Company: AOSL
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001387467-25-000066
Chunk: 21

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 21
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ATED FINANCIAL STATEMENTS (Unaudited)

10. Income Taxes  

The Company recognized income tax expense of approximately $1.9 million and $1.0 million for the three months ended September 30, 2025 and 2024, respectively.  The income tax expense of $1.9 million for the three months ended September 30, 2025 included a $0.1 million discrete tax expense.  The income tax expense of $1.0 million for the three months ended September 30, 2024 included a $0.1 million discrete tax expense.  Excluding the discrete income tax items, the income tax expense for the three months ended September 30, 2025 and 2024 was $1.9 million and $1.0 million, respectively, and the effective tax rate for the three months ended September 30, 2025 and 2024 was (952.4)% and (65.8)%, respectively.  The changes in the tax expense and effective tax rate between the periods resulted primarily from changes in the mix of earnings in various geographic jurisdictions between the current period and the same period of last year, including reporting $0.6 million of income tax expense related to the Company’s income from its investment in CQJV for the three months ended September 30, 2025 versus an $0.2 million tax benefit for the three months ended September 30, 2024.  In addition, income tax payable increased by 10.4 million and deferred tax liability decreased by 10.5 million as a result of the sale of approximately 20.3% of the Company’s equity interest in the JV company for $150 million during the three month ended September 30, 2025.The Company files its income tax returns in the United States and in various foreign jurisdictions.  The tax years 2004 to 2025 remain open to examination by U.S. federal and state tax authorities.  The tax years 2019 to 2025 remain open to examination by foreign tax authorities.  The Company’s income tax returns are subject to examinations by the Internal Revenue Service and other tax authorities in various jurisdictions.  In accordance with the guidance on the accounting for uncertainty in income taxes, the Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes.  These assessments can require considerable estimates and judgments