World Fuel Services 2011 Annual Report Download - page 98

The temporary differences which comprise our net deferred income tax assets are as follows (in
thousands):
As of December 31,
2010
Excess of provision for bad debts over charge-offs $ 4,744 $ 4,400
Net operating loss 66 113
Excess of tax over financial reporting for depreciation of fixed assets (4,650) (2,101)
Excess of tax over financial reporting amortization of identifiable intangible
assets and goodwill (15,772) (12,729)
Accrued compensation expenses recognized for financial reporting purposes,
not currently deductible for tax purposes 20,099 17,181
Accrued expenses 1,680 6,800
Prepaid expenses deductible for tax purposes (1,204) (1,341)
Unrealized derivative gains (5,572) (743)
Customer deposits 6,154 2,489
Unrealized foreign exchange 906 (974)
Other (834) (1,372)
5,617 11,723
Valuation allowance — —
Total deferred income tax assets, net $ 5,617 $ 11,723
Deferred income tax assets, current $ 13,238 $ 13,492
Deferred income tax assets, non-current $ 2,661 $ 5,135
Deferred income tax liabilities, current $ 1,009 $ 1,068
Deferred income tax liabilities, non-current $ 9,273 $ 5,836
In the accompanying consolidated balance sheets, the current deferred income tax assets are included
in other current assets, the non-current income tax assets are included in non-current other assets, the
current deferred income tax liabilities are included in accrued expenses and other current liabilities and
the non-current deferred income tax liabilities are included in non-current income tax liabilities, net.
As of December 31, 2011 and 2010, we had foreign net operating losses (‘‘NOLs’’) of $0.2 million and
$0.4 million, respectively. The foreign NOLs have an unlimited carryforward period.
In addition, as a result of certain realization requirements of accounting guidance on stock
compensation, the table of deferred tax assets and liabilities shown above does not include certain
deferred tax assets as of December 31, 2011 and 2010 that arose directly from tax deductions related to
equity compensation in excess of compensation recognized for financial reporting. As of December 31,
2011 and 2010, we had no foreign tax credits related to the excess stock compensation deductions that
resulted in a tax deduction or credit before the realization of the tax benefit from the deduction or credit.
We use the ‘‘with and without’’ method for purposes of determining when excess tax benefits have
been realized.
As of December 31, 2011, 2010 and 2009, our annual capital in excess of par value pool of windfall tax
benefits related to employee compensation was estimated to be $6.0 million, $10.4 million and
$3.1 million, respectively.
We operate under a special tax concession in Singapore which is effective through 2012 and is
conditional upon our meeting certain employment and investment thresholds during the effective
period. If the employment and investment thresholds are not met in accordance with our agreement, the
tax concession may be eliminated retroactively to the beginning of 2008. This special tax concession
may be extended beyond 2012 if certain additional requirements are satisfied. The tax concession
reduces the tax rate on qualified sales and the impact of this tax concession decreased foreign taxes by
$8.4 million, $7.8 million and $6.5 million for 2011, 2010 and 2009, respectively. The impact of the tax
concession on diluted earnings per common share was $0.12 per common share for 2011 and 2010 and
$0.11 per common share for 2009.
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