World Fuel Services 2014 Annual Report Download - page 31

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of $12.3 million in operating expenses. The increase in marine segment operating expenses was principally due to
compensation and employee benefits.
Our land segment income from operations for 2014 was $90.3 million, an increase of $5.6 million, or 6.6%, as compared to
2013. This increase resulted from $37.9 million in higher gross profit which was partially offset by an increase of $32.3
million in operating expenses. Of the increase in land segment operating expenses, $40.0 million was due to the inclusion
of acquired businesses, which was partially offset by a decrease of $7.7 million principally due to compensation and
employee benefits and provision for bad debt.
Corporate overhead costs not charged to the business segments for 2014 were $53.5 million, an increase of $8.5 million,
or 18.8%, as compared to 2013. This increase was primarily attributable to the $4.8 million executive non-renewal charge
and $3.8 million in increased professional fees.
Non-Operating Income (Expenses), net. For 2014, we had non-operating income, net of $0.4 million, as compared to non-
operating expenses, net of $17.7 million in 2013. This $18.1 million change was due to an $18.1 million gain on the sale of
our crude oil joint venture interests in December 2014. Also impacting the change was a $8.0 million increase in interest
expense and other financing costs, net, as a result of higher average borrowings in 2014 as compared to 2013, offset by a
$5.4 million increase in earnings from our equity investments and a $2.6 million decrease in other non-operating expenses.
The increase in earnings from our equity investments is principally related to the 2013 deconsolidation of our crude oil
transloading joint venture effective December 31, 2013, which thereafter was accounted for under the equity method until
its sale in December 2014.
Income Taxes. For 2014, our effective income tax rate was 19.0% and our income tax provision was $51.1 million, as
compared to an effective income tax rate of 16.0% and an income tax provision of $39.5 million for 2013. The higher
effective income tax rate is primarily attributable to differences in the results of our subsidiaries in tax jurisdictions with
different income tax rates and a U.S. gain on the sale of the crude oil joint venture interests as compared to 2013. Without
the gain on the sale of the crude oil joint venture interests, for 2014, our effective income tax rate would have been 17.7%.
Net (Loss) Income Attributable to Noncontrolling Interest. For 2014, net loss attributable to noncontrolling interest was $3.3
million as compared to net income attributable to noncontrolling interest of $4.1 million for 2013. This $7.4 million change
is primarily related to the deconsolidation of our crude oil transloading joint venture effective December 31, 2013. Prior to
the deconsolidation of this joint venture, its results were included in our results of operations and we recorded net income
attributable to noncontrolling interest.
Net Income and Diluted Earnings per Common Share. Our net income for 2014 was $221.7 million, an increase of
$18.7 million, or 9.2%, as compared to 2013. Diluted earnings per common share for 2014 was $3.11 per common share,
an increase of $0.28 per common share, or 9.9% as compared to 2013.
Non-GAAP Net Income and Non-GAAP Diluted Earnings per Common Share. Our non-GAAP net income for 2014 was
$249.1 million, an increase of $18.6 million, or 8.1%, as compared to 2013. Non-GAAP diluted earnings per common share
for 2014 was $3.49 per common share, an increase of $0.27 per common share, or 8.4%, as compared to 2013. The
following table sets forth the reconciliation between our net income and non-GAAP net income for 2014 and 2013 (in
thousands):
2014 2013
Net income attributable to World Fuel $ 221,747 $ 203,075
Share-based compensation expense, net of income taxes of $4,661 and $5,534 for 2014
and 2013, respectively 9,942 11,182
Intangible asset amortization expense, net of income taxes of $6,694 and $8,128 for 2014
and 2013, respectively 22,401 14,448
Expenses related to acquisitions, net of income taxes of $232 for 2014 1,894 1,822
Gain on the sale of the crude oil joint venture interests (net of certain related operating
expenses), net of income taxes of $6,185 (9,879) —
Executive non-renewal charge, net of income taxes of $1,757 2,994 —
Non-GAAP net income attributable to World Fuel $ 249,099 $ 230,527