Company: COHU
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001437749-25-004612
Chunk: 135

Company: COHU INC
Filing Date: 2025-02-20
Form: 10-K
Item: Item 1
Chunk 135
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, we continue to maintain the judgement that a previously recorded valuation allowance against substantially all net deferred tax assets in the United States is required. If a change in judgement regarding this valuation allowance were to occur in the future, we will record a potentially material deferred tax benefit, which could result in a favorable impact on the effective tax rate in that period.

Our valuation allowance on our DTAs at December 28, 2024, and December 30, 2023, was approximately $114.5 million and $99.9 million, respectively. The remaining gross DTAs for which a valuation allowance was not recorded are realizable primarily through future reversals of existing taxable temporary differences and to a lesser extent future taxable income in certain jurisdictions exclusive of reversing temporary differences and carryforwards.

80

			COHU, INC.

			NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The reconciliation of income tax computed at the U.S. federal statutory tax rate to the provision for income taxes is as follows:

			(in thousands)

			2024

			2023

			2022

			Tax provision at U.S. 21% statutory rate

			$
			(13,638
			)
			 
			$
			9,470

			$
			26,610

			State income taxes, net of federal tax benefit

			(2,126
			)

			(633
			)

			(1,535
			)

			Accruals, adjustments and releases from statute expirations

			(2,372
			)

			579

			348

			Federal R&D credits

			(1,103
			)

			(1,360
			)

			(1,679
			)

			Stock-based compensation

			502

			(1,504
			)

			(572
			)

			Excess executive compensation

			715

			1,375

			946

			Change in valuation allowance

			14,844

			10,654

			13,307

			GILTI, net of foreign tax credits

			2,613

			1,735

			3,458

			Foreign rate differential

			146

			2,093

			(6,131
			)