World Fuel Services 2012 Annual Report Download - page 94

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The temporary differences which comprise our net deferred income tax (liabilities) assets are as follows
(in thousands):
As of December 31,
2011
Gross Deferred Income Tax Assets:
Excess of provision for bad debts over charge-offs $ 4,573 $ 4,744
Net operating loss 675 66
Accrued compensation expenses recognized for financial reporting purposes,
not currently deductible for tax purposes 14,909 20,099
Accrued expenses 2,069 1,680
Unrealized derivative losses 316 —
Customer deposits 7,545 6,154
Unrealized foreign exchange 914 906
Total gross deferred income tax assets 31,001 33,649
Less: Valuation allowance — —
Gross deferred income tax assets, net of valuation allowance 31,001 33,649
Deferred Income Tax Liabilities:
Excess of tax over financial reporting for depreciation of fixed assets (11,999) (4,650)
Excess of tax over financial reporting amortization of identifiable intangible
assets and goodwill (23,108) (15,772)
Prepaid expenses, deductible for tax purposes (1,719) (1,204)
Unrealized derivative gains — (5,572)
Other (1,330) (834)
Gross deferred income tax liabilities (38,156) (28,032)
Net deferred income tax (liabilities) assets $ (7,155) $ 5,617
Reported on the consolidated balance sheets as:
Other current assets for deferred income tax assets, current $ 15,282 $ 13,238
Non-current other assets for deferred income tax assets, non-current $ 5,406 $ 2,661
Accrued expenses and other current liabilities for deferred income tax
liabilities, current $ 6,084 $ 1,009
Non-current income tax liabilities, net for deferred income tax liabilities,
non-current $ 21,759 $ 9,273
As of December 31, 2012 and 2011, we had foreign net operating losses (‘‘NOLs’’) of $2.8 million and
$0.2 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 income tax assets and liabilities shown above does not include
certain deferred income tax assets as of December 31, 2012 and 2011 that arose directly from income
tax deductions related to equity compensation in excess of compensation recognized for financial
reporting. As of December 31, 2012 and 2011, we had no foreign tax credits related to the excess stock
compensation deductions that resulted in an income tax deduction or credit before the realization of the
income tax benefit from the deduction or credit. We use the ‘‘with and without’’ method for purposes of
determining when excess income tax benefits have been realized.
As of December 31, 2012, 2011 and 2010, our annual capital in excess of par value pool of windfall
income tax benefits related to employee compensation was estimated to be $3.7 million, $6.0 million
and $10.4 million, respectively.
75
2012