World Fuel Services 2008 Annual Report Download - page 83

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WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The unrecognized compensation cost at December 31, 2008 is expected to be recognized as compensation
expense over a weighted average period of 1.2 years as follows (in thousands):
Year Ended December 31,
2009 ............................................................. $ 4,893
2010 ............................................................. 3,515
2011 ............................................................. 1,481
2012 ............................................................. 412
2013 ............................................................. 50
$10,351
9. Income Taxes
U.S. and foreign income (loss) before income taxes consist of the following (in thousands):
2008 2007 2006
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1,132) $ (919) $ 3,637
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138,707 87,505 77,762
$137,575 $86,586 $81,399
The income tax provision (benefit) related to income before taxes consists of the following components (in
thousands):
2008 2007 2006
Current:
U.S. federal statutory tax rate . . . . . . . . . . . . . . . . . . . $ 2,819 $ 6,850 $ 1,706
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,004 2,266 1,449
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,002 15,139 10,011
31,825 24,255 13,166
Deferred:
U.S. federal statutory tax rate . . . . . . . . . . . . . . . . . . . 1,259 (2,721) 3,450
State ...................................... (888) (505) 180
Foreign .................................... 174 206 557
545 (3,020) 4,187
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $32,370 $21,235 $17,353
Our current and deferred U.S. income tax provision includes the tax provision or benefit on U.S. income, tax
on certain foreign income subject to current U.S taxation and the U.S. portion of our increase to the reserve for
uncertain tax positions.
A reconciliation of the U.S. federal statutory tax rate to our effective income tax rate is as follows:
2008 2007 2006
U.S. federal statutory tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.0% 35.0% 35.0%
Foreign earnings, net of foreign taxes . . . . . . . . . . . . . . . . . . . . . . . (15.4) (12.9) (15.6)
State income taxes, net of U.S. federal income tax benefit . . . . . . . 1.1 1.3 1.2
Other permanent differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.8 1.1 0.7
Effective income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.5% 24.5% 21.3%
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