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Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company adopted ASU No. 2023-09 (“ASU 2023-09”), Improvements to Income Tax Disclosures, applying it prospectively for the year ended December 31, 2025.
(In thousands)202520242023
Components of income before income taxes
U.S. income$242,979 $243,129 $80,229 
Non-U.S. income123,419 131,877 126,459 
Income before income taxes$366,398 $375,006 $206,688 
Provision for income taxes
Current
Federal$46,980 $47,060 $49,642 
State9,981 12,868 9,510 
Non-U.S.35,475 30,209 27,101 
Total current provision$92,436 $90,137 $86,253 
Deferred
Federal$2,666 $(3,141)$54,272 
State(1,503)1,046 12,914 
Non-U.S.(6,125)1,997 (5,334)
Total deferred provision (benefit) (4,962)(98)61,852 
Provision for income taxes$87,474 $90,039 $148,105 
Below is a tabular rate reconciliation pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025:
2025
(in thousands, except percentages)AmountPercent
U.S. federal statutory income tax$76,944 21.0 %
State and local income taxes, net of federal income tax effect(1)
6,652 1.8 %
Foreign tax effects5,700 1.6 %
Nontaxable or nondeductible items2,606 0.7 %
Effect of cross-border tax laws(149)— %
Tax credits(3,891)(1.1)%
Changes in unrecognized tax benefits(420)(0.1)%
Other32 — %
Provision for income taxes$87,474 23.9 %
(1)The states that contribute to the majority (greater than 50%) of the tax effect in this category include California, Illinois, Maryland, Indiana, New Hampshire, Pennsylvania and Wisconsin.
Below is a reconciliation of the U.S. federal income tax rates to the Company's effective tax rate for the years ended December 21, 2024 and 2023:
20242023
U.S. federal income tax rate21.0 %21.0 %
State income taxes-U.S.2.9 %3.7 %
Taxes on non-U.S. income1.1 %(0.6)%
Nondeductible compensation0.5 %1.9 %
Divestiture (Note 21)— %46.6 %
Valuation allowances(1.2)%(0.2)%
Research and development credit(0.7)%(0.8)%
Employee share-based payments(0.2)%(0.4)%
Taxes on non-U.S. income - U.S., Canadian & European reorganization(0.1)%(0.5)%
Foreign exchange on entity closures(0.1)%— %
Other0.8 %0.9 %
Effective income tax rate24.0 %71.6 %
Disclosed below is a summary of income taxes paid by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025:
(in thousands)2025
United States - Federal$48,993 
United States - State and local11,798 
Brazil7,900 
Switzerland7,372 
Germany5,375 
Other20,167 
Total$101,605 
Components of deferred tax assets and liabilities:
December 31,
(In thousands)20252024
Deferred tax assets
 Capitalized research and development $33,915 $31,030 
 Inventory 9,184 9,434 
 Net operating losses and tax credit carryforwards 8,078 6,715 
 Share-based compensation 5,039 6,149 
 Accrued expenses and other reserves 6,419 5,006 
 Reserve for doubtful accounts 1,391 1,071 
 Other5,847 2,177 
Total deferred tax assets69,873 61,582 
Valuation allowances(4,464)(4,815)
Net deferred tax assets$65,409 $56,767 
Deferred tax liabilities
 Goodwill and intangibles$(98,104)$(79,917)
 Employee benefits(54,923)(41,399)
 Property, plant and equipment(16,992)(15,461)
 Other(1,939)(1,501)
Total deferred tax liabilities(171,958)(138,278)
Net deferred taxes$(106,549)$(81,511)
At December 31, 2025, we had net operating loss carryforwards of approximately $30.0 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, 2025 and 2024 is as follows:
(In thousands)20252024
Beginning balance$1,270 $3,084 
Adjustments for tax positions related to the current year— 51 
Adjustments for tax positions related to prior years3,347 (607)
Settlements(194)(929)
Statute expiration(138)(329)
Ending balance$4,285 $1,270 
The total amount of unrecognized tax benefits, if recognized, would reduce our future effective tax rate. We have $1.5 million in recognized tax benefits associated with these liabilities in 2025 and had no recognized tax benefits associated with these liabilities in 2024.
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 $0.5 million at December 31, 2025 and $0.2 million at December 31, 2024.
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.
On July 4, 2025, the United States enacted into law the One, Big, Beautiful Bill Act ("the Act"). The Act makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. The Act has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Act did not have a material impact on the financial statements in 2025.
We file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state, and local, or non-U.S. income tax examinations by tax authorities for years prior to 2021.
The Organization for Economic Co-operation and Development (OECD) framework for a global minimum corporate tax rate of 15% for companies with global revenues above €750.0 million (referred to as Pillar 2), with effective dates beginning in January 2024, has been enacted by a number of foreign jurisdictions. We meet the overall revenue threshold and fall within the scope of Pillar 2. As such, we have complied with the requirements of the legislation and the application of Pillar 2 resulted in additional tax expense of $2.2 million and $1.1 million, for the years ended December 31, 2025 and 2024, respectively.