Income Taxes (Tables)

12 Months Ended

Dec. 28, 2024

Schedule of components of income tax expense (benefit)

Domestic and foreign income (loss) before income taxes is as follows:


(in thousands)	2024		2023		2022
Domestic	$	3,151	$	40,571	$	32,462
Foreign	148,712		288,027		410,582
Income before income taxes	$	151,863	$	328,598	$	443,044

Federal, state, and foreign income tax expense (benefit) consists of the following:


(in thousands)	2024		2023		2022
Current:
Federal	$	(5,881)	$	8,188	$	12,423
State	1,826		2,880		2,183
Foreign	58,551		57,999		77,551
Subtotal	$	54,496	$	69,067	$	92,157
Deferred:
Federal and State	$	4,091	$	1,751	$	(9,182)
Foreign	(6,914)		(1,705)		(13,237)
Subtotal	$	(2,823)	$	46	$	(22,419)
Provision for income taxes	$	51,673	$	69,113	$	69,738

Schedule of effective income tax rate reconciliation

A reconciliation between income taxes computed on income before income taxes at the federal statutory rate and the provision for income taxes is provided below:


(in thousands)	2024		2023		2022
Tax expense at statutory rate of 21%	$	31,891	$	69,006	$	93,039
Non-U.S. income tax rate differential	(1,130)		(25,623)		(41,731)
Non-U.S. losses and expenses with no tax benefit	9,401		11,261		10,660
Tax on unremitted earnings	6,616		6,394		10,870
Tax impact of non-deductible goodwill impairment charge	5,810		—		—
Net impact associated with U.S. tax on non-U.S. income, including GILTI	5,809		4,739		2,546
State and local taxes, net of federal tax benefit	2,533		1,503		215
Certain changes in unrecognized tax benefits and related accrued interest	(8,692)		(172)		1,839
One-time tax deductions for stock of subsidiaries	—		—		(11,495)
Other, net	(565)		2,005		3,795
Provision for income taxes	$	51,673	$	69,113	$	69,738

Schedule of deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets and liabilities at December 28, 2024 and December 30, 2023, are as follows:


(in thousands)	2024		2023
Deferred tax assets:
Net operating loss carryforwards	$	46,263	$	36,941
Interest expense carryforwards	34,800		34,205
Accrued expenses and reserves	32,336		39,299
Capitalized expenses	18,939		16,872
Lease liabilities	13,016		—
U.S. foreign tax credit carryforwards	3,490		3,561
U.S. research and other general business tax credit carryforwards	1,252		1,468

Other	196		—
Deferred tax assets	150,292		132,346
Less: Valuation allowance	(55,468)		(41,542)
Total deferred tax assets	94,824		90,804

Deferred tax liabilities:
Excess of book basis over the tax basis for intangible assets and goodwill	133,701		148,659
Excess of book basis over the tax basis for property, plant, and equipment	24,238		22,570
Tax on unremitted earnings	14,612		18,621
Right of use lease assets	12,906		—
Unrealized foreign currency exchange gains	—		1,288
Total deferred tax liabilities	185,457		191,138
Net deferred tax liabilities	$	90,633	$	100,334

Schedule of unrecognized tax benefits roll forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits as of December 28, 2024, December 30, 2023, and December 31, 2022 is as follows:


(in thousands)	Unrecognized Tax Benefits
Balance at December 31, 2022	$	30,374
Additions for tax positions related to pre-acquisition periods of acquired subsidiaries	1,975
Additions for tax positions taken in the current year	1,200
Decreases for tax positions taken in the prior year	(792)
Decreases for lapses in statute of limitations	(1,051)
Decreases for settlements	(215)
Other	(42)
Balance at December 30, 2023	$	31,449

Additions for tax positions taken in the current year	1,251
Additions for tax positions taken in the prior year	375
Decreases for lapses in statute of limitations	(7,650)

Other	574
Balance at December 28, 2024	$	25,999

LITTELFUSE INC /DE 10-K