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Income Taxes (Tables)
6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expense

Income tax expense consists of the following:

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

(in thousands)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Income before income taxes

 

$

16,607

 

 

$

20,523

 

 

$

25,001

 

 

$

39,622

 

Income tax expense

 

$

15,635

 

 

$

4,995

 

 

$

20,385

 

 

$

10,092

 

Effective tax rate

 

 

94.1

%

 

 

24.3

%

 

 

81.5

%

 

 

25.5

%

 

During the three months ended June 30, 2025, the Company, as part of its ongoing assessment of global liquidity needs, evaluated the cash balances held in foreign jurisdictions relative to anticipated operational and investment requirements. Driven by a time-sensitive opportunity to recover foreign withholding taxes, along with the Company’s debt refinancing and cash diversification objectives, the Company repatriated gross dividends of $151.6 million from its operations in China and Thailand during the quarter. These dividends were subject to foreign withholding taxes paid totaling $15.2 million.

As part of this evaluation, the Company determined that current and projected cash balances in China exceeded the levels required to fund local business activities. As a result, management changed its assertion with respect to remaining unremitted earnings from China, which are now considered available for distribution. There was no change to the Company’s indefinite reinvestment assertion with respect to Thailand.

Accordingly, during the three months ended June 30, 2025, the Company recorded discrete tax charges totaling $10.4 million. This amount includes (i) foreign withholding taxes paid on the repatriated dividends, net of anticipated recoveries, and (ii) the recognition of deferred tax liabilities on the remaining earnings in China, consistent with the change in reinvestment assertion.

Schedule of Tax Incentives

A summary of the Company’s tax incentives follows:

 

 

 

Six Months Ended
June 30,

 

(in thousands)

 

2025

 

 

2024

 

Thailand

 

$

2,115

 

 

$

1,801

 

China

 

 

859

 

 

 

 

Total tax incentives

 

$

2,974

 

 

$

1,801