Company: STGW
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000876883-25-000009
Chunk: 152

Company: Stagwell Inc
Filing Date: 2025-03-11
Form: 10-K
Item: Item 8
Chunk 152
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835 $44,001 Tax credits6,719 6,355 7,104 Operating lease liability44,356 50,657 52,442 Interest deductions37,384 36,618 30,681 Accruals and other liabilities1,010 252 2,794 TRA and related step-up, net of amortization27,335 29,007 30,556 Other8,128 13,568 10,584 Gross deferred tax asset163,414 166,292 178,162 Less: valuation allowance(30,583)(26,288)(14,395)Net deferred tax assets$132,831 $140,004 $163,767 Deferred tax liabilities:Right-of-use lease asset - operating leases33,163 38,261 40,012 Property and equipment, net5,065 11,553 9,329 Goodwill and intangibles94,126 83,335 85,990 Residual basis differences— — — Other790 205 940 Total deferred tax liabilities133,144 133,354 136,271 Net deferred tax asset (liability)$(313)$6,650 $27,496 Deferred tax assets$46,926 $47,159 $68,375 Deferred tax liabilities(47,239)(40,509)(40,879)$(313)$6,650 $27,496 Tax Receivables AgreementIn connection with the closing of the Transaction, we entered into the Tax Receivables Agreement (“TRA”) with OpCo and Stagwell Media, pursuant to which we are required to make cash payments to Stagwell Media equal to 85% of certain U.S. federal, state and local income tax or franchise tax savings, if any, that we actually realize, or in certain circumstances are deemed to realize, as a result of (i) increases in the tax basis of OpCo’s assets resulting from exchanges of Paired Units (defined in Note 15) for shares of Class A Common Stock or cash, as applicable, and (ii) certain other tax benefits related to us making payments under the TRA.The Company accounts for amounts payable under the TRA in accordance with ASC 450-Contingencies. We will evaluate the likelihood that we will realize the benefit represented by the deferred tax asset and, to the extent that we estimate that it is