Company: WKC
Filing Date: 2025-04-25
Form Type: 10-Q
Source: 0001628280-25-019852
Chunk: 86

Company: WORLD KINECT CORP
Filing Date: 2025-04-25
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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 expense of $2.6 million relates to a valuation allowance recorded against the deferred tax assets of a foreign subsidiary and a net tax expense of $0.2 million relates to return-to-provision and other adjustments to our worldwide tax positions, partially offset by a net tax benefit of $2.3 million related to changes in our reserves for uncertain tax positions and the resolution of various worldwide tax matters.Our provision for income taxes for the three months ended March 31, 2024 includes a net discrete income tax benefit of $5.1 million, of which a tax benefit of $2.5 million relates to return-to-provision adjustments and a net tax benefit of $2.4 million relates to changes in our reserves for uncertain tax positions.Our income tax provisions for the three months ended March 31, 2025 and 2024 were calculated based on the estimated annual effective income tax rates for the 2025 and 2024 years, respectively. The actual effective income tax rate for the 2025 year may be materially different for several reasons including differences between estimated versus actual results and the geographic tax jurisdictions in which the results are earned.We have various tax returns under examination both in the U.S. and foreign jurisdictions. The most material of these is in Denmark, where one of our subsidiaries has been under audit since 2018. Through March 31, 2025, we have received final tax assessments for the 2013 and 2014 tax years that were immaterial, and proposed tax assessments for the 2015 through 2021 tax years of approximately $138.0 million (DKK 951.5 million), excluding interest, which could be material. We believe we have substantial defenses to these assessments and expect to continue to pursue available administrative and judicial remedies to resolve this matter.An unfavorable resolution of one or more of the above matters could have a material adverse effect on our operating results or cash flows in the quarter or year in which the adjustments are recorded, or the tax is due or paid. As examinations are still in process or have not yet reached the final stages of the appeals process, the timing of the ultimate resolution or payments that may be required cannot be determined at this time.

12. Business SegmentsWe operate in three reportable segments consisting of aviation, land and marine. Our operating segments are determined based on the different markets in which we provide products and services, which are defined primarily by the customers (businesses and governmental) and the products and services provided to those customers