Company: IRDM
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001628280-25-005302
Chunk: 151

Company: Iridium Communications Inc.
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 151
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wards in any year, or in total, may be limited in the future as a result of changes in the Company’s ownership and any limitations imposed by the jurisdictions in which the Company operates.The Company had approximately $42.3 million and $32.3 million of deferred tax assets related to research and development tax credits as of December 31, 2024 and 2023, respectively, that expire in various amounts from 2032 through 2044. As of December 31, 2024 and 2023, the Company established a reserve of approximately $3.5 million and $2.4 million on its estimate of R&D credits, respectively. The Company had approximately $7.9 million and $8.7 million of deferred tax assets related to foreign tax credits as of December 31, 2024 and 2023, respectively, that expire in various amounts through 2034. There is no valuation allowance on foreign tax credits as of December 31, 2024 and 2023.The Company has provided for U.S. income taxes on all undistributed earnings of its significant foreign subsidiaries since theCompany does not indefinitely reinvest these undistributed earnings. The Company measures deferred tax assets and liabilitiesusing tax rates expected to apply to taxable income in the years in which those temporary differences are expected to berecovered or settled. The Company recognizes the effect on deferred tax assets and liabilities of a change in tax rates in incomein the period that includes the enactment date.Uncertain Income Tax PositionsThe Company is subject to income taxes in the U.S. and various state and foreign jurisdictions. Significant judgment is requiredin evaluating tax positions and determining the provision for income taxes. The Company establishes liabilities for tax-relateduncertainties based on estimates of whether, and the extent to which, additional taxes may be due. These liabilities areestablished when the Company believes that certain positions might be challenged despite its belief that its tax return positionsare fully supportable. The Company adjusts these liabilities in light of changing facts and circumstances, such as the outcome of a tax audit. The provision for income taxes includes the impact of changes to these liabilities.The Company had unrecognized tax benefits of approximately $3.5 million as of December 31, 2024 primarily due to additional U.S. tax credits from prior periods. There were unrecognized tax benefits of approximately $2.4 million as of December 31, 2023. Any changes in the next twelve months are not anticipated to have a significant impact