Company: KW
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001408100-25-000179
Chunk: 323

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 323
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 share-based compensation due to the timing of share grants in the prior period.  

    Non-Segment interest expense was $75.9 million for the nine months ended September 30, 2025 as compared to $74.8 million for the same period in 2024 due to higher amortization of non-cash debt issuance costs relating to the Third A&R Facility that closed in September 2024. Interest expense was offset by $0.8 million and $6.5 million that we received on interest rate derivative contracts that paid out during the nine months ended September 30, 2025 and 2024 recorded to other income which is discussed below   

Other loss increased to $5.9 million for the nine months ended September 30, 2025 as compared to other income of $4.3 million for the same period in 2024. During the nine months ended September 30, 2025, we had $4.4 million in foreign exchange losses.  We had $1.2 million of foreign exchange losses in the prior period. For the nine months ended September 30, 2024 we had $3.9 million in fair value gains on interest rate derivatives which the current period $0.5 million of fair value losses. During the nine months ended September 30, 2025 we had $2.0 million in dead deal costs.        

Our income tax provision was $2.5 million for the nine months ended September 30, 2025 as compared to $4.2 million for the same period in 2024. Our effective tax rate for the nine months ended September 30, 2025 was (7.9)% as compared to an effective tax rate of (5.7)% 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 (Loss) Income 

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 nine months ended September