Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 312

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 312
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Profit (loss) before taxes:
Local $ 242,879 $ 588,453 $ 295,438
Foreign ( 25,452 ( 3,611 ( 3,465
Total profit (loss) before taxes $ 217,427 $ 584,842 $ 291,973

C. Components of Deferred Tax Asset/Liability

The following is a summary of the components of the deferred tax assets and liabilities reflected in the balance sheets as of December 31, 2024 and 2023:

Details 2024 2023
─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
Deferred tax asset and liability - long-term:
Deferred tax assets:
Net operating loss carryforward $ 7,397 $ 9,889
Employees compensation 9,675 7,853
Accruals and allowances 11,355 10,997
Research and development credit 24,689 24,677
Research and development, including Section 174 under U. S. Internal Revenue Code 27,732 19,582
Lease liabilities 9,617 12,199
Others 652 2,122
91,117 87,319
Valuation allowance, see Note 18F below ( 31,613 ( 20,238
Deferred tax assets $ 59,504 $ 67,081
Deferred tax liabilities - long-term:
Depreciation and amortization $ ( 64,859 $ ( 72,254
ROU - assets under operating leases ( 1,131 ( 1,609
Others ( 801 ( 838
Deferred tax liabilities $ ( 66,791 $ ( 74,701
Presented in long term deferred tax assets $ 1,768 $ 1,810
Presented in long term deferred tax liabilities $ ( 9,055 $ ( 9,430

D. Unrecognized Tax Benefit

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

  Details                                                     Unrecognized tax benefits               
  Balance as of January 1, 2024                               $                                9,217  
  Additions for tax positions of current year                                                    727  
  Reduction due to statute of limitations of prior years                                     ( 1,000  
  Balance as of December 31, 2024                             $                                8,944  

  Details                                                     Unrecognized tax benefits