Company: CVGI
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001628280-25-022764
Chunk: 52

Company: Commercial Vehicle Group, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 52
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55,990 Less: Imputed interest(19,560)(24)(19,584)Present value of lease liabilities$36,272 $134 $36,406 

8. Income Taxes

We recorded a $2.1 million tax provision, or (207)% effective tax rate for the three months ended March 31, 2025, compared to a $0.7 million, or 32% effective tax rate for the three months ended March 31, 2024. The primary driver in the effective tax rate is the company's losses in the US while maintaining its full valuation allowance position on U.S. deferred tax assets. Income tax expense is based on an estimated annual effective tax rate, which requires management to make its best estimate of annual pretax income or loss. During the year, management regularly updates forecasted annual pretax results for the various countries in which the Company operates based on changes in factors such as prices, shipments, product mix, material inflation and manufacturing operations. To the extent that actual 2025 pretax results for U.S. and foreign income or loss vary from estimates, the actual income tax expense recognized in 2025 could be different from the forecasted amount used to estimate the income tax expense for the three months ended March 31, 2025. For the three months ended March 31, 2025 and 2024, cash paid for taxes, net of refunds received, were $0.8 million and $1.9 million, respectively.

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9. Pension and Other Post-Retirement Benefit Plans

The components of net periodic (benefit) cost related to pension and other post-retirement benefit plans is as follows: Non-U.S. Pension PlanThree Months Ended March 31, 20252024Interest cost$384 $349 Expected return on plan assets(345)(317)Amortization of prior service cost13 13 Recognized actuarial loss231 200 Net cost$283 $245 Net periodic cost components, not inclusive of service costs, are recognized in other (income) expense within the Condensed Consolidated Statements of Operations.

10. Performance Awards

The following table summarizes performance awards granted in the form of cash awards under the equity incentive plans: AmountAdjusted Award Value at December 31, 2024$700 New grants— Forfeitures(47)Adjustments(54)Payments— Adjusted Award Value at March 31, 2025$