Company: SXI
Filing Date: 2025-08-04
Form Type: 10-K
Source: 0001437749-25-024450
Chunk: 237

Company: STANDEX INTERNATIONAL CORP/DE/
Filing Date: 2025-08-04
Form: 10-K
Item: Item 1C
Chunk 237
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.In addition, the Company had federal NOL carry forwards of  approximately $2.7 million and foreign NOL carry forwards of approximately $2.7 million, all of which carry forward indefinitely.
    
   Under ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, all excess tax benefits and tax deficiencies are recognized as income tax expense or benefit in the statement of operations.  Accordingly, we recorded an income tax benefit in the consolidated statement of operation of $0.9 million during the fiscal year ended  June 30, 2025 for the windfall of tax benefits related to equity compensation.
    
   U.S. tax law allows a 100% dividend received deduction for foreign dividends and the Company has begun to bring back cash from foreign subsidiaries.  However, the permanent reinvestment assertion must still be assessed and made regarding potential liabilities for foreign withholding taxes.  As of  June 30, 2025, the Company maintained the assessment that previously undistributed earnings of certain foreign subsidiaries no longer meet the requirements for indefinite reinvestment under applicable accounting guidance.  Therefore, the Company recognized deferred tax liabilities of approximately $3.0 million that relate to withholding taxes on the current earnings of various foreign subsidiaries.  It is expected that deferred tax liabilities will continue to be recorded on current earnings in future periods from these subsidiaries.  The Company maintains the permanent reinvestment assertion on earnings in certain foreign jurisdictions. It is not practicable to estimate the amount of tax that might be payable on the remaining undistributed earnings.
    
   The total provision (benefit) for income taxes included in the consolidated financial statements was as follows (in thousands):

       2025    2024    2023  
 Continuing operations  $11,084  $21,532  $24,796 
 Discontinued operations   (11)  (137)  (43)
 Total provision (benefit)  $11,073  $21,395  $24,753 

   The changes in the amount of gross unrecognized tax benefits were as follows (in thousands):

       2025    2024    2023  
 Beginning Balance  $9,766  $9,493  $9,559 
 Additions based on tax positions related to the current year   1,108   273