative liabilities | 4.9 | |
Interest rate contracts | Fair value measured on recurring basis | Level 1 Inputs | ||
Assets: | ||
Gross derivative assets | 0 | |
Liabilities: | ||
Gross derivative liabilities | 0 | |
Interest rate contracts | Fair value measured on recurring basis | Level 2 Inputs | ||
Assets: | ||
Gross derivative assets | 0 | |
Liabilities: | ||
Gross derivative liabilities | 4.9 | |
Interest rate contracts | Fair value measured on recurring basis | Level 3 Inputs | ||
Assets: | ||
Gross derivative assets | 0 | |
Liabilities: | ||
Gross derivative liabilities | 0 | |
Cash surrender value of life insurance | Fair value measured on recurring basis | ||
Assets: | ||
Cash surrender value of life insurance | 9.2 | 9.4 |
Cash surrender value of life insurance | Fair value measured on recurring basis | Level 1 Inputs | ||
Assets: | ||
Cash surrender value of life insurance | 0 | 0 |
Cash surrender value of life insurance | Fair value measured on recurring basis | Level 2 Inputs | ||
Assets: | ||
Cash surrender value of life insurance | 9.2 | 9.4 |
Cash surrender value of life insurance | Fair value measured on recurring basis | Level 3 Inputs | ||
Assets: | ||
Cash surrender value of life insurance | $ 0 | $ 0 |
Fair Value Measurements - Commo
Fair Value Measurements - Commodity and Foreign Currency Contracts (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | $ 694.8 | $ 261.1 |
Gross Amounts Offset | 509.7 | 131.1 |
Net Amounts Presented | 185.1 | 130 |
Cash Collateral | 7.5 | 0 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 177.7 | 130 |
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 639.1 | 266.6 |
Gross Amounts Offset | 509.7 | 131.1 |
Net Amounts Presented | 129.4 | 135.5 |
Cash Collateral | 19.5 | 29.3 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 109.9 | 106.3 |
Commodity contracts | ||
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | 692.4 | 259 |
Gross Amounts Offset | 507.5 | 130 |
Net Amounts Presented | 184.9 | 129 |
Cash Collateral | 7.5 | 0 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 177.4 | 129 |
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 623.2 | 255 |
Gross Amounts Offset | 507.5 | 130 |
Net Amounts Presented | 115.7 | 125 |
Cash Collateral | 19.5 | 29.3 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 96.2 | 95.7 |
Interest rate contracts | ||
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | 0 | |
Gross Amounts Offset | 0 | |
Net Amounts Presented | 0 | |
Cash Collateral | 0 | |
Gross Amounts without Right of Offset | 0 | |
Net Amounts | 0 | |
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 4.9 | |
Gross Amounts Offset | 0 | |
Net Amounts Presented | 4.9 | |
Cash Collateral | 0 | |
Gross Amounts without Right of Offset | 0 | |
Net Amounts | 4.9 | |
Foreign currency contracts | ||
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized | 2.4 | 2 |
Gross Amounts Offset | 2.2 | 1 |
Net Amounts Presented | 0.3 | 1 |
Cash Collateral | 0 | 0 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | 0.3 | 1 |
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 10.9 | 11.6 |
Gross Amounts Offset | 2.2 | 1 |
Net Amounts Presented | 8.8 | 10.5 |
Cash Collateral | 0 | 0 |
Gross Amounts without Right of Offset | 0 | 0 |
Net Amounts | $ 8.8 | $ 10.5 |
Fair Value Measurements - Conce
Fair Value Measurements - Concentration of Credit Risk (Details) $ in Millions | Jun. 30, 2020USD ($) |
Largest counterparty | Concentration of credit risk | Credit exposure | |
Concentration Risk [Line Items] | |
Total credit risk | $ 18.7 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 7.7 | $ 20 | $ 23.7 | $ 34 |
Effective income tax rate | (258.00%) | 35.00% | 43.00% | 31.00% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ / shares in Units, kr in Millions, $ in Millions, ₩ in Billions | Apr. 30, 2020USD ($) | Apr. 30, 2020DKK (kr) | Jun. 30, 2020USD ($)$ / shares | Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2019DKK (kr) | Jun. 30, 2020USD ($)$ / shares | Jun. 30, 2019USD ($)$ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2017KRW (₩) |
Income Taxes [Line Items] | |||||||||
Income tax provision | $ 7.7 | $ 20 | $ 23.7 | $ 34 | |||||
Effective income tax rate | (258.00%) | 35.00% | 35.00% | 43.00% | 31.00% | ||||
Adjustment for discrete tax expense (benefit), prior year foreign tax return | $ 3.4 | $ 0.8 | $ 4.4 | $ (2) | |||||
Decrease in foreign income tax | $ 0.8 | $ 0.6 | $ 2.7 | $ 1.5 | |||||
Basic earnings per common share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.04 | $ 0.02 | |||||
Diluted earnings per common share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.04 | $ 0.02 | |||||
Tax Authority, South Korea (SRTO) | |||||||||
Income Taxes [Line Items] | |||||||||
Income tax assessment notice, amount | $ 9.4 | ₩ 11.3 | |||||||
2013 Tax Year | Danish Tax Authority | Foreign Tax Authority | |||||||||
Income Taxes [Line Items] | |||||||||
Proposed income adjustment | $ 1.7 | kr 11.2 | |||||||
2014 Tax Year | Danish Tax Authority | Foreign Tax Authority | |||||||||
Income Taxes [Line Items] | |||||||||
Proposed income adjustment | $ 1.3 | kr 8.6 | |||||||
Pro forma | |||||||||
Income Taxes [Line Items] | |||||||||
Effective income tax rate | (144.00%) | 33.00% | 33.00% | 35.00% | 33.00% |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Other revenues (excluded from ASC 606) | $ 179.6 | $ 111.3 | $ 421.9 | $ 204.8 |
Revenue | 3,158.3 | 9,459.4 | 11,173.5 | 18,138.2 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 545.8 | 1,064.5 | 1,729.1 | 2,142.6 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 756.7 | 2,314.9 | 2,625 | 4,329.2 |
LATAM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 236.7 | 907.6 | 1,179.9 | 1,783.7 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 1,439.7 | 5,061 | 5,217.7 | 9,677.9 |
Aviation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,020.6 | 4,785 | 4,784.8 | 9,037.7 |
Aviation | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 103.9 | 340.8 | 357.9 | 705.2 |
Aviation | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 157.8 | 1,008.8 | 796.6 | 1,727.9 |
Aviation | LATAM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 77.2 | 614.6 | 656.7 | 1,160.3 |
Aviation | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 500.6 | 2,828.5 | 2,607.1 | 5,476.5 |
Land | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,197.6 | 2,663 | 3,303.6 | 5,156.6 |
Land | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 0.8 | 4.1 | 5.6 | 9 |
Land | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 313.9 | 569.7 | 932.1 | 1,210.2 |
Land | LATAM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 76.4 | 149.6 | 206.8 | 288.5 |
Land | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 804.9 | 1,884.6 | 2,134.2 | 3,519 |
Marine | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 940.2 | 2,011.4 | 3,085.2 | 3,943.9 |
Marine | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 441 | 719.5 | 1,365.7 | 1,428.4 |
Marine | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 285 | 736.3 | 896.2 | 1,391.1 |
Marine | LATAM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | 83.1 | 143.4 | 316.4 | 334.9 |
Marine | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, ASC 606 | $ 134.2 | $ 347.9 | $ 476.4 | $ 682.4 |
Business Segments - Income Stat
Business Segments - Income Statement Items (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | |
Information concerning revenue, gross profit and income from operations by segment | ||||
Number of reportable operating business segments | segment | 3 | |||
Revenue: | ||||
Revenue | $ 3,158.3 | $ 9,459.4 | $ 11,173.5 | $ 18,138.2 |
Gross profit: | ||||
Gross profit | 213.9 | 268.6 | 472.6 | 519.7 |
Income from operations: | ||||
Income from operations | 11.9 | 75.2 | 82.7 | 145.6 |
Operating Segments | ||||
Income from operations: | ||||
Income from operations | 32 | 95.4 | 120.6 | 185.5 |
Corporate | ||||
Income from operations: | ||||
Income from operations | (20.1) | (20.2) | (37.9) | (40) |
Aviation segment | ||||
Revenue: | ||||
Revenue | 1,020.6 | 4,785 | 4,784.8 | 9,037.7 |
Gross profit: | ||||
Gross profit | 91.9 | 140.5 | 185 | 254.8 |
Aviation segment | Operating Segments | ||||
Income from operations: | ||||
Income from operations | 9 | 73.5 | 38.1 | 129.1 |
Land | ||||
Revenue: | ||||
Revenue | 1,197.6 | 2,663 | 3,303.6 | 5,156.6 |
Gross profit: | ||||
Gross profit | 84.8 | 91.7 | 191 | 193.2 |
Land | Operating Segments | ||||
Income from operations: | ||||
Income from operations | 9.7 | 11.8 | 35.3 | 32.8 |
Marine segment | ||||
Revenue: | ||||
Revenue | 940.2 | 2,011.4 | 3,085.2 | 3,943.9 |
Gross profit: | ||||
Gross profit | 37.2 | 36.4 | 96.6 | 71.6 |
Marine segment | Operating Segments | ||||
Income from operations: | ||||
Income from operations | $ 13.3 | $ 10.1 | $ 47.2 | $ 23.6 |
Business Segments - Balance She
Business Segments - Balance Sheet Items (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts receivable, net: | ||
Accounts receivable, net | $ 1,415.9 | $ 2,891.9 |
Allowance for credit losses | 48.6 | 35.5 |
Total assets: | ||
Total assets | 4,881 | 5,992.4 |
Aviation segment | ||
Accounts receivable, net: | ||
Accounts receivable, net | 412.6 | 1,098.2 |
Allowance for credit losses | 33 | 14.6 |
Land segment | ||
Accounts receivable, net: | ||
Accounts receivable, net | 590.9 | 863.2 |
Allowance for credit losses | 8.3 | 2.8 |
Marine segment | ||
Accounts receivable, net: | ||
Accounts receivable, net | 412.5 | 930.5 |
Allowance for credit losses | 4.3 | 18 |
Operating Segments | Aviation segment | ||
Total assets: | ||
Total assets | 1,817.4 | 2,416.5 |
Operating Segments | Land segment | ||
Total assets: | ||
Total assets | 1,881.6 | 2,089.4 |
Operating Segments | Marine segment | ||
Total assets: | ||
Total assets | 812.6 | 1,189.7 |
Corporate | ||
Total assets: | ||
Total assets | $ 369.3 | $ 296.8 |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator: | ||||
Net income attributable to World Fuel | $ (10.2) | $ 37 | $ 31.2 | $ 74.2 |
Denominator: | ||||
Weighted average common shares for basic earnings per common share (in shares) | 63.3 | 66.7 | 64.1 | 66.9 |
Effect of dilutive securities (in shares) | 0 | 0.3 | 0.3 | 0.3 |
Weighted average common shares for diluted earnings per common share (in shares) | 63.3 | 67 | 64.4 | 67.2 |
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) | 3.4 | 1.5 | 2.8 | 2.3 |
Basic earnings per common share (in dollars per share) | $ (0.16) | $ 0.56 | $ 0.49 | $ 1.11 |
Diluted earnings per common share (in dollars per share) | $ (0.16) | $ 0.55 | $ 0.48 | $ 1.10 |
Commitments and Contingencies (
Commitments and Contingencies (Details) R$ in Millions, $ in Millions, ₩ in Billions | 3 Months Ended | |||||
Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2020BRL (R$) | Jun. 30, 2017KRW (₩) | Dec. 31, 2016KRW (₩) | |
Tax Authority, South Korea (SRTO) | Assessment | ||||||
Loss Contingencies [Line Items] | ||||||
Income tax assessment notice, amount | $ | $ 9.4 | |||||
Estimate of possible loss | ₩ | ₩ 11.3 | |||||
Tax Authority, South Korea (SRTO) | Additional Assessment | ||||||
Loss Contingencies [Line Items] | ||||||
Income tax assessment notice, amount | $ | $ 16.8 | |||||
Estimate of possible loss | ₩ | ₩ 20.1 | |||||
Federal, State and Municipal Tax Authorities in Brazil | Assessment | ||||||
Loss Contingencies [Line Items] | ||||||
Estimate of possible loss | $ 9 | R$ 49.1 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring costs | $ 4.8 | |||
Asset impairments | $ 18.6 | $ 0 | $ 18.6 | $ 0 |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Activities (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2019 | $ 9.5 |
Severance costs | 4.8 |
Payments | (6.5) |
Restructuring charges as of June 30, 2020 | 7.9 |
Operating Segments | Aviation | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2019 | 0.5 |
Severance costs | 0.7 |
Payments | (0.5) |
Restructuring charges as of June 30, 2020 | 0.7 |
Operating Segments | Land | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2019 | 7.5 |
Severance costs | 2.7 |
Payments | (4.5) |
Restructuring charges as of June 30, 2020 | 5.7 |
Operating Segments | Marine | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2019 | 1.3 |
Severance costs | 0.4 |
Payments | (1) |
Restructuring charges as of June 30, 2020 | 0.7 |
Corporate | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2019 | 0.2 |
Severance costs | 1 |
Payments | (0.5) |
Restructuring charges as of June 30, 2020 | $ 0.8 |
Restructuring - Summary of Impa
Restructuring - Summary of Impairment by Reportable Business Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairments | $ 18.6 | $ 0 | $ 18.6 | $ 0 |
Operating Segments | Aviation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairments | 6.9 | |||
Operating Segments | Land | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairments | 5.9 | |||
Operating Segments | Marine | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairments | 4 | |||
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairments | $ 1.8 |
Subsequent Events (Details)
Subsequent Events (Details) - Disposal Group, Not Discontinued Operations - Multi Service Payment Solutions [Member] - USD ($) $ in Millions | Jul. 30, 2020 | Jun. 30, 2020 |
Subsequent Event [Line Items] | ||
Net carrying amount | $ 222.5 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Consideration from sale of business | $ 350 | |
Proceeds from sale of business | 275 | |
Deferred future payment from sale of business | 75 | |
Deferred future payment from sale of business, portion based on future business performance | $ 50 |