Company: KVHI
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001007587-25-000008
Chunk: 31

Company: KVH INDUSTRIES INC \DE\
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 year, the estimated composition of the income in different jurisdictions and discrete adjustments, if any, in the applicable periods, including retroactive changes in tax legislation, settlements of tax audits or assessments, and the resolution or identification of tax position uncertainties.For the three months ended March 31, 2025 and 2024, the effective tax rates differed from the statutory tax rate primarily due to the Company maintaining a valuation allowance reserve on its U.S. deferred tax assets, discrete tax adjustments and the composition of income from foreign jurisdictions taxed at lower rates.As of March 31, 2025 and December 31, 2024, the Company had reserves for uncertain tax positions of $745 and $724, respectively. There were no material changes during the three months ended March 31, 2025 to the Company’s reserve for uncertain tax positions. The Company estimates that it is reasonably possible that the balance of unrecognized tax benefits as of March 31, 2025 may decrease $15 in the next twelve months as a result of a lapse of statutes of limitations and settlements with taxing authorities.

18

The Company’s tax jurisdictions include the United States, the United Kingdom, Denmark, Cyprus, Norway, Brazil, Singapore, Japan and India. In general, the statute of limitations with respect to the Company's United States federal income taxes has expired for years prior to 2020, and the relevant state and foreign statutes vary. However, preceding years remain open to examination by United States federal and state and foreign taxing authorities to the extent of future utilization of net operating losses and research and development tax credits generated in each preceding year.

(16)     Leases

LesseeThe Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $271 and $353 for the three months ended March 31, 2025 and 2024, respectively. Short-term operating lease costs were $22 and $19 for the three months ended March 31, 2025 and 2024, respectively. Maturities of lease liabilities as of March 31, 2025 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows:Remainder of 2025$460 2026292 2027204 2028 and thereafter154 Total minimum lease payments$1,110 Less amount representing interest$(78)Present value of net minimum operating lease payments$1,032 Less current installments of obligation under