Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 149

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 149
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 by the Company’s employees in performing professional services. These leases are classified as operating leases and expire between years 2025 through 2036. The Company’s finance leases are immaterial.Lease costs are recognized in the Unaudited Consolidated Statements of Operations over the lease term on a straight-line basis. Leasehold improvements are depreciated on a straight-line basis over the lesser of the term of the related lease or the estimated useful life of the asset. Some of the Company’s leases include options to extend or renew the leases through 2044. The renewal and extension options are not included in the lease term as the Company is not reasonably certain that it will exercise its option.From time to time, the Company enters into sublease arrangements with unrelated third parties. These subleases are classified as operating leases and expire between years 2025 and 2032. Sublease income is recognized over the lease term on a straight-line basis. Currently, the Company subleases office space in North America and Europe.As of June 30, 2025, the Company had entered into two operating leases for which the commencement date had not yet occurred because the premises were being prepared for occupancy by the landlords. Accordingly, these two leases represent obligations of the Company that are not reflected within the Unaudited Consolidated Balance Sheets as of June 30, 2025. The aggregate future liabilities related to these leases were $1.2 million as of June 30, 2025.The discount rate used for leases accounted for under the FASB’s Accounting Standards Codification 842 (“ASC 842”) is the Company’s collateralized credit adjusted borrowing rate.

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The following table presents lease costs and other quantitative information for the three and six months ended June 30, 2025 and 2024:Three Months Ended June 30,Six Months Ended June 30, 2025202420252024Lease Cost:(dollars in thousands)Operating lease cost$16,957$18,702$34,075$39,648Variable lease cost5,1385,88911,14511,826Sublease rental income(2,161)(1,935)(4,296)(4,415)Total lease cost$19,934$22,656$40,924$47,059Additional information:Cash paid for amounts included in the measurement of lease liabilities for operating leasesOperating cash flows$19,982$22,159$40,167$43,819Right-of-use lease assets obtained in exchange