Company: MRCY
Filing Date: 2025-08-11
Form Type: 10-K
Source: 0001049521-25-000024
Chunk: 118

Company: MERCURY SYSTEMS INC
Filing Date: 2025-08-11
Form: 10-K
Item: Item 8
Chunk 118
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 $42,877, which have an indefinite life, gross state net operating loss carryforwards of $47,591, which will expire starting in fiscal year 2040 and gross foreign net operating loss carryforwards of $21,226 which will expire starting in fiscal year 2028. The Company maintains a valuation allowance on all foreign net operating loss carryforwards.The Company is subject to taxation in the U.S. (federal and state) and various foreign jurisdictions that it operates in. The Company has established income tax reserves for potential additional income taxes based upon management’s assessment, including recognition and measurement. All income tax reserves are analyzed quarterly, and adjustments are made as events occur and warrant modification.The changes in the Company’s income tax reserves for gross unrecognized income tax benefits, including interest and penalties, are summarized as follows:Fiscal Years20252024Unrecognized tax benefits, beginning of period$7,713 $5,165 Increases for tax positions taken related to a prior period— 3,371 Increases for tax positions taken during the current period518 3,083 Decreases for tax positions taken related to a prior period(3,094)(2,971)Decreases as a result of a lapse of the applicable statute of limitations(1,091)(935)Unrecognized tax benefits, end of period$4,046 $7,713 

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The Company has $4,046 of unrecognized tax benefits as of June 27, 2025. If released, all $4,046 of these unrecognized income tax benefits would reduce the Company's income tax provision.The Company includes interest and penalties related to unrecognized tax benefits within the provision for income taxes.  The total amount of interest and penalties accrued was $878 and $1,374 as of June 27, 2025 and June 28, 2024, respectively, and the amount of interest and penalties (released) accrued and recognized was $(496) and $791 during June 27, 2025 and June 28, 2024, respectively. 

The Company’s major tax jurisdiction is the U.S. (Federal and state) and the open tax years are fiscal 2019 through 2025. 

K.Commitments and Contingencies

LEGAL CLAIMSThe Company is subject to litigation, claims, investigations and audits arising from time to time in the ordinary course of business. Although legal proceedings are inherently unpredictable, the Company believes that it has valid defenses with respect to any matters currently pending against