Company: SBH
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001193125-25-280122
Chunk: 74

Company: Sally Beauty Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-K
Item: Item 6
Chunk 74
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 foreign withholding taxes and state income taxes. If undistributed earnings of our foreign operations were not considered permanently reinvested as of September 30, 2025, an immaterial amount of additional deferred taxes would have been provided.At September 30, 2025 and 2024, we had total operating loss carry-forwards of $89.8 million and $106.6 million, respectively, of which $40.4 million and $52.5 million, respectively, are subject to a valuation allowance. At September 30, 2025, operating loss carry-forwards of $89.8 million have no expiration date. At September 30, 2025 and 2024, we had tax credit carry-forwards of $15.5 million and $15.2 million, respectively. This includes a U.S. foreign tax credit carry-forward of $13.7 million, primarily as a result of the deemed repatriation tax under U.S. Tax Reform. This credit expires in 2028. We do not believe the realization of the U.S. foreign tax credit is more-likely-than-not, so a valuation allowance has been recorded against its full value. Of the remaining tax credit carry-forwards, at September 30, 2025, $0.2 million expire between 2026 and 2030, $0.2 million expire between 2036 and 2037 and $1.4 million have no expiration date. Total tax credit carry-forwards of $15.2 million and $14.8 million are subject to a valuation allowance at September 30, 2025 and 2024, respectively.The changes in the amount of unrecognized tax benefits are as follows (in thousands): 

         Fiscal Year Ended September 30,

         2025

         2024

         Balance at beginning of the fiscal year
          
         $
         8,398

         $
         8,312

         Increases related to prior year tax positions

         169

         7

         Decreases related to prior year tax positions

         (2
         )

         (19
         )

         Increases related to current year tax positions

         669

         602

         Decreases due to settlements

         (566
         )

         (414
         )

         Lapse of statute

         (89
         )

         (90
         )

         Balance at end of fiscal year
          
         $
         8,579