Company: KW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001408100-25-000147
Chunk: 41

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 41
---
5, we had $4.9 million in foreign exchange losses.  We had $3.2 million of foreign exchange gains in the prior period.  For the six months ended June 30, 2024 we had $5.1 million in fair value gains on interest rate derivatives which the current period had minimal fair value movements. During the six months ended June 30, 2025 we had $2.0 million in dead deal costs.        

Our income tax benefit was $0.5 million for the six months ended June 30, 2025 as compared to income tax expense of $14.9 million for the same period in 2024.  Our effective tax rate for the six months ended June 30, 2025 was 2.0% as compared to an effective tax rate of 346.5% for the same period in 2024.  Significant items impacting the quarterly tax provision include: tax charges associated with non-deductible executive compensation under IRC Section 162(m) and additional valuation allowance against the Company's deferred tax asset on the outside basis difference of its investment in KWE.

    Other Comprehensive Income (Loss)

The two major components that drive the change in other comprehensive loss are the change in foreign currency rates and the gain or loss of any associated foreign currency hedges. Please refer to the Currency Risk - Foreign Currencies section in Item 3 for a discussion of our risks relating to foreign currency and our hedging strategy.  Below is a table that details the activity for the six months ended June 30, 2025 and 2024.  

Six Months Ended June 30,(Dollars in millions)20252024Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders$(47.2)$(32.2)Unrealized foreign currency translation gain (loss), net of noncontrolling interests and tax84.6 (20.2)Amounts reclassified out of accumulated other comprehensive loss during the period3.0 5.2 Unrealized foreign currency derivative contract (loss) gain, net of noncontrolling interests and tax(49.0)15.0 Comprehensive loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders$(8.6)$(32.2)

The main currencies that we have exposure to are the euro and pound sterling.  The table below represents the change in rates over the six months ended June 30, 2025