Note 7 – Income Taxes  

Deferred tax assets (liabilities) consist of the following temporary differences:

 

 

December 31,

 

2024

2023

2022

Inventory write-downs and differences due to UNICAP

 

 $ 270 

 $ 110 

 $ 103 

Allowance for doubtful accounts

 

  29 

  31 

  39 

Accrued liabilities and reserves

 

  50 

  90 

  90 

Depreciation and amortization

 

  (1,451)

  (1,673)

  (2,295)

Deferred income taxes, net

 

 $ (1,102)

 $ (1,442)

 $ (2,063)

 

The components of income tax expense are as follows:

 

 

Years ended December 31,

 

2024

2023

2022

Current

 

 $ 3,268 

 $ 4,075 

 $ 4,632 

Deferred

 

  (340)

  (621)

  (446)

Total

 

 $ 2,928 

 $ 3,454 

 $ 4,186 

 

Income tax expense differed from amounts computed by applying the statutory federal rate to pretax income as follows:

 

 

 

Years ended December 31,

 

2024

2023

2022

Federal income tax expense at the statutory rate

 

 $ 2,794 

 $ 2,346 

 $ 2,620 

State income taxes

 

  504 

  439 

  490 

Foreign income taxes (blended rate)

 

  (1)

  951 

  1,129 

R&D tax credits and manufacturing profit deduction

 

  (18)

  (3)

  (3)

Tax-exempt income

 

  (201)

  (195)

  - 

Change in Rate

 

  - 

  - 

  - 

Other

 

  (150)

  (84)

  (50)

Total

 

 $ 2,928 

 $ 3,454 

 $ 4,186 

 

The domestic and foreign components of income before income tax expense were as follows:  

 

 

 

Years ended December 31,

 

2024

2023

2022

Domestic

 

 $ 13,306

 $ 11,170

 $ 12,475

Foreign

 

  3,496

  8,919

  8,184

Total

 

 $ 16,802

 $ 20,089

 $ 20,659

Free Sentinel

Want the next UTAH MEDICAL PRODUCTS INC income taxes disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment UTAH MEDICAL PRODUCTS INC's next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

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.