Company: CPS
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001320461-25-000087
Chunk: 81

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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10. Other Income (Expense), Net

The components of other income (expense), net were as follows:Three Months Ended March 31,20252024Foreign currency gains (losses)$103 $(1,971)Components of net periodic cost other than service cost(794)(1,266)Factoring costs(598)(653)Miscellaneous income (a)10,173 241 Other income (expense), net$8,884 $(3,649)

(a)    Miscellaneous income includes $9,962 related to certain royalty settlements during the three months ended March 31, 2025. The royalties were earned in connection with intellectual property licensed to the buyer of a previously divested business.

11. Income Taxes

The Company determines its effective tax rate each quarter based upon its estimated annual effective tax rate. The Company records the tax impact of certain unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur. In addition, jurisdictions with a projected loss for the year where no tax benefit can be recognized are excluded from the estimated annual effective tax rate.Income tax expense, income (loss) before income taxes and the corresponding effective tax rate for the three months ended March 31, 2025 and 2024 were as follows:Three Months Ended March 31,20252024Income tax expense$2,703 $4,131 Income (loss) before income taxes4,305 (27,177)Effective tax rate63 %(15)%The effective tax rate for the three months ended March 31, 2025 varied from the effective tax rate for the three months ended March 31, 2024 primarily due to the geographic mix of pre-tax income and losses, and the inability to record a tax 

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)(Unaudited)(Dollar amounts in thousands except per share and share amounts)

expense for pre-tax income and a benefit for pre-tax losses in the U.S. and certain foreign jurisdictions due to valuation allowances and other permanent items.The income tax rate for the three months ended March 31, 2025 and 2024 varied from the U.S. statutory rate primarily due to the inability to record a tax expense for pre-tax income and a tax benefit for pre-tax losses in the U.S. and certain foreign jurisdictions due to valuation allowances, tax credits