Tronox Holdings (TROX), a TiO2 pigment manufacturer, reversed a portion of the valuation allowance for its Australian deferred tax assets (DTAs). Confident it’ll now earn enough taxable income to utilize its Australian DTAs, Tronox reduced the allowance by $314 million, or the equivalent of nearly two thirds of 2022 net income.

The company’s latest annual report includes language that appears in previous filings related to its methodology for uncertain tax positions:

“For those tax positions for which it is more likely than not that a tax benefit will be sustained, we record the amount that has a greater than 50% likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information.”