Company: ACEL
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001698991-25-000011
Chunk: 99

Company: Accel Entertainment, Inc.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 16
Chunk 99
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3,284 Lease liabilities2,397 2,589   Capitalized research & experimental costs2,481 1,159 Other3,144 2,867 31,203 26,088 Deferred tax liabilities:Property and equipment58,471 53,804 Location contracts and other intangibles15,282 9,348 Lease assets2,294 2,524 Interest rate caplets1,585 3,008 Other943 154 78,575 68,838   Total deferred tax liability, net$47,372 $42,750 A valuation allowance is required to be established or maintained when, based on currently available information, it is more likely than not that all or a portion of a deferred tax asset will not be realized. The guidance on accounting for income taxes provides important factors in determining whether a deferred tax asset will be realized, including whether there has been sufficient taxable income in recent years and whether sufficient taxable income can reasonably be expected in future years in order to utilize the deferred tax asset.The Company evaluated the need to record a valuation allowance for deferred tax assets based on an assessment of whether it is more likely than not that deferred tax benefits will be realized through the generation of future taxable income. Appropriate consideration was given to all available evidence, both positive and negative, in assessing the need for a valuation allowance. As a result of this evaluation, the Company concluded as of December 31, 2024, that the positive evidence outweighed the negative evidence and that it is more likely than not that its deferred tax assets will be realized.As of December 31, 2024, and 2023, the Company did not record a liability for unrecognized tax benefits. The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. As of December 31, 2024, the Company is subject to U.S federal income tax examinations for the years 2021 through 2023 and income tax examinations from state jurisdictions for the years 2021 through 2023.The following table summarizes carryforwards of net operating losses as of December 31 (in thousands):20242023AmountExpirationAmountExpirationState net operating losses106,110 2030106,690 2030Significant equity restructuring often results in an Internal Revenue Code Section 382 ownership change that limits the future use of net operating loss (“NOL”) carryforwards and other tax attributes. With regard