Company: MRCY
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001049521-25-000017
Chunk: 100

Company: MERCURY SYSTEMS INC
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 100
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 the Company incurred $7,231 of severance costs. The Company incurs restructuring and other charges in connection with management's decision to undertake certain actions to realign operating expenses through workforce reductions and the closure of certain Company facilities, businesses and product lines. All of the restructuring and other charges are classified as Operating expenses in the Consolidated Statements of Operations and Comprehensive Loss and any remaining restructuring obligations are expected to be paid within the next twelve months. The restructuring liability is classified as Accrued expenses in the Consolidated Balance Sheets. 

13

The following table presents the detail of charges included in the Company’s liability for restructuring and other charges:Severance & RelatedBalance at June 28, 2024$8,758 Restructuring charges7,231 Cash paid(12,913)Balance at March 28, 2025$3,076 

G.Income Taxes 

The Company recorded an income tax benefit of $2,648 and $12,643 on a loss before income taxes of $21,818 and $57,217 for the third quarters ended March 28, 2025 and March 29, 2024, respectively. The Company recorded an income tax benefit of $14,967 and $43,811 on a loss before income taxes of $69,241 and $170,674 for the nine months ended March 28, 2025, and March 29, 2024, respectively.The effective tax rate for the third quarter and nine months ended March 28, 2025 differed from the federal statutory rate primarily due to federal and state research and development credits, return to provision adjustments, non-deductible compensation, and state taxes. The effective tax rate for the third quarter and nine months ended March 29, 2024 differed from the federal statutory rate primarily due to federal and state research and development credits, non-deductible compensation, stock compensation shortfalls, and state taxes.The Company continues to maintain a valuation allowance on the majority of its foreign net operating loss carryforwards and state research and developmental tax credit carryforwards. Based on forecasted taxable income and the scheduled reversal of the remaining deferred tax assets, the Company believes it is more likely than not that all other deferred tax assets will be recognized.

H.Debt 

REVOLVING CREDIT FACILITYThe Company maintains a 5-year revolving credit facility (the "Revolver") with a maturity extended to February 28, 2027. As of March 28,