Company: CVGI
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001628280-25-012913
Chunk: 107

Company: Commercial Vehicle Group, Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 8
Chunk 107
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 credit carryforwards8,612 6,073 Net operating loss carryforwards18,233 10,705 Other temporary differences8,883 8,787 Total noncurrent deferred tax assets$57,698 $55,443 Valuation allowance(35,934)(9,342)Net noncurrent deferred tax assets$21,764 $46,101 Noncurrent deferred tax liabilities:Amortization and fixed assets$(1,132)$(1,309)Inventories(59)(8)Operating leases(9,242)(9,428)Other temporary differences(571)(2,061)Total noncurrent tax liabilities(11,004)(12,806)Net noncurrent deferred tax liabilities$(11,004)$(12,806)Total net deferred tax asset$10,760 $33,295 Deferred taxes are reflected in the Consolidated Balance Sheet as follows:Net non-current deferred tax assets$11,084 $33,568 Non-current deferred tax liabilities (included in Other long-term liabilities)$(324)$(273)Total net deferred tax asset$10,760 $33,295 We assess whether valuation allowances should be established against deferred tax assets based on consideration of all available evidence using a “more likely than not” standard. In making such judgments, the most weight is given to the cumulative three-year income (loss) position as it can be objectively verified. During 2022, (1) the Company established a valuation allowance on its U.S. deferred tax assets of $24.5 million due to the cumulative three-year loss position, and (2) reversed the valuation allowance on its U.K. deferred tax assets of $9.9 million based on the cumulative three-year income position. During 2023, the Company reversed the valuation allowance on its U.S. deferred tax assets of $22.0 million as the three-year cumulative income position was sufficient to overcome the weight of the negative evidence during the year ended December 31, 2023.During 2024, we recorded a valuation allowance of $26.6 million primarily related to establishing a full valuation allowance on our U.S. deferred tax assets due to the cumulative three-year loss position. We expect to be able to realize the benefits of all of our deferred tax assets that are not currently offset by a valuation allowance, as discussed above. In the event that our actual results differ from our estimates or we adjust these estimates in future periods