Company: BWNB
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001630805-25-000007
Chunk: 99

Company: Babcock & Wilcox Enterprises, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 99
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 of the IRC limits, for U.S. federal income tax purposes, the annual use of NOL carryforwards (including previously disallowed interest carryforwards) and tax credit carryforwards, respectively, following an ownership change. Under IRC Section 382, an ownership change occurs if shareholders owning at least 5% of our common stock have increased their collective holdings by more than 50% during the prior three-year period. Based on information that is publicly available, we determined that a Section 382 ownership change occurred in July 2019. As a result of this change in ownership, we estimated that the future utilization of our federal NOLs (and certain credits and previously disallowed interest deductions) will become limited to approximately $1.2 million annually ($0.3 million tax effected) We maintain a full valuation allowance on the majority of its U.S. deferred tax assets, including the deferred tax assets associated with the federal NOLs, credits and disallowed interest carryforwards.Undistributed earnings of certain foreign subsidiaries amounted to approximately $169.3 million. We no longer intend to assert indefinite reinvestment with respect to all of the undistributed earnings in foreign subsidiaries. We have recognized a deferred tax liability in the amount of $3.9 million.We recognize the benefit of a tax position when we conclude that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. A recognized tax benefit is measured as the largest amount of benefit, on a cumulative probability basis, which is more likely-than-not to be realized upon settlement. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Below is a tabular roll-forward of the beginning and ending aggregate unrecognized tax benefits on a continuing operations basis:Year ended December 31,(in thousands)202420232022Balance at beginning of period$37,329 $36,196 $36,419 Increases based on tax positions taken in prior years— — 1,829 Decreases based on tax positions taken in prior years— (9)— Decreases due to lapse of applicable statute of limitation(512)— — Currency translation adjustments(1,951)1,142 (2,052)Balance at end of period$34,866 $37,329 $36,196 Unrecognized tax benefits of $2.5 million would, if recognized, impact the effective tax rate. The remaining balance