Company: NPO
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001164863-25-000009
Chunk: 514

Company: Enpro Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 514
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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, 2024 and 2023, respectively, relate to general foreign tax credit carryforwards, due to uncertainty around the ability to generate the requisite foreign source income to utilize that portion of the foreign tax credits. Valuation allowances may arise associated with deferred tax assets recorded in acquisition accounting.  In accordance with applicable accounting guidelines, any reversal of a valuation allowance that was recorded in acquisition accounting reduces income tax expense.The effective income tax rate from continuing operations varied from the statutory federal income tax rate as follows: Percent of Pretax IncomeYears Ended December 31, 202420232022Statutory federal income tax rate21.0 %21.0 %21.0 %Research and employment tax credits(2.1)(3.6)(2.2)State and local taxes0.4 3.0 1.5 Foreign tax rate differences5.5 24.9 8.4 Statutory changes in tax rates(0.5)(1.1)(1.1)Valuation allowance1.0 (1.5)8.1 Changes in uncertain tax positions(1.0)1.8 (3.4)Goodwill impairment— 33.8 48.4 Nondeductible expenses2.2 2.3 2.3 GILTI and FDII(2.9)0.2 4.0 Other items, net(0.8)0.8 (0.8)Effective income tax rate22.8 %81.6 %86.2 %The effective tax rate for 2024 is higher than the U.S. federal tax rate primarily driven by higher tax rates in most foreign jurisdictions, partially offset by the favorable impact of tax credits. The effect of these items resulted in a net $3.2 million increase in income tax expense from the federal statutory rate. The effective tax rate for 2024 was also increased by 2.2% related to nondeductible expenses.The GILTI provisions require us to include in our U.S. income tax return certain current foreign subsidiary earnings net of foreign tax