Semiconductor Equipment & Materials Intl

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“Semi is a not-for-profit organization recognized by the irs and ftb as exempt from federal and state income taxes in the united states. However, certain activities of subsidiaries or branches in other countries, such as trade shows, are subject to foreign income taxes or other taxes on income generated in their respective jurisdictions. Tax expense was as follows for the years ended december 31 (in thousands): 2022 2021 current $305 $1,099 deferred (43) 69 ------------------------------------------------------------ total income taxes 262 1,168 other taxes 515 717 ------------------------------------------------------------ total taxes $777 $1,905 net deferred tax assets are included in prepaids and other current assets on the consolidated statements of financial position and approximated $299,000 and $283,000 at december 31, 2022 and 2021, respectively. The sources resulting in net deferred tax assets consist principally of deferred revenues and deferred expenses related to exhibitions, accruals, and depreciation. Additionally, the group generates unrelated business income, primarily from its advertising activities. These activities have historically generated losses and semi has accumulated net operating loss carryforwards ("nols"). As of december 31, 2022 and 2021, semi had nols of approximately $5,362,000 and $5,513,000 respectively. The nols will begin to expire after the year ending december 31, 2022. The ability to utilize the nols or realize any benefits is uncertain, and therefore a full valuation allowance has been applied against them. No valuation allowance other than nols described in the preceding paragraph was recorded at december 31, 2022 and 2021, as the group concluded that all of the deferred tax assets will be realized in future years. Net deferred assets are recorded as prepaids and other current assets on the consolidated statements of financial position and any change is recorded in non-operating expenses on the consolidated statement of activities and changes in net assets. On december 22, 2017, the tax cuts and jobs act (the "2017 tax act") was enacted. The 2017 tax act includes a number of changes to existing u.s. Tax laws that impact the group, most notably a reduction of the u.s. Corporate income tax rate from 35 percent to 21 percent for tax years beginning after december 31, 2017. The group measures deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. Accordingly, the group's deferred tax assets and liabilities were re-measured to reflect the reduction in the u.s. Corporate income tax rate from 35 percent to 21 percent. The group's total gross unrecognized tax benefits are classified as current and non-current liabilities in the consolidated statements of financial position. As of december 31, 2022 and 2021, the total amount of gross unrecognized tax benefits was approximately $1,146,000 and $1,182,000, respectively, which results entirely from foreign taxes. The aggregate changes in the balance of gross unrecognized tax benefits, which includes interest and penalties, are as follows (in thousands): balances as of january 1, 2021 $1,309 decrease related to expiry of statue of limitation (152) increases related to tax positions taken during a prior period 25 balance as of december 31, 2021 $1,182 decreased related to expiry of statue of limitation (205) increases related to tax positions taken during a prior period 169 balance as of december 31, 2022 $1,146 as of december 31, 2022, the group has analyzed the inventory of tax positions taken with respect to all applicable income tax issues for all open tax years (in each respective jurisdiction) including tax years ended december 31, 2018 through december 31, 2022 for u.s. Federal tax purposes and tax years ended december 31, 2017 through december 31, 2022 for california tax purposes (except with respect to the extent of net operating losses”