Company: EXEEZ
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000895126-25-000021
Chunk: 65

Company: EXPAND ENERGY Corp
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 65
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0.5)%Transaction costs22 (2.6)%— — %2 0.1 %Compensation costs related to acquired company11 (1.2)%— — %— — %Other10 (1.2)%23 0.7 %18 0.5 %Total$(127)15.1 %$698 22.4 %$(1,285)(35.2)%In 2024, the Company’s overall effective tax rate decreased compared to 2023 due to the revaluation of state deferred taxes as a result of Louisiana’s recent enactment of a tax rate decrease and as a result of permanent differences for transaction and compensation costs associated with the Southwestern Merger. The Company’s effective tax rate in 2023 increased from 2022 due to the release of the valuation allowance in 2022 which resulted in that year being a net benefit. 

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TABLE OF CONTENTSEXPAND ENERGY CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Deferred income taxes are provided to reflect temporary differences in the tax basis of assets and liabilities and their reported amounts in the financial statements. The tax-effected temporary differences, net operating loss (“NOL”) carryforwards and excess business interest expense carryforwards that comprise our deferred income taxes are as follows:December 31, 2024December 31, 2023Deferred tax liabilities:Property, plant and equipment$(1,730)$(295)Derivative instruments— (166)Right of use lease asset(36)(25)Other(3)(4)Deferred tax liabilities(1,769)(490)Deferred tax assets:Net operating loss carryforwards1,258 848 Carrying value of debt4 25 Excess business interest expense carryforward777 646 Capital loss carryforwards103 78 Tax credit carryforwards53 15 Contract liabilities261 — Asset retirement obligations123 65 Investments— 1 Future lease payments36 25 Accrued liabilities39 15 Derivative instruments13 — Other24 17 Deferred tax assets2,691 1,735 Valuation allowance(343)(312)Deferred tax assets after valuation allowance2,348 1,423 Net deferred tax asset$579 $933 Reflected in the accompanying balance sheets as:Deferred income tax assets$589