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Note 12 - Income Taxes
 3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

12.

INCOME TAXES

 

The Company's estimated taxable income in future periods is not on a legal entity basis and therefore income tax expense for the interim period is not measured using the annual effective tax rate ("AETR") method. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Company is no longer subject to U.S. federal examinations by tax authorities for years before 2021 and for state examinations before 2018. Regarding foreign subsidiaries, the Company is no longer subject to examination by tax authorities for years before 2014 in Asia and generally 2016 in Europe. 

 

As a result of the expiration of the statutes of limitations for specific jurisdictions, it is reasonably possible that the related unrecognized benefits for tax positions taken regarding previously filed tax returns may change materially from those recorded as liabilities for uncertain tax positions in the Company’s condensed consolidated financial statements at March 31, 2025. The Company’s liabilities for uncertain tax positions totaled $18.3 million at March 31, 2025 and $18.1 million at  December 31, 2024, respectively. As of March 31, 2025, approximately $1.3 million of the Company’s liabilities for uncertain tax positions are expected to be resolved during the next twelve months by way of expiration of the related statute of limitations. These amounts, if recognized, would reduce the Company’s effective tax rate.

 

The Company’s policy is to recognize interest and penalties related to uncertain tax positions as a component of the current provision for income taxes. During each of the three-month periods March 31, 2025 and 2024, the Company recognized $0.1 million of interest and penalties in the condensed consolidated statements of operations for each period. The Company has approximately $1.3 million and $1.2 million accrued for the payment of interest and penalties at  March 31, 2025 and  December 31, 2024, respectively, which is included in liability for uncertain tax positions in the condensed consolidated balance sheets.