WORLD KINECT CORPWKC
WORLD KINECT CORP Goodwill & Intangibles Disclosure
7. Goodwill and Identifiable Intangible Assets
Goodwill
The following table provides information regarding changes in goodwill (in millions):
| Aviation Segment | Land Segment | Total | |||||||||||||||
| As of December 31, 2023 | $ | 398.3 | $ | 839.7 | $ | 1,238.0 | |||||||||||
2024 acquisitions (1) | 17.5 | — | 17.5 | ||||||||||||||
Adjustment for sale of business (2) | (59.5) | (8.7) | (68.2) | ||||||||||||||
| Foreign currency translation of non-USD functional currency subsidiary goodwill | (1.9) | (3.8) | (5.6) | ||||||||||||||
| As of December 31, 2024 | 354.4 | 827.3 | 1,181.7 | ||||||||||||||
2025 acquisitions (2) | 81.3 | — | 81.3 | ||||||||||||||
Goodwill impairment | — | (528.3) | (528.3) | ||||||||||||||
Adjustment for sale of business (2) | — | (18.2) | (18.2) | ||||||||||||||
Other | — | 15.0 | 15.0 | ||||||||||||||
| Foreign currency translation of non-USD functional currency subsidiary goodwill | 0.1 | 5.9 | 6.0 | ||||||||||||||
| As of December 31, 2025 | $ | 435.8 | $ | 301.7 | $ | 737.5 | |||||||||||
(1)During the year ended December 31, 2024 we completed an acquisition that did not have a material impact on our Consolidated Financial Statements.
(2)See Note 2. Acquisitions and Divestitures for additional information.
Goodwill Impairment
We evaluate goodwill for impairment at the reporting unit level annually as of December 31, or more frequently if events or circumstances indicate that the carrying value may be impaired. During the second quarter of 2025, following our exit from the U.K. land fuels business, as part of the evolution of our strategy we completed our reassessment of the remaining business lines within the land reporting unit. Through this process, we updated key assumptions regarding certain lines of business and made related downward revisions to our long-term forecasts versus prior projections, reflecting both our efforts to optimize the land portfolio to focus on core activities with the highest return potential and the unanticipated persistence of macroeconomic pressures and underperformance against financial expectations. We determined that these circumstances indicated that it was more likely than not that the fair value of goodwill may be less than its carrying value, which required us to perform a quantitative impairment test as of June 30, 2025. As a result of the quantitative impairment test performed, we concluded that the carrying value of the land reporting unit exceeded its estimated fair value. Accordingly, we recognized a goodwill impairment charge of $359.0 million during the three months ended June 30, 2025.
During the fourth quarter of 2025, we identified further impacts to the fair value of the land reporting unit. As we engaged in our annual budgeting and internal forecasting for 2026, we further evaluated our expectations for the land reporting unit taking into consideration (i) the impact of the fourth quarter exit activities on the land reporting unit, including a further-developed understanding of the potential purchasers and pricing for the operations being exited as well as the implied valuation of the land reporting unit post-divestitures and business exits and (ii) weaker-than-expected performance driven by continued challenging market conditions for the land reporting unit in the third and fourth quarters of 2025 that impacted volumes and margin growth rates and our corresponding views with respect to long-term growth. Consequently, we identified a greater risk to our previous forecasts and estimates and the related impact on the fair value of the reporting unit and concluded that the carrying value of the land reporting unit exceeded its estimated fair value. Accordingly, we recognized a goodwill impairment charge of $169.3 million during the three months ended December 31, 2025, inclusive of the impairment of $35.3 million of goodwill allocated to the Land Fuel Transportation and Lubricants disposal group as discussed in Note 2. Acquisitions and Divestitures.
As part of our annual goodwill impairment evaluation, we concluded that the carrying value of the aviation reporting unit did not exceed its estimated fair value. The total goodwill impairment charges of $528.3 million for the year ended December 31, 2025 are presented in the Goodwill and other asset impairments line in the Consolidated Statements of Income and Comprehensive Income and represent a partial impairment of goodwill in our land reporting unit.
The determination of fair value requires us to make significant estimates and assumptions related to the business and financial performance of each reporting unit. If our actual results differ significantly from the assumptions used to determine the fair value of each reporting unit, including our continued efforts to optimize the land portfolio, such impact could potentially result in additional goodwill impairment charges in future periods.
Identifiable Intangible Assets
The following table provides information about our identifiable intangible assets (in millions):
| As of December 31, 2025 | As of December 31, 2024 | ||||||||||||||||||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization (1) | Net | Gross Carrying Amount | Accumulated Amortization (1) | Net | ||||||||||||||||||||||||||||||
| Intangible assets subject to amortization: | |||||||||||||||||||||||||||||||||||
| Customer relationships | $ | 555.1 | $ | 344.9 | $ | 210.2 | $ | 504.1 | $ | 339.8 | $ | 164.3 | |||||||||||||||||||||||
| Supplier agreements | 69.0 | 39.8 | 29.2 | 69.0 | 35.4 | 33.6 | |||||||||||||||||||||||||||||
| Others | 54.0 | 25.9 | 28.1 | 43.5 | 25.1 | 18.4 | |||||||||||||||||||||||||||||
| Total intangible assets subject to amortization | 678.0 | 410.6 | 267.4 | 616.6 | 400.3 | 216.3 | |||||||||||||||||||||||||||||
| Intangible assets not subject to amortization: | |||||||||||||||||||||||||||||||||||
| Trademark / trade name rights | 44.2 | — | 44.2 | 44.9 | — | 44.9 | |||||||||||||||||||||||||||||
| Total intangible assets | $ | 722.3 | $ | 410.6 | $ | 311.7 | $ | 661.5 | $ | 400.3 | $ | 261.2 | |||||||||||||||||||||||
(1)Includes the impact of foreign exchange.
Intangible amortization expense for 2025, 2024 and 2023 was $34.6 million, $34.1 million and $36.2 million, respectively. See Note 2. Acquisitions and Divestitures and Note 5. Fair Value Measurements for additional information about asset impairment charges.
The future estimated amortization of our identifiable intangible assets is as follows (in millions):
| Year Ended December 31, | |||||
| 2026 | $ | 32.7 | |||
| 2027 | 29.6 | ||||
| 2028 | 27.6 | ||||
| 2029 | 27.3 | ||||
| 2030 | 27.1 | ||||
| Thereafter | 123.1 | ||||
| Total | $ | 267.4 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 16, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.