The table below summarizes pre-tax NOL carryforwards and their respective anticipated expirations for state and local income tax purposes of approximately $12.6 billion ($568 million, net of tax) for FirstEnergy, of which approximately $3.9 billion ($199 million, net of tax) is expected to be utilized based on current estimates and assumptions. The ultimate utilization of these NOLs may be impacted by statutory limitations on the use of NOLs imposed by state and local tax jurisdictions, changes in statutory tax rates, and changes in business which, among other things, impact both future profitability and the manner in which future taxable income is apportioned to various state and local tax jurisdictions. Expiration Period State Local (In millions) 2023-2027 $ 2,479 $ 4,317 2028-2032 1,603 — 2033-2037 876 — 2038-2042 935 — Indefinite 2,351 — $ 8,244 $ 4,317 The following table summarizes the changes in valuation allowances on federal, state and local DTAs related to disallowed interest and certain employee remuneration, in addition to state and local NOLs discussed above for the years ended December 31, 2022, 2021 and 2020: (In millions) 2022 2021 2020 Beginning of year balance $ 484 $ 496 $ 441 Charged to income (44) (12) 55 Charged to other accounts — — — Write-offs — — — End of year balance $ 440 $ 484 $ 496 FirstEnergy accounts for uncertainty in income taxes recognized in its financial statements. A recognition threshold and measurement attribute are utilized for financial statement recognition and measurement of tax positions taken or expected to be taken on the tax return. If ultimately recognized in future years, approximately $41 million of unrecognized income tax benefits would impact the effective tax rate. As of December 31, 2022, it is reasonably possible that approximately $25 million of unrecognized tax benefits may be resolved during 2023 as a result of settlements with taxing authorities or the statute of limitations expiring, of which $24 million would ultimately affect FirstEnergy's effective tax rate. The following table summarizes the changes in unrecognized tax positions for the years ended December 31, 2022, 2021 and 2020: (In millions) Balance, January 1, 2020 $ 164 Current year increases 7 Prior year decreases (28) Effectively settled with taxing authorities (2) Decrease for lapse in statute (2) Balance, December 31, 2020 $ 139 Current year increases 15 Prior year decreases (8) Effectively settled with taxing authorities (97) Decrease for lapse in statute (2) Balance, December 31, 2021 $ 47 Prior years increases 2 Decrease for lapse in statute (7) Balance, December 31, 2022 $ 42 100
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