Company: THRM
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000950170-25-023344
Chunk: 190

Company: Gentherm Inc
Filing Date: 2025-02-19
Form: 10-K
Item: Item 1B
Chunk 190
---
. jurisdictions with expiration dates from 2025 – 2029. Certain of the Company’s Chinese subsidiaries began to benefit from a reduced corporate income tax rate in 2024 as a result of their High and New Technology Enterprises (“HNTE”) status. For the years ended December 31, 2024, 2023 and 2022, income in foreign jurisdictions with such holidays was $50,372, $8,185, and $2,414, respectively.At December 31, 2024, 2023 and 2022, the Company had total unrecognized tax benefits of $8,266, $5,486 and $6,185, respectively, all of which, if recognized, would affect the effective income tax rates. The reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

        Year Ended December 31,

        2024

        2023

        2022

        Balance at beginning of year
         
        $
        5,486

        $
        6,185

        $
        5,665

        Additions based on tax position related to current year

        78

        87

        972

        Additions based on tax position related to prior year

        4,587

        347

        433

        Reductions from settlements and statute of limitation expiration

        (1,636
        )

        (1,266
        )
         
        $
        (610
        )

        Effect of foreign currency translation

        (249
        )

        133

        (275
        )

        Balance at end of year
         
        $
        8,266

        $
        5,486

        $
        6,185

      The Company classifies income tax-related penalties and net interest as income tax expense. In the years ended December 31, 2024, 2023 and 2022, income tax related interest and penalties were not material. It is reasonably possible that audit settlements, the conclusions of current examinations or the expiration of the statute of limitations in several jurisdictions could impact the Company’s unrecognized tax benefits. A reversal of approximately $4,000 is reasonably possible in the next 12 months due to the statute of limitations in various taxing jurisdictions as well as conclusion ongoing tax audits. 

 F-44

GENTHERM INCORPORATED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)(In