Company: OFIX
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000950170-25-026066
Chunk: 262

Company: Orthofix Medical Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1B
Chunk 262
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 of December 31, 2024. The Company’s investment in foreign subsidiaries continues to be indefinite in nature; however, the Company may periodically repatriate a portion of these earnings to the extent that it does not incur significant additional tax liability. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested earnings of foreign subsidiaries is not practicable.The Company records a benefit for uncertain tax positions when the weight of available evidence indicates that it is more likely than not, based on an evaluation of the technical merits, that the tax position will be sustained on audit. The tax benefit is measured as the largest amount that is more than 50% likely to be realized upon settlement. The Company re-evaluates income tax positions periodically to consider changes in facts or circumstances such as changes in or interpretations of tax law, effectively settled issues under audit, and new audit activity. The Company includes interest and any applicable penalties related to income tax issues as part of income tax expense in its consolidated financial statements.The Company’s unrecognized tax benefit was $1.7 million and $3.0 million for the years ended December 31, 2024, and 2023, respectively. The Company recorded net interest and penalties expense (benefit) on unrecognized tax benefits of $0.2 million, $0.2 million, and $0.1 million for the years ended December 31, 2024, 2023, and 2022, respectively, and had approximately $1.0 million and $1.1 million accrued for payment of interest and penalties as of December 31, 2024, and 2023, respectively. The entire amount of unrecognized tax benefits, including interest, would favorably impact the Company's effective tax rate if recognized. The Company believes it is reasonably possible that, in the next 12 months, no unrecognized tax benefits, exclusive of interest and penalties, will be resolved. A reconciliation of the gross unrecognized tax benefits (excluding interest and penalties) for the years ended December 31, 2024, and 2023, is shown below:

        (U.S. Dollars, in thousands)
         
        2024

        2023

        Balance as of January 1,
         
        $
        2,974

        $
        1,743

        Additions for current year tax positions

        40

        416

        Increases for prior year tax positions

        42

        815

        Settlements of prior