Company: KW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001408100-25-000115
Chunk: 248

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 248
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 conditions indicate that there could be potential credit losses due to the current interest rate environment and general market conditions.

    Non-Segment Items

Compensation and related expenses, corporate decreased to $9.5 million for the three months ended March 31, 2025 as compared to $9.8 million for the three months ended March 31, 2024 due to lower discretionary and deferred compensation expense which was offset by higher share-based compensation.  

    Non-Segment interest expense was $25.6 million for the three months ended March 31, 2025 as compared to $24.8 million for the same period in 2024 due to higher average outstanding balance on the revolving line of credit in the current period.  Interest expense was offset by $0.3 million and $2.6 million that we received on interest rate derivative contracts that paid out during the three months ended March 31, 2025 and 2024 recorded to other income which is discussed below   

Other loss decreased to $4.2 million for the three months ended March 31, 2025 as compared to $9.6 million other income for the same period in 2024. During the three months ended March 31, 2025, we had $4.4 million in foreign exchange losses.  Our corporate revolving line of credit we have the ability to borrow in foreign currencies which can have lower interest rates.  We have €95.0 million outstanding that we have to translate each reporting period.  As this is a financial instrument and not a subsidiary any foreign exchange movements go through the income statement.  For the three months ended March 31, 2024 we had $6.3 million in fair value gains on interest rate derivatives which the current period had minimal fair value movements.  We also had $2.4 million of foreign exchange gains on the translation of the foreign borrowings on the line of credit as the euro had weakened against the dollar in the prior period.       

Our income tax benefit was $4.9 million for the three months ended March 31, 2025 as compared to income tax expense of $26.7 million for the same period in 2024.  The decrease in income tax expense is primarily attributable to a $98.9 million decrease in worldwide pre-tax book income in 2024 as compared to the same period in the prior year.  Our effective tax rate for the three months ended