Company: IHETW
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001400891-25-000009
Chunk: 157

Company: iHeartMedia, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 157
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SIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Significant components of the Company's deferred tax liabilities and assets are as follows:December 31,(In thousands)20242023Deferred tax liabilities:Intangibles$429,054 $548,872 Fixed Assets25,344 57,800 Deferred Income— 22,163 Operating lease right-of-use assets168,976 178,173 Total deferred tax liabilities623,374 807,008 Deferred tax assets:Accrued expenses18,159 12,141 Net operating loss carryforwards119,495 124,388 Interest expense carryforwards453,166 389,236 Long-term debt190,935 — Operating lease liabilities198,823 211,412 Capital loss carryforwards5,119 1,653,021 Investments13,747 17,284 Bad debt reserves11,991 12,452 Other1,265 3,539 Total gross deferred tax assets1,012,700 2,423,473 Less: Valuation allowance492,224 1,956,233 Total deferred tax assets520,476 467,240 Net deferred tax liabilities$102,898 $339,768 The deferred tax liability related to intangibles primarily relates to the difference in book and tax basis of FCC licenses and other intangible assets which in accordance with ASC 350-10, the Company does not amortize for financial reporting purposes. As a result, this deferred tax liability will not reverse over time unless the Company recognizes future impairment charges or sells its FCC licenses. As the Company continues to amortize its tax basis in its FCC licenses, the deferred tax liability will increase over time. The Company’s net foreign deferred tax liabilities for the years ended December 31, 2024 and 2023 were $8.6 million and $10.3 million, respectively.At December 31, 2024, the Company had recorded net operating loss and tax credit carryforwards (tax effected) for federal and state income tax purposes of approximately $119.5 million, expiring in various amounts through 2044 or in some cases with no expiration date. Internal Revenue Code Section 163(j), as amended, generally limits the deduction for business interest expense to thirty percent of adjusted taxable income, and provides that any disallowed interest expense may be carried forward indefinitely. The Company recorded deferred