Company: KW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001408100-25-000115
Chunk: 150

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 150
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 that paid out during the three months ended March 31, 2025 and 2024 recorded to other income which is discussed below   

Other loss decreased to $4.2 million for the three months ended March 31, 2025 as compared to $9.6 million other income for the same period in 2024. During the three months ended March 31, 2025, we had $4.4 million in foreign exchange losses.  Our corporate revolving line of credit we have the ability to borrow in foreign currencies which can have lower interest rates.  We have €95.0 million outstanding that we have to translate each reporting period.  As this is a financial instrument and not a subsidiary any foreign exchange movements go through the income statement.  For the three months ended March 31, 2024 we had $6.3 million in fair value gains on interest rate derivatives which the current period had minimal fair value movements.  We also had $2.4 million of foreign exchange gains on the translation of the foreign borrowings on the line of credit as the euro had weakened against the dollar in the prior period.       

Our income tax benefit was $4.9 million for the three months ended March 31, 2025 as compared to income tax expense of $26.7 million for the same period in 2024.  The decrease in income tax expense is primarily attributable to a $98.9 million decrease in worldwide pre-tax book income in 2024 as compared to the same period in the prior year.  Our effective tax rate for the three months ended 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 202