Company: UP
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001819516-25-000012
Chunk: 308

Company: Wheels Up Experience Inc.
Filing Date: 2025-03-11
Form: 10-K
Item: Item 8
Chunk 308
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 to income taxes in the various foreign jurisdictions in which we operate.Income Tax ExpenseThe components of income (loss) before income taxes are follows (in thousands):Year Ended December 31,202420232022Domestic$(342,405)$(493,787)$(555,889)Foreign3,996 7,783 512 Loss before income taxes$(338,409)$(486,004)$(555,377)The components of income tax expense are as follows (in thousands):

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Year Ended December 31,202420232022Current income taxesFederal$— $— $— State and local150 139 101 Foreign2,574 1,999 202 Total current income taxes2,724 2,138 303 Deferred income taxesFederal— — — State and local— (2)(13)Foreign(1,498)(753)(120)    Total deferred income taxes(1,498)(755)(133)Income tax expense$1,226 $1,383 $170 A reconciliation from the statutory federal income tax rate to the effective income tax rate is as follows:Year Ended December 31,202420232022Expected federal income taxes at statutory rate21.0 %21.0 %21.0 %State and local income taxes— — — Permanent differences(1.1)(0.4)(0.5)Partnership earnings not subject to tax— — — Foreign tax rate differential(0.3)(0.3)— Change in valuation allowance(20.1)(20.6)(20.5)Effective income tax rate(0.5)%(0.3)%— %Our effective tax rate for the years ended December 31, 2024, 2023 and 2022 differs from the federal statutory rate of 21% primarily due to a full valuation allowance against our net deferred tax assets where it is more likely than not that the deferred tax assets will not be realized. 

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Deferred Tax Assets and Liabilities The components of deferred tax assets and liabilities, which are presented within other assets in the consolidated balance sheets, are as follows (in thousands):December 31, 2024December 31, 2023Deferred tax assetsInvestment in partnership$160,644 $98,322 Net operating loss carryforwards197,493 145,683 Transaction costs1,103