Company: KW
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001408100-25-000179
Chunk: 272

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 272
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-segment256.1 96.0 Total assets$6,698.2 $6,961.1 

NOTE 14—INCOME TAXES 

    The Company derives a significant portion of its income from the rental and sale of real property. As a result, a substantial portion of its foreign earnings is subject to U.S. taxation under certain provisions of the Internal Revenue Code of 1986, as amended ("IRC"), applicable to controlled foreign corporations (known as the "Subpart F rules"). In determining the quarterly provisions for income taxes, the Company calculates income tax expense based on actual year-to-date income and statutory tax rates. The year-to-date income tax expense reflects the impact of foreign operations and income allocated to noncontrolling interests which is generally not subject to corporate tax.    During the nine months ended September 30, 2025, the Company generated pre-tax book loss of $31.7 million related to its global operations and recorded a tax provision of  $2.5 million. compared to an expected tax benefit, based on the U.S. statutory tax rate, of $6.6 million. The difference between the recorded tax expense and the expected tax benefit is primarily related to non-deductible executive compensation under IRC Section 162(m), an increase to the valuation allowance recorded against certain deferred tax assets, and deferred foreign tax charges incurred in Ireland and the UK that are not currently creditable in the US.     On July 4, 2025, the One Big Beautiful Bill Act was signed into law in the U.S. which contains a broad range of tax reform provisions affecting businesses. The Company is evaluating the full effect of the legislation on its effective tax rate and financial statements.

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Kennedy-Wilson Holdings, Inc.Notes to Consolidated Financial Statements(Unaudited)

NOTE 15—GUARANTOR AND NON-GUARANTOR FINANCIAL STATEMENTS 

    The following consolidating financial information and condensed consolidating financial information include:    (1) Condensed consolidating balance sheets as of September 30, 2025 and December 31, 2024; consolidating statements of operations for the three and nine months ended September 30, 2025 and 2024, of (a) Kennedy-Wilson Holdings, Inc., as the parent, (b) Kennedy-Wilson, Inc., as the subsidiary issuer, (c) the guarantor subsidiaries, (d) the non