World Fuel Services 2014 Annual Report Download - page 34

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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 Income (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 (Loss) 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.
Non-GAAP Net Income and Non-GAAP Diluted Earnings per Common Share. Our non-GAAP net income for 2013 was
$230.5 million, an increase of $14.6 million, or 6.8%, as compared to 2012. Non-GAAP diluted earnings per common share
for 2013 was $3.22 per common share, an increase of $0.21 per common share, or 7.0%, as compared to 2012. The
following table sets forth the reconciliation between our net income and non-GAAP net income for 2013 and 2012 (in
thousands):
2013 2012
Net income attributable to World Fuel $ 203,075 $ 189,345
Share-based compensation expense, net of income taxes of $5,534 and $4,442 for 2013
and 2012, respectively 11,182 9,637
Intangible asset amortization expense, net of income taxes of $8,128 and $4,090 for 2013
and 2012, respectively 14,448 14,037
Expenses related to acquisitions, net of income taxes of $1,574 for 2012 1,822 2,924
Non-GAAP net income attributable to World Fuel $ 230,527 $ 215,943
The following table sets forth the reconciliation between our diluted earnings per common share and our non-GAAP diluted
earnings per common share for 2013 and 2012:
2013 2012
Diluted earnings per common share $ 2.83 $ 2.64
Share-based compensation expense, net of income taxes 0.16 0.13
Intangible asset amortization expense, net of income taxes 0.20 0.20
Expenses related to acquisitions, net of income taxes 0.03 0.04
Non-GAAP diluted earnings per common share $ 3.22 $ 3.01
The non-GAAP financial measures exclude costs associated with share based compensation, amortization of acquired
intangible assets and expenses related to acquisitions primarily because we do not believe they are reflective of the
Company’s core operating results. We believe the exclusion of share-based compensation from operating expenses is
useful given the variation in expense that can result from changes in the fair value of our common stock, the effect of which
is unrelated to the operational conditions that give rise to variations in the components of our operating costs. Also, we
believe the exclusion of the amortization of acquired intangible assets, as well as expenses related to acquisitions, are
useful for purposes of evaluating operating performance of our core operating results and comparing them
period-over- period. We believe that these non-GAAP financial measures, when considered in conjunction with our financial
information prepared in accordance with GAAP, are useful to investors to further aid in evaluating the ongoing financial
performance of the Company and to provide greater transparency as supplemental information to our GAAP results.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. In addition, our presentation of non-GAAP net income and non-GAAP diluted earnings
per common share may not be comparable to the presentation of such metrics by other companies. Non-GAAP diluted