Company: WKC
Filing Date: 2025-04-25
Form Type: 10-Q
Source: 0001628280-25-019852
Chunk: 7

Company: WORLD KINECT CORP
Filing Date: 2025-04-25
Form: 10-Q
Item: Part I, Item 2
Chunk 7
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, 2024. The increase in operating expenses was primarily attributable to asset impairment charges recognized in connection with the Watson Fuels sale, as discussed in Note 3. Acquisitions and Divestitures, and restructuring charges recognized during the first quarter of 2025, as discussed under "Restructuring and Exit Activities" above, partially offset by the Avinode sale during the second quarter of 2024 and decreased compensation costs.

Non-Operating Income (Expense), net. For the three months ended March 31, 2025, we had net non-operating expense of $21.5 million compared to net non-operating expense of $32.8 million for the three months ended March 31, 2024. The decrease in non-operating expense of $11.3 million during the three months ended March 31, 2025 was primarily attributable to a decrease in interest expense, driven by a decrease in our average interest rates and daily borrowings, and an increase in foreign currency exchange gains.

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Income Taxes. For the three months ended March 31, 2025, we recognized an income tax benefit of $6.8 million, compared to income tax expense of $3.3 million for the three months ended March 31, 2024. The decrease of $10.2 million was primarily attributable to the reduction in income before income taxes as a result of asset impairments and restructuring charges as well as changes in the mix of our worldwide earnings, partially offset by a $5.6 million increase in net discrete tax expenses during the three months ended March 31, 2025 compared to three months ended March 31, 2024. See Note 11. Income Taxes for additional information.

Aviation Segment Results of Operations

The following provides a summary of the aviation segment results of operations for the periods indicated (in millions, except price per gallon):

For the Three Months Ended March 31, 20252024ChangeRevenue$4,654.2 $5,144.2 $(490.0)Gross profit$115.7 $108.4 $7.2 Operating expenses59.5 64.5 (5.0)Income (loss) from operations$56.2 $44.0 $12.2 Operational metrics:Aviation segment volumes (gallons)1,700.2 1,673.1 27.1 Aviation segment average price per gallon$2.