Company: WKC
Filing Date: 2025-10-24
Form Type: 10-Q
Source: 0000789460-25-000030
Chunk: 97

Company: WORLD KINECT CORP
Filing Date: 2025-10-24
Form: 10-Q
Item: Part I, Item 8
Chunk 97
---
 rates, working capital requirements and capital expenditures. The estimated cash flows are discounted using rates that correspond to a weighted-average cost of capital consistent with those used internally for investment decisions.As a result of the quantitative impairment test performed, we concluded that the carrying value of the land reporting unit exceeded its estimated fair value. Accordingly, we recognized a goodwill impairment charge of $359.0 million during the three months ended June 30, 2025, which is presented in the Goodwill and other asset impairments line in the Condensed Consolidated Statements of Income and Comprehensive Income, and represents a partial impairment of goodwill in our land reporting unit. The determination of fair value requires us to make significant estimates and assumptions related to the business and financial performance of the reporting unit. If our actual results differ significantly from the assumptions used to determine the fair value of the reporting unit, including our continued efforts to optimize the land portfolio, such impact could potentially result in additional goodwill impairment charges in future periods.

5. Derivative InstrumentsWe are exposed to a variety of risks, including, but not limited to, changes in the prices of commodities that we buy or sell, changes in foreign currency exchange rates, changes in interest rates, and the creditworthiness of each of our counterparties. While we attempt to mitigate these fluctuations through hedging, such hedges may not be fully effective.Our risk management program includes the following types of derivative instruments: Fair Value Hedges. Derivative contracts we hold to hedge the risk of changes in the price of our inventory.Cash Flow Hedges. Derivative contracts we execute to mitigate the risk of price and interest rate volatility in forecasted transactions.

9

Non-designated Derivatives. Derivatives we primarily transact to mitigate the risk of market price fluctuations in swaps or futures contracts, as well as certain forward fixed price purchase and sale contracts to hedge the risk of currency rate fluctuations and for portfolio optimization.The following table summarizes the gross notional values of our derivative contracts used for risk management purposes (in millions):UnitSeptember 30, 2025Commodity contractsLongBBL68.4 ShortBBL(71.7)Foreign currency exchange contractsSell U.S. dollar, buy other currenciesUSD(462.0)Buy U.S. dollar, sell other currenciesUSD606.2 The majority of our foreign currency exchange contracts and the volume related to our commodities contracts are expected to settle within the next twelve months.

Assets and LiabilitiesThe following table presents the gross fair value of our derivative instruments and their locations on