Company: FLYW
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000950170-25-027078
Chunk: 58

Company: Flywire Corp
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 58
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        $
        (40,444
        )
         
        $
        (37,627
        )
         
        $
        (23,864
        )

        Change recorded to income tax provision as part of    operations

        (3,747
        )

        (2,817
        )

        (13,763
        )

        Valuation allowance at end of year
         
        $
        (44,191
        )
         
        $
        (40,444
        )
         
        $
        (37,627
        )
       
      The Company permanently reinvests the earnings of its foreign subsidiaries. No additional income taxes have been provided on the indefinitely invested foreign earnings at December 31, 2024. The Company has approximately $51.2 million of unremitted earnings at December 31, 2024, which the Company believes to approximate the outside basis difference in its foreign subsidiaries. If these earnings were distributed, the Company could be subject to income taxes and foreign withholding taxes. As of December 31 2024, the amount of the unrecognized deferred taxes on these earnings are not material.As of December 31, 2024, 2023 and 2022, the Company accrued $1.3 million, $0.8 million and $0.8 million related to uncertain tax positions, inclusive of interest and penalties, respectively, which includes potential tax benefits of $1.0 million, $0.5 million and $0.6 million, respectively, that, when recognized, would impact the effective tax rate. As of December 31, 2024, $0.8 million of the reserve is reflected as a reduction to deferred taxes and the remaining balance is recorded as a component of other liabilities in the consolidated balance sheet.A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

        Year Ended December 31,

        2024

        2023

        2022

        Balance at beginning of year
         
        $
        620

        $
        659

        $
        889

        Settlements with taxing authorities

        —

        —

        Increases (decreases) related to tax positions taken during    prior years

        432

        —

        (170
        )

        Decreases related to lapses in statute of limitations

        (133
        )

        (39
        )

        (60
        )

        Increases related to tax