REVVITY, INC.RVTY
REVVITY, INC. Income Taxes Disclosure
Income Taxes
The components of income from continuing operations before income taxes were as follows for the fiscal years ended:
| December 29, 2024 | December 31, 2023 | January 1, 2023 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| U.S. | $ | 134,177 | $ | 51,314 | $ | 326,438 | |||||||||||
| Non-U.S. | 181,949 | 131,662 | 325,399 | ||||||||||||||
| Total | $ | 316,126 | $ | 182,976 | $ | 651,837 | |||||||||||
The components of the provision for income taxes on continuing operations were as follows:
| Current Expense | Deferred Expense (Benefit) | Total | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Fiscal year ended December 29, 2024 | |||||||||||||||||
| Federal | $ | 42,708 | $ | (34,407) | $ | 8,301 | |||||||||||
| State | 17,040 | (10,962) | 6,078 | ||||||||||||||
| Non-U.S. | 75,539 | (56,863) | 18,676 | ||||||||||||||
| Total | $ | 135,287 | $ | (102,232) | $ | 33,055 | |||||||||||
| Fiscal year ended December 31, 2023 | |||||||||||||||||
| Federal | $ | 39,800 | $ | (60,845) | $ | (21,045) | |||||||||||
| State | 9,183 | (19,619) | (10,436) | ||||||||||||||
| Non-U.S. | 78,154 | (43,200) | 34,954 | ||||||||||||||
| Total | $ | 127,137 | $ | (123,664) | $ | 3,473 | |||||||||||
| Fiscal year ended January 1, 2023 | |||||||||||||||||
| Federal | $ | 115,436 | $ | (45,246) | $ | 70,190 | |||||||||||
| State | 27,757 | (16,139) | 11,618 | ||||||||||||||
| Non-U.S. | 101,891 | (44,538) | 57,353 | ||||||||||||||
| Total | $ | 245,084 | $ | (105,923) | $ | 139,161 | |||||||||||
The total provision for income taxes included in the consolidated financial statements is as follows for the fiscal years ended:
| December 29, 2024 | December 31, 2023 | January 1, 2023 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Continuing operations | $ | 33,055 | $ | 3,473 | $ | 139,161 | |||||||||||
| Discontinued operations | (12,762) | 259,890 | 17,101 | ||||||||||||||
| Total | $ | 20,293 | $ | 263,363 | $ | 156,262 | |||||||||||
A reconciliation of income tax expense at the U.S. federal statutory income tax rate to the recorded tax provision is as follows for the fiscal years ended:
| December 29, 2024 | December 31, 2023 | January 1, 2023 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Tax at statutory rate | $ | 66,386 | $ | 38,346 | $ | 136,886 | |||||||||||
| Non-U.S. rate differential, net | (13,332) | (18,479) | (5,221) | ||||||||||||||
| U.S. taxation of multinational operations | (28,879) | (4,594) | 22,102 | ||||||||||||||
| State income taxes, net | 2,174 | (265) | 7,820 | ||||||||||||||
| Impact of rate changes | — | (12,795) | — | ||||||||||||||
| Prior year tax matters | (9,389) | 3,971 | (10,160) | ||||||||||||||
| Effect of stock compensation | 2,960 | 2,225 | 845 | ||||||||||||||
| General business tax credits | (17,634) | (4,718) | (7,132) | ||||||||||||||
| Transfer pricing matters | (2,391) | (6,725) | — | ||||||||||||||
| Change in valuation allowance | 29,781 | 6,772 | 4,964 | ||||||||||||||
| Effect of foreign repatriations | 5,329 | (4,737) | (4,940) | ||||||||||||||
| Other, net | (1,950) | 4,472 | (6,003) | ||||||||||||||
| Total | $ | 33,055 | $ | 3,473 | $ | 139,161 | |||||||||||
The Company regularly reviews its tax positions in each significant taxing jurisdiction in the process of evaluating its unrecognized tax benefits. The Company makes adjustments to its unrecognized tax benefits when: (i) facts and circumstances regarding a tax position change, causing a change in management’s judgment regarding that tax position; (ii) a tax position is effectively settled with a tax authority at a differing amount; and/or (iii) the statute of limitations expires regarding a tax position. The Company has recognized the change in tax positions in prior periods through both continuing and discontinuing operations.
The tabular reconciliation of the total amounts of unrecognized tax benefits is as follows for the fiscal years ended:
| December 29, 2024 | December 31, 2023 | January 1, 2023 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Unrecognized tax benefits, beginning of year | $ | 129,056 | $ | 57,948 | $ | 61,658 | |||||||||||
| Gross increases—tax positions in prior periods | 29,623 | 64,697 | 1,489 | ||||||||||||||
| Gross decreases—tax positions in prior periods | — | — | (2,519) | ||||||||||||||
| Gross increases—current-period tax positions | — | 14,969 | 7,187 | ||||||||||||||
| Lapse of statute of limitations | (7,251) | (10,830) | (8,625) | ||||||||||||||
| Foreign currency translation adjustments | (1,643) | 2,272 | (1,242) | ||||||||||||||
| Unrecognized tax benefits, end of year | $ | 149,785 | $ | 129,056 | $ | 57,948 | |||||||||||
The Company classifies interest and penalties as a component of income tax expense. At December 29, 2024 and December 31, 2023, the Company had accrued interest and penalties of $5.1 million and $6.3 million, respectively. During fiscal years 2024, 2023 and 2022, the Company recognized a net benefit of $1.2 million, $1.1 million and $0.5 million, respectively, for interest and penalties in its total tax provision. At December 29, 2024, substantially all of the unrecognized tax benefits, if recognized, would affect the effective tax rate.
The Company believes that it is reasonably possible that approximately $76.1 million of its uncertain tax positions at December 29, 2024, including accrued interest and penalties, and net of tax benefits, may be resolved over the next twelve months as a result of lapses in applicable statutes of limitations and potential settlements. Various tax years after 2010 remain open to examination by certain jurisdictions in which the Company has significant business operations, such as China, Finland, Germany, Luxembourg, The Netherlands, Singapore, the United Kingdom and the United States. The tax years under examination vary by jurisdiction.
The tax effects of temporary differences and attributes that gave rise to deferred income tax assets and liabilities were as follows:
| December 29, 2024 | December 31, 2023 | ||||||||||
| (In thousands) | |||||||||||
| Deferred tax assets: | |||||||||||
| Inventory | $ | 11,548 | $ | 12,934 | |||||||
| Reserves and accruals | 70,544 | 63,711 | |||||||||
| Accrued compensation | 23,637 | 18,339 | |||||||||
| Net operating loss and credit carryforwards | 176,504 | 133,919 | |||||||||
| Accrued pension | 12,773 | 11,089 | |||||||||
| Restructuring reserve | 1,369 | 1,588 | |||||||||
| Deferred revenue | 18,388 | 17,539 | |||||||||
| Capitalized research and development expenses | 69,208 | 47,188 | |||||||||
| Operating lease liabilities | 33,468 | 29,319 | |||||||||
| Unrealized foreign exchange loss | 2,612 | 12,502 | |||||||||
| All other, net | 775 | 1,610 | |||||||||
| Total deferred tax assets | 420,826 | 349,738 | |||||||||
| Deferred tax liabilities: | |||||||||||
| Postretirement health benefits | (5,139) | (4,452) | |||||||||
| Depreciation and amortization | (688,771) | (784,925) | |||||||||
| Operating lease right-of-use assets | (30,881) | (26,301) | |||||||||
| Prepaid expenses | (375) | (349) | |||||||||
| Deferred tax liability on foreign earnings | (19,662) | (17,587) | |||||||||
| Total deferred tax liabilities | (744,828) | (833,614) | |||||||||
| Valuation allowance | (126,488) | (84,626) | |||||||||
| Net deferred tax liabilities | $ | (450,490) | $ | (568,502) | |||||||
The components of net deferred tax liabilities were recognized in the consolidated balance sheets as follows:
| December 29, 2024 | December 31, 2023 | ||||||||||
| (In thousands) | |||||||||||
| Other assets, net | $ | 5,613 | $ | 8,158 | |||||||
| Deferred taxes and other long-term liabilities | (456,103) | (576,660) | |||||||||
| Total | $ | (450,490) | $ | (568,502) | |||||||
At December 29, 2024, the Company had U.S. federal net operating loss carryforwards of $104.9 million, state net operating loss carryforwards of $6.2 million, foreign net operating loss carryforwards of $549.8 million, state tax credit carryforwards of $11.8 million and foreign tax credit carryforwards of $24.7 million. Certain net operating loss carryforwards and state credit carryforwards do not expire, while other losses begin to expire in 2025.
Valuation allowances take into consideration limitations imposed upon the use of the tax attributes and reduce the value of such items to the likely net realizable amount. The Company regularly evaluates positive and negative evidence available to determine if valuation allowances are required or if existing valuation allowances are no longer required. Valuation allowances have been provided on state net operating loss and state tax credit carryforwards and on certain foreign tax attributes that the Company has determined are not more likely than not to be realized. The increase in the valuation allowance of $29.8 million in fiscal year 2024 was primarily due to generation of foreign tax credit carryforwards for which a benefit is not expected to be realized in future periods.
The Company records the applicable taxes associated with the future remittance of undistributed foreign earnings previously taxed at the U.S. federal level and/or that would be claimed for a dividend received deduction if repatriated. For the remaining other undistributed foreign earnings and outside basis differences we continue to be indefinitely reinvested and have
not provided any taxes for these amounts, and it is not practicable to estimate the amount of deferred tax liability that would be incurred.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Feb 25, 2025 | Showing above |
| 2023 | Mar 1, 2023 | |
| 2022 | Mar 3, 2022 | |
| 2021 | Mar 2, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 28, 2017 | |
| 2016 | Mar 1, 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.