World Fuel Services 2014 Annual Report Download - page 78

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73
Other Comprehensive Loss and Accumulated Other Comprehensive Loss
Our other comprehensive loss, consisting of foreign currency translation adjustments related to our subsidiaries that have a
functional currency other than the U.S. dollar and cash flow hedges, was as follows (in thousands):
Foreign Accumulated
Currency Othe
r
Translation Cash Comprehensive
Adjustments Flow Hedges Loss
Balance as of December 31, 2012 $ (16,130) $ 112 $ (16,018)
Other comprehensive loss (13,189) (112) (13,301)
Balance as of December 31, 2013 (29,319) — (29,319)
Other comprehensive loss (30,896) — (30,896)
Balance as of December 31, 2014 $ (60,215) $ — $ (60,215)
The foreign currency translation adjustment losses for 2014 were primarily due to the strengthening of the U.S. dollar as compared
to the Brazilian Real and the British Pound. The foreign currency translation adjustment losses for 2013 and 2012 were primarily
due to the strengthening of the U.S. dollar as compared to the Brazilian Real.
9. Income Taxes
U.S. and foreign income before income taxes consist of the following (in thousands):
2014 2013 2012
United States $ 56,575 $ 31,823 $ 49,021
Foreign 212,976 214,842 190,574
$ 269,551 $ 246,665 $ 239,595
The income tax provision (benefit) related to income before income taxes consists of the following components (in
thousands):
2014 2013 2012
Current:
U.S. federal statutory tax $ 14,829 $ 8,167 $ 6,858
State 2,540 1,822 938
Foreign 22,016 36,254 24,649
39,385 46,243 32,445
Deferred:
U.S. federal statutory tax 10,707 2,171 7,642
State 2,674 566 1,380
Foreign (3,030) (10,980) 643
10,351 (8,243) 9,665
Non-current tax expense (income) 1,408 1,505 (3,866)
$ 51,144 $ 39,505 $ 38,244
Non-current tax expense (income) is primarily related to income tax associated with the reserve for uncertain tax positions.
A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows:
2014 2013 2012
U.S. federal statutory tax rate 35.0% 35.0% 35.0%
Foreign earnings, net of foreign taxes (18.2) (18.7) (16.7)
State income taxes, net of U.S. federal income tax benefit 1.3 0.6 0.6
Other permanent differences 0.9 (0.9) (2.9)
Effective income tax rate 19.0% 16.0% 16.0%
For 2014, our effective income tax rate was 19.0%, for an income tax provision of $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 for 2014