Income Taxes (Tables)

12 Months Ended

Dec. 26, 2025

Provision for (Benefit from) Income Taxes

The provision for income taxes consisted of the following (U.S. dollars in millions):


	Year ended
	December 26, 2025		December 27, 2024		December 29, 2023
Current:
U.S. federal income tax	$	0.2	$	0.1	$	0.1
State	1.9		0.7		1.0
Non-U.S.	27.3		24.8		20.8
	29.4		25.6		21.9
Deferred:
U.S. federal income tax	(0.6)		0.3		(1.1)
State	(0.7)		0.2		(0.2)
Non-U.S.	9.3		3.0		(2.5)
	8.0		3.5		(3.8)
	$	37.4	$	29.1	$	18.1

Schedule of Income Before Income Tax, Domestic and Foreign

Income before income taxes consisted of the following (U.S. dollars in millions):


	Year ended
	December 26, 2025		December 27, 2024		December 29, 2023
U.S.	$	2.4	$	8.5	$	(136.4)
Non-U.S.	128.5		162.2		152.9
	$	130.9	$	170.7	$	16.5

Differences Between Reported Provision for (Benefit from) Income Taxes and Income Taxes Computed at U.S. Statutory Federal Income Tax Rate

In accordance with the updated requirements of ASU 2023-09 for the year ended December 26, 2025, a reconciliation of the U.S. federal statutory income tax rate to the effective tax rate are explained in the following (U.S. dollars in millions):


	December 26, 2025
	Amount		Rate
U.S. federal statutory income tax at 21%	$	27.5	21.0	%
State and local income taxes, net of federal income tax effect (a)	2.0		1.6	%
Enactment of new tax laws	0.2		0.2	%

Tax Credits	(0.1)		(0.1)	%



Valuation allowance	(4.0)		(3.1)	%
Other	2.4		1.9	%
Foreign tax effects:
Brazil
Foreign currency adjustment	7.4		5.6	%
Changes in valuation allowance	(6.2)		(4.7)	%
Other	0.1		0.1	%
Cayman Islands
Foreign rate differential	2.9		2.1	%
Chile
Local tax law adjustment	(1.7)		(1.3)	%
Changes in valuation allowance	2.4		1.8	%

Costa Rica
Foreign rate differential	7.7		5.9	%
Statutory tax regime	(19.8)		(15.2)	%
Other	(0.7)		(0.6)	%
Guatemala
Nondeductible expenses	1.7		1.3	%
Non-taxable income (loss)	(1.4)		(1.1)	%
Other taxes	2.0		1.6	%
Other	0.8		0.6	%
Luxembourg
Nondeductible interest permanent true-up	(4.5)		(3.4)	%
Global minimum tax	2.9		2.1	%
Changes in valuation allowance	8.1		6.3	%
Permanent difference true-up	(1.5)		(1.1)	%
Other	(0.3)		(0.3)	%
Philippines
Nondeductible asset impairment	7.6		5.8	%
Non-taxable income (loss)	(3.6)		(2.7)	%
Changes in valuation allowance	3.7		2.8	%
Other	(0.7)		(0.5)	%
Saudi Arabia
Asset sale permanent true-up	2.8		2.1	%
Other	(0.2)		(0.2)	%
Switzerland

Foreign currency adjustment	4.2		3.2	%

Other	(2.1)		(1.6)	%
United Kingdom
Foreign rate differential	1.8		1.4	%
Income not subject to income tax due to tonnage tax	(8.8)		(6.7)	%
Other	0.2		0.2	%
Other Foreign Jurisdictions	2.3		1.8	%
Worldwide changes in unrecognized tax benefits	2.3		1.7	%
Effective tax rate	$	37.4	28.5	%

(a)State taxes in California, Texas, North Carolina and Pennsylvania made up the majority (greater than 50 percent) of this category.

The Company has a subsidiary that operates in a jurisdiction with a statutory tax regime which provides corporate income tax incentives for qualifying activities, subject to compliance with certain operational and investment requirements for an initial period of 8 years, expiring on December 31, 2031, with the opportunity to renew. The aggregate reduction in income tax expense attributable to this was approximately $19.8 million. The impact on diluted earnings per share was $0.41 for the year ended December 26, 2025.

The differences between the reported provision for income taxes and income taxes computed at the U.S. statutory federal income tax rate for years prior to the adoption of ASU 2023-09 are explained in the following reconciliation (U.S. dollars in millions):


	Year Ended
	December 27, 2024		December 29, 2023
Income tax provision computed at the U.S. statutory federal rate	$	35.9	$	3.4
Effect of tax rates on non-U.S. operations	(31.2)		(70.8)
Provision for uncertain tax positions	(1.0)		1.5
Non-deductible interest	22.3		23.1
Foreign exchange	(18.2)		8.1

Non-deductible differences	1.3		(0.7)
Non-taxable income/loss	(2.1)		(0.5)


Non-deductible impairment charges	0.7		5.4

Other	2.1		0.8
State tax benefit	0.5		(4.4)
Other taxes in lieu of income	5.8		3.5


Increase in valuation allowance (1)	13.0		48.7
Provision for income taxes	$	29.1	$	18.1

______

_______

(1) The increase in valuation allowance includes effects of foreign exchange and adjustments to deferred tax balances which were fully offset by valuation allowance.

Schedule of Cash Paid for Income Taxes

The table below provides the updated requirements of ASU 2023-09 for cash paid for income taxes, net of refunds during the year ended December 26, 2025:


Cash Paid for Income Taxes:
U.S. federal	$	—
U.S. state and local	0.9
Non-U.S.
Chile	2.0
Costa Rica	1.4
Guatemala	3.4
Mexico	3.3
Saudi Arabia	3.0
Other foreign jurisdictions	4.2
Total	$	18.2

Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities consisted of the following (U.S. dollars in millions):


		December 26, 2025		December 27, 2024
Deferred tax liabilities:
	Allowances and other accrued liabilities	$	(2.0)	$	(0.5)
	Inventories	(16.0)		(16.8)
	Property, plant and equipment	(65.1)		(69.8)
	Equity in earnings of unconsolidated companies	(6.0)		(2.7)
	Pension obligations	(3.1)		(2.7)
	Other noncurrent deferred tax liabilities	(27.1)		(26.8)
	ROU assets	(24.8)		(17.8)
	Total noncurrent deferred tax liabilities	$	(144.1)	$	(137.1)

Deferred tax assets:
	Allowances and other accrued assets	$	21.3	$	19.0
	Inventories	3.1		6.2
	Pension obligations	26.6		23.2
	Property, plant and equipment	3.1		2.9
	Post-retirement benefits other than pension	0.9		2.8
	Net operating loss carryforwards	418.1		408.0
	Capital loss carryover	4.1		3.2
	Other noncurrent assets	123.6		124.5
	Operating lease	28.4		19.4
	Total noncurrent deferred tax assets	629.2		609.2
	Valuation allowance	(518.8)		(499.8)
	Total deferred tax assets, net	110.4		109.4
Net deferred tax liabilities		$	(33.7)	$	(27.7)

Federal and Foreign Tax Operating Loss Carry-Forwards Expiring

At December 26, 2025, we had approximately $1,640.2 million of federal and foreign tax operating loss carryforwards expiring as follows (U.S. dollars in millions):


Expires:
2026	$	3.5
2027	1.2
2028	5.8
2029	6.8
2030 and beyond	865.9
No expiration	757.0
	$	1,640.2

Reconciliation of Beginning and Ending Amount of Uncertain Tax Positions Excluding Interest and Penalties

A reconciliation of the beginning and ending amount of uncertain tax positions excluding interest and penalties is as follows (U.S. dollars in millions):


	December 26, 2025		December 27, 2024		December 29, 2023
Beginning balance	$	4.7	$	6.4	$	6.1

Gross increases - current-period tax positions	2.1		0.5		1.2
Settlements	—		(1.0)		(1.1)
Lapse of statute of limitations	(0.9)		(1.0)		—
Foreign exchange	—		(0.2)		0.2
Ending balance	$	5.9	$	4.7	$	6.4