Company: CPS
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001320461-25-000156
Chunk: 42

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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2420252024Foreign currency losses$(1,570)$(4,554)$(3,909)$(10,220)Components of net periodic cost other than service cost(896)(692)(2,556)(2,648)Factoring costs(472)(696)(1,729)(2,116)Miscellaneous income (a)81 91 10,554 355 Other (expense) income, net$(2,857)$(5,851)$2,360 $(14,629)(a)    Miscellaneous income includes $10,280 related to certain royalty settlements during the nine months ended September 30, 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, 

19

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

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, (loss) income before income taxes and the corresponding effective tax rate for the three and nine months ended September 30, 2025 and 2024 were as follows:Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Income tax expense$3,864 $2,861 $14,648 $15,072 (Loss) income before income taxes(3,757)(8,032)7,156 (103,312)Effective tax rate(103)%(36)%205 %(15)%The effective tax rate for the three and nine months ended September 30, 2025 varied from the effective tax rate for the three and nine months ended September 30, 2024 primarily due to the geographic mix of pre-tax income and losses, and the inability to record a tax 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 and nine months ended September 30,