INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Components of Income From Continuing Operations

U.S. and foreign components of income from continuing operations, before income taxes and equity in income (losses) of investees consisted of:


	Year Ended December 31,
	2025			2024			2023
	(Dollars in thousands)
U.S		$	17,634		$	36,984		$	53,984
Non-U.S. (foreign)		88,114			78,393			85,101
Total income from continuing operations, before income taxes and equity in losses		$	105,748		$	115,377		$	139,085

Schedule of Components of the Provision (Benefit) for Income Taxes

The components of the provision (benefit) for income taxes, net are as follows:


	Year Ended December 31,
	2025			2024			2023
	(Dollars in thousands)
Current:
Federal		$	769		$	961		$	672
State		666			1,478			(1,806)
Foreign		21,435			22,075			35,379
Total current income tax expense		$	22,870		$	24,514		$	34,245

Deferred:
Federal		(50,505)			(44,992)			(12,780)
State		(4,174)			(5,893)			6,041
Foreign		11,527			10,082			(21,523)
Total deferred tax provision (benefit)		(43,152)			(40,803)			(28,262)
Total income provision (benefit)		$	(20,282)		$	(16,289)		$	5,983

Schedule of Reconciliation of Effective Income Tax Rate

The following table is a reconciliation of the income tax provision and the U.S. federal statutory tax rate to the Company’s effective income tax rate (Dollars in thousands):


	Year Ended December 31,
	2025				2024				2023
US federal statutory tax rate	$	22,224	21.0	%	$	24,228	21.0	%	$	29,207	21.0	%
Domestic federal:
Cross-border tax laws:
Global intangible low-taxed income	(864)		(0.8)		1,696		1.5		392		0.3
Other	(2,194)		(2.1)		(731)		(0.6)		46		—
Tax credits:
Investment tax credits	(47,671)		(45.0)		(49,440)		(42.7)		(19,425)		(14.0)
Nontaxable or nondeductible items:
Transferable tax credit sales	(3,680)		(3.5)		(4,921)		(4.3)		(2,394)		(1.7)
Noncontrolling interest	(549)		(0.5)		(1,411)		(1.2)		(1,341)		(1.0)
Other	(1,387)		(1.3)		(374)		(0.3)		122		0.1
Other Adjustments:	513		0.4		(456)		(0.4)		415		0.3
State and local taxes, net of federal income tax effect (a)	(1,836)		(1.7)		(844)		(0.7)		3,345		2.4
Foreign tax effects:
Cayman:
Other	1,428		1.3		1,416		1.2		1,574		1.1
Dominica:
Foreign rate differential	(4,200)		(4.0)		275		0.2		—		—
Guatemala:
Foreign rate differential	(2,045)		(1.9)		(2,153)		(1.9)		(1,847)		(1.3)
Other	(256)		(0.2)		(552)		(0.5)		(195)		(0.1)
Israel:
Nondeductible stock compensation	1,356		1.3		1,890		1.6		1,024		0.7
Deferred income	—		—		1,559		1.4		(1,559)		(1.1)
Exchange rate differential	1,018		1.0		—		—		—		—
Intra-entity transfers	—		—		(1,162)		(1.0)		(669)		(0.5)
Tax rate change	—		—		—		—		(558)		(0.4)
Withholding tax	4,113		3.9		—		—		—		—
Other	(379)		(0.4)		(986)		(0.9)		27		—
Kenya:
Foreign rate differential	6,295		5.9		6,121		5.3		10,755		7.8
Exchange rate differential	—		—		11,101		9.6		(8,398)		(6.0)
Nondeductible items	1,300		1.2		(889)		(0.8)		570		0.4
Tax rate change	—		—		—		—		(7,417)		(5.3)
Other	818		0.8		886		0.8		1,391		1.0
New Zealand:
Pillar two	1,622		1.5		—		—		—		—
Other	69		0.1		(450)		(0.4)		8		—
Other foreign jurisdictions:	(83)		(0.1)		(1,691)		(1.5)		(1,205)		(0.9)


Change in unrecognized tax benefits	4,106		3.9		599		0.5		2,115		1.5
Income tax provision/(benefit) and effective tax rate	$	(20,282)	(19.2)	%	$	(16,289)	(14.1)	%	$	5,983	4.3	%

(a) During the tax years ended December 31, 2025, 2024 and 2023, state taxes in California comprised more than 50% of the total state and local taxes, net of federal income tax effect.

Schedule of Net Deferred Tax Assets and Liabilities

The net deferred tax assets and liabilities consist of the following:


	December 31,
	2025			2024
	(Dollars in thousands)
Deferred tax assets (liabilities):
Net foreign deferred taxes, primarily depreciation		$	(42,336)		$	(36,955)
Depreciation		24,313			(38,831)
Intangible drilling costs		(25,903)			(19,307)
Net operating loss carryforward - U.S.		21,875			22,760
Tax monetization transaction		(62,200)			(53,950)
Right-of-use assets		(8,063)			(7,317)
Lease liabilities		6,918			5,949

Production and investment tax credits		107,774			118,461
Foreign tax credits		6,030			30,919
Withholding tax		(16,276)			(19,308)

Basis difference in partnership interest		(13,157)			(13,586)
Excess business interest		1,723			18,122
Sale and leaseback transaction		52,478			54,480
Other assets		11,202			14,512
Accrued liabilities and other		8,484			12,071
Total		72,862			88,020
Less - valuation allowance		(2,620)			(2,700)
Total, net		$	70,242		$	85,320

Schedule of Cash Flow, Supplemental Disclosures

The following table presents income taxes paid, net of refunds:


	Year Ended December 31,
		2025		2024		2023
	(Dollars in thousands)
U.S. federal:		$	850	$	(38)	$	1,000
California		1,890		425		310
Other U.S. state and local		91		(776)		1,328
Foreign:
Israel		(876)		2,525		(3,462)
Kenya		6,681		22,801		23,550
Guadeloupe		305		326		2,637
Other		905		920		887
Total income taxes paid, net of refunds		$	9,846	$	26,183	$	26,250

Schedule of Reconciliation of Valuation Allowance

The following table presents a reconciliation of the beginning and ending valuation allowance:


	Year Ended December 31,
	2025			2024
	(Dollars in thousands)
Balance at beginning of the year		$	2,700		$	2,870
Additions to valuation allowance		0			0
Release of valuation allowance		(80)			(170)
Balance at end of the year		$	2,620		$	2,700

Schedule of Deferred Taxes on Balance Sheet

The following table presents the deferred taxes on the balance sheet as of the dates indicated:


	Year Ended December 31,
	2025			2024
	(Dollars in thousands)

Non-current deferred tax assets		$	138,903	$	153,936
Non-current deferred tax liabilities		(68,661)		(68,616)
Non-current deferred tax assets, net		70,242		85,320
Uncertain tax benefit offset (1)		(95)		(95)
		$	70,147	$	85,225

(1) The non-current deferred tax asset has been reduced by the uncertain tax benefit of $0.1 million in accordance with ASU 2013-11, Income Taxes.

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the Company's unrecognized tax benefits is as follows:


	Year Ended December 31,
	2025			2024
	(Dollars in thousands)
Balance at beginning of year		$	4,657	$	6,930
Additions based on tax positions taken in prior years		3,348		1,260
Additions based on tax positions taken in the current year		3,873		431
Reduction based on tax positions taken in prior years		(3,176)		(3,964)
Reduction based on tax positions taken in the current year		(265)		—
Balance at end of year		$	8,437	$	4,657

Schedule of Examination by the Local Income Tax Authorities

The Company’s foreign subsidiaries remain open to examination by the local income tax authorities in the following countries for the years indicated:


Israel	2023	–	2025
Kenya	2020	–	2025
Guatemala	2021	–	2025
Honduras	2019	–	2025
Guadeloupe	2025	–	2025