Income taxes

3 Months Ended

Mar. 31, 2025

Income taxes

Income taxes

Note 13 – Income taxes:

	Three months ended
	March 31,
	2024		2025
	(In thousands)
Expected tax expense, at U.S. federal statutory income tax rate of 21%	$	1,744	$	273
Rate differences on equity in earnings of Kronos, net of dividends		(782)		(319)
U.S. state income taxes and other, net		26		23
Income tax expense (benefit)	$	988	$	(23)
Comprehensive provision (benefit) for income taxes allocable to:
Net income	$	988	$	(23)
Other comprehensive income (loss):
Currency translation		(1,320)		1,112
Pension plans		101		85
Other		(8)		(9)
Total	$	(239)	$	1,165

In accordance with GAAP, we recognize deferred income taxes on our undistributed equity in earnings of Kronos. Because we and Kronos are part of the same U.S. federal income tax group, any dividends we receive from Kronos are nontaxable to us. Accordingly, we do not recognize and we are not required to pay income taxes on dividends from Kronos. We received aggregate dividends from Kronos of $6.7 million and $1.8 million in the first three months of 2024 and 2025, respectively. The amounts shown in the above table of our income tax rate reconciliation for rate differences on equity in earnings of Kronos, net of dividends, represent the income tax benefit associated with the nontaxable dividends we received from Kronos compared to the amount of deferred income taxes we recognized on our equity in earnings of Kronos.