Company: WKC
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000789460-25-000019
Chunk: 41

Company: WORLD KINECT CORP
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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 statement location in our Condensed Consolidated Statements of Income and Comprehensive Income of realized and unrealized gains (losses) recognized on derivative instruments not designated as hedging instruments (in millions):Derivative Instruments - Non-designatedFor the Three Months Ended June 30,For the Six Months Ended June 30,Location2025202420252024Commodity contractsRevenue$(8.6)$(46.8)$4.5 $(124.9)Cost of revenue3.2 (3.0)(4.4)3.1 (5.4)(49.8)0.1 (121.8)Foreign currency contractsRevenue3.0 0.1 1.5 (0.4)Other (expense), net(13.9)(2.0)(17.6)(4.1)(10.9)(1.9)(16.1)(4.5)Total gain (loss)$(16.3)$(51.7)$(16.0)$(126.3)

Credit-Risk-Related Contingent FeaturesWe enter into derivative contracts which may require us to post collateral periodically. Certain of these derivative contracts contain credit-risk-related contingent clauses which are triggered by credit events, such as a credit downgrade or if certain defined financial ratios fall below an established threshold. The occurrence of these credit events may require us to post additional collateral or immediately settle the derivative instrument.The following table presents the potential collateral requirements for derivative liabilities with credit-risk-contingent features (in millions):June 30, 2025December 31, 2024Net derivative liability positions with credit contingent features$30.3 $40.9 Collateral posted and held by our counterparties— — Maximum additional potential collateral requirements$30.3 $40.9 

6. Fair Value MeasurementsThe carrying amounts of cash and cash equivalents, net accounts receivable, accounts payable and accrued expenses and other current liabilities approximate fair value based on their short-term maturities. With the exception of the Convertible Notes, as discussed in Note 8. Debt, Interest Income, Expense, and Other Finance Costs, the carrying values of our debt and notes receivable approximate fair value as these instruments bear interest either at variable rates or fixed rates, which are not significantly different from market rates. The fair value measurements for our debt and notes receivable are considered to be Level 2 measurements based on the fair value hierarchy.

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Recurring Fair Value Measurements