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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Components of the provision for income taxes are as follows (in thousands):
202420232022
Current:
Federal$1,829 $26 $(18)
Foreign1,805 2,835 5,896 
State and local75 88 (27)
3,709 2,949 5,851 
Deferred:
Federal812 2,844 (3,533)
Foreign(406)(451)80 
State and local67 80 (16)
473 2,473 (3,469)
Provision for income taxes$4,182 $5,422 $2,382 
A reconciliation of the income tax provision based on the federal statutory income tax rate to the Company's income tax provision for the years ended December 31 is as follows (in thousands):
202420232022
Provision at United States federal statutory rate$3,671 $5,407 $3,063 
U.S. federal valuation allowance— — (2,363)
State and Local tax expense126 (6)(42)
Effect of foreign taxes534 143 1,519 
Foreign Direct Investment(451)(153)— 
Permanent Compensation Differences429 (94)228 
Other(127)125 (23)
Provision for income taxes$4,182 $5,422 $2,382 
At December 31, 2024, a provision has not been made for U.S. taxes on accumulated undistributed earnings of approximately $34,148,000 and $20,553,000 of the Company's Canadian and Mexican subsidiaries, respectively, that would become payable upon repatriation to the United States. At December 31, 2023, a provision has not been made for U.S. taxes on accumulated undistributed earnings of approximately $32,622,000 and $19,153,000 of the Company's Canadian and Mexican subsidiaries, respectively, that would become payable upon repatriation to the United States. It is the intention of the Company to reinvest all such earnings in operations and facilities outside of the United States. It is not practicable to estimate the amount of deferred tax liability related to investments in these foreign subsidiaries.
The Company evaluates the balance of deferred tax assets that will be realized based on the premise that the Company is more likely than not to realize deferred tax benefits through the generation of future taxable income. Management makes assumptions, judgments, and estimates to determine our current and deferred tax provision and also the deferred tax assets and liabilities. The Company evaluates provisions and deferred tax assets quarterly to determine if adjustments to our valuation allowance are required based on the consideration of all available evidence.
As of December 31, 2024 the Company had a net deferred tax asset of $1,454,000 and $183,000 related to tax positions in Mexico and Canada and deferred tax liabilities of $1,219,000 related to tax positions in the United States. Deferred tax assets are included in "Other non-current assets" on the Consolidated Balance Sheets and deferred tax liabilities are included in "Other non-current liabilities" on the Consolidated Balance Sheets. As of December 31, 2024, the Company had a valuation allowance of $1,265,000 against the deferred tax asset related to local (city) jurisdiction tax positions, due to cumulative losses over the last three years in the local jurisdiction and uncertainty related to the Company’s ability to realize the deferred assets. The Company believes that the net deferred tax assets associated with the Mexican and Canada tax jurisdictions are more-likely-than-not to be realizable based on estimates of future taxable income.
As of December 31, 2023 the Company had a net deferred tax asset of $1,595,000 related to tax positions in Mexico and deferred tax liabilities of $1,182,000 and $43,000 related to tax positions in the United States and Canada. Deferred tax assets are included in "Other non-current assets" on the Consolidated Balance Sheets and deferred tax liabilities are included in "Other non-current liabilities" on the Consolidated Balance Sheets. As of December 31, 2023, the Company had a valuation allowance of $1,530,000 against the deferred tax asset related to local tax positions, due to cumulative losses in the local jurisdiction over the last three years and uncertainty related to the Company’s ability to realize the deferred assets. The Company believes that the deferred tax assets associated with the Mexican tax jurisdictions are more-likely-than-not to be realizable based on estimates of future taxable income.
Deferred tax assets consist of the following at December 31:
20242023
U.S. federal net operating loss carryforwards$— $442 
U.S. local operating loss carryforwards1,273 1,553 
Interest limitation carryforwards— 1,162 
Accrued liabilities586 595 
Accounts receivable53 32 
Inventory220 211 
Property, plant, and equipment(5,303)(6,065)
Post retirement benefits1,034 1,024 
Goodwill and finite-lived assets, net2,112 2,151 
Other, net1,708 795 
Total deferred tax asset1,683 1,900 
Valuation allowance for deferred tax assets(1,265)(1,530)
Total deferred tax asset, net$418 $370 
At December 31, 2024 the Company had no net operating loss carryforwards in United States, Canada or Mexico federal tax jurisdictions. At December 31, 2023, the Company's net operating loss carryforwards and interest limitation carryforwards in the United States federal tax jurisdiction were $2,100,000 and $4,945,000, respectively. At December 31, 2023, the Company had no net operating loss carryforwards in Canada or Mexico federal tax jurisdictions.
At December 31, 2024 and 2023 the Company had no liability for unrecognized tax benefits under guidance relating to tax uncertainties. The Company does not anticipate that the unrecognized tax benefits will significantly change within the next twelve months.
The Company files income tax returns in the United States, Mexico, Canada and various state and local jurisdictions. The Company is not subject to United States federal income tax examinationsfor years before 2021. The Company is not subject to state examinations for years before 2021. The Company is not subject to Mexican income tax examinations by for the years before 2019 and is not subject to Canadian income tax examinations for the years before 2020.