Company: SXI
Filing Date: 2025-08-04
Form Type: 10-K
Source: 0001437749-25-024450
Chunk: 660

Company: STANDEX INTERNATIONAL CORP/DE/
Filing Date: 2025-08-04
Form: 10-K
Item: Item 7
Chunk 660
---
 begun to bring back cash from foreign subsidiaries.  However, the permanent reinvestment assertion must still be assessed and made regarding potential liabilities for foreign withholding taxes.  As of  June 30, 2025, the Company maintained the assessment that previously undistributed earnings of certain foreign subsidiaries no longer meet the requirements for indefinite reinvestment under applicable accounting guidance.  Therefore, the Company recognized deferred tax liabilities of approximately $3.0 million that relate to withholding taxes on the current earnings of various foreign subsidiaries.  It is expected that deferred tax liabilities will continue to be recorded on current earnings in future periods from these subsidiaries.  The Company maintains the permanent reinvestment assertion on earnings in certain foreign jurisdictions. It is not practicable to estimate the amount of tax that might be payable on the remaining undistributed earnings.
    
   The total provision (benefit) for income taxes included in the consolidated financial statements was as follows (in thousands):

       2025    2024    2023  
 Continuing operations  $11,084  $21,532  $24,796 
 Discontinued operations   (11)  (137)  (43)
 Total provision (benefit)  $11,073  $21,395  $24,753 

   The changes in the amount of gross unrecognized tax benefits were as follows (in thousands):

       2025    2024    2023  
 Beginning Balance  $9,766  $9,493  $9,559 
 Additions based on tax positions related to the current year   1,108   273   - 
 Additions for tax positions of prior years   -   -   219 
 Reductions for tax positions of prior years   -   -   (208)
 Statute lapses   (7,961)  -   (77)
 Ending Balance  $2,913  $9,766  $9,493 

       48

   At  June 30, 2025, we had $2.9 million of non-current liabilities, included in accrued pension and other non-current liabilities on the consolidated balance sheet for uncertain tax positions. We are not able to provide a reasonable estimate of the timing of future payments related to these obligations. The Company increased its uncertain tax position during