Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 156

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 7A
Chunk 156
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 and it is unlikely that the plan will be significantly changed or withdrawn.

Upon
classification as held for sale, the assets are measured at the lower of their carrying amount or fair value less costs to sell. Any
loss resulting from remeasurement is recognized in the consolidated statements of operations. Depreciation of assets classified as held
for sale ceases at the time of classification.

Assets
meeting the held-for-sale criteria are presented separately as Assets held for sale in the consolidated balance sheets. Because the planned
sale does not represent a strategic shift that would have a major effect on the Company’s operations or financial results, the
results of operations and cash flows of the property continue to be reported within continuing operations. No liabilities have been reclassified
to Liabilities held for sale as the related obligations are not expected to transfer to the buyer.

Interest
Rate Cap

The
Company uses interest rate cap agreements to manage exposure to increases in interest rates on its variable-rate debt obligations. Interest
rate cap premiums are recorded on the balance sheets at fair value on the date the agreements are executed and are subsequently remeasured
to fair value at each reporting date.

All
changes in fair value are recognized in earnings within other income (expense). The Company is required, pursuant to certain debt agreements,
to maintain interest rate caps for specified periods or replace them upon expiration.

Revenue
Recognition

The
Company recognizes revenue in accordance with ASC 606 (Hotel and ancillary services) and ASC 842 (real estate leasing)

Performance
Obligations

We
identified the following performance obligations for which revenue is recognized as the respective performance obligations are satisfied,
which results in recognizing the amount we expect to be entitled to for providing the goods or services:

    ●
    Cancelable room reservations
    or ancillary services are typically satisfied as the good or service is transferred to the hotel guest, which is generally when
    the room stay occurs.

    ●
    Non-cancelable room
    reservations and banquet or conference reservations represent a series of distinct goods or services provided over time and satisfied
    as each distinct good or service is provided, generally over the reservation/event period; nonrefundable deposits are recognized
    as revenue when the related services are provided or when cancellation occurs consistent with the contract terms.

    ●
    Other ancillary goods
    and services are purchased independently of the room reservation at standalone selling prices and are considered separate performance
    obligations, which are satisfied when the related good or service is provided to the hotel guest