Company: DBRG
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001679688-25-000017
Chunk: 195

Company: DigitalBridge Group, Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 195
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 in fair value recorded in other gain (loss) on the consolidated statements of operations. In connection with the sale of three of the five warrants by Wafra to a third party in March 2024, the terms of the warrants sold were amended to remove the net cash settlement feature. As a result, three of the warrants were reclassified to equity at their prevailing fair value and are no longer subject to fair value remeasurement (Note 10).The Company's redemption of Wafra's interest in May 2022 also resulted in the assumption of $5.2 million of deferred tax asset. Noncontrolling Interests in Operating CompanyCertain current and former employees of the Company directly or indirectly own interests in OP, presented as noncontrolling interests in the Operating Company. Noncontrolling interests in OP have the right to require OP to redeem part or all of such member’s OP Units for cash based on the market value of an equivalent number of shares of the Company's class A common stock at the time of redemption, or at the Company's election as managing member of OP, through issuance of shares of class A common stock (registered or unregistered) on a one-for-one basis. At the end of each period, noncontrolling interests in OP is adjusted to reflect their ownership percentage in OP at the end of the period, through a reallocation between controlling and noncontrolling interests in OP.

Redemption of OP Units—The Company redeemed OP Units totaling 452,418 in 2024 and 253,084 in 2023 through issuance of an equal number of shares of class A common stock on a one-for-one basis. 

10. Fair ValueRecurring Fair ValuesFinancial assets and financial liabilities carried at fair value on a recurring basis include financial instruments for which the fair value option is elected, but exclude financial assets under the NAV practical expedient. Fair value is categorized into a three tier hierarchy that is prioritized based upon the level of transparency in inputs used in the valuation techniques.

97

Fair Value Measurement Hierarchy(In thousands)Level 1Level 2Level 3TotalDecember 31, 2024AssetsInvestments (Note 4)Marketable equity securities$242 $— $— $242 CLO subordinated notes— — 35,122 35,122 Equity investments of consolidated funds83,269 — 63,154 146,423 Fair Value Option:Equity method investment— — 137,154 137