XML 64 R48.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Summary of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) for the years ended December 31, 2024, 2023 and 2022 are as follows:
(In thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
Current |  |  |  |  |  |  |  |  |
Federal |  | $ | (1,456 | ) |  | $ | 2,545 |  |  | $ | 4,572 |
State |  |  | 575 |  |  |  | 26 |  |  |  | 88 |
International |  |  | 7,419 |  |  |  | 10,004 |  |  |  | (4,347 | )
Total Current |  |  | 6,538 |  |  |  | 12,575 |  |  |  | 313 |
Deferred |  |  |  |  |  |  |  |  |
Federal |  |  | 332 |  |  |  | 46,252 |  |  |  | (47,429 | )
State |  |  | (405 | ) |  |  | 6,607 |  |  |  | (6,776 | )
International |  |  | 2,320 |  |  |  | (37,301 | ) |  |  | (8,183 | )
Total Deferred |  |  | 2,247 |  |  |  | 15,558 |  |  |  | (62,388 | )
Total Income Tax Expense (Benefit) |  | $ | 8,785 |  |  | $ | 28,133 |  |  | $ | (62,075 | )
Effective Income Tax Rate Differs from Federal Statutory Rate | The effective income tax rate differs from the federal statutory rate due to the following:
|  | 2024 |  |  | 2023 |  |  | 2022 |
Tax provision computed at the federal statutory rate |  |  | 21.00 | % |  |  | 21.00 | % |  |  | 21.00 | %
State income tax provision, net of federal benefit |  |  | 0.06 |  |  |  | 1.34 |  |  |  | 2.60 |
Federal research credits |  |  | 0.68 |  |  |  | 3.26 |  |  |  | 6.74 |
Foreign taxes |  |  | 0.50 |  |  |  | 3.52 |  |  |  | 6.29 |
Tax-exempt income |  |  | 0.04 |  |  |  | 0.06 |  |  |  | 0.21 |
Change in valuation allowance |  |  | (5.88 | ) |  |  | (35.19 | ) |  |  | 63.92 |
Non-deductible transaction costs |  |  | — |  |  |  | — |  |  |  | (2.74 | )
Foreign tax credits |  |  | 0.86 |  |  |  | 2.45 |  |  |  | (0.40 | )
Stock-based compensation |  |  | (0.40 | ) |  |  | (0.57 | ) |  |  | (2.09 | )
Withholding taxes |  |  | (0.08 | ) |  |  | 0.01 |  |  |  | 0.03 |
Adtran Networks tax exempt income |  |  | — |  |  |  | 1.42 |  |  |  | — |
Return to accrual |  |  | (0.50 | ) |  |  | 0.62 |  |  |  | 0.24 |
Global intangible low-taxed income ("GILTI") |  |  | (3.14 | ) |  |  | (5.87 | ) |  |  | (8.08 | )
Adtran Networks Goodwill Impairment |  |  | (14.17 | ) |  |  | (4.62 | ) |  |  | — |
Other, net |  |  | (1.00 | ) |  |  | 0.40 |  |  |  | (0.24 | )
Effective Tax Rate |  |  | (2.03 | )% |  |  | (12.17 | )% |  |  | 87.48 | %
Loss Before Expense (Benefit) for Income Taxes | Loss before expense (benefit) for income taxes for the years ended December 31, 2024, 2023 and 2022 is as follows:
(In thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
U.S. entities |  | $ | (71,684 | ) |  | $ | (113,951 | ) |  | $ | (33,720 | )
International entities |  |  | (360,579 | ) |  |  | (117,259 | ) |  |  | (37,243 | )
Total |  | $ | (432,263 | ) |  | $ | (231,210 | ) |  | $ | (70,963 | )
Summary of Supplemental Balance Sheet Information Related to Deferred Tax Assets (Liabilities) | Deferred income taxes on t he Consolidated Balance Sheets result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The significant components of current and non-current deferred taxes as of December 31, 2024 and 2023 consist of the following:
(In thousands) |  | 2024 |  |  | 2023 |
Deferred tax assets: |  |  |  |  |  |
Inventory |  | $ | 14,121 |  |  | $ | 19,623 |
Accrued expenses |  |  | 845 |  |  |  | 3,533 |
Deferred compensation |  |  | 7,093 |  |  |  | 6,284 |
Stock-based compensation |  |  | 1,770 |  |  |  | 2,023 |
Uncertain tax positions related to state taxes and related interest |  |  | 105 |  |  |  | 105 |
Pensions |  |  | 5,121 |  |  |  | 8,607 |
Foreign losses |  |  | 70,666 |  |  |  | 2,705 |
State losses and credit carry-forwards |  |  | 4,901 |  |  |  | 4,259 |
Federal loss and research carry-forwards |  |  | 20,874 |  |  |  | 78,450 |
Lease liabilities |  |  | 6,153 |  |  |  | 7,701 |
Capitalized research and development expenditures |  |  | 43,574 |  |  |  | 48,192 |
Interest expense limitation |  |  | 6,815 |  |  |  | — |
Valuation allowance |  |  | (110,960 | ) |  |  | (86,567 | )
Total Deferred Tax Assets |  |  | 71,078 |  |  |  | 94,915 |
Deferred tax liabilities: |  |  |  |  |  |
Property, plant and equipment |  |  | (8,368 | ) |  |  | (9,093 | )
Intellectual property |  |  | (67,923 | ) |  |  | (86,572 | )
Right of use lease assets |  |  | (6,175 | ) |  |  | (8,424 | )
Investments |  |  | (1,476 | ) |  |  | (694 | )
Total Deferred Tax Liabilities |  |  | (83,942 | ) |  |  | (104,783 | )
Net Deferred Tax Liabilities |  | $ | (12,864 | ) |  | $ | (9,868 | )
Supplemental balance sheet information related to deferred tax assets (liabilities) as of December 31, 2024 and 2023 were as follows:
|  | December 31, 2024 |
(In thousands) |  | Deferred Tax Assets (Liabilities) |  |  | Valuation Allowance |  |  | Deferred Tax Assets (Liabilities), net |
Domestic |  | $ | 102,447 |  |  | $ | (87,030 | ) |  | $ | 15,417 |
International |  |  | (4,351 | ) |  |  | (23,930 | ) |  |  | (28,281 | )
Total |  | $ | 98,096 |  |  | $ | (110,960 | ) |  | $ | (12,864 | )
|  | December 31, 2023 |
(In thousands) |  | Deferred Tax Assets (Liabilities) |  |  | Valuation Allowance |  |  | Deferred Tax Assets (Liabilities), net |
Domestic |  | $ | 101,120 |  |  | $ | (84,767 | ) |  | $ | 16,353 |
International |  |  | (24,421 | ) |  |  | (1,800 | ) |  |  | (26,221 | )
Total |  | $ | 76,699 |  |  | $ | (86,567 | ) |  | $ | (9,868 | )
Change in Unrecognized Income Tax Benefits | The change in the unrecognized income tax benefits for the years ended December 31, 2024, 2023 and 2022 were as follows:
(In thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
Balance at beginning of period |  | $ | 989 |  |  | $ | 17,885 |  |  | $ | 17,836 |
Increases for tax position related to: |  |  |  |  |  |  |  |  |
Prior years |  |  | — |  |  |  | — |  |  |  | — |
Current year |  |  | — |  |  |  | 129 |  |  |  | 123 |
Decreases for tax positions related to: |  |  |  |  |  |  |  |  |
Prior years |  |  | (121 | ) |  |  | (17,025 | ) |  |  | (13 | )
Expiration of applicable statute of limitations |  |  | (616 | ) |  |  | — |  |  |  | (61 | )
Balance at end of period |  | $ | 252 |  |  | $ | 989 |  |  | $ | 17,885 |

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 Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: 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 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12A -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12A Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -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 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 217 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-217 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-15A + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration