Company: ZM
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001585521-25-000042
Chunk: 171

Company: Zoom Communications, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 171
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million for state income tax purposes, which will begin to expire in the year 2033 if unused. We also had certain foreign net operating loss carryforwards of $22.4 million, which have an indefinite life.As of January 31, 2025, we also had research and development credit carryforwards of approximately $1.2 million for federal income tax purposes and $23.4 million for state income tax purposes. The federal research and development tax credits have a twenty-year carryover period while the state research and development tax credits carry forward indefinitely.We indefinitely reinvest earnings from our foreign subsidiaries and therefore no deferred tax liability has been recognized on the basis difference created by such earnings. We have not provided foreign withholding taxes for any undistributed earnings of our foreign subsidiaries.

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A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows:Unrecognized Tax Benefits (in thousands)Year Ended January 31, 202520242023   Balance, beginning of year$41,772 $30,404 $19,171 Tax Positions taken in prior year:Gross increases931 228 877 Gross decreases— — — Tax Positions taken in current year:Gross increases13,650 12,415 10,547 Gross decreases(19)(891)— Lapse of Statute of Limitations— (384)(191)Acquisitions— — — Balance, end of year$56,334 $41,772 $30,404 As of January 31, 2025, gross unrecognized tax benefits related to uncertain tax positions were $56.3 million ($66.0 million total, including $9.7 million associated with interest and penalties). As of January 31, 2024, gross unrecognized tax benefits related to uncertain tax positions were $41.8 million ($46.5 million total, including $4.7 million associated with interest and penalties). As of January 31, 2023, gross unrecognized tax benefits related to uncertain tax positions were $30.4 million ($32.5 million total, including $1.6 million associated with interest and penalties). We recognized approximately $9.7 million, $4.7 million, and $1.6 million in potential interest and penalties associated with uncertain tax positions during fiscal years ended January 31, 2025, 2024, and