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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Pre-tax income (loss) consisted of the following for the years ended December 31:
202420232022
Domestic $(20,095)$(1,017)$(25,410)
Foreign11,854 29,447 29,688 
Total$(8,241)$28,430 $4,278 
A reconciliation of income taxes computed at the statutory rates to the reported income tax provision for the years ended December 31 follows:
202420232022
Federal provision (benefit) at statutory rate $(1,730)$5,970 $(224)
U.S./Foreign tax rate differential604 828 2,320 
Foreign non-deductible expenses376 (14)(1,084)
Foreign tax provision311 821 1,734 
State taxes, net of federal benefit (337)(1)(297)
State tax rate change, net of federal benefit72 (201)(33)
Change in uncertain tax positions(343)209 38 
Change in valuation allowance28,769 (21,750)14,776 
Tax credits(1,738)(2,284)(1,244)
Share-based compensation457 (30)(91)
Executive compensation (IRC 162m)38 226 871 
Repatriation of foreign earnings1,237 435 1,245 
GILTI, net of related foreign tax credit— 142 365 
Pension settlement— — 3,394 
Other(223)446 (866)
Provision (benefit) for income taxes$27,493 $(15,203)$20,904 

The provision (benefit) for income taxes for the years ended December 31 follows:
202420232022
CurrentDeferredTotalCurrentDeferredTotalCurrentDeferredTotal
Federal $(289)$19,963 $19,674 $(2,157)$(18,166)$(20,323)$(338)$16,831 $16,493 
State and local 56 3,592 3,648 433 (3,355)(2,922)276 4,039 4,315 
Foreign3,685 486 4,171 7,220 822 8,042 8,486 (8,390)96 
Total$3,452 $24,041 $27,493 $5,496 $(20,699)$(15,203)$8,424 $12,480 $20,904 
A summary of deferred income tax assets and liabilities as of December 31 follows:
20242023
Noncurrent deferred tax assets:
Amortization and fixed assets$6,106 $11,070 
Inventories2,893 5,184 
Pension obligations2,467 2,467 
Warranty obligations226 264 
Accrued benefits792 1,035 
Operating leases9,486 9,858 
Tax credit carryforwards8,612 6,073 
Net operating loss carryforwards18,233 10,705 
Other temporary differences8,883 8,787 
Total noncurrent deferred tax assets$57,698 $55,443 
Valuation allowance(35,934)(9,342)
Net noncurrent deferred tax assets$21,764 $46,101 
Noncurrent deferred tax liabilities:
Amortization and fixed assets$(1,132)$(1,309)
Inventories(59)(8)
Operating leases(9,242)(9,428)
Other temporary differences(571)(2,061)
Total noncurrent tax liabilities(11,004)(12,806)
Net noncurrent deferred tax liabilities$(11,004)$(12,806)
Total net deferred tax asset$10,760 $33,295 
Deferred taxes are reflected in the Consolidated Balance Sheet as follows:
Net non-current deferred tax assets$11,084 $33,568 
Non-current deferred tax liabilities (included in Other long-term liabilities)$(324)$(273)
Total net deferred tax asset$10,760 $33,295 

We assess whether valuation allowances should be established against deferred tax assets based on consideration of all available evidence using a “more likely than not” standard. In making such judgments, the most weight is given to the cumulative three-year income (loss) position as it can be objectively verified. During 2022, (1) the Company established a valuation allowance on its U.S. deferred tax assets of $24.5 million due to the cumulative three-year loss position, and (2) reversed the valuation allowance on its U.K. deferred tax assets of $9.9 million based on the cumulative three-year income position. During 2023, the Company reversed the valuation allowance on its U.S. deferred tax assets of $22.0 million as the three-year cumulative income position was sufficient to overcome the weight of the negative evidence during the year ended December 31, 2023.

During 2024, we recorded a valuation allowance of $26.6 million primarily related to establishing a full valuation allowance on our U.S. deferred tax assets due to the cumulative three-year loss position. We expect to be able to realize the benefits of all of our deferred tax assets that are not currently offset by a valuation allowance, as discussed above. In the event that our actual results differ from our estimates or we adjust these estimates in future periods, the effects of these adjustments could materially impact our financial position and results of operations.

For the twelve months ended December 31, 2024, 2023 and 2022, cash paid for taxes, net of refunds received, were $8.4 million, $10.9 million and $4.0 million, respectively.
Activity for the years ended December 31 is as follows (in thousands):
202420232022
Balance - Beginning of the year$9,340 $31,090 $18,371 
Provisions26,594 297 24,506 
Utilizations and reversals— (22,047)(11,787)
Balance - End of the year$35,934 $9,340 $31,090 

As of December 31, 2024, the Company had net operating loss carryforwards of $128.7 million, of which $32.2 million related to foreign jurisdictions, $35.7 million related to U.S. Federal, and $60.8 million related to U.S. state jurisdictions, $5.2 million of U.S. foreign tax credit carryforwards, and $3.0 million of research and development tax credit carryforwards. The carryforward periods for these net operating losses range from five years to indefinite, foreign tax credits begin to expire in 2027, and research and development tax credits begin to expire in 2037. Utilization of these carryforwards is subject to the tax laws of the applicable tax jurisdiction and may be limited by the ability of certain subsidiaries to generate taxable income in the associated tax jurisdiction.
As of December 31, 2024, cash of $26.6 million was held by foreign subsidiaries. During the year ended December 31, 2024, $13.4 million was repatriated from the Company's foreign subsidiaries. The Company had a $0.1 million deferred tax liability as of December 31, 2024 for the expected future income tax implications of repatriating cash from the foreign subsidiaries for which indefinite reinvestment is not expected.
We file federal income tax returns in the U.S. and income tax returns in various states and foreign jurisdictions. In the U.S., we are generally no longer subject to tax assessment for tax years prior to 2018. In our major non-U.S. jurisdictions including China, Czech Republic, Mexico and the United Kingdom, tax years are typically subject to examination for three to five years.
As of December 31, 2024, and 2023, we provided a liability of $0.9 million and $1.3 million, respectively, for unrecognized tax benefits associated with our U.S. federal and state, and foreign jurisdictions. The majority of these unrecognized tax benefits are netted against their related non-current deferred tax assets.
We accrue interest and penalties related to unrecognized tax benefits through income tax expense. We had $0.8 million and $1.2 million accrued for the payment of interest and penalties as of December 31, 2024 and December 31, 2023, respectively. Accrued interest and penalties are included in the $0.9 million of unrecognized tax benefits.
A reconciliation of the beginning and ending amount of unrecognized tax benefits (including interest and penalties) at December 31 follows:
202420232022
Balance - Beginning of the year $1,338 $1,089 $1,093 
Gross increase - tax positions in prior periods 154 60 426 
Gross increases - current period tax positions — 149 — 
Lapse of statute of limitations(571)— (389)
Currency translation adjustment20 40 (41)
Balance - End of the year $941 $1,338 $1,089