Company: MRCY
Filing Date: 2025-08-11
Form Type: 10-K
Source: 0001049521-25-000024
Chunk: 116

Company: MERCURY SYSTEMS INC
Filing Date: 2025-08-11
Form: 10-K
Item: Item 8
Chunk 116
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 Taxes

The components of (loss) income before income taxes and income tax (benefit) provision were as follows:Fiscal Years202520242023(Loss) income before income taxes:United States$(53,335)$(183,263)$(42,864)Foreign2,911 (6,012)(5,678)$(50,424)$(189,275)$(48,542)Tax (benefit) provision:Federal:Current$(609)$(19,791)$33,898 Deferred(10,212)(21,274)(54,010)(10,821)(41,065)(20,112)State:Current392 (3,016)10,054 Deferred(2,306)(7,937)(10,200)(1,914)(10,953)(146)Foreign:Current175 95 104 Deferred40 288 (53)215 383 51 $(12,520)$(51,635)$(20,207)

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The following is the reconciliation between the federal statutory income tax rate and the Company’s effective income tax rate:Fiscal Years202520242023Tax benefit at federal statutory rates(21.0)%(21.0)%(21.0)%State income tax, net of federal tax benefit(6.5)(5.9)(5.4)Research and development tax credits(2.0)(3.7)(15.1)Provision to return1.2 (0.1)(0.7)Excess tax provision related to stock compensation0.7 1.4 2.6 Foreign income tax rate differential(0.3)0.2 0.2 Non-deductible compensation4.6 0.9 1.0 Reserves for unrecognized income tax benefits(3.0)0.2 (6.9)Valuation allowance(0.9)0.7 3.8 Foreign derived intangible income(0.3)— (1.4)Global intangible low-taxed income1.3 — — Other1.4 — 1.3 (24.8)%(27.3)%(41.6)%The effective tax rate for fiscal 2025 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 tax provisions related to stock compensation