Company: ACIW
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000935036-25-000006
Chunk: 43

Company: ACI WORLDWIDE, INC.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 15
Chunk 43
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10,062 $(3,490)$7,064 Deferred(12,919)(6,306)(353)Total(2,857)(9,796)6,711 StateCurrent3,069 (2,327)7,993 Deferred(2,390)797 (3,500)Total679 (1,530)4,493 ForeignCurrent47,290 36,020 47,798 Deferred2,179 1,424 5,456 Total49,469 37,444 53,254 Total$47,291 $26,118 $64,458 Differences between the income tax expense computed at the statutory federal income tax rate and per the consolidated statements of operations are summarized as follows (in thousands):Years Ended December 31,202420232022Tax expense at federal rate of 21%$52,586 $31,002 $43,393 State income taxes, net of federal benefit1,558 1,744 2,351 Change in valuation allowance342 1,588 71 Foreign tax rate differential(8,081)(7,658)(12,949)Unrecognized tax benefit increase (decrease)223 (5,726)2,039 Tax effect of foreign operations5,911 10,350 15,336 Tax benefit of research & development(5,492)(5,104)(3,365)Performance-based compensation(424)3,004 2,266 Tax effect of divestiture— (2,900)14,522 Other668 (182)794 Income tax provision$47,291 $26,118 $64,458 The countries having the greatest impact on the tax rate adjustment line shown in the above table as “Foreign tax rate differential” for the three years reported are Ireland and the United Kingdom.

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The deferred tax assets and liabilities result from differences in the timing of the recognition of certain income and expense items for tax and financial accounting purposes. The sources of these differences at each balance sheet date are as follows (in thousands):December 31,20242023Deferred income tax assets:Net operating loss carryforwards$13,636 $15,409 Tax credits23,242 23,197 Compensation16,527 15,478 Deferred revenue11,273 9,873 Operating lease6,796 8,297