Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Components of Income Tax Expense (Benefit)

Provision for income taxes consisted of the following:


	Years ended December 31,
(in thousands)	2024		2023		2022
Income before income taxes:
U.S.	$	26,660	$	68,872	$	20,422
Non-U.S.	90,429		91,584		111,558
	$	117,089	$	160,456	$	131,980
Income tax expense/(benefit)
Current:
Federal	$	2,682	$	17,005	$	9,781
State	4,724		2,030		5,126
Non-U.S.	34,053		34,110		28,605
	$	41,459	$	53,145	$	43,512
Deferred:
Federal	$	1,699	$	(1,700)	$	(9,592)
State	(804)		863		(1,866)
Non-U.S.	(13,320)		(3,462)		3,418
	$	(12,425)	$	(4,299)	$	(8,040)
Total income tax expense	$	29,034	$	48,846	$	35,472

Schedule of Reconciliation of the U.S. Federal Statutory Tax Rate to the Company's Effective Income Tax Rate

A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows:


	Years ended December 31,
	2024		2023		2022
U.S. federal statutory tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	2.3		1.9		2.5
Non-U.S. local income taxes	2.3		1.4		3.8
U.S. permanent adjustments	0.6		0.8		1.4
Foreign permanent adjustments	1.0		0.7		(2.1)
Foreign rate differential	2.1		2.0		3.1
Net U.S. tax on non-U.S. earnings and foreign withholdings	2.8		5.1		3.5
Provision for/(resolution) of tax audits and contingencies, net	(1.3)		0.3		0.3
U.S. Pension Settlement - Release of Residual Tax Effect	—		—		(4.0)
Change in valuation allowances	4.4		(1.2)		(0.6)
Impact of Mexico net operating loss inflation revaluation	(2.2)		—		—
Establishment of deferred tax asset for Non-U.S. reserves	(4.3)		—		—
Impact of amended tax returns	(0.8)		—		(0.1)
Return to provision	(2.2)		(1.2)		(1.1)
Other adjustments	(0.9)		(0.4)		(0.8)
Effective income tax rate	24.8	%	30.4	%	26.9	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:


For the year ended December 31	U.S.				Non-U.S.
(in thousands)	2024		2023		2024		2023
Deferred tax assets:
Accounts receivable, net	$	502	$	528	$	1,138	$	1,489
Inventories	2,473		1,608		1,636		1,429
Incentive compensation	1,453		5,843		750		1,162
Property, plant, equipment and intangibles, net	—		—		—		—
Pension, post retirement benefits - non-current	6,440		6,939		2,202		4,899
Tax loss carryforwards	49		110		32,963		29,811
Tax credit carryforwards	3,602		3,167		29		19
Leases	12,192		8,685		2,205		2,463
Reserves	2,639		877		7,150		1,299
Deferred revenue	—		244		—		—
Other	373		—		909		—
Deferred tax assets before valuation allowance	29,723		28,001		48,982		42,571
Less: valuation allowance	(1,826)		(118)		(13,670)		(9,730)
Total deferred tax assets	$	27,897	$	27,883	$	35,312	$	32,841
Deferred tax liabilities:
Unrepatriated foreign earnings	$	4,961	$	4,270	$	—	$	—
Property, plant, equipment and intangibles, net	4,626		8,433		14,483		19,000
Basis difference in partner capital	1,420		1,719		—		—
Basis difference in investment	5,081		4,192		—		—
Derivatives	38		3,009		125		109
Leases	11,433		8,091		2,053		2,331
Deferred revenue	380		—		4,663		9,843
Other	—		117		—		249
Total deferred tax liabilities	27,939		29,831		21,324		31,532
Net deferred tax (liability)/asset	$	(42)	$	(1,948)	$	13,988	$	1,309

Schedule of Operating and Capital Loss and Tax Credit Carryforwards

As of December 31, 2024, the Company's net operating loss, capital loss and tax credit carryforwards were as follows:


(in thousands)	Expiration Period	Net Operating and Capital Loss Carryforwards		Tax Credit Carryforwards
Jurisdiction
U.S. Federal	2025 - 2034	$	—	$	2,797
U.S. State	2033 - 2048	940		357
U.S. State	Indefinite	—		448
Non-U.S.	2025 - 2040	6,192		—
Non-U.S.	Indefinite	133,174		—
Balance at end of year		$	140,306	$	3,602

Schedule of Unrecognized Tax Benefits

The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits. If recognized, the $3.1 million would impact the effective tax rate as of December 31, 2024 as follows:


(in thousands)	2024		2023		2022
Unrecognized tax benefits balance at January 1,	$	2,741	$	792	$	1,459
Increase in gross amounts of tax positions related to prior years	1,102		2,373		399
Decrease in gross amounts of tax positions related to prior years	(224)		—		(929)
Increase in gross amounts of tax positions related to current years	—		196		37
Decrease due to settlements with tax authorities	(460)		—		—
Increase (decrease) due to lapse in statute of limitations	116		(656)		—
Currency translation	(133)		36		(174)
Unrecognized tax benefits balance at December 31,	$	3,142	$	2,741	$	792