World Fuel Services 2011 Annual Report Download - page 54

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Income from Operations. Our income from operations for 2010 was $180.9 million, an increase of
$26.9 million, or 17.4%, as compared to 2009. Income from operations during these periods was
attributable to the following segments (in thousands):
2010 2009 $ Change
Aviation segment $118,351 $ 75,462 $ 42,889
Marine segment 84,656 97,636 (12,980)
Land segment 15,948 10,778 5,170
218,955 183,876 35,079
Corporate overhead – unallocated 38,089 29,881 8,208
Total $180,866 $153,995 $ 26,871
Our aviation segment income from operations was $118.4 million for 2010, an increase of $42.9 million,
or 56.8%, as compared to 2009. This increase resulted from $51.4 million in higher gross profit which
was partially offset by increased operating expenses of $8.5 million. The increase in aviation segment
operating expenses was attributable to higher compensation and employee benefits, provision for bad
debt and general and administrative expenses.
Our marine segment earned $84.7 million in income from operations for 2010, a decrease of
$13.0 million, or 13.3%, as compared to 2009. This decrease resulted from increased operating
expenses of $9.5 million and a $3.5 million decrease in gross profit. The increase in marine segment
operating expenses was attributable to higher compensation and employee benefits and general and
administrative expenses which were partially offset by a lower provision for bad debt.
Our land segment income from operations was $15.9 million for 2010, an increase of $5.2 million, or
48.0%, as compared to 2009. This increase resulted primarily from income from operations attributable
to the inclusion of the results of the businesses acquired in 2010 since their respective acquisition dates
and a full year’s results in 2010 from the businesses acquired in 2009.
Corporate overhead costs not charged to the business segments were $38.1 million for 2010, an
increase of $8.2 million, or 27.5%, as compared to 2009. The increase in corporate overhead costs not
charged to the business segments was attributable to increases in compensation and employee
benefits, including incentive-based and share-based compensation, and general and administrative
expenses.
Non-Operating Expenses, net. For 2010, we had non-operating expenses, net of $3.3 million, a decrease
of $0.8 million, or 18.4%, as compared to 2009. This decrease was primarily due to the recording in 2010
of a $1.9 million gain related to our short-term investments and $0.9 million of equity income in the
earnings of a joint venture which was partially offset by $2.2 million of increases in foreign exchange
losses and interest expense and other financing costs, net, principally related to our new credit facility,
during 2010 as compared to the corresponding period of 2009.
Taxes. For 2010, our effective tax rate was 17.5% and our income tax provision was $31.0 million, as
compared to an effective tax rate of 21.6% and an income tax provision of $32.3 million for 2009. The
lower effective tax rate for 2010 resulted primarily from differences in the actual results of our
subsidiaries in tax jurisdictions with different tax rates as compared to 2009.
Net Income and Diluted Earnings per Common Share. Our net income for 2010 was $146.9 million, an
increase of $29.8 million, or 25.4%, as compared to 2009. Diluted earnings per common share for 2010
was $2.31 per common share, an increase of $0.35 per common share, or 17.9%, as compared to 2009.
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