Company: ICUI
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000883984-25-000007
Chunk: 254

Company: ICU MEDICAL INC/DE
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 254
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1,098 13,788 Section 163(j) - interest expense limitation27,078 25,467 Chargebacks, discounts, customer concessions52,709 39,077 Capitalized research and development56,975 43,313 Valuation allowance(90,950)(8,452) $141,651 $201,934 Deferred tax liability:  State income taxes$5,886 $4,465 Depreciation and amortization160,368 212,429 Foreign currency translation and derivative instrument adjustments— 3,630 $166,254 $220,524 Deferred tax (liability) asset, net$(24,603)$(18,590)

107

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

The Company regularly assesses the realizability of deferred tax assets and records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. In assessing the realizability of our deferred tax assets, we weigh all available positive and negative evidence. This evidence includes, but is not limited to, historical earnings, scheduled reversal of taxable temporary differences, tax planning strategies and projected future taxable income. Due to the weight of objectively verifiable negative evidence, the Company recorded a valuation allowance of $81.7 million tax expense and $3.9 million foreign currency translation and derivative instrument adjustments against certain U.S. federal and state deferred tax assets for the tax years ending December 31, 2024.  The significant piece of objectively verifiable negative evidence evaluated was the recent U.S. cumulative losses. Our ability to use our deferred tax assets depends on the amount of taxable income in future periods.Tax Holidays and CarryforwardsNet operating loss ("NOL") carryforwards consist of: (a) federal NOL carryforwards of  $1.3 million which will expire at various dates from 2031 to indefinite carryforward periods, (b) state NOL carryforwards of $2.6 million which has indefinite carryforward periods and (c) foreign NOL carryforwards of $114.3 million which will expire at various dates from 2025 to indefinite carryforward periods. We have recorded a net deferred tax asset of $6.8 million, $29.5 million gross deferred tax asset net of tax reserves of $22.7 million, related