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INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Income before income taxes was taxed in the following jurisdictions in each of the years ended December 31:
202520242023
 (Dollars in thousands)
Domestic$206,998 $193,938 $253,916 
Foreign201,504 153,732 168,205 
Total$408,502 $347,670 $422,121 
The components of the provision (benefit) for income taxes were as follows:
 
202520242023
 (Dollars in thousands)
Current:
Federal$24,381 $39,590 $10,847 
State6,469 7,927 (529)
Foreign73,131 57,515 52,730 
Current income tax provision103,981 105,032 63,048 
Deferred:
Federal10,875 (15,847)29,337 
State6,979 (2,218)7,957 
Foreign1,424 (14,990)(4,186)
Deferred income tax provision (benefit) 19,278 (33,055)33,108 
$123,259 $71,977 $96,156 

The provision for income taxes varied from income taxes computed at the statutory U.S. federal income tax rate as a result of the following:
2025
 (Dollars in thousands)
Income taxes computed at the statutory
    U.S. federal income tax rate		$85,785 21.0 %
State income taxes, net of federal tax benefit12,041 2.9 
Foreign tax effects
Brazil
Statutory income tax rate differential3,652 0.9 
Other1,265 0.3 
Germany
Changes in valuation allowances12,806 3.1 
Other(589)(0.1)
Other foreign jurisdictions15,303 3.7 
Effect of cross-border tax laws
Foreign-derived intangible income
    deduction		(2,565)(0.6)
Tax credits
Renewable energy credit(5,320)(1.3)
Research and development credit(1,250)(0.3)
Nontaxable or nondeductible items507 0.1 
Changes in unrecognized tax benefits(474)(0.1)
Other adjustments2,098 0.6 
Effective tax rate$123,259 30.2 %

20242023
 (Dollars in thousands)
Income taxes computed at the statutory
    U.S. federal income tax rate		$73,011 $88,646 
State income taxes, net of federal tax benefit2,551 5,551 
Tax liabilities no longer required (2,838)(4,071)
Valuation allowance11,291 2,287 
Tax credit refunds, net(5,098)(2,684)
Foreign earnings taxed at other than 21%(4,144)9,993 
Deferred tax rate changes1,326 (3,133)
Other(4,122)(433)
$71,977 $96,156 
Effective tax rate20.7 %22.8 %
Deferred income taxes reflect the net tax effect of temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Significant components of our deferred tax assets and liabilities at December 31 were as follows:
20252024
 (Dollars in thousands)
Deferred tax assets:
Pension and other postretirement liabilities$12,460 $15,621 
Rationalization and other accrued liabilities60,005 49,115 
AMT and other credit carryforwards6,236 6,102 
Net operating loss carryforwards98,478 80,853 
Other intangible assets1,326 2,288 
Foreign currency translation16,237 — 
Property, plant and equipment1,599 1,703 
Inventory and related reserves2,882 2,852 
Long term operating lease liabilities67,637 51,449 
Other25,384 41,331 
Total deferred tax assets292,244 251,314 
Deferred tax liabilities:
Property, plant and equipment(280,701)(283,505)
Pension and other postretirement liabilities(46,533)(45,835)
Other intangible assets(245,599)(223,672)
Rationalization and other accrued liabilities(931)(1,537)
Operating lease right of use assets(64,892)(48,788)
Inventory and related reserves(11,873)(11,723)
Foreign currency translation— (24,830)
Other(25,180)(14,609)
Total deferred tax liabilities(675,709)(654,499)
Valuation allowance(116,078)(91,340)
$(499,543)$(494,525)
At December 31, 2025, the net deferred tax liability in our Consolidated Balance Sheets was comprised of long-term deferred tax assets of $2.3 million and long-term deferred tax liabilities of $501.8 million. At December 31, 2024, the net deferred tax liability in our Consolidated Balance Sheets was comprised of long-term deferred tax assets of $11.1 million and long-term deferred tax liabilities of $505.6 million. Long-term deferred tax assets were classified as other assets, net in our Consolidated Balance Sheets.
The valuation allowance in 2025 includes deferred tax assets of $116.1 million resulting from state and foreign net operating loss carryforwards, or NOLs. The valuation allowance for deferred tax assets increased in 2025 by $24.8 million primarily due to an increase in the valuation allowance related to foreign NOLs.
At December 31, 2025, we had foreign NOLs of approximately $88.3 million that are available to offset future taxable income. Of that amount, approximately $16.0 million will expire from 2026 to 2037. The remaining portion has no expiration date. At December 31, 2025, we had federal and state tax NOLs of approximately $15.5 million that are available to offset future taxable income and that will expire from 2026 to 2043.
We recognize accrued interest and penalties related to unrecognized taxes as additional income tax expense. At each of December 31, 2025 and 2024, we had $1.0 million accrued for potential interest and penalties.
The total amount of unrecognized tax benefits recorded in other liabilities as of December 31, 2025 and 2024 were $8.5 million and $8.6 million, respectively, excluding associated tax assets and including the federal tax benefit of state taxes, interest and penalties.
Tax assets associated with uncertain tax positions primarily represent our estimate of the potential tax benefits in one tax jurisdiction that could result from the payment of income taxes in another jurisdiction. At December 31, 2025 and 2024, we had approximately $7.7 million and $7.2 million, respectively, in assets associated with uncertain tax positions recorded in other assets, net in our Consolidated Balance Sheets.
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits included as other liabilities in our Consolidated Balance Sheets was as follows:
20252024
 (Dollars in thousands)
Balance at January 1,$12,861 $17,401 
Decrease based upon tax positions of current year— (4,245)
Increase based upon tax positions of a prior year328 698 
Decrease based upon a lapse in the statute of limitations(426)(993)
Balance at December 31,$12,763 $12,861 
The total amount of unrecognized tax benefits that would impact the effective tax rate, if recognized, at December 31, 2025 and 2024 were $12.8 million and $12.9 million, respectively.
Silgan and its subsidiaries file U.S. federal income tax returns, as well as income tax returns in various states and foreign jurisdictions. We expect the Internal Revenue Service, or IRS, will complete its review of the 2024 tax year with no change to our filed tax return. We have been accepted into the Compliance Assurance Program for the 2025 and 2026 tax years which provides for the review by the IRS of tax matters relating to our tax return prior to filing. We are subject to examination by state and local tax authorities generally for the period mandated by statute, with the exception of states where waivers of the statute of limitations have been executed. The earliest open period for a state audit is 2018. Our foreign subsidiaries are generally not subject to examination by tax authorities for periods before 2012, and we have contractual indemnities with third parties with respect to open periods that predate our ownership of certain foreign subsidiaries. Subsequent periods may be examined by the relevant tax authorities.
For certain of our foreign subsidiaries where we expect to be indefinitely reinvested, we estimate that the unremitted earnings as of December 31, 2025 with respect to such foreign subsidiaries are approximately $138.6 million. The amount of unrecognized deferred tax liabilities on these indefinitely reinvested earnings is estimated to be approximately $7.9 million.
Income taxes paid, net of refunds for the year ended December 31, 2025 were as follows (dollars in thousands):

U.S federal$19,246 
U.S. state and local9,855 
Foreign
Brazil10,690 
Canada9,094 
Germany11,582 
Italy12,664 
Netherlands5,302 
Spain6,592 
Other foreign jurisdictions18,653 
$103,678