Income Taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

(In thousands)	2024		2023		2022
Components of income before income taxes
U.S. income	$	243,129	$	80,229	$	170,426
Non-U.S. income	131,877		126,459		68,107
Income before income taxes	$	375,006	$	206,688	$	238,533
Provision for income taxes
Current
Federal	$	47,060	$	49,642	$	26,022
State	12,868		9,510		7,708
Non-U.S.	30,209		27,101		20,002
Total current provision	$	90,137	$	86,253	$	53,732
Deferred
Federal	$	(3,141)	$	54,272	$	7,350
State	1,046		12,914		862
Non-U.S.	1,997		(5,334)		(3,041)
Total deferred provision (benefit)	(98)		61,852		5,171
Provision for income taxes	$	90,039	$	148,105	$	58,903

Reconciliation of the U.S. federal income tax rates to our effective tax rate:

	2024		2023		2022
U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
State income taxes-U.S.	2.9	%	3.7	%	2.9	%
Taxes on non-U.S. income	1.1	%	(0.6)	%	0.1	%
Nondeductible compensation	0.5	%	1.9	%	1.2	%
Divestiture (Note 20)	—	%	46.6	%	—	%
Valuation allowances	(1.2)	%	(0.2)	%	0.8	%
Research and development credit	(0.7)	%	(0.8)	%	(0.4)	%
Employee share-based payments	(0.2)	%	(0.4)	%	(0.8)	%
Taxes on non-U.S. income - U.S., Canadian & European reorganization	(0.1)	%	(0.5)	%	—	%
Foreign exchange on entity closures	(0.1)	%	—	%	0.3	%
Other	0.8	%	0.9	%	(0.4)	%
Effective income tax rate	24.0	%	71.6	%	24.7	%

Components of deferred tax assets and liabilities:

	December 31,
(In thousands)	2024		2023
Deferred tax assets
Capitalized research and development	$	31,030	$	28,822
Inventory	9,434		7,281
Net operating losses and tax credit carryforwards	6,715		10,964
Share-based compensation	6,149		5,528
Accrued expenses and other reserves	5,006		4,566
Reserve for doubtful accounts	1,071		1,562
Other	2,177		1,944
Total deferred tax assets	61,582		60,667
Valuation allowances	(4,815)		(9,671)
Net deferred tax assets	56,767		50,996
Deferred tax liabilities
Goodwill and intangibles	(79,917)		(77,171)
Employee benefits	(41,399)		(24,958)
Property, plant and equipment	(15,461)		(15,541)
Other	(1,501)		(2,680)
Total deferred tax liabilities	(138,278)		(120,350)
Net deferred taxes	$	(81,511)	$	(69,354)

At December 31, 2024, we had net operating loss carryforwards of approximately $26.9 million. All net operating loss carryforwards without a valuation allowance may be carried forward for a period of at least six years.

A reconciliation of the change in the tax liability for unrecognized tax benefits for the years ended December 31, 2024 and 2023 is as follows:

(In thousands)	2024		2023
Beginning balance	$	3,084	$	5,192
Adjustments for tax positions related to the current year	51		—
Adjustments for tax positions related to prior years	(607)		(1,116)
Settlements	(929)		—
Statute expiration	(329)		(992)
Ending balance	$	1,270	$	3,084

The total amount of unrecognized tax benefits, if recognized, would reduce our future effective tax rate. We have no recognized tax benefits associated with these liabilities in 2024 and recognized $0.6 million of tax liabilities associated with these liabilities in 2023.

We recognize interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. Our liability for accrued interest and penalties related to uncertain tax positions was $0.2 million at both December 31, 2024 and 2023.

We are subject to regular review and audit by both foreign and domestic tax authorities. While we believe our tax positions will be sustained, the final outcome of tax audits and related litigation may differ materially from the tax amounts recorded in our consolidated financial statements.

We file a U.S. federal income tax return along with various state and foreign income tax returns. Examinations of our U.S. federal returns have been completed through 2018. Various state and foreign income tax returns may be subject to tax audits for periods after 2016.

On August 16, 2022, President Biden signed the Inflation Reduction Act, which includes a new minimum tax on certain large corporations and an excise tax on stock buybacks. We do not anticipate this legislation will have a material impact for the company.

The Organization for Economic Co-operation and Development (OECD) has a framework to implement a global minimum corporate tax of 15% for companies with global revenues above €750.0 million (referred to as Pillar 2), with effective dates beginning in January 2024. We meet the overall revenue threshold and fall within the scope of Pillar 2 and as such, have complied with the requirements of the legislation for the year ended December 31, 2024. The application of Pillar 2 resulted in additional tax expense of $1.1 million.