Income Taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 20 – INCOME TAXES:

Income (loss) from operations before income taxes for the years ended December 31, 2024 and 2023 is summarized below. Income (loss) from operations before income taxes for certain foreign entities is classified differently for book reporting and income tax reporting purposes.

	2024		2023
Domestic	$	3,331	$	(44,128	)
Foreign		1,715		4,851
Income (loss) from operations before income taxes	$	5,046	$	(39,277	)

The income tax provision (benefit) for the years ended December 31, 2024 and 2023 consisted of the following:

	2024			2023
Current:
Federal	$	—		$	—
State		22			33
Foreign		2,414			1,773
Current income tax provision		2,436			1,806
Deferred:
Federal		1,176			(8,461	)
State		549			(1,147	)
Foreign		(1,959	)		(598	)
Increase in valuation allowance		493			7,242
Deferred income tax provision (benefit)		259			(2,964	)
Total income tax provision (benefit)	$	2,695		$	(1,158	)

The difference between statutory U.S. federal income tax and the Corporation’s effective income tax for the years ended December 31, 2024 and 2023 was as follows:

	2024			2023
Computed at statutory rate	$	1,060		$	(8,248	)
State income taxes		354			(899	)
Rate change		113			465
Tax differential on non-U.S. earnings		(54	)		(216	)
Stock-based compensation		279			206
Meals and entertainment		48			43
Deductible compensation limitation		112			15
Increase in valuation allowance		493			7,242
Other – net		290			234
Total income tax provision (benefit)	$	2,695		$	(1,158	)

Deferred income tax assets and liabilities as of December 31, 2024 and 2023 are summarized in the following table. Unremitted earnings of the Corporation’s non-U.S. subsidiaries and affiliates are deemed to be permanently re-invested and, accordingly, no deferred income tax liability has been recorded. If the Corporation were to remit any foreign earnings to the U.S., the estimated tax impact would be insignificant.

	2024			2023
Assets:
Asbestos-related liability	$	16,503		$	19,044
Net operating loss – domestic		14,633			15,115
Net operating loss – foreign		10,514			9,289
Net operating loss – state		3,095			3,248
Sale-leaseback		10,510			10,204
Employment – related liabilities		5,330			5,221
Interest expense limitation		3,141			1,929
Pension liability – domestic		2,283			5,299
Pension liability – foreign		29			—
Operating lease right-of-use liabilities		1,124			1,161
Impairment charge associated with investment in Anhui		958			953
Inventory related		210			—
Capital loss carryforwards		189			192
Other		1,284			594
Gross deferred income tax assets		69,803			72,249
Valuation allowance		(41,019	)		(41,041	)
		28,784			31,208
Liabilities:
Depreciation		(24,190	)		(25,408	)
Operating lease assets		(1,124	)		(1,161	)
Intangible assets – indefinite life		(430	)		(464	)
Intangible assets – finite life		(15	)		(112	)
Inventory related		—			(674	)
Pension asset – foreign		—			(224	)
Other		(624	)		(548	)
Gross deferred income tax liabilities		(26,383	)		(28,591	)
Net deferred income tax assets (liabilities)	$	2,401		$	2,617

At December 31, 2024, the Corporation has U.S. federal net operating loss carryforwards of $69,681, of which $68,340 can be carried forward indefinitely but will be limited to 80% of the Corporation’s taxable income in any given year. The balance of $1,341 will begin to expire in 2035 and can be used without taxable income limitation. Additionally, at December 31, 2024, the Corporation had state net operating loss carryforwards of $82,795, which begin to expire in 2025, and foreign net operating loss carryforwards of $46,277 and capital loss carryforwards of $757, which do not expire.

Valuation allowances are recorded against the majority of the Corporation’s deferred income tax assets. The Corporation will maintain the valuation allowances until there is sufficient evidence to support the reversal of all or some portion of the allowances. Given the

Corporation’s anticipated future earnings in Sweden, the Corporation believes there is a reasonable possibility within the next 12 months, sufficient positive evidence may become available to allow the Corporation to conclude some portion of the valuation allowance will no longer be needed. Release of any portion of the valuation allowance would result in the recognition of deferred income tax assets on the consolidated balance sheet and a decrease to income tax expense in the period the release is recorded. The exact timing and the amount of the valuation allowance released are subject to, among many items, the level of profitability achieved. Once the valuation allowance is completely reversed, a tax provision would be recognized on future earnings.

Unrecognized tax benefits and changes in unrecognized tax benefits for the years ended December 31, 2024 and 2023 are insignificant. If the unrecognized tax benefits were recognized, the effect on the Corporation’s effective income tax rate would also be insignificant. The amount of penalties and interest recognized in the consolidated balance sheets as of December 31, 2024 and 2023 and in the consolidated statements of operations for 2024 and 2023 is insignificant.

In 2023, Slovenia temporarily increased its corporate income tax rate from 19% to 22% for tax years 2024 to 2028. The increase did not have a significant impact on the deferred income tax assets and liabilities of the Corporation’s Slovenian operations.

The Corporation is subject to taxation and files income tax returns in the United States, various states and foreign jurisdictions, and remains subject to examination by tax authorities for tax years 2020 – 2024.