Company: WKC
Filing Date: 2025-04-25
Form Type: 10-Q
Source: 0001628280-25-019852
Chunk: 81

Company: WORLD KINECT CORP
Filing Date: 2025-04-25
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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 of $58.9 million represented over 10% of our credit exposure to OTC derivative counterparties, for which we held cash collateral of $7.0 million.

12

Nonrecurring Fair Value MeasurementsDuring the first quarter of 2025, we identified an impairment indicator with respect to the Watson Fuels asset group within the land segment. We determined that the carrying amount was not recoverable and recognized an asset impairment charge of $44.5 million during the three months ended March 31, 2025. The impairment is recorded within Asset impairments on the Condensed Consolidated Statements of Income and Comprehensive Income and reported in our land segment. The fair value of the asset group was determined based on a market approach using the estimated sale proceeds for the Watson Fuels sale. The measurement is categorized as Level 2 within the fair value hierarchy. As discussed in Note 3. Acquisitions and Divestitures, we completed the Watson Fuels sale subsequent to March 31, 2025.

6. Supplier Financing ProgramsUnder various supplier finance programs, we agree to pay counterparties engaged as paying agents the stated amount of confirmed invoices from our designated suppliers on the original maturity date of the invoices. Under certain of these arrangements, we may also pay fees for the supplier finance platform and related support.Outstanding obligations confirmed under our supplier finance programs were $129.1 million and $168.8 million as of March 31, 2025 and December 31, 2024, respectively, and are included in Accounts payable within our Condensed Consolidated Balance Sheets.

7. Debt, Interest Income, Expense, and Other Finance CostsLong-Term DebtOur outstanding debt consists of the following (in millions):March 31, 2025December 31, 2024Credit Facility (1)$— $— Term loan (1)449.1 455.3 Convertible Notes (2)341.5 340.9 Finance leases31.3 29.9 Other (3)57.1 54.7 Total debt879.0 880.8 Less: Current maturities of long-term debt and finance leases86.8 84.0 Long-term debt$792.3 $796.8 (1)The Fourth Amended and Restated Credit Agreement matures in April 2027 and provides for a term loan as well as a revolving credit facility of up to $1.5 billion (the "Credit Facility").