Company: WKC
Filing Date: 2025-10-24
Form Type: 10-Q
Source: 0000789460-25-000030
Chunk: 52

Company: WORLD KINECT CORP
Filing Date: 2025-10-24
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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4, 2025, the One Big Beautiful Bill Act was enacted in the United States. Our provision reflects the changes related to the new legislation.

We have various tax returns under examination both in the U.S. and foreign jurisdictions. The most material of these is in Denmark, where one of our subsidiaries has been under audit since 2018. Through September 30, 2025, we have received final tax assessments for the 2013 through 2019 tax years of approximately $124.0 million (DKK 788.7 million), and proposed tax assessments for the 2020 and 2021 tax years of approximately $27.0 million (DKK 171.5 million), excluding interest, which would be material. We believe we have substantial defenses to these assessments and expect to continue to pursue available administrative and judicial remedies to resolve this matter.An unfavorable resolution of one or more of the above matters could have a material adverse effect on our operating results or cash flows in the quarter or year in which the adjustments are recorded, or the tax is due or paid. As examinations are still in process or have not yet reached the final stages of the appeals process, the timing of the ultimate resolution or payments that may be required cannot be determined at this time.

13. Business SegmentsWe operate in three reportable segments consisting of aviation, land and marine. Our operating segments are determined based on the different markets in which we provide products and services, which are defined primarily by the customers (businesses and governmental) and the products and services provided to those customers. We use Income from operations as our primary measure of segment profit. Corporate expenses are allocated to the segments based on usage, where possible, or on other factors according to the nature of the activity.

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Information concerning our revenue, significant segment expenses, and income from operations by segment is as follows (in millions):For the Three Months Ended September 30, 2025AviationLandMarineTotalRevenue$4,868.1 $2,535.6 $1,988.1 $9,391.8 Segment expenses:Cost of revenue(4,725.3)(2,454.2)(1,962.7)(9,142.2)Compensation and related costs(28.1)(35.2)(7.9)(71.2)Incentive compensation(10.1)(3.4)(1.7)(15.3)Corporate allocations (1)(9.1)(4