Company: VSAT
Filing Date: 2025-05-27
Form Type: 10-K
Source: 0000950170-25-077138
Chunk: 141

Company: VIASAT INC
Filing Date: 2025-05-27
Form: 10-K
Item: Item 6
Chunk 141
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 TDL Sale. During the second quarter of fiscal year 2023, the Company determined it is more likely than not that a majority of its California R&D tax credits will not be realized due to reduced taxable income apportioned to California in connection with the Link-16 TDL Sale. As a result, during the second quarter of fiscal year 2023, the Company recorded a valuation allowance of $69.0 million. The Company will continue to monitor its business strategies, weighing positive and negative evidence in assessing its realization of this asset in the future. In the event there is a need to release the valuation allowance, a tax benefit will be recorded.The following table summarizes the activity related to the Company’s unrecognized tax benefits:  

         As of

         March 31, 2025

         March 31, 2024

         March 31, 2023

         (In thousands)

         Balance, beginning of fiscal year
          
         $
         185,595

         $
         129,738

         $
         112,806

         Increase related to prior year tax positions

         1,571

         2,728

         2,549

         Decrease related to prior year tax positions

         (253
         )

         (190
         )

         (632
         )

         Increase related to current year tax positions

         14,017

         15,608

         16,123

         Increase related to business combinations
          
         —

         54,193

         —

         Expiration of the statute of limitations for the assessment of taxes

         (12,744
         )

         (16,482
         )

         (1,108
         )

         Balance, end of fiscal year
          
         $
         188,186

         $
         185,595

         $
         129,738

        Of the total unrecognized tax benefits at March 31, 2025, $13.6 million would reduce the Company’s annual effective tax rate if recognized, based on the Company's valuation allowance position at March 31, 2025. It is reasonably possible that there will not be a significant change in uncertain tax balances in the next 12 months. 

F-47

VIASAT, INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued) 

The Company’s policy is to recognize interest expense and penalties related to income tax matters as