Company: DBRG
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001679688-25-000017
Chunk: 209

Company: DigitalBridge Group, Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 209
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Gross deferred tax asset584,839 690,185 Valuation allowance(559,556)(664,397)Deferred tax asset, net of valuation allowance25,283 25,788 Deferred tax liabilityIntangible assets17,639 23,382 ROU lease asset—corporate offices9,692 8,527 Other2,712 1,909 Gross deferred tax liability30,043 33,818 Net deferred tax asset (liability)$(4,760)$(8,030)__________(1)    At December 31, 2024 and 2023, deferred tax asset was recognized on capital losses of $1.34 billion and $1.38 billion, respectively, which expire between 2025 and 2028, with full valuation allowance established in both years.(2)     At December 31, 2024 and 2023, deferred tax asset was recognized on NOL of $565.2 million and $589.7 million, respectively, for which full valuation allowance was established in both years. NOL, which is largely attributable to U.S. federal losses incurred after December 31, 2017, can be carried forward indefinitely.

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Valuation Allowance Changes in the deferred tax asset valuation allowance are presented below:Year Ended December 31,(In thousands)202420232022Beginning balance $664,397 $679,057 $12,766 Addition1,571 19,483 666,291 Utilization and/or reversal(106,412)(34,143)— Ending balance559,556 $664,397 $679,057 Deferred Income TaxesIn 2022, significant deferred tax assets were recognized with an offsetting valuation allowance. As a result of the Company's transition to a taxable C Corporation commencing with the taxable year ended December 31, 2022, $400.2 million of deferred tax asset was recognized as of January 1, 2022 related principally to capital loss carryforwards and outside basis difference in DBRG's interest in the OP, and $134.2 million was recorded during 2022 related to changes in DBRG’s interest in the OP that were treated as equity transactions. Outside basis difference in investment in partnerships along with NOL generated by a subsidiary during 2022 further contributed to the deferred tax asset balance in 2022. At December 31, 2022