Company: TDDWW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001437749-25-034124
Chunk: 28

Company: TIDEWATER INC
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 future periods which will be influenced by a variety of factors including the jurisdictions in which our vessels operate and the extent to which we are impacted by various global minimum tax initiatives that are adopted in those jurisdictions. 
    
   During the nine months ended  September 30, 2025, we generated a deferred tax benefit of $16.2 million, primarily related to a $27.0 million reduction of our valuation allowance due to changes in the balance of relevant positive and negative evidence when assessing the realization of our U.S. NOLs. Considering all available evidence, including the three-year cumulative financial taxable income position, our future taxable income evidence and the domestic tax impact given our current operating structure, we determined that sufficient positive evidence existed to conclude that this portion of the valuation allowance on the U.S. NOL deferred tax asset was no longer needed. We intend to maintain a valuation allowance on a substantial portion of our deferred tax assets until sufficient evidence supports a reversal. This tax benefit is included within Other assets on our Condensed Consolidated Balance Sheet as of  September 30, 2025 and as a component of tax expense in our Condensed Consolidated Statement of Operations for the nine months ended  September 30, 2025.
    
   Management assesses all available positive and negative evidence to permit use of existing deferred tax assets.
    
   With limited exceptions, we are no longer subject to tax audits by U.S. federal, state, local or foreign taxing authorities for years prior to  December 2020. We are subject to ongoing examinations by various foreign tax authorities and do not believe the results of these examinations will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

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    (7)  EMPLOYEE BENEFIT PLANS  

   U.S. Defined Benefit Pension Plan
    
   We sponsor a defined benefit pension plan (pension plan) that was frozen in 2010 covering certain U.S. employees. Actuarial valuations are performed annually. We contributed $0.9 million and zero to the pension plan during the nine months ended  September 30, 2025 and 2024, respectively, and expect to contribute an additional $0.1 million to the pension plan during the remainder of 2025.
    
   Supplemental Executive Retirement Plan
    
   We support a non-contributory and non-qualified defined benefit supplemental executive retirement