Company: SGBAF
Filing Date: 2025-01-17
Form Type: DRS/A
Source: 0000950123-25-000378
Chunk: 423

Company: SES S.A.
Filing Date: 2025-01-17
Form: DRS/A
Chunk 423
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CODI”) from taxable income but must reduce certain of its tax
attributes by the amount of any CODI realized as a result of the consummation of a plan of reorganization. The amount of CODI realized by a taxpayer is determined based on the fair market value of the consideration received by the creditors in
settlement of outstanding indebtedness. Upon emergence from Chapter 11 bankruptcy proceedings, CODI may reduce some or all of the amount of prior U.S. tax attributes, which can include net operating losses, general business credits, capital losses,
and tax basis in assets. The actual reduction in tax attributes occurred effective December 31, 2022. The Company’s amount of remaining U.S. deferred tax assets, against which a partial valuation exists, will be limited under IRC
Section 382 due to the change in control resulting from the Final Plan.

The Company has evaluated the impact of the reorganization,
including the change in control, resulting from its emergence from bankruptcy. The post-Emergence Company was able to fully absorb the CODI realized by the pre-Emergence Company in connection with the
reorganization as an offset to current year operating losses without impacting its net historical operating losses, general business credits, capital losses, and tax basis in assets. The tax attribute limitation rules under IRC Section 382 are
subject to favorable modification by items such as recognized built-in gain (“RBIG”) income. During 2023, the Company recognized $3.67B of Acceleration Relocation Payments from the FCC which
represent RBIG income. As a result of this RBIG income inclusion, a material portion of U.S. deferred tax assets consisting of net operating losses and IRC Section 163(j) interest expense will be utilized in tax year 2023. For years beyond
2023, it is more likely than not that the Company will not fully realize future income tax benefits related to its remaining U.S. net deferred tax asset based on the IRC Section 382 limitation, historical results, and expected market conditions
known on the date of measurement, and the Company has therefore maintained a partial valuation allowance against the remaining U.S. net deferred tax asset. This is periodically reassessed and could change in the future.

Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions in which the Company operates. The legislation will
be effective for the Company’s financial year beginning January 1, 2024.

F-158

Confidential Treatment Requested by SES Pursuant to 17 C.F