Company: APPN
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001441683-25-000017
Chunk: 137

Company: APPIAN CORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 137
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 $26.2 million against foreign deferred tax assets at our subsidiary in Switzerland. Based on our cumulative operating results as of December 31, 2024 and assessment of our expected future results of operations, we determined it was not more likely than not we would be able to realize the deferred tax assets prior to expiration. We plan to distribute previously undistributed earnings of our foreign subsidiaries back to the United States in future years. Upon repatriation of those earnings, if any, we may be subject to taxes, including withholding taxes, net of any applicable foreign tax credits. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable.

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APPIAN CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2024 and 2023, we had unrecognized tax benefits of $7.8 million and $6.5 million, respectively, none of which would affect our effective tax rate if recognized due to the valuation allowance. The following table summarizes the activity related to our unrecognized tax benefit from December 31, 2021 to December 31, 2024 (in thousands): Balance as of December 31, 2021$3,089 Additions for tax positions in current years 1,399 Additions for tax positions in prior years — Reductions due to lapse in statutes of limitations — Settlements — Balance as of December 31, 20224,488 Additions for tax positions in current years 1,740 Additions for tax positions in prior years 256 Reductions due to lapse in statutes of limitations — Settlements — Balance as of December 31, 20236,484 Additions for tax positions in current years 1,374 Reductions for tax positions in prior years (18)Reductions due to lapse in statutes of limitations — Settlements — Balance as of December 31, 2024$7,840 We recognize interest and penalties related to uncertain tax positions in income tax expense. Our uncertain tax positions primarily relate to federal research and development tax credits. During the years ended December 31, 2024, 2023, and 2022, we recognized nominal amounts in interest. The cumulative balances of interest and penalties as of December 31, 2024 and 2023 were immaterial. We anticipate total unrecognized tax benefits will not decrease over the next year. We file income tax