World Fuel Services 2015 Annual Report Download - page 34

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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 for 2014 resulted primarily from 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
millions):
2014 2013
Net income attributable to World Fuel $ 221.7 $ 203.1
Share-based compensation expense, net of income taxes of $4.6 and $5.5 for 2014 and
2013 respectively 9.9 11.2
Intangible asset amortization expense, net of income taxes of $6.6 and $8.1 for 2014 and
2013 respectively 22.4 14.4
Expenses related to acquisitions, net of income taxes of $.02 for 2014 1.9 1.8
Executive non-renewal charge, net of income taxes of $1.8 3.0 —
Gain on the sale of crude oil joint venture interests (net of certain related operating
expenses), net of income taxes of $6.2 (9.8) —
Non-GAAP net income attributable to World Fuel $ 249.1 $ 230.5
The following table sets forth the reconciliation between our diluted earnings per common share and our non-GAAP diluted
earnings per common share for 2014 and 2013:
2014 2013
Diluted earnings per common share $ 3.11 $ 2.83
Share-based compensation expense, net of income taxes 0.14 0.16
Intangible asset amortization expense, net of income taxes 0.31 0.20
Expenses related to acquisitions, net of income taxes 0.03 0.03
Executive non-renewal charge, net of income taxes 0.04 —
Gain on the sale of crude oil joint venture interests (net of certain related operating expenses),
net of income taxes (0.14) —
Non-GAAP diluted earnings per common share $ 3.49 $ 3.22
The non-GAAP financial measures exclude costs associated with share based compensation, amortization of acquired
intangible assets, expenses related to acquisitions, the executive non-renewal charge and the gain on the sale of the crude
oil venture interests (net of certain related operating expenses) primarily because we do not believe they are reflective of
the Company’s core operating results. We believe the exclusion of share-based compensation from operating expenses is
useful given the variation in expense that can result from changes in the fair value of our common stock, the effect of which
is unrelated to the operational conditions that give rise to variations in the components of our operating costs. Also, we
believe the exclusion of the amortization of acquired intangible assets, the expenses related to acquisitions, the executive
non-renewal charge and the gain on the sale of the crude oil venture interests (net of certain related operating expenses)
are useful for purposes of evaluating operating performance of our core operating results and comparing them
period-over- period. We believe that these non-GAAP financial measures, when considered in conjunction with our financial
information prepared in accordance with GAAP, are useful to investors to further aid in evaluating the ongoing financial
performance of the Company and to provide greater transparency as supplemental information to our GAAP results.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information