World Fuel Services 2014 Annual Report Download - page 79

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resulted primarily from differences in the actual results of our subsidiaries in tax jurisdictions with different income tax rates and a
U.S. gain on the sale of the crude oil joint venture interests as compared to 2013. Without the gain on the sale of the crude oil
joint venture interests, for 2014, our effective income tax rate would have been 17.7%.
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.
U.S. income taxes have not been provided on undistributed earnings of foreign subsidiaries. As of December 31, 2014 and 2013,
we had $1.3 billion and $1.1 billion, respectively, of earnings attributable to foreign subsidiaries. Our intention is to reinvest these
earnings permanently in active non-U.S. business operations. Therefore, no income tax liability has been accrued for these
earnings. Because of the availability of U.S. foreign tax credits, it is not practicable to determine the amount of U.S. income tax
payable if such earnings are not reinvested indefinitely.
The temporary differences which comprise our net deferred tax liabilities are as follows (in thousands):
As of December 31,
2014 2013
Gross Deferred Tax Assets:
Bad debt reserve $ 5,465 $ 6,426
Net operating loss 4,819 774
Accrued and other share-based compensation 21,654 21,393
Accrued expenses 8,606 10,032
Unrealized derivative losses — 558
Customer deposits 6,095 5,149
Installment sale 6,592 —
Unrealized foreign exchange 7,577 6,082
Total gross deferred tax assets 60,808 50,414
Less: Valuation allowance — —
Gross deferred tax assets, net of valuation allowance 60,808 50,414
Deferred Tax Liabilities:
Depreciation (13,133) (19,199)
Goodwill and intangible assets (45,294) (28,099)
Prepaid expenses, deductible for tax purposes (4,519) (3,452)
Unrealized derivatives (8,188) —
Other (1,248) (740)
Total gross deferred tax liabilities (72,382) (51,490)
Net deferred tax liabilities $ (11,574) $ (1,076)
Reported on the consolidated balance sheets as:
Other current assets for deferred tax assets, current $ 22,825 $ 32,118
Identifiable intangible and other non-current assets for deferred tax assets, non-
current $ 15,555 $ 16,342
Accrued expenses and other current liabilities for deferred tax liabilities, current $ 492 $ 3,229
Non-current income tax liabilities, net for deferred tax liabilities, non-current $ 49,462 $ 46,307
As of December 31, 2014 and 2013, we had foreign net operating losses (“NOLs”) of approximately $19.9 million and
$2.6 million, respectively. The NOLs as of December 31, 2014 originated in various foreign countries including India, Brazil,