Company: BL
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001666134-25-000003
Chunk: 164

Company: BLACKLINE, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 164
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 which are a source of taxable income to support the recognition of existing BlackLine deferred tax assets. The Company elected to consider the recoverability of the acquired deferred tax assets before existing BlackLine deferred tax assets. The valuation allowance release associated with the acquired FourQ net deferred tax liabilities resulted in a U.S. deferred tax benefit of $14.2 million for the year ended December 31, 2022. The Company did not provide for U.S. income taxes on the undistributed earnings and other outside temporary differences of foreign subsidiaries as they are considered indefinitely reinvested outside the U.S. At December 31, 2024 and 2023, the amount of temporary differences related to undistributed earnings and other outside temporary differences upon which U.S. income taxes have not been provided is immaterial to these consolidated financial statements.At December 31, 2024, the Company had consolidated state net operating loss carryforwards available to offset future taxable income of approximately $68.0 million. The state losses will begin to expire between 2031 and 2041, depending on the jurisdiction. The Company has federal research and development credits of $5.9 million, which begin to expire in 2043. The Company has state research and development credits of $10.7 million, which are indefinite in expiration. Pursuant to Internal Revenue Code Section 382, use of the Company’s net operating loss carryforwards may be limited if the Company experiences a cumulative change in ownership of more than 50% over a three-year period. The following is a rollforward of the Company’s total gross unrecognized tax benefits (in thousands):Year Ended December 31,202420232022Beginning gross unrecognized tax benefits$7,104 $5,513 $4,266 Increases related to prior year tax positions9,243 274 162 Increases related to current year tax positions2,351 1,317 1,085 Ending gross unrecognized tax benefits$18,698 $7,104 $5,513 At December 31, 2024, included in the balance of unrecognized tax benefits is $18.7 million, that if recognized, would affect the effective tax rate. The Company recorded less than $0.1 million interest and penalties in its provision for income taxes for the years ended December 31, 2024, 2023, and 2022, respectively, and less than $0.1 million was accrued in interest and penalties