Company: MRCY
Filing Date: 2025-08-11
Form Type: 10-K
Source: 0001049521-25-000024
Chunk: 117

Company: MERCURY SYSTEMS INC
Filing Date: 2025-08-11
Form: 10-K
Item: Item 8
Chunk 117
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.The effective tax rate for fiscal 2024 differed from the federal statutory rate primarily due to federal and state research and development tax credits and state taxes, partially offset by tax provisions related to stock compensation. The effective tax rate for fiscal 2023 differed from the federal statutory rate primarily due to federal and state research and development tax credits, releases to reserves for unrecognized income tax benefits and state taxes, partially offset by valuation allowances recorded and tax provisions related to stock compensation.  

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The components of the Company’s net deferred tax assets (liabilities) were as follows:As of June 27, 2025June 28, 2024Deferred tax assets:Inventory valuation and receivable allowances$26,968 $23,799 Accruals13,138 10,852 Stock compensation4,477 6,700 Federal and state research and development tax credit carryforwards18,605 17,762 Research and development expenditures57,997 68,728 Interest expense carryforward11,620 5,289 Federal and state net operating loss carryforward3,277 2,357 Foreign net operating loss carryforward3,435 4,004 Operating lease liabilities17,493 20,107 Deferred revenue2,951 1,135 Other316 204 160,277 160,937 Valuation allowance(17,416)(17,575)Total deferred tax assets142,861 143,362 Deferred tax liabilities:Property and equipment(9,861)(13,647)Intangible assets(48,280)(50,935)Operating lease right-of-use assets, net(14,164)(16,493)Other(1,540)(3,675)Total deferred tax liabilities(73,845)(84,750)Net deferred tax assets$69,016 $58,612 At June 27, 2025, the Company has gross state research and development tax credit carryforwards of $16,443, $12,990 net of federal benefit, of which a portion will expire each fiscal year through fiscal year 2040. The Company maintains a valuation allowance on the majority of the Company’s state research and development tax credit carryforwards. The Company has gross federal research and development tax credit carryforwards of $5,351, of which a portion will expire starting in fiscal year 2039.At June 27, 2025, the Company has gross interest expense carryforwards of