World Fuel Services 2015 Annual Report Download - page 30

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to 2014. This increase resulted from $23.1 million in higher gross profit, which was partially offset by a $10.0 million increase
in operating expenses. The increase in operating expenses was principally due to expenses related to acquired businesses.
Corporate overhead costs not charged to the business segments for 2015 were $60.9 million, an increase of $7.4 million,
or 13.8%, as compared to 2014. This increase was principally due to increased expenses to support our growing global
business.
Non-Operating (Expenses) Income, net. For 2015, we had non-operating expenses, net of $27.9 million, as compared to
non-operating income, net of $0.4 million in 2014. This $28.3 million change was principally due to an $18.1 million gain on
the sale of our crude oil joint venture interests in 2014, a $6.7 million reduction of equity earnings in 2015 as compared to
2014 and a $4.7 million increase in interest expense and other financing costs, net, as a result of higher average borrowings
in 2015 as compared to 2014. The decrease in earnings from our equity investments is principally related to the sale of our
crude oil transloading joint venture in December 2014.
Income Taxes. For 2015, our effective income tax rate was 16.6% and our income tax provision was $36.3 million, as
compared to an effective income tax rate of 19.0% and an income tax provision of $51.1 million for 2014. The lower effective
income tax rate for 2015, as compared to 2014, resulted principally from differences in the results of our subsidiaries in tax
jurisdictions with different income tax rates and a 2014 U.S. gain on the sale of the crude oil joint venture interest. Without the
gain on the sale of the crude oil joint venture interest, the 2014 effective income tax rate would have been 17.7%.
Net Loss Attributable to Noncontrolling Interest. For 2015, net loss attributable to noncontrolling interest was $3.9 million
as compared to net loss attributable to noncontrolling interest of $3.3 million for 2014.
Net Income and Diluted Earnings per Common Share. Our net income for 2015 was $186.9 million, a decrease of
$34.9 million, or 15.7%, as compared to 2014. Diluted earnings per common share for 2015 was $2.64 per common share,
a decrease of $0.47 per common share, or 15.1% as compared to 2014.
Non-GAAP Net Income and Non-GAAP Diluted Earnings per Common Share. Our non-GAAP net income for 2015 was
$225.1 million, a decrease of $23.9 million, or 9.6%, as compared to 2014. Non-GAAP diluted earnings per common share
for 2015 was $3.18 per common share, a decrease of $0.31 per common share, or 8.9%, as compared to 2014. The
following table sets forth the reconciliation between our net income and non-GAAP net income for 2015 and 2014 (in
millions):
2015 2014
Net income attributable to World Fuel $ 186.9 $ 221.7
Share-based compensation expense, net of income taxes of $4.9 and $4.6 for 2015 and
2014, respectively 11.4 9.9
Intangible asset amortization expense, net of income taxes of $6.0 and $6.6 for 2015 and
2014, respectively 20.4 22.4
Expenses related to acquisitions, net of income taxes of $1.1 and $0.2 for 2015 and 2014,
respectively 3.0 1.9
Deferred revenue purchase accounting adjustment, net of income taxes of $ 0.4 1.1 —
Termination of employment agreement, net of income taxes of $1.5 2.3 —
Executive non-renewal charge, net of income taxes of $1.7 — 3.0
Gain on the sale of the crude oil joint venture interests (net of certain related operating
expenses), net of income taxes of $6.2 — (9.9)
Non-GAAP net income attributable to World Fuel $ 225.1 $ 249.0