Company: WKC
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000789460-25-000019
Chunk: 33

Company: WORLD KINECT CORP
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 33
---
 presented in the financial statements. The Company is currently evaluating the amendments to identify potential impacts to the Company's Notes to the Consolidated Financial Statements and processes.There are no other recently issued accounting standards not yet adopted by us that are expected, upon adoption, to have a material impact on the Company’s Condensed Consolidated Financial Statements or processes.

Significant Accounting PoliciesThere have been no significant changes in the Company's accounting policies from those disclosed in our 2024 10-K Report. The significant accounting policies we use for quarterly financial reporting are disclosed in Note 1. Basis of Presentation, New Accounting Standards, and Significant Accounting Policies of the accompanying Notes to the Consolidated Financial Statements included in our 2024 10-K Report.

2. Accounts Receivable

Accounts Receivable and Allowance for Credit LossesWhen we extend credit on an unsecured basis, our exposure to credit losses depends on the financial condition of our customers and macroeconomic factors beyond our control, such as global economic conditions or adverse impacts in the industries we serve, changes in energy prices and political instability.We actively monitor and manage our credit exposure and work to respond to both changes in our customers' financial conditions and macroeconomic events. Based on the ongoing credit evaluations of our customers, we adjust credit limits based upon payment history and our customers' current creditworthiness. However, because we extend credit on an unsecured basis to most of our customers, there is a possibility that any accounts receivable not collected may ultimately need to be written off.We had accounts receivable, net, of $2.1 billion and $2.4 billion and an allowance for expected credit losses, primarily related to accounts receivable, of $23.1 million and $23.7 million, as of June 30, 2025 and December 31, 2024, respectively. Changes to the expected credit loss provision during the six months ended June 30, 2025 resulted from the Company's assessment of reasonable and supportable forward-looking information, including global economic outlook considerations. Based on an aging analysis as of June 30, 2025, 94% of our accounts receivable were outstanding less than 60 days.The following table sets forth activities in our allowance for expected credit losses (in millions):For the Six Months Ended June 30,20252024Balance as of January 1,$23.7 $20.8 Charges to allowance for credit losses4.1 4.0 Write-off of uncollectible receivables(