Company: MCW
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024533
Chunk: 83

Company: Mister Car Wash, Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1B
Chunk 83
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 for the car wash and it opened to the public in 2023 and an ongoing annual payment based on the achievement of certain financial metrics of the business. A change in the forecasted revenue could result in a significantly lower or higher fair value measurement. We determined that there were no significant changes to the unobservable inputs that would have resulted in a change in fair value of this contingent consideration liability at December 31, 2024. During the year ended December 31, 2024, $422 payment was made. During the year ended December 31, 2023, a payment of $500 was made upon the receipt of the certificate of occupancy.During the years ended December 31, 2024 and 2023, there were no transfers between fair value measurement levels.

11. Interest Rate SwapIn May 2020, we entered into a pay-fixed, receive-floating interest rate swap (the “Swap”) to mitigate variability in forecasted interest payments on an amortizing notional of $550,000 of our variable-rate First Lien Term Loan. We designated the Swap as a cash flow hedge. In October 2022, the interest rate swap expired. For the years ended December 31, 2024, 2023 and 2022, no amounts were reported.

12. LeasesOur incremental borrowing rate for a lease is the rate of interest we expect to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. To determine the incremental borrowing rates used to discount the lease payments, we estimated our synthetic credit rating and utilized market data for similarly situated companies.Balance sheet information related to leases consisted of the following for the periods presented:

        As of

        Classification
         
        December 31, 2024

        December 31, 2023

        Assets

        Operating
         
        Operating right of use assets, net
         
        $
        924,896

        $
        833,547

        Finance
         
        Property and equipment, net

        12,344

        13,315

        Total lease assets

        $
        937,240

        $
        846,862

        Liabilities

        Current:

        Operating
         
        Current maturities of operating lease liability
         
        $
        48,986

        $
        43,979

        Finance
         
        Current maturities of finance lease liability

        804