CENTURY CASINOS INC /CO/ Income Taxes Disclosure
The Company’s US and foreign pre-tax (loss) income is summarized in the table below:
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Amounts in thousands |
| 2025 |
| 2024 | ||
(Loss) income before taxes: |
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US |
| $ | (55,855) |
| $ | (123,021) |
Foreign |
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| 4,707 |
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| 3,136 |
Total (loss) income before taxes |
| $ | (51,148) |
| $ | (119,885) |
The Company’s provision (benefit) for income taxes is summarized as follows:
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| For the year ended December 31, | ||||
Amounts in thousands |
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| 2025 |
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| 2024 |
Current: |
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US - Federal |
| $ | 77 |
| $ | 142 |
US - State |
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| 404 |
|
| 191 |
Foreign |
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| 3,028 |
|
| 2,174 |
Total current |
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| 3,509 |
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| 2,507 |
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Deferred: |
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US - Federal |
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| 708 |
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| 22,611 |
US - State |
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| (57) |
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| 2,574 |
Foreign |
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| (1,412) |
|
| (1,061) |
Total deferred |
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| (761) |
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| 24,124 |
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Total: |
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US - Federal |
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| 785 |
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| 22,753 |
US - State |
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| 347 |
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| 2,765 |
Foreign |
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| 1,616 |
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| 1,113 |
Total provision (benefit) for income taxes |
| $ | 2,748 |
| $ | 26,631 |
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The components of the Company’s income taxes paid, net of refunds, are as follows:
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Amounts in thousands |
| 2025 |
| 2024 | ||
US federal |
| $ | (492) |
| $ | 317 |
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US state and local |
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Missouri |
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| 521 |
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| 175 |
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Foreign |
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Canada |
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| 1,524 |
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| 16,985 |
Austria |
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| — |
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| — |
Poland |
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| 60 |
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| 338 |
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Total taxes paid, net of refunds |
| $ | 1,613 |
| $ | 17,815 |
The Company’s effective income tax rate differs from the statutory federal income tax rate as follows:
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Amounts in thousands |
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| 2025 |
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| 2024 | ||
US federal statutory tax rate |
| $ | (10,742) | 21.0% |
| $ | (25,175) | 21.0% |
State and local income taxes, net of federal income tax effect |
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Income tax effect (1) |
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| 262 | (0.5%) |
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| 2,723 | (2.3%) |
Foreign tax effects |
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Canada |
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Changes in valuation allowances |
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| 1,275 | (2.5%) |
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| 569 | (0.5%) |
Other |
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| (166) | 0.3% |
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| 756 | (0.6%) |
Austria |
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Changes in valuation allowances |
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| (750) | 1.5% |
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| (1,135) | 1.0% |
Withholding taxes |
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| 708 | (1.4%) |
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| 701 | (0.6%) |
Other |
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| (331) | 0.6% |
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| 435 | (0.4%) |
Poland |
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| 595 | (1.2%) |
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| 391 | (0.3%) |
Mauritius |
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| 5 | 0.0% |
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| 28 | 0.0% |
Effect of changes in tax laws or rates enacted in the current period |
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| — | — |
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| — | — |
Effect of cross-border tax laws |
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| 583 | (1.1%) |
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| 666 | (0.6%) |
Tax credits |
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| (233) | 0.4% |
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| (365) | 0.3% |
Changes in valuation allowances |
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| 12,751 | (24.9%) |
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| 48,852 | (40.7%) |
Nontaxable or nondeductible items |
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Income taxed to owners of non-controlling interest |
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| (1,513) | 3.0% |
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| (1,490) | 1.2% |
Other |
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| 365 | (0.7%) |
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| 248 | (0.2%) |
Worldwide changes in prior year unrecognized tax benefits |
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| (61) | 0.1% |
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| (573) | 0.5% |
Effective tax rate |
| $ | 2,748 | (5.4%) |
| $ | 26,631 | (22.2%) |
(1)In 2024 and 2025, state taxes in Missouri comprised the majority of the state and local income taxes, net of federal effect category.
The Company’s effective income tax rate for the year ended December 31, 2025 was (5.4%). The federal corporate income tax rate in the United States for 2025 was 21%. The Company is also subject to Colorado, Missouri, West Virginia and Maryland state jurisdictions that had corporate tax rates ranging from 4.0% to 8.25% in 2025. The Company’s foreign tax rate differential reflects the fact that the US federal corporate income tax rate differs from statutory rates in Poland, Austria, Mauritius and Canada, which are 19.0%, 23.0%, 17.0% and 23.0%, respectively. Further, the income tax burden on the earnings taxed to the non-controlling interest holders of Smooth Bourbon is not reported by the Company.
The Company continues to maintain valuation allowances on deferred tax assets for CMR, CRM and Century Resorts International, Ltd., as well as deferred tax assets in the US. The Company's valuation allowances increased by $15.2 million for the year ended December 31, 2025, which materially impacts the Company’s effective tax rate.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted. The OBBBA extends and makes permanent several key provisions of the Tax Cuts and Jobs Act of 2017 previously set to expire at the end of 2025. This new legislation also introduced modifications to international taxation. The OBBBA did not have a material impact on the Company’s 2025 effective tax rate or income taxes paid. Management will continue to analyze and adjust future amounts as administrative guidance, regulations, and potential amendments and interpretations of the OBBBA occur.
The Company’s deferred income taxes at December 31, 2025 and 2024 are summarized as follows:
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Amounts in thousands |
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| 2025 |
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| 2024 |
Deferred tax assets (liabilities) – US Federal and state: |
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Deferred tax assets |
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Amortization of goodwill for tax |
| $ | 22,110 |
| $ | 23,429 |
Financing obligation to VICI Properties, Inc. subsidiaries |
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| 142,203 |
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| 141,614 |
NOL carryforward |
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| 6,307 |
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| 4,344 |
Leases |
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| 1,335 |
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| 331 |
Disallowed interest expense |
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| 27,980 |
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| 20,456 |
Accrued liabilities and other |
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| 2,345 |
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| 1,096 |
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| 202,280 |
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| 191,270 |
Valuation allowance |
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| (70,404) |
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| (55,682) |
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| $ | 131,876 |
| $ | 135,588 |
Deferred tax liabilities |
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Property and equipment |
| $ | (129,378) |
| $ | (135,522) |
Leases |
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| (1,210) |
|
| (312) |
Prepaid expenses |
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| (1,887) |
|
| (411) |
Unremitted foreign subsidiary earnings |
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| (3,753) |
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| (3,044) |
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| $ | (136,228) |
| $ | (139,289) |
Long-term deferred tax (liability) asset |
| $ | (4,352) |
| $ | (3,701) |
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Deferred tax assets (liabilities) – foreign |
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Deferred tax assets |
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Property and equipment |
| $ | 618 |
| $ | 613 |
Financing obligation to VICI Properties, Inc. subsidiaries |
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| 37,729 |
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| 35,818 |
NOL carryforward |
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| 11,232 |
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| 9,967 |
Accrued liabilities and other |
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| 668 |
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| 867 |
Leases |
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| 6,525 |
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| 5,580 |
Disallowed interest |
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| 632 |
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| — |
Subsidiary liquidation |
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| 1,549 |
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| 1,831 |
Exchange rate gain |
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| 291 |
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| 695 |
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| 59,244 |
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| 55,371 |
Valuation allowance |
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| (11,453) |
|
| (11,016) |
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| $ | 47,791 |
| $ | 44,355 |
Deferred tax liabilities |
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Property and equipment |
| $ | (22,055) |
| $ | (21,765) |
Exchange rate loss |
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| (751) |
|
| (1) |
Intangibles |
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| (1,026) |
|
| (980) |
Leases |
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| (5,903) |
|
| (4,975) |
Unremitted foreign subsidiary earnings |
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| (413) |
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| (302) |
Others |
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| (374) |
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| (475) |
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| $ | (30,522) |
| $ | (28,498) |
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Long-term deferred tax asset |
| $ | 17,269 |
| $ | 15,857 |
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The Company had income tax net operating loss carryforwards related to its domestic and international operations of approximately $100.5 million as of December 31, 2025. The Company has recorded $17.5 million of deferred tax assets related to the net operating loss carryforwards, excluding the impact of the adjustments of valuation allowances and unrecognized tax benefits. The deferred tax assets expire as follows:
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Amounts in thousands |
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2025 – 2034 |
| $ | 804 |
2035 – 2045 |
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| 8,973 |
No expiration |
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| 7,762 |
Total deferred tax assets |
| $ | 17,539 |
As of December 31, 2025, the Company has accumulated undistributed earnings generated by its foreign subsidiaries that significantly exceed the approximately $36.7 million of cash and cash equivalents held by its foreign subsidiaries. Because substantially all of these accumulated undistributed earnings have previously been subject to the one-time transition tax on foreign earnings required by the Tax Act or have been subject to tax under the GILTI regime, any additional taxes due with respect to such earnings or the excess of the amount for financial reporting over the tax basis of the Company’s foreign investments would generally be limited to foreign withholding and the tax effect of current gains or losses. Due to management’s anticipation of repatriating certain current earnings from its foreign subsidiaries, the Company has recorded a deferred tax liability of $4.2 million for the foreign withholding tax required on a potential cash dividend to the US related to earnings from the sale and leaseback of the Company’s Canadian properties in 2023, as well as current earnings from foreign subsidiaries. Absent a need for additional funds in the US, management intends to indefinitely reinvest the historical earnings in Canada and other foreign jurisdictions.
The Company has analyzed filing positions in all of the US federal, state and foreign jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. The Company has identified its US federal tax return, its state tax returns in Colorado, Missouri, West Virginia and Maryland and its foreign tax returns in Canada and Poland as “major” tax jurisdictions, as defined by the Internal Revenue Code.
The Company’s income tax returns for the following periods are currently subject to examination:
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Jurisdiction |
| Periods |
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US Federal |
| 2022-2024 |
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US State – Colorado |
| 2021-2024 |
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US State – Maryland |
| 2023-2024 |
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US State – Missouri |
| 2022-2024 |
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US State – West Virginia |
| 2022-2024 |
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Canada |
| 2021-2024 |
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Mauritius |
| 2022-2024 |
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Poland |
| 2020-2024 |
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Austria |
| 2020-2024 |
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During 2024, the Company recognized $0.5 million of unrecognized tax benefits due to a lapse of statute of limitations. The Company’s total amount of unrecognized tax benefit and changes to unrecognized tax benefit during the years ended December 31, 2025 and 2024 are summarized in the table below:
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Amounts in thousands |
| 2025 |
| 2024 | ||
Unrecognized tax benefit - January 1 |
| $ |
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| $ | 539 |
Lapse of statute of limitations |
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| (539) |
Unrecognized tax benefit - December 31 |
| $ |
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| $ |
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The Company recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. Related to the unrecognized tax benefits above, the Company did not accrue any penalties and interest during 2025 and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 18, 2026 | Showing above |
| 2024 | Mar 13, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 10, 2023 | |
| 2021 | Mar 8, 2022 | |
| 2020 | Mar 12, 2021 | |
| 2019 | Mar 13, 2020 | |
| 2018 | Mar 11, 2019 | |
| 2017 | Mar 9, 2018 | |
| 2016 | Mar 10, 2017 | |
| 2015 | Mar 11, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.