Company: RITM-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001556593-25-000007
Chunk: 387

Company: Rithm Capital Corp.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 387
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0.44 %Total Provision22.00 %16.48 %22.13 %

206

RITHM CAPITAL CORP. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(dollars in tables in thousands, except share data)

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liability are presented below:December 31, 20242023Deferred Tax Assets:Net operating losses and tax credit carryforwards(A)$226,781 $169,907 Basis differences related to assets and investments77,985 90,395 Goodwill186,027 202,023 Fixed asset depreciation19,658 2,536 Accrued expenses58,467 47,086 Other4,204 5,822 Total deferred tax assets573,122 517,769 Less: valuation allowance(34,784)(34,563)Net deferred tax assets538,338 483,206 Deferred Tax Liabilities:Mortgage servicing rights(1,239,428)(923,311)Basis differences related to assets and investments(81,369)(81,061)Other(3,682)(1,672)Total deferred tax liability(1,324,479)(1,006,044)Net Deferred Tax Liabilities$(786,141)$(522,838)(A)As of December 31, 2024, Rithm Capital’s TRSs had approximately $826.8 million of net operating loss carryforwards for federal and state income tax purposes which may be available to offset future taxable income, if and when it arises. Approximately $433.6 million of federal and state net operating losses are subject to an annual Internal Revenue Code Section 382 limitation. The federal and state net operating loss carryforwards will begin to expire between 2028 and 2042. The utilization of the net operating loss carryforwards to reduce future income taxes will depend on the TRSs’ ability to generate sufficient taxable income prior to the expiration of the carryforward period.The following table presents changes in the Company’s deferred tax asset valuation allowance for the periods indicated:Balance at December 31, 2022$— Sculptor Acquisition (Note 3)32,340 Net change2,223 Balance at December 31, 202334,563 Net Change221 Balance at December 31, 2024$34,