Company: SSUP
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0000950170-25-034599
Chunk: 101

Company: SUPERIOR INDUSTRIES INTERNATIONAL INC
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1B
Chunk 101
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 2024, certain U.S. and substantially all German deferred tax assets net of deferred tax liabilities, remained subject to valuation allowances.The transition tax substantially eliminated the basis difference on foreign subsidiaries that existed previously for purposes of Accounting Standards Codification topic 740 (“ASC 740”).  However, there are limited other taxes that could continue to apply such as foreign withholding and certain state taxes. Provisions are made for income tax liabilities on the undistributed earnings of non-U.S. subsidiaries.  In addition, the Organization for Economic Co-operation and Development has issued Pillar Two model rules introducing a new global minimum tax of 15% intended to be effective January 1, 2024. While the U.S. has not yet adopted the Pillar Two rules, various other governments around the world are enacting legislation. As currently designed, Pillar Two will ultimately apply to the Company's worldwide operations, however, there has been no material effect on December 31, 2024. The Company will continue to monitor U.S. and global legislative action related to Pillar Two for potential effects.

58

A reconciliation of the beginning and ending amounts of uncertain tax positions is as follows:  

        Year Ended December 31,
         
        2024

        2023

        Beginning balance
         
        $
        30,549

        $
        26,100

        Increases (decreases) due to foreign currency translations

        (1,416
        )

        640

        Increases (decreases) as a result of positions taken during:

        Prior periods

        (356
        )

        3,274

        Current period

        —

        776

        Settlements with taxing authorities

        (14,658
        )

        (21
        )

        Expiration of applicable statutes of limitation

        (405
        )

        (220
        )

        Ending balance
         
        $
        13,714

        $
        30,549

      The Company's policy regarding interest and penalties related to uncertain tax positions is to record interest and penalties as an element of income tax expense. At the end of 2024 and 2023, the Company had liabilities of $3.8 million and $5.7 million of potential interest and penalties associated with uncertain tax positions.  Included in the unrecognized tax benefits is $1.3 million that, if recognized, would favorably affect the annual effective tax rate. Within the next 12-month