XML 31 R16.htm IDEA: XBRL DOCUMENT
v3.25.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of income tax benefit are as follows:
|  | Year Ended December 31,
In thousands |  | 2024 |  | 2023
Current |  |  |  |
Federal |  | $ | — |  |  | $ | (10) |
State and local |  | 428 |  |  | 264 |
Foreign |  | 1,214 |  |  | 871 |
Total current |  | $ | 1,642 |  |  | $ | 1,125 |
Deferred |  |  |  |
Federal |  | $ | (7,729) |  |  | $ | (1,340) |
State and local |  | (1,446) |  |  | (216) |
Foreign |  | (104) |  |  | 82 |
Total deferred |  | $ | (9,279) |  |  | $ | (1,474) |
Total income tax benefit |  | $ | (7,637) |  |  | $ | (349) |
The U.S. and foreign components of loss before income taxes were as follows:
|  | Year Ended December 31,
In thousands |  | 2024 |  | 2023
United States |  | $ | (43,860) |  |  | $ | (7,546) |
Foreign |  | 5,926 |  |  | 5,627 |
Total loss before income taxes |  | $ | (37,934) |  |  | $ | (1,919) |
The provision (benefit) for income taxes is based on the various rates set by federal, foreign and local authorities and is affected by permanent and temporary differences between financial accounting and tax reporting requirements. The principal reasons for the difference between the statutory rate and the annual effective rate for 2024 and 2023 were the state taxes, change in valuation allowance, federal and foreign income tax credits and the benefit of excess stock benefits on vested restricted stock, offset by flow-through partnership income from a United Kingdom affiliate. The differences between total income tax benefit and the amount computed by applying the statutory federal income tax rate of 21% to income (loss) before income taxes were as follows:
|  | Year Ended December 31,
In thousands |  | 2024 |  | 2023
Computed expected income tax benefit |  | $ | (7,966) |  |  | $ | (403) |
Net effect of state income taxes |  | (1,885) |  |  | (206) |
Foreign subsidiary dividend inclusions |  | 666 |  |  | 507 |
Foreign tax rate differential |  | 42 |  |  | (257) |
Change in valuation allowance |  | 991 |  |  | (562) |
Return to Provision |  | 599 |  |  | 706 |
Change in Rate |  | (125) |  |  | 165 |
Credits |  | (346) |  |  | (543) |
Adjustments to State Attributes |  | 565 |  |  | (137) |
Other Adjustments, net |  | (178) |  |  | 381 |
Income tax benefit |  | $ | (7,637) |  |  | $ | (349) |
The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities were as follows:
|  | Year Ended December 31,
In thousands |  | 2024 |  | 2023
Deferred tax assets |  |  |  |
Deferred compensation and retirement plan |  | $ | — |  |  | $ | 9,667 |
Accrued expenses not deductible until paid |  | 173 |  |  | 1,177 |
Lease liability |  | 6,201 |  |  | 6,979 |
Investment in foreign subsidiaries, outside basis difference |  | 1,930 |  |  | 1,604 |
Interest Expense limitations |  | 1,167 |  |  | 971 |
Other, net |  | 1,979 |  |  | 1,320 |
Foreign net operating loss carryforwards |  | 1,325 |  |  | 1,382 |
State net operating loss carryforwards |  | 7,709 |  |  | 5,309 |
Federal net operating loss carryforwards |  | 9,585 |  |  | — |
Foreign tax credit carryforwards |  | 3,726 |  |  | 3,730 |
General Business Credit Carryovers |  | 591 |  |  | 538 |
Total gross deferred tax assets |  | 34,386 |  |  | 32,677 |
Less valuation allowances |  | (8,082) |  |  | (7,091) |
Net deferred tax assets |  | $ | 26,304 |  |  | $ | 25,586 |
Deferred tax liabilities |  |  |  |
Property, plant and equipment |  | $ | (1,143) |  |  | $ | (1,485) |
Deferred compensation and retirement plan |  | (3,394) |  |  | — |
Right-of-use asset |  | (5,624) |  |  | (6,144) |
Other, net |  | (966) |  |  | (689) |
Total gross deferred tax liabilities |  | (11,127) |  |  | (8,318) |
Net deferred tax assets |  | $ | 15,177 |  |  | $ | 17,268 |
In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. After considering the weight of available evidence, both positive and negative, the Company concluded that it is more-likely-than-not that it will realize the majority of its U.S. deferred tax assets. Certain foreign tax credits as well as certain state net operating loss carryovers will continue to have a valuation allowance until there is substantial evidence that enough future taxable income exists at a more likely than not level in order to utilize those deferred tax assets. The valuation allowance for deferred tax assets was $8.1 million and $7.1 million as of December 31, 2024 and 2023, respectively. The change in the valuation allowance was $1.0 million for the year ended December 31, 2024. We or one of our subsidiaries file income tax returns in the U.S. federal, U.S. state, and foreign jurisdictions. For U.S. state, federal and foreign returns, we are no longer subject to tax examinations for years prior to 2019. There is no balance of unrecognized tax benefits as of December 31, 2024 and 2023. Any adjustments to this liability as a result of the finalization of audits or potential settlements would not be material. We have elected to classify any interest and penalties related to income taxes within income tax expense in our Consolidated Statements of Comprehensive Income. There are no interest and penalties related to income taxes for the year ended December 31, 2024 and 2023. For U.S. tax return purposes, net operating losses and tax credits are normally available to be carried forward to future years, subject to limitations as discussed below. As of December 31, 2024, the Company has federal NOL carryforwards of $45.6 million. The entire amount was generated in 2024 and will be carried over indefinitely, but will generally limit the net operating deduction to the lesser of the net operating loss carryforward or 80% of a corporation's taxable income (subject to Section 382 of the Internal Revenue Code of 1986, as amended). The Company also has state NOL carryforward of $153.9 million and foreign NOL carryforwards of $4.3 million. The federal foreign tax carryforward credits of $3.7 million will expire on various dates from 2027 to 2035. General business credit carryforwards of $0.6 million will begin to expire on various dates from 2037 to 2045. Under Section 163(j) of the Internal Revenue Code, the deduction for business interest expense is limited to the sum of business interest income, 30% of adjusted taxable income, and floor plan financing interest. Any business interest expense that is disallowed due to the limitation can be carried forward indefinitely to future years. As of December 31, 2024 and 2023, the Company has disallowed business interest expense carryforwards of $3.8 million and $4.4 million, respectively. Deferred income taxes have not been provided on the undistributed earnings of our foreign subsidiaries as these earnings have been, and under current plans will continue to be, permanently reinvested in these subsidiaries. It is not practicable to estimate the amount of additional taxes which may be payable upon the distribution of these earnings. However, because of the provisions in the Tax Reform Act, the tax cost of repatriation is immaterial and limited to foreign withholding taxes, currency translation and state taxes.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration