Company: WKC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001628280-25-007620
Chunk: 96

Company: WORLD KINECT CORP
Filing Date: 2025-02-25
Form: 10-K
Item: Item 15
Chunk 96
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5 million related to the reversal of valuation allowances previously recorded against the deferred tax assets of certain foreign subsidiaries and states and a benefit of $4.8 million related to return-to-provision adjustments, partially offset by a net expense of $6.9 million related to the remeasurement of uncertain tax positions and other worldwide tax adjustments.We have analyzed our global working capital and cash requirements and the potential tax liabilities attributable to repatriation and have determined that we intend to continue our assertion that the earnings of certain of our non-U.S. subsidiaries are indefinitely reinvested. At December 31, 2024, $1.1 billion of our foreign earnings were permanently reinvested in non-US business operations. For these investments, if not reinvested indefinitely, we could potentially owe approximately $234.2 million in foreign withholding tax. We also have $817.9 million of accumulated foreign earnings that are actually or deemed repatriated, for which we have estimated the associated foreign withholding and state income tax effects to be $10.1 million for the year ended December 31, 2024.

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Table of Contents

Deferred Tax Assets and LiabilitiesThe temporary differences which comprise our net deferred tax liabilities are as follows (in millions):As of December 31,20242023Gross Deferred Tax Assets:Bad debt reserve and accrued expenses$10.1 $15.8 Net operating loss62.5 69.1 Accrued and other share-based compensation22.7 26.0 U.S. foreign income tax credits29.3 15.8 Interest expense limitations75.2 45.8 Other9.0 7.1 Total gross deferred tax assets208.9 179.6 Less: Valuation allowance (1)16.8 15.2 Gross deferred tax assets, net of valuation allowance192.0 164.5 Gross Deferred Tax Liabilities:  Depreciation(33.6)(32.2)Goodwill and intangible assets(108.1)(84.4)Unrealized foreign exchange, derivatives, and cash flow hedges(1.8)(6.7)Deferred tax costs on foreign unrepatriated earnings(10.1)(12.0)Other(5.2)(4.9)Total gross deferred tax liabilities(158.8)(140.3)Net deferred tax liability$— $—