Company: NPO
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001164863-25-000009
Chunk: 273

Company: Enpro Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1A
Chunk 273
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 U.S. federal net operating loss carryforward of $0.9 million which has an indefinite carryforward period, and a U.S. federal tax credit carryforward associated with foreign tax credits of $2.8 million which expires at various dates from 2027 through 2034. We also had state net operating loss carryforwards with a tax effect of $1.9 million which expire at various dates from 2027 through 2044, and state tax credit carryforwards of $1.7 million which expire at various dates from 2027 through 2038. These net operating loss and tax credit carryforwards may be used to offset a portion of future tax liability and thereby reduce or eliminate our federal, state or foreign income taxes otherwise payable.Because of the transition tax, GILTI, and Subpart F provisions, undistributed earnings of our foreign subsidiaries totaling $187.1 million at December 31, 2023 have been subjected to U.S. income tax or are eligible for the 100 percent dividends-received deduction under Section 245A of the Internal Revenue Code ("IRC") provided in the Tax Cuts and Jobs Act. Additionally, undistributed earnings are estimated to be $239.4 million as of December 31, 2024. Whether through the 

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application of the 100 percent dividends received deduction, or distribution of these previously-taxed earnings, we do not intend to distribute foreign earnings that will be subject to any significant incremental U.S. or foreign tax. During 2024, we repatriated $61.3 million of earnings from our foreign subsidiaries, resulting in $0.3 million of withholding taxes. We have determined that estimating any tax liability on our investment in foreign subsidiaries is not practicable.  Therefore, we have not recorded any deferred tax liability on undistributed earnings of foreign subsidiaries. We determined, based on the available evidence, that it is uncertain whether certain entities in various jurisdictions will generate sufficient future taxable income to recognize certain of these deferred tax assets. As a result, valuation allowances of $3.7 million and $2.7 million have been recorded as of December 31, 2024 and 2023, respectively. Valuation allowances recorded relate to certain state and foreign net operating losses and other net deferred tax assets in jurisdictions where future taxable income is uncertain. In addition, $2.8 million and $1.8 million of the valuation allowance recorded as of December 31,