Company: STGW
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000876883-25-000009
Chunk: 134

Company: Stagwell Inc
Filing Date: 2025-03-11
Form: 10-K
Item: Item 8
Chunk 134
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 tax, repairs and maintenance, and 

82

other variable operating expenses. Such amounts are not included in the measurement of the lease liability and are recognized in the period when the facts and circumstances which the variable lease payments are based upon occur.Some of the Company’s leases include options to extend or renew the leases through 2044. The renewal and extension options are not included in the lease term as the Company is not reasonably certain that it will exercise its option.From time to time, the Company enters into sublease arrangements with unrelated third parties. These subleases are classified as operating leases and expire between years 2025 through 2032. Sublease income is recognized over the lease term on a straight-line basis. Currently, the Company subleases office space in North America and Europe.As of December 31, 2024, the Company had entered into one operating lease for which the commencement date had not yet occurred because the premises is being prepared for occupancy by the landlord. Accordingly, this one lease represents an obligation of the Company that is not reflected within the Consolidated Balance Sheets as of December 31, 2024. The aggregate future liability related to this lease was $0.1 million.The discount rate used for leases accounted for under ASC 842 is the Company’s collateralized credit adjusted borrowing rate.The following table presents lease costs and other quantitative information for the years ended December 31,: 202420232022Lease Cost:(dollars in thousands)Operating lease cost$75,117$76,750$75,190 Variable lease cost23,78220,92418,575 Sublease rental income(8,404)(9,659)(14,446)Total lease cost$90,495$88,015$79,319 Additional information:Cash paid for amounts included in the measurement of lease liabilities for operating leasesOperating cash flows$85,283$88,955$91,300 Right-of-use lease assets obtained in exchange for operating lease liabilities and other non-cash adjustments (1)$22,105$37,259$27,761 (1) Includes Right-of-use lease assets obtained in exchange for operating lease liabilities related to acquisitions.As of December 31, 2024, the weighted average remaining lease term was 5.8 years, and the weighted average discount rate was 5.6%.Operating lease expense is included in Office and general expenses in the Consolidated Statements of Operations. The Company’s lease expense for leases with a term of 12 months or less is imm