Company: DXPE
Filing Date: 2025-04-30
Form Type: ARS
Source: 0001020710-25-000081
Chunk: 90

Company: DXP ENTERPRISES INC
Filing Date: 2025-04-30
Form: ARS
Chunk 90
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 on carryforwards available for use on future income tax returns, prior to valuation allowance, at December 31, 2024, are as follows (in thousands): Domestic Foreign Expiration Net operating loss - foreign $ — $ 562 2034-2043 Net operating loss - federal (100%) 32 — 2037 Net operating loss - federal (80%) 447 — Indefinite Net operating loss - state 217 — Indefinite Capital loss carryforward - foreign — 4 Indefinite Foreign tax credits 64 — 2025 Texas research and development tax credits 2,232 — 2037-2043 Louisiana research and development tax credits $ 10 $ — 2025-2027 Changes in the balance of unrecognized tax benefits excluding interest and penalties on uncertain tax positions are as follows (in thousands): Assets (Liabilities) 2024 2023 2022 Balance at January 1, $ (5,755) $ (5,918) $ (6,316) Decreases related to prior year tax positions 142 1,475 614 Increases related to current year tax positions (3,089) (1,312) (216) Balance at December 31, $ (8,702) $ (5,755) $ (5,918) As of December 31, 2024, the Company had recorded a total tax benefit of $35.6 million related to federal and state research and development tax credits. This benefit is partially offset by $8.5 million uncertain tax position due to the uncertainty related to the realizability of the federal research and development tax credits. The Company is also recording a $0.2 million uncertain tax position related to non-deductible auto expense compensation. The total amount of these unrecognized tax benefits, if recognized, would impact the effective tax rate. To the extent penalties and interest would be assessed on any underpayment of income tax, such accrued amounts are classified as a component of income tax provision (benefit) in the consolidated financial statements consistent with the Company's policy. For the year ended December 31, 2024, the Company recorded $0.1 million tax expense for interest and penalties related to uncertain tax positions. The Company is subject to taxation in the U.S., various states, and foreign jurisdictions. The Company has significant operations in the U.S. and Canada and to a lesser extent in various other international jurisdictions. Tax years that remain subject to examination vary by legal entity but are generally closed