Company: STAA
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024813
Chunk: 150

Company: STAAR SURGICAL CO
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 150
---
arily Japanese Yen and euro) and lower interest income as a result of lower balances of investments available for sale.  The change in other income, net for 2023 was due to increased interest income as a result of higher interest rates during 2023.   

Other income, net generally relates to interest income earned on cash, cash equivalents and investments available for sale, interest expense on finance lease obligations, gains or losses on foreign currency transactions, and royalty income. The table below summarizes the year over year changes in other income, net (in thousands):

38

    Favorable (Unfavorable)

    2024 vs. 2023

    2023 vs. 2022

    Interest income, net
     
    $
    (1,075
    )
     
    $
    4,538

    Foreign exchange

    (1,766
    )

    (202
    )

    Royalty income

    434

    (730
    )

    Other

    367

    243

    Net change in other income, net
     
    $
    (2,040
    )
     
    $
    3,849

Provision for Income Taxes   

The following table presents our provision for income taxes for the fiscal years presented (in thousands):

    Percentage Change

    2024

    2023

    2022

    2024 vs. 2023

    2023 vs. 2022

    Provision for income taxes
     
    $
    11,156

    $
    12,349

    $
    5,887

    (9.7
    )%

    —
    *

    Effective tax rate

    (123.2
    )%

    36.6
    %

    12.9
    %

*	Denotes change is greater than +100%.

Our effective tax rates differ from the U.S. federal statutory rate of 21% for 2024, 2023 and 2022, respectively, primarily due to the income taxes generated in foreign jurisdictions and realizability of deferred tax assets. Also impacting our effective tax rates was a $4.5 million recapture of our U.S. valuation allowance in 2024, $3.3 million recapture of our U.S. valuation allowance in 2023 and a $0.9 million release of our U.S. valuation allowance in 2022. Also during