Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Components of Income Tax Expense (Benefit)

Income before income tax consisted of the following:


	Year Ended December 31,
(in thousands)	2025		2024		2023
U.S. operations	$	(1,738)	$	83,120	$	125,578
Foreign operations	231,362		215,067		200,614
Income before income tax	$	229,624	$	298,187	$	326,192

Components of the provision for income taxes consisted of the following:


	Year Ended December 31,
(in thousands)	2025		2024		2023
Current:
Federal	$	7,757	$	32,073	$	39,939
State and local	4,588		8,394		6,879
Non-U.S.	39,633		40,651		33,109
	51,978		81,118		79,927
Deferred:
Federal	(3,732)		(11,925)		(5,492)
State and local	(2,986)		(1,258)		(1,589)
Non-U.S.	7,140		6,979		1,946
	422		(6,204)		(5,135)
Income tax expense	$	52,400	$	74,914	$	74,792

Reconciliation of Statutory Federal Income Tax Rate to Effective Rate

The following table presents a reconciliation of the federal statutory tax rate to the effective tax rate reported in the financial statements:


			Year Ended December 31,
	2025				2024				2023
(in thousands, except for percentages of income before tax)	Amount		%		Amount		%		Amount		%
U.S. federal statutory tax rate	$	48,221	21.0	%	$	62,619	21.0	%	$	68,500	21.0	%
State and local income taxes, net of federal income tax effect	1,717		0.7		5,802		1.9		5,567		1.7
Foreign tax effects:
Canada:
Non-federal taxes	3,044		1.3		3,811		1.3		4,198		1.3
Other	948		0.4		689		0.2		859		0.3
China:
Other	7,181		3.1		2,430		0.8		4,372		1.3
Korea:
Changes in valuation allowance	480		0.2		6,355		2.1		—		—
Other	95		—		244		0.1		956		0.3
Switzerland:
Statutory tax rate difference between Switzerland and the U.S.	(20,208)		(8.8)		(17,489)		(5.9)		(15,113)		(4.6)
Non-federal taxes	10,935		4.8		9,536		3.2		7,137		2.2
Changes in valuation allowance	(141)		(0.1)		(538)		(0.2)		7,001		2.1
Intangible assets	—		—		—		—		(9,458)		(2.9)
Other	27		—		(745)		(0.2)		(2,059)		(0.6)
Other foreign jurisdictions	490		0.3		1,062		0.4		1,542		0.5
Enactment of new tax laws:
Section 987 regulations	(2,860)		(1.2)		—		—		—		—
Effect of cross-border tax laws:
Other	509		0.3		2,981		1.0		4,118		1.3
Tax credits:
Research and developments tax credits	(622)		(0.3)		(2,223)		(0.7)		(2,373)		(0.7)
Foreign tax credits	(3,640)		(1.6)		(1,676)		(0.6)		(1,674)		(0.5)
Nontaxable or nondeductible items:
Impairment of goodwill	2,553		1.1		—		—		—		—
Other	1,571		0.7		1,733		0.6		1,141		0.3
Changes in unrecognized tax benefits	1,598		0.7		323		0.1		790		0.2
Other adjustments	502		0.2		—		—		(712)		(0.3)
Effective tax rate	$	52,400	22.8	%	$	74,914	25.1	%	$	74,792	22.9	%

(a) State taxes in Oregon, California, Texas, Florida, New Jersey, and Georgia in the current period made up the majority (greater than 50 percent) of the tax effect in this category.

Significant Components of Deferred Taxes

Significant components of the Company's deferred taxes consisted of the following:


	As of December 31,
(in thousands)	2025		2024
Deferred tax assets:
Accruals and allowances	$	41,251	$	37,436
Operating lease liabilities	120,198		114,079
Capitalized inventory costs	18,087		17,895
Sales reserves	15,083		16,648
Share-based compensation	11,529		10,682
Net operating loss carryforwards	3,156		2,550
Depreciation and amortization	6,398		10,473
Capitalized research and development expenditures	18,087		23,392
Tax credits	3,241		153

Other	1,399		3,153
Gross deferred tax assets	238,429		236,461
Valuation allowance	(11,182)		(10,670)
Net deferred tax assets	227,247		225,791
Deferred tax liabilities:
Depreciation and amortization	(1,540)		(3,149)
Prepaid expenses	(3,044)		(3,216)
Operating lease ROU assets	(104,927)		(100,475)
Deferred tax liability associated with future repatriations	(7,953)		(7,849)
Foreign currency	(2,689)		(7,209)
Gross deferred tax liabilities	(120,153)		(121,898)
Total net deferred taxes	$	107,094	$	103,893

Schedule of Cash Flow, Supplemental Disclosures

Net cash paid (refunds received) for income taxes consisted of the following:


	Year Ended December 31,
(in thousands)	2025		2024		2023
Federal	$	36,065	$	25,606	$	43,000
Aggregated state and local jurisdictions	1,940		4,875		5,855
Disaggregated state and local jurisdictions:
California	654		1,870		1,700
Oregon	(303)		1,165		921
Illinois	—		—		845
New Jersey	375		475		750
New York	428		492		929
Minnesota	346		—		—
Texas	314		—		—
Florida	317		—		—
Pennsylvania	290		—		—
Aggregated foreign jurisdictions	4,497		7,978		6,432
Disaggregated foreign jurisdictions:
Canada	10,931		12,313		14,447
China	16,567		11,289		9,461
Switzerland	13,973		10,041		6,167
Net cash paid for income taxes	$	86,394	$	76,104	$	90,507

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:


	Year Ended December 31,
(in thousands)	2025		2024		2023
Balance at beginning of year	$	10,064	$	10,318	$	10,177
Increases related to prior year tax positions	728		264		578
Decreases related to prior year tax positions	(523)		(307)		—
Increases related to current year tax positions	2,169		1,247		1,376

Expiration of statute of limitations	(1,402)		(1,458)		(1,813)
Balance at end of year	$	11,036	$	10,064	$	10,318