Note 12 - Income Taxes |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2025 | |||
| Notes to Financial Statements | |||
| Income Tax Disclosure [Text Block] |
The Company does not measure income tax expense for interim periods using the annual effective tax rate (“AETR”) method, as its estimated taxable income for future periods is not determined on a legal entity basis. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Company is no longer subject to U.S. federal examinations by tax authorities for years prior to 2021 and state examinations for years prior to 2018. For foreign subsidiaries, the Company is generally no longer subject to tax examinations for years prior to 2015 in Asia and 2017 in Europe.
Due to the expiration of the statutes of limitations for certain jurisdictions, it is reasonably possible that unrecognized tax benefits related to previously filed tax returns may materially change from the amounts recorded as liabilities for uncertain tax positions in the Company’s condensed consolidated financial statements as of June 30, 2025. The Company’s liabilities for uncertain tax positions totaled $17.6 million as of June 30, 2025, compared to $18.1 million as of December 31, 2024. Approximately $1.3 million of these liabilities are expected to be resolved within the next twelve months due to statute expirations. During the six months ended June 30, 2025, $0.9 million of the uncertain tax positions were resolved. These amounts, if recognized, would reduce the Company’s effective tax rate.
The Company’s policy is to recognize interest and penalties related to uncertain tax positions as a component of the current provision for income taxes. For the six months ended June 30, 2025 and 2024, the Company recognized $0.1 million and $0.2 million, respectively, in interest and penalties in the condensed consolidated statements of operations. As of June 30, 2025, the Company had accrued approximately $1.0 million for the payment of interest and penalties, compared to $1.2 million as of December 31, 2024. These amounts are included in liability for uncertain tax positions in the condensed consolidated balance sheets. |