MILLER INDUSTRIES INC /TN/ Income Taxes Disclosure
8.INCOME TAXES
The following table summarizes income/(loss) before income taxes, including intercompany amounts:
Years Ended December 31, | |||||||||
(in thousands) | | 2025 | | 2024 | | 2023 | |||
United States | $ | 13,400 | $ | 69,422 | $ | 65,068 | |||
Foreign |
| 18,094 |
| 10,708 |
| 8,716 | |||
Total | $ | 31,494 | $ | 80,130 | $ | 73,784 | |||
The following table presents the significant components of the income tax provision:
Years Ended December 31, | |||||||||
(in thousands) | | 2025 | | 2024 | | 2023 | |||
Current: |
| |
| |
| | |||
Federal | $ | 4,966 | $ | 15,589 | $ | 14,949 | |||
State |
| 35 |
| 311 |
| 541 | |||
Foreign |
| 4,994 |
| 1,906 |
| 2,184 | |||
Total Current | $ | 9,995 | $ | 17,806 | $ | 17,674 | |||
Deferred: |
| |
| |
| | |||
Federal | $ | (1,215) | $ | (789) | $ | (1,797) | |||
State |
| (161) |
| (358) |
| (310) | |||
Foreign |
| (139) |
| (23) |
| (74) | |||
Total Deferred | $ | (1,515) | $ | (1,170) | $ | (2,181) | |||
Provision for/(Benefit from) Income Taxes | $ | 8,480 | $ | 16,636 | $ | 15,493 | |||
The following table presents a reconciliation of income taxes calculated at the statutory rate and the provision for income taxes:
Years Ended December 31, | ||||||||||||||||||
(in thousands, except percentages) | | 2025 | | 2024 | | 2023 | ||||||||||||
STATUTORY RATE RECONCILIATION | ||||||||||||||||||
U.S. FEDERAL TAX RATE | $ | 6,614 | 21.0 | % | $ | 16,795 | 21.0 | % | $ | 15,495 | 21.0 | % | ||||||
STATE AND LOCAL TAXES, Net of Federal Tax Benefit | $ | (128) | (0.4) | % | $ | (112) | (0.1) | % | $ | 117 | 0.2 | % | ||||||
FOREIGN TAX EFFECTS | ||||||||||||||||||
France | ||||||||||||||||||
Tax rate differential | $ | 836 | 2.7 | % | $ | (290) | (0.4) | % | $ | 316 | 0.4 | % | ||||||
Italy | ||||||||||||||||||
Tax rate differential | $ | 29 | 0.1 | % | $ | — | — | % | $ | — | — | % | ||||||
United Kingdom | ||||||||||||||||||
Tax rate differential | $ | 190 | 0.6 | % | $ | (76) | (0.1) | % | $ | (36) | — | % | ||||||
Effect of Cross-Border Tax Laws | | | ||||||||||||||||
Global intangible low-tax income |
| $ | — | — | % |
| $ | 2,114 | 2.6 | % | $ | 1,718 | 2.3 | % | ||||
Global intangible low-tax income deduction | $ | — | — | % | $ | (1,057) | (1.3) | % | $ | (859) | (1.2) | % | ||||||
Foreign-derived intangible income deduction | $ | (116) | (0.4) | % | $ | (293) | (0.4) | % | $ | (464) | (0.6) | % | ||||||
Foreign tax credit | $ | — | — | % | $ | (1,057) | (1.3) | % | $ | (859) | (1.2) | % | ||||||
Tax Credits | ||||||||||||||||||
Research and development tax credits | $ | (650) | (2.1) | % | $ | (404) | (0.5) | % | $ | (175) | (0.2) | % | ||||||
Nontaxable or Nondeductible Items | ||||||||||||||||||
Stock-based compensation | $ | 197 | 0.6 | % | $ | — | — | % | $ | — | — | % | ||||||
Officer compensation | $ | 1,540 | 4.9 | % | $ | 875 | 1.1 | % | $ | — | — | % | ||||||
Other | $ | 120 | 0.4 | % | $ | 150 | 0.2 | % | $ | 74 | 0.1 | % | ||||||
Depreciation and amortization | ||||||||||||||||||
Section 174 capitalization and amortization (timing difference) | $ | (2,425) | (7.7) | % | $ | 443 | 0.6 | % | $ | 957 | 1.3 | % | ||||||
Stock-based compensation | ||||||||||||||||||
Temporary RSU book-tax timing differences | $ | 1,698 | 5.4 | % | $ | 750 | 0.9 | % | $ | 326 | 0.4 | % | ||||||
Other Adjustments | $ | 575 | 1.8 | % | $ | (1,202) | (1.5) | % | $ | (1,117) | (1.5) | % | ||||||
| $ | 8,480 | 26.9 | % |
| $ | 16,636 | 20.8 | % |
| $ | 15,493 | 21.0 | % | ||||
The following table shows significant components of our deferred tax assets and liabilities:
December 31, | December 31, | |||||
(in thousands) | | 2025 | 2024 | |||
Deferred Tax Assets: |
| | | |||
Allowance for credit losses | $ | 353 | $ | 377 | ||
Accruals and reserves |
| 2,387 |
| 2,021 | ||
Research and development | 4,231 | 3,834 | ||||
Restricted stock units | 2,985 | 1,259 | ||||
Net operating losses | 105 | 580 | ||||
Other |
| 1,143 |
| 413 | ||
Total deferred tax assets |
| 11,204 |
| 8,484 | ||
Deferred Tax Liabilities: |
| | | |||
Property, plant, and equipment |
| 8,757 |
| 10,224 | ||
Amortization of goodwill | 3,806 | 1,131 | ||||
Other |
| 11 |
| 14 | ||
Total deferred tax liabilities |
| 12,574 |
| 11,369 | ||
Net Deferred Tax Liability | $ | (1,370) | $ | (2,885) | ||
Deferred tax assets represent the future tax benefit of future deductible differences and, if it is more likely than not that a tax asset will not be realized, a valuation allowance is required to reduce the recorded deferred tax assets to net realizable value. The Company has evaluated positive and negative evidence to assess the realizability of its deferred taxes. Based on the evidence, the Company believes it is more likely than not that its deferred tax assets will be realizable. Accordingly, the Company has not included a valuation allowance against its deferred tax assets at this time.
We do not currently have plans to repatriate undistributed foreign earnings to the United States and have not determined any timeline or amount for any such future distributions.
As of December 31, 2025 and 2024, the Company had no federal net operating loss carryforwards, and a state net operating loss carryforward of approximately $10.8 million and $8.9 million, respectively.
The Company is subject to United States federal income taxes, as well as income taxes in various states and foreign jurisdictions. The Company’s 2021 and later tax years remain open to examination by the tax authorities. With few exceptions, as of December 31, 2025, the Company is no longer subject to U.S. federal, state, or non-U.S. income tax examination prior to 2021.
The following table summarizes income taxes paid:
Years Ended December 31, | |||||||||
(in thousands) | | 2025 | | 2024 | | 2023 | |||
FEDERAL TAX |
| $ | 2,950 |
| $ | 20,600 |
| $ | 16,710 |
STATES: | |||||||||
Tennessee | $ | 103 | $ | 555 | $ | 371 | |||
Pennsylvania |
| 14 |
| 83 |
| 45 | |||
Other | 8 | 228 | 182 | ||||||
FOREIGN: |
| |
| |
| | |||
France | $ | 3,057 | $ | 1,514 | $ | 771 | |||
Italy |
| (83) |
| — |
| — | |||
United Kingdom |
| 1,450 |
| 719 |
| (26) | |||
TOTAL | $ | 7,499 | $ | 23,699 | $ | 18,053 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Mar 5, 2025 | |
| 2023 | Mar 6, 2024 | |
| 2022 | Mar 8, 2023 | |
| 2021 | Mar 9, 2022 | |
| 2020 | Mar 3, 2021 | |
| 2019 | Mar 4, 2020 | |
| 2018 | Mar 6, 2019 | |
| 2017 | Mar 7, 2018 | |
| 2016 | Mar 15, 2017 | |
| 2015 | Mar 9, 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.