Company: HCKT
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-030037
Chunk: 64

Company: HACKETT GROUP, INC.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1B
Chunk 64
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        %

        26.0
         
        %
       
       The increase in the tax rate from 2023 to 2024 was primarily due to the limitation of deductions related to executive compensation, primarily driven by the stock price award program. See Note 10, "Stock Based Compensation," for additional details.  The components of the net deferred income tax asset (liability) are as follows (in thousands):  

        Year Ended

        December 27,

        December 29,

        2024

        2023

        Deferred income tax assets:
         
        0

        Allowance for doubtful accounts
         
        $
        1,374

        $
        281

        Net operating loss and tax credits carryforward

        2,530

        2,940

        Accrued expenses and other liabilities

        3,913

        4,497

        7,817

        7,718

        Valuation allowance

        (1,273
        )

        (1,461
        )

        6,544

        6,257

        Deferred income tax liabilities:

        Depreciation

        (2,826
        )

        (3,381
        )

        Tax over book amortization on goodwill and intangibles

        (11,970
        )

        (10,834
        )

        Other items

        (212
        )

        (160
        )

        (15,008
        )

        (14,375
        )

        Net deferred income tax liability
         
        $
        (8,464
        )
         
        $
        (8,118
        )
       
       As of December 27, 2024, the Company had $0.9 million of U.S. state net operating loss carryforwards. Additionally, as of December 27, 2024, the Company had $7.3 million of foreign net operating loss carryforwards primarily from operations in the United Kingdom, Germany, France and Australia. A portion of the foreign net operating losses may be carried forward indefinitely.The liability method of accounting for deferred income taxes requires a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. In determining the need for valuation allowances the Company considers evidence such as history of losses and general economic conditions. As of