INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Income before income taxes was taxed in the following jurisdictions in each of the years ended December 31:


	2025		2024		2023
	(Dollars in thousands)
Domestic	$	206,998	$	193,938	$	253,916
Foreign	201,504		153,732		168,205
Total	$	408,502	$	347,670	$	422,121

Schedule of Components of Provision for Income Taxes

The components of the provision (benefit) for income taxes were as follows:


	2025		2024		2023
	(Dollars in thousands)
Current:
Federal	$	24,381	$	39,590	$	10,847
State	6,469		7,927		(529)
Foreign	73,131		57,515		52,730
Current income tax provision	103,981		105,032		63,048
Deferred:
Federal	10,875		(15,847)		29,337
State	6,979		(2,218)		7,957
Foreign	1,424		(14,990)		(4,186)
Deferred income tax provision (benefit)	19,278		(33,055)		33,108
	$	123,259	$	71,977	$	96,156

Schedule of Effective Tax Rate Reconciliation

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 benefit	12,041		2.9
Foreign tax effects
Brazil

Statutory income tax rate differential	3,652		0.9
Other	1,265		0.3
Germany
Changes in valuation allowances	12,806		3.1
Other	(589)		(0.1)



Other foreign jurisdictions	15,303		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 items	507		0.1
Changes in unrecognized tax benefits	(474)		(0.1)
Other adjustments	2,098		0.6
Effective tax rate	$	123,259	30.2	%


	2024			2023
	(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 benefit	2,551			5,551
Tax liabilities no longer required	(2,838)			(4,071)
Valuation allowance	11,291			2,287

Tax credit refunds, net	(5,098)			(2,684)
Foreign earnings taxed at other than 21%	(4,144)			9,993
Deferred tax rate changes	1,326			(3,133)

Other	(4,122)			(433)
	$	71,977		$	96,156

Effective tax rate	20.7		%	22.8		%

Schedule of Significant Components of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities at December 31 were as follows:


	2025		2024
	(Dollars in thousands)
Deferred tax assets:
Pension and other postretirement liabilities	$	12,460	$	15,621
Rationalization and other accrued liabilities	60,005		49,115
AMT and other credit carryforwards	6,236		6,102
Net operating loss carryforwards	98,478		80,853
Other intangible assets	1,326		2,288
Foreign currency translation	16,237		—
Property, plant and equipment	1,599		1,703
Inventory and related reserves	2,882		2,852
Long term operating lease liabilities	67,637		51,449
Other	25,384		41,331
Total deferred tax assets	292,244		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)

Schedule of Unrecognized Tax Benefits Roll Forward

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:


	2025		2024
	(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 year	328		698



Decrease based upon a lapse in the statute of limitations	(426)		(993)
Balance at December 31,	$	12,763	$	12,861

Schedule of Income Taxes Paid

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 local	9,855

Foreign
Brazil	10,690
Canada	9,094
Germany	11,582
Italy	12,664
Netherlands	5,302
Spain	6,592
Other foreign jurisdictions	18,653
	$	103,678