Company: STGW
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000876883-25-000009
Chunk: 151

Company: Stagwell Inc
Filing Date: 2025-03-11
Form: 10-K
Item: Item 8
Chunk 151
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6,930State taxes, net3,7018,4228,807Stock compensation2,244400(1,342)Valuation allowance5,19811,7914,932Deferred acquisition consideration adjustments(2,079)1,299(72)Revaluation of TRA step up—(424)(5,109)Gain on sale of business—8,347—Prior year adjustments(3,464)5,617(17,205)Goodwill impairments——14,645Other, net1,836(1,815)1,358Income tax expense$13,182$40,557$25,462Effective income tax rate34.9 %44.5 %33.7 %The Company is a corporation with an investment in a limited liability company classified as a partnership for U.S. federal income tax purposes, and as such a portion of the consolidated income is not subject to taxes from a U.S. federal income tax perspective. The tax rate of 21.0% has been used to capture the U.S. federal taxes of the Company and the corporations owned by the Company and recorded in the Consolidated Statements of Operations and Comprehensive Income.In August 2022, the United States enacted to the Inflation Reduction Act of 2022 (“IRA”), which creates a new book minimum tax of at least 15% of consolidated GAAP pre-tax income for corporations with average book income in excess of $1 billion. The Company’s tax liability has not increased as a result of this new book minimum tax.Income taxes receivable were $27.0 million and $21.6 million as of December 31, 2024, and 2023, respectively, and were included in Other current assets on the Consolidated Balance Sheets. Long-term income taxes receivable were $10.4 million and $12.5 million as of December 31, 2024, and 2023, and were included in Other assets on the Consolidated Balance Sheets. Income taxes payable were $12.1 million and $5.7 million as of December 31, 2024, and 2023, respectively, and were included in Accruals and other liabilities on the Consolidated Balance Sheets.

93

The tax effects of significant temporary differences representing deferred tax assets and liabilities as of December 31, were as follows:202420232022Deferred tax assets:Net operating losses$38,482 $29,