Company: CPS
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0001320461-25-000033
Chunk: 127

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 127
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. Other foreign subsidiaries in China, Mexico, Netherlands, Spain, Czech Republic and Korea had operating loss carryforwards aggregating $285,000, with expiration dates beginning in 2025. The Company has research tax credit carryforwards and foreign tax credit carryforwards totaling $60,000 in the U.S. with expiration dates beginning in 2029. The Company and its domestic subsidiaries have anticipated tax benefits of state net operating losses and credit carryforwards of $13,000 with expiration dates beginning in 2025.As of December 31, 2024, the Company has consolidated deferred tax assets of $501,990 with valuation allowances of $405,182 related to tax losses, credit carryforwards, and other deferred tax assets in the U.S. and certain foreign jurisdictions. The Company’s valuation allowance decreased in 2024 primarily from valuation allowance reversals of $22,900 in Brazil, $9,100 in Poland, and $9,500 in one Chinese location offset with increases from current year losses generated in the U.S. and certain foreign jurisdictions. Current and future provision for income taxes is significantly impacted by the initial recognition of and changes in valuation allowances in certain countries. The Company intends to maintain these allowances until it is more likely than not that the deferred tax assets will be realized. In the future, provision for income taxes will include no tax benefit with respect to losses incurred and no tax expense with respect to income generated in these countries until the respective valuation allowance is eliminated.As of December 31, 2024, no material deferred income taxes have been recorded on the undistributed earnings of foreign subsidiaries, since a majority of these earnings will not be taxable upon repatriation to the United States. These earnings will be primarily treated as previously taxed income from either the one time transition tax or GILTI, or they will be offset with a 100% dividends received deduction. The Company has not recorded a deferred tax liability for foreign withholding taxes or state income taxes that may be incurred upon repatriation in the future as such undistributed foreign earnings are considered permanently reinvested or could be remitted with no tax implications.As of December 31, 2024, the Company had $10,640 ($10,834 including interest and penalties) of total unrecognized tax benefits, of which $7,812 represents the amount of unrecognized tax benefits that, if recognized, would impact the effective income tax rate.

73

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)(D