Company: WKC
Filing Date: 2025-04-25
Form Type: 10-Q
Source: 0001628280-25-019852
Chunk: 73

Company: WORLD KINECT CORP
Filing Date: 2025-04-25
Form: 10-Q
Item: Part I, Item 8
Chunk 73
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2025, 95% of our accounts receivable were outstanding less than 60 days.The following table sets forth activities in our allowance for expected credit losses (in millions):For the Three Months Ended March 31,20252024Balance as of January 1,$23.7 $20.8 Charges to allowance for credit losses2.5 3.0 Write-off of uncollectible receivables(1.9)(2.4)Recoveries of credit losses0.1 0.2 Translation adjustments— 0.1 Balance as of March 31,$24.4 $21.7 

Receivable Purchase AgreementsWe have receivable purchase agreements ("RPAs") that allow for the sale of our qualifying accounts receivable in exchange for cash consideration equal to the total balance, less a discount margin, depending on the outstanding accounts receivable at any given time. Accounts receivable sold under the RPAs are accounted for as sales and excluded from Accounts receivable, net of allowance for credit losses on the accompanying Condensed 

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Consolidated Balance Sheets. Fees paid under the RPAs are recorded within Interest expense and other financing costs, net on the Condensed Consolidated Statements of Income and Comprehensive Income.During the three months ended March 31, 2025 and 2024, we sold receivables under the RPAs with an aggregate face value of $2.8 billion and $3.0 billion and recognized fees of $8.1 million and $10.2 million, respectively.

3. Acquisitions and Divestitures2025 DivestituresOn April 9, 2025, we signed and closed on the sale of WFL (UK) Ltd., which represents our U.K. land fuels business, ("the Watson Fuels disposal group") for total estimated proceeds of $42.8 million, of which $23.6 million was collected in cash at closing (the "Watson Fuels sale"). As discussed in Note 5. Fair Value Measurements, during the three months ended March 31, 2025, we recognized an asset impairment charge of $44.5 million with respect to the Watson Fuels disposal group assets. The Watson Fuels sale is expected to result in an additional estimated pre-tax loss of approximately $65 million, net of costs to sell and after the reclassification of an estimated $55 million of cumulative translation losses to net income, that will be recognized in the three months ended