Company: ICUI
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000883984-25-000007
Chunk: 377

Company: ICU MEDICAL INC/DE
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 377
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 authorities. The total gross amount of unrecognized tax benefits as of  December 31, 2024 was $72.8 million which, if recognized, would impact the effective tax rate.  We believe that adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax examinations cannot be predicted with certainty. As of December 31, 2024, it is reasonably possible that the expiration of the U.S. federal statute of limitations will cause the gross amount of unrecognized tax benefits to decrease by   $5.2 million within the next twelve months. It is not possible to estimate any other amount of change, if any, in the unrecognized tax benefits that is reasonably possible within the next twelve months. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. We recognized $0.8 million of interest expense and $0.1 million of penalties in income tax benefit during 2024 and released $1.1 million of interest expense and $0.5 million of penalties in 2024. In total, we have accrued for interest and penalties of $2.6 million and $1.6 million, respectively as of December 31, 2024, and $2.9 million and $2.0 million, respectively, as of December 31, 2023. 

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ICU MEDICAL, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following table summarizes our cumulative gross unrecognized tax benefits (in thousands): Year Ended December 31, 202420232022Beginning balance$78,558 $54,053 $21,537 Increases to prior year tax positions1,945 2,347 148 Increases due to acquisitions— 29,606 Increases to current year tax positions4,441 34,607 4,706 Decreases to prior year tax positions(406)(2,455)(222)Decrease related to lapse of statute of limitations(10,062)(9,591)(1,722)Decrease related to settlements with tax authorities(1,133)(403)— Decrease related to exchange rate fluctuations(524)— — Ending balance$72,819 $78,558 $54,053 

In December 2022, the European Union (EU) agreed to implement Pillar Two, the OECD’s