World Fuel Services 2013 Annual Report Download - page 32

The $50.7 million increase in compensation and employee benefits was principally due to the inclusion of expenses from acquired
businesses. The $7.0 million increase in provision for bad debt was principally due to an overall increase in the accounts receivable
balance in 2013 as compared to 2012 and additional reserves for specific customers. The $14.4 million increase in general and
administrative expenses was due to $26.2 million related to the inclusion of expenses from acquired businesses, which was partially
offset by $11.8 million in decreased expenses due to efforts to drive greater operational efficiencies.
Income from Operations. Our income from operations for 2013 was $264.4 million, an increase of $7.3 million, or 2.9%, as compared
to 2012. Income from operations during these periods was attributable to the following segments (in thousands):
2013 2012 $ Change
Aviation segment $150,886 $128,153 $ 22,733
Marine segment 73,770 103,229 (29,459)
Land segment 84,767 75,291 9,476
309,423 306,673 2,750
Corporate overhead – unallocated 45,065 49,650 (4,585)
Total $264,358 $257,023 $ 7,335
Our aviation segment income from operations for 2013 was $150.9 million, an increase of $22.7 million, or 17.7%, as compared to
2012. This increase resulted from $32.6 million in higher gross profit, which was partially offset by $9.9 million in increased operating
expenses attributable to the inclusion of acquired businesses.
Our marine segment income from operations for 2013 was $73.8 million, a decrease of $29.5 million, or 28.5%, as compared to 2012.
This decrease principally resulted from $31.0 million in lower gross profit.
Our land segment income from operations for 2013 was $84.8 million, an increase of $9.5 million, or 12.6%, as compared to 2012. This
increase resulted from $77.7 million in higher gross profit, which was partially offset by increased operating expenses of $68.2 million.
Of the increase in land segment operating expenses, $67.1 million was related to the inclusion of acquired businesses.
Corporate overhead costs not charged to the business segments for 2013 were $45.1 million, a decrease of $4.6 million, or 9.2%, as
compared to 2012. The decrease in corporate overhead costs not charged to the business segments was attributable to decreases in
general and administrative expenses, principally professional fees.
Non-Operating Expenses, net. For 2013, we had non-operating expenses, net of $17.7 million, an increase of $0.3 million, or 1.5%, as
compared to 2012.
Income Taxes. For 2013, our effective income tax rate was 16.0% and our income tax provision was $39.5 million, as compared to an
effective income tax rate of 16.0% and an income tax provision of $38.2 million for 2012. Although there was no net change in the
overall effective income tax rate between 2013 and 2012, the rates continue to have various recurring components attributable to
differences in the results of our subsidiaries in tax jurisdictions with different income tax rates and outstanding uncertain tax positions
net of certain nonrecurring discrete tax items including statute lapses, audit settlements, and a change in estimate.
Net Income Attributable to Noncontrolling Interest. For 2013, net income attributable to noncontrolling interest was $4.1 million, a
decrease of $7.9 million, or 66.0%, as compared to 2012. The decrease was principally due to the results of our crude oil marketing
joint venture.
Net Income and Diluted Earnings per Common Share. Our net income for 2013 was $203.1 million, an increase of $13.7 million, or
7.3%, as compared to 2012. Diluted earnings per common share for 2013 was $2.83 per common share, an increase of $0.19 per
common share, or 7.2% as compared to 2012.
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