Company: ONEW
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001772921-25-000025
Chunk: 45

Company: OneWater Marine Inc.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 45
---
 restructuring and impairment and $1.1 million is recorded in new boat cost of sales in the unaudited consolidated statement of operations. Of the $2.3 million restructuring charges, $1.2 million and $1.1 million is reported in the Dealerships and Distribution reporting segments, respectively. In March 2024, the Company evaluated its operations and decided to undergo a restructuring plan (the "2024 Restructuring") which resulted in the reduction of headcount and retail locations, cancellation of certain dealer agreements, and the cancellation of certain in-process information and technology ("IT") related projects. As a result of the 2024 Restructuring, the Company recognized $11.8 million of charges during the three and six months ended March 31, 2024, which are recorded in restructuring and impairment in the unaudited consolidated statement of operations.

13.    Income Taxes

The Company is a corporation and, as a result, is subject to U.S. federal, state and local income taxes. OneWater LLC is treated as a pass-through entity for U.S. federal tax purposes and in most state and local jurisdictions. As such, OneWater LLC’s members, including the Company, are liable for federal and state income taxes on their respective shares of OneWater LLC’s taxable income.Our effective tax rates of 28.3% and 29.0% for the three months ended March 31, 2025 and 2024, respectively, and 27.9% and 24.8% for the six months ended March 31, 2025 and 2024, respectively, differ from statutory rates primarily due to losses allocated to non-controlling interests and limitations on officer's compensation.The Company had federal net operating loss carryforwards from underlying corporate entities of approximately $4.3 million resulting in a deferred tax asset of $0.9 million as of September 30, 2024. The U.S. federal net operating loss carryforwards have no expiration but 

24

can only be used to offset up to 80% of future taxable income annually. The Company has Alabama net operating loss carryforwards of $0.3 million which has no limitation in use and expire in the years 2037 to 2040. The Company projects to fully utilize the net operating losses in subsequent fiscal years.The Company has an IRC Section 163(j) interest expense carryforward of approximately $3.7 million, resulting in a deferred tax asset of $