Income Tax Matters (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income (Loss) Before Income Taxes by Geographic Area

The following table presents Income (loss) before income taxes by geographic area (in millions of dollars):

	Year Ended December 31,
	2024		2023		2022
Domestic	$	53.5	$	48.0	$	(44.6	)
Foreign		10.0		8.3		6.7
Income (loss) before income taxes	$	63.5	$	56.3	$	(37.9	)

Income Tax (Provision) Benefit

The following table presents the components of Income tax (provision) benefit (in millions of dollars):

	Federal			Foreign			State			Total
Year Ended December 31, 2024
Current	$	(3.5	)	$	(3.1	)	$	(3.3	)	$	(9.9	)
Deferred		(10.9	)		0.6			1.3		$	(9.0	)
Benefit applied to decrease AOCI		1.9			—			0.3		$	2.2
Income tax (provision) benefit	$	(12.5	)	$	(2.5	)	$	(1.7	)	$	(16.7	)
Year Ended December 31, 2023
Current	$	—		$	(2.2	)	$	0.6		$	(1.6	)
Deferred		(11.6	)		0.1			1.0			(10.5	)
Benefit applied to decrease AOCI		2.5			0.1			0.4			3.0
Income tax (provision) benefit	$	(9.1	)	$	(2.0	)	$	2.0		$	(9.1	)
Year Ended December 31, 2022
Current	$	—		$	(1.1	)	$	(2.5	)	$	(3.6	)
Deferred		8.9			(0.8	)		1.6			9.7
Benefit applied to decrease AOCI		1.7			0.2			0.3			2.2
Income tax benefit (provision)	$	10.6		$	(1.7	)	$	(0.6	)	$	8.3

Reconciliation of Income Tax (Provision) Benefit based on Effective Income Tax Rate and Statutory Tax Rate

The following table presents a reconciliation between the (provision) benefit for income taxes and the amount computed by applying the federal statutory income tax rate to Income (loss) before income taxes (in millions of dollars):

	Year Ended December 31,
	2024			2023			2022
Amount of federal income tax (provision) benefit based on the statutory rate	$	(13.3	)	$	(11.8	)	$	8.0
Decrease in federal valuation allowances		—			—			1.1
Non-deductible compensation expense		(2.2	)		(1.6	)		(0.9	)
Non-deductible (expense) benefit		(0.2	)		0.2			(1.0	)
State income tax (provision) benefit, net of federal benefit1		(1.4	)		1.5			(0.5	)
Research and development credit		1.2			3.2			2.2
Foreign income tax expense		(0.4	)		(0.3	)		(0.3	)
Foreign undistributed earnings		(0.4	)		(0.3	)		(0.3	)
Income tax (provision) benefit	$	(16.7	)	$	(9.1	)	$	8.3

1.The total state income tax (provision) benefit, net of federal benefit was ($1.4) million in 2024, which was primarily a result of: (i) a current state income tax provision of ($1.5) million in 2024; (ii) a benefit of $2.9 million due to state NOL, return to provision and tax rate true-ups in various states, partially offset by (iii) an increase to the provision for a state tax valuation allowance of ($2.8) million related to the expiration of certain state net operating losses and credits. The total state income tax (provision) benefit, net of federal benefit was $1.5 million in 2023, which was primarily a result of: (i) a current state income tax provision of ($1.4) million in

2023; (ii) a benefit of $1.9 million due to state NOL and tax rate true-ups in various states; and (iii) a benefit of $1.0 million for a decrease to the state tax valuation allowance related to certain state net operating losses. The total state income tax (provision) benefit, net of federal benefit was ($0.5) million in 2022, which was primarily a result of: (i) a current state income tax benefit of $1.1 million in 2022; (ii) an increase of ($1.5) million to the provision due to state NOL and tax rate true-ups in various states; and (iii) an increase to the provision of ($0.1) million for an increase to the state tax valuation allowance related to the expiration of certain state net operating losses.

Deferred Tax Assets and Liabilities

The following table presents the components of our net deferred income tax assets and liabilities (in millions of dollars):

	As of December 31,
	2024			2023
Deferred income tax assets:
Loss and credit carryforwards	$	17.3		$	39.6
Defined benefit plans		3.1			3.6
Other assets		35.8			36.8
Lease assets		7.2			8.7
Inventories		39.8			29.5
Excess interest carryforward		10.2			14.0
Research & development capitalization		19.1			16.9
Valuation allowances		(5.5	)		(2.7	)
Total deferred income tax assets		127.0			146.4
Deferred income tax liabilities:
Property, plant and equipment		(133.3	)		(142.6	)
Lease liabilities		(7.2	)		(8.7	)
Undistributed foreign earnings		(3.4	)		(3.0	)
Total deferred income tax liabilities		(143.9	)		(154.3	)
Net deferred income tax liabilities	$	(16.9	)	$	(7.9	)

Reconciliation of Changes in Gross Unrecognized Tax Benefits

We have gross unrecognized benefits relating to uncertain tax positions. The following table presents a reconciliation of changes in the gross unrecognized tax benefits (in millions of dollars):

	Year Ended December 31,
	2024			2023		2022
Gross unrecognized tax benefits at beginning of period	$	6.5		$	5.0	$	4.1
Gross increases for tax positions of current year		0.5			1.3		0.9
Gross increases for tax positions of prior years		—			0.2		0.1
Gross decreases for tax positions of prior years		(0.1	)		—		(0.1	)
Gross unrecognized tax benefits at end of period	$	6.9		$	6.5	$	5.0