Company: AOSL
Filing Date: 2025-08-28
Form Type: 10-K
Source: 0001628280-25-041297
Chunk: 43

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-08-28
Form: 10-K
Item: Item 15
Chunk 43
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4, the net value of the fiscal 2025 loss is approximately 10.5 times higher than the pretax book loss in fiscal 2024.   Therefore, the percentage impact on the effective tax rate in fiscal 2025 is approximately 10.5 times higher than in fiscal 2024, simply due to the large variance in pretax book loss between the two years.  The impact of the pretax book loss denominator effect also fully explains the differences in the effective tax rate differences between the fiscal 2025 and 2024 years for tax credits and non-deductible executive compensation expense.  The differences between “Foreign Taxes, net” is a result of changes in the mix of earnings in various geographic jurisdictions between fiscal 2025 and fiscal 2024.  The differences concerning “Outside Basis Differences on Equity Method Investment” between the two years is a result of the larger amount of equity method loss in fiscal 2025 in comparison with that of fiscal 2024.    Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  Significant components of our deferred tax assets and liabilities are as follows: June 30,  20252024(in thousands)Deferred tax assets:Accrued compensation$2,327 $2,188 Net operating loss carryforwards— — Depreciation7,210 6,286 Tax credits16,957 16,161 Operating lease liabilities3,953 4,574 Capitalized R&D costs1,302 1,398 Accruals and reserves434 445 Total deferred tax assets32,183 31,052 Valuation allowance(8,751)(7,266)Total deferred tax assets, net of valuation allowance23,432 23,786 Deferred tax liabilities:Depreciation and amortization(18,538)(19,062)Right of use assets(3,724)(4,328)Investments(13,763)(26,263)Total deferred tax liabilities(36,025)(49,653)Net deferred tax liabilities$(12,593)$(25,867)The breakdown between deferred tax assets and liabilities is as follows: June 30,  20252024(in thousands)Deferred tax assets$599 $549 Deferred tax liabilities(13,192)(26,416)Net deferred tax liabilities$(12,593)