Company: KEQU
Filing Date: 2025-07-02
Form Type: 10-K
Source: 0000055529-25-000026
Chunk: 182

Company: KEWAUNEE SCIENTIFIC CORP /DE/
Filing Date: 2025-07-02
Form: 10-K
Item: Item 1A
Chunk 182
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,405 5,058 Deferred tax (benefit) expense:Federal(1,433)(10,378)State and local(650)(893)Foreign(120)275 Total deferred tax (benefit) expense(2,203)(10,996)Net income tax (benefit) expense$3,202 $(5,938)

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The reasons for the differences between the above net income tax (benefit) expense and the amounts computed by applying the statutory federal income tax rate to earnings before income taxes are as follows:$ in thousands20252024Income tax expense at statutory rate$3,105 $2,755 State and local taxes, net of federal income tax benefit (168)575 Tax credits(515)(355)Effects of differing US and foreign tax rates183 243 Non-deductible transaction costs348 — Effect of pension settlement— (3,870)Return to provision adjustment(72)743 Impact of foreign subsidiary income to parent6 96 Increase (decrease) in valuation allowance7 (6,579)Deferred taxes on unremitted earnings416 371 Other items, net(108)83 Net income tax (benefit) expense$3,202 $(5,938)Significant items comprising deferred tax assets and liabilities as of April 30 were as follows:$ in thousands20252024Deferred tax assets:Accrued employee benefit expenses$417 $152 Allowance for credit losses151 151 Deferred compensation1,345 950 Tax credits (state, net of federal benefits)170 170 Foreign tax credit carryforwards638 638 Section 174 R&E3,269 2,303 Warranty Accrual193 — Inventory reserves and capitalized costs478 296 Net operating loss carryforwards147 152 Proceeds on sale leaseback6,550 6,316 Operating lease liabilities2,372 1,211 Other457 332 Total deferred tax assets16,187 12,671 Deferred tax liabilities:Book basis in excess of tax basis of property, plant and equipment(3,024)(1,678)Book basis in excess of tax basis of sale leaseback property(1,095)(1,028)Book basis in excess of tax basis of intangibles assets(4,005)— APB 23 Assertion(1,507)(1,572)Right of use assets(2,