World Fuel Services 2013 Annual Report Download - page 78

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Other Comprehensive Loss and Accumulated Other Comprehensive Loss
Our other comprehensive loss, consisting of foreign currency translation adjustments related to our subsidiaries that have a functional
currency other than the U.S. dollar and cash flow hedges, was as follows (in thousands):
Foreign Accumulated
Currency Other
Translation Cash Comprehensive
Adjustments Flow Hedges Loss
Balance as of December 31, 2012 $(16,130) $ 112 $(16,018)
Other comprehensive loss (13,189) (112) (13,301)
Balance as of December 31, 2013 $(29,319) $ — $(29,319)
The foreign currency translation adjustment losses for 2013, 2012 and 2011 were primarily due to the strengthening of the U.S. dollar
as compared to the Brazilian Real.
9. Income Taxes
U.S. and foreign income before income taxes consist of the following (in thousands):
2013 2012 2011
United States $ 31,823 $ 49,021 $ 56,836
Foreign 214,842 190,574 181,367
$246,665 $239,595 $238,203
The income tax provision (benefit) related to income before income taxes consists of the following components (in thousands):
2013 2012 2011
Current:
U.S. federal statutory tax $ 8,167 $ 6,858 $ 7,685
State 1,822 938 2,767
Foreign 36,254 24,649 27,514
46,243 32,445 37,966
Deferred:
U.S. federal statutory tax 2,171 7,642 6,218
State 566 1,380 2,194
Foreign (10,980) 643 (6,771)
(8,243) 9,665 1,641
Non-current tax expense (income) 1,505 (3,866) (606)
$ 39,505 $38,244 $39,001
Non-current tax expense (income) is primarily related to income tax associated with the reserve for uncertain tax positions.
A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows:
2013 2012 2011
U.S. federal statutory tax rate 35.0% 35.0% 35.0%
Foreign earnings, net of foreign taxes (18.7) (16.7) (18.7)
State income taxes, net of U.S. federal income tax benefit 0.6 0.6 1.3
Other permanent differences (0.9) (2.9) (1.2)
Effective income tax rate 16.0% 16.0% 16.4%
For 2013, our effective income tax rate was 16.0%, for an income tax provision of $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. The effective income tax rate for 2013 remained flat compared
to 2012. However, there were underlying differences in the actual results of our subsidiaries in tax jurisdictions with different income
tax rates as compared to 2012 and differences in outstanding uncertain tax positions net of certain nonrecurring discrete tax items
including statute lapses, audit settlements, and a change in estimate.
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