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Note 8 - Income Taxes Concept
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

Note 8 – Income Taxes

 

The components of Income before income taxes are:

 

   

2024

    

2023

    

2022

  

United States

   $ 38,548     $ 34,763     $ 6,270  

Foreign countries

     11,945       9,198       7,602  

Total

   $ 50,493     $ 43,961     $ 13,872  

 

The components of income tax expense are:

 

   

2024

    

2023

    

2022

  

Current expense:

                        

Federal

   $ 8,223     $ 6,735     $ 1,581  

Foreign

     2,121       1,591       1,264  

State and local

     1,451       1,098       918  
    $ 11,795     $ 9,424     $ 3,763  

Deferred expense (benefit):

                        

Federal

   $ (1,476 )   $ (206 )   $ (565 )

Foreign

     87       196       147  

State and local

     (28 )     (404 )     (668 )
      (1,417 )     (414 )     (1,086 )

Income tax expense

   $ 10,378     $ 9,010     $ 2,677  

 

The reconciliation between income tax expense and the amount computed by applying the statutory federal income tax rate to income before income taxes is:

 

   

2024

    

2023

    

2022

  

Income taxes at statutory rate

   $ 10,603     $ 9,232     $ 2,913  

State and local income taxes, net of federal tax benefit

     1,094       620       282  

Tax credits

     (1,608 )     (1,208 )     (627 )

Uncertain tax positions

     19       (34 )     (99 )

Valuation allowance

     30       (72 )     (85 )

GILTI/FDII

     512       368       608  

Foreign rate differential

     (300 )     (145 )     (186 )

Other

     28       249       (129 )

Income tax expense

   $ 10,378     $ 9,010     $ 2,677  

 

The Company made income tax payments of $10.2 million, $7.9 million, and $4.5 million in 2024, 2023, and 2022, respectively.

 

Deferred income tax assets and liabilities consist of:

 

   

December 31,

 
   

2024

    

2023

  

Deferred tax assets:

                

Inventories

   $ 1,392     $ 520  

Accrued liabilities

     3,390       3,011  

Postretirement health benefits obligation

     5,526       5,600  

Pension obligation

     1,351       2,386  

Lease liabilities

     4,861       4,916  

Capitalized R&D

     3,124       2,041  

Interest

     12,884       8,703  

Other

     1,190       1,155  

Total deferred tax assets

     33,718       28,332  

Valuation allowance

     (420 )     (390 )

Net deferred tax assets

     33,298       27,942  

Deferred tax liabilities

                

Depreciation and amortization

     (27,935 )     (22,923 )

Leases - right of use assets

     (4,627 )     (4,922 )

Total deferred tax liabilities

     (32,562 )     (27,845 )

Net deferred tax assets (liabilities)

   $ 736     $ 97  

 

The Company had state tax credit carryforwards of $0.4 million and $0.3 million as of December 31, 2024 and 2023, respectively, which will expire incrementally between 2025 and 2036.

 

The Company had valuation allowances of $0.4 million at each of December 31, 2024 and 2023, against certain of its deferred tax assets. ASC 740, Income Taxes, requires that a valuation allowance be recorded against deferred tax assets when it is more likely than not that some or all of a Company’s deferred tax assets will not be realized based on available positive and negative evidence.

 

Total unrecognized tax benefits were $0.7 million at each of December 31, 2024 and 2023. The total amount of unrecognized tax benefits that, if ultimately recognized, would reduce the Company’s annual effective tax rate were $0.6 million at each of December 31, 2024 and 2023. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense for all periods presented. The Company accrued approximately $0.2 million for the payment of interest and penalties at each of December 31, 2024, 2023 and 2022.

 

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

 

   

2024

    

2023

    

2022

  

Balance at beginning of year

   $ 704     $ 754     $ 808  

Additions based on tax positions related to the current year

     217       180       117  

Reductions due to lapse of applicable statute of limitations

     (192 )     (230 )     (171 )

Balance at end of year

   $ 729     $ 704     $ 754  

 

The Company is subject to income taxes in the U.S. federal and various state, local and foreign jurisdictions. Income tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for the years before 2019.