Company: EXEEZ
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000895126-25-000021
Chunk: 68

Company: EXPAND ENERGY Corp
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 68
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 tax on book income for companies whose average book income exceeds $1 billion for any three consecutive years preceding the tax year. We believe that we are an applicable corporation beginning in 2024 for purposes of this alternative tax. We estimate no tax due to this as a result of the book loss.Accounting guidance for recognizing and measuring uncertain tax positions requires a more likely than not threshold condition be met on a tax position, based solely on the technical merits of being sustained, before any benefit of the tax position can be recognized in the financial statements. Guidance is also provided regarding recognition, classification and disclosure of uncertain tax positions. As of December 31, 2024 and 2023, the amount of unrecognized tax benefits related to NOL carryforwards, tax credit carryforwards, and tax liabilities associated with uncertain tax positions was $80 million and $68 million, respectively. As of December 31, 2024, $24 million is related to 

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

state tax receivables not expected to be recovered, $14 million is related to a liability for tax credits taken, $9 million is related to tax credit carryforwards, and the remainder is related to NOL carryforwards. As of December 31, 2023, $24 million is related to state tax receivables not expected to be recovered, $10 million is related to a liability for tax credits taken, and the remainder is related to NOL carryforwards. If recognized, $47 million of the uncertain tax positions identified would have an effect on the effective tax rate. As of December 31, 2024, we had $1 million accrued for interest related to these uncertain tax positions. As of December 31, 2023, we had no amounts accrued for interest related to these uncertain tax positions. We recognize interest related to uncertain tax positions as a component of interest expense. Penalties, if any, related to uncertain tax positions would be recorded in other expenses.A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows:Years Ended December 31,202420232022Unrecognized tax benefits at beginning of period$68 $69 $74 Additions based on tax positions related to the current year3 3 2 Additions to tax positions of prior years1 3 2 Additions