Company: KW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001408100-25-000115
Chunk: 249

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 249
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March 31, 2025 was 14.2% as compared to an effective tax rate of 41.5% 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 Income (Loss)

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 three months ended March 31, 2025 and 2024.  

Three Months Ended March 31,(Dollars in millions)20252024Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders$(40.8)$26.9 Unrealized foreign currency translation gain (losses), net of noncontrolling interests and tax26.5 (17.3)Amounts reclassified out of accumulated other comprehensive loss during the period— 5.2 Unrealized foreign currency derivative contract (loss) gain, net of noncontrolling interests and tax(11.9)9.8 Comprehensive (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders$(26.2)$24.6 

The main currencies that we have exposure to are the euro and pound sterling.  The table below represents the change in 

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rates over the three months ended March 31, 2025 and 2024 as compared to the U.S. Dollar:

Three Months Ended March 31,20252024Euro4.5 %(2.2)%GBP3.2 %(0.9)%

Comprehensive (loss) income, net of taxes and noncontrolling interests, for the three months ended March 31, 2025 and 2024 was a loss of $26.2 million and income $24.6 million, respectively.  The Company experienced net unrealized gains on foreign currency through other comprehensive income for the period due to the strengthening of the Euro and GBP against the US Dollar in the period.  Hedge losses were due to hedges the Company held on GBP investments