Income Taxes

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

9. Income Taxes

Income before taxes and provisions for taxes on income for the years ended December 31, 2025, 2024 and 2023, were as follows:

(In thousands)	2025			2024		2023
Income before Taxes
U.S. income	$	(4,372	)	$	7,319	$	11,693
Foreign income		64,276			53,120		36,698
Income before income taxes	$	59,904		$	60,439	$	48,391

(In thousands)	2025			2024			2023
Taxes on Income
Current (1)
U.S. federal	$	(3,118	)	$	2,177		$	(22,215	)
State		23			(482	)		(1,188	)
Foreign		17,499			18,664			13,287
Other (2)		—			1			—
Total current income tax (benefit) expense	$	14,404		$	20,360		$	(10,116	)
Deferred (1)
U.S. federal	$	(927	)	$	(7,248	)	$	20,268
State		(898	)		905			444
Foreign		430			(3,947	)		(2,409	)
Other (2)		—			(1	)		—
Total deferred income tax (benefit) expense	$	(1,395	)	$	(10,291	)	$	18,303
Total income tax expense
U.S. federal	$	(4,045	)	$	(5,071	)	$	(1,947	)
State		(875	)		423			(744	)
Foreign		17,929			14,717			10,878
Other (2)		—			—			—
Total income tax expense	$	13,009		$	10,069		$	8,187

(1)In 2023 for the 2022 U.S. tax returns (federal and state), a U.S. tax accounting method change was made for the 2018-2021 tax years and additional assets that qualified for bonus depreciation under IRC 168(k) were identified. Said items increased the income tax receivable with an offset to current tax expense and created deferred tax liabilities with an offset to deferred tax expense. These amounts were booked in 2023 as a provision-to-return adjustment.

(2)These amounts have been reclassified to conform to current period presentation under ASU 2023-09, Income Taxes (Topic 740) Improvement to Income Tax Disclosures.

The variations between the effective and statutory U.S. federal income tax rates are summarized as follows:

	2025
(In thousands)	Amount			%
U.S. federal statutory tax rate	$	12,580			21.0
Effect of cross-border tax laws		(589	)		(1.0	)
Tax credits		(175	)		(0.3	)
Nontaxable or nondeductible items
Executive compensation		1,113			1.9
Penalties and interest		(949	)		(1.6	)
Other		207			0.3
Other		960			1.6
Enactment of new tax laws		—			0.0
State and local income taxes, net of federal income tax effect (1)		(690	)		(1.2	)
Foreign tax effects
Argentina
Valuation allowance		929			1.6
Other		(50	)		(0.1	)
Brazil
Foreign rate differential		2,063			3.4
Interest expense deduction on equity		(1,402	)		(2.3	)
Other		(1,048	)		(1.7	)
Canada
Repatriation		1,981			3.3
Other		596			1.0
France		836			1.4
Mexico
Goodwill impairment		1,543			2.6
Inflationary adjustment		(743	)		(1.2	)
Other		(526	)		(0.9	)
Netherlands		738			1.2
Philippines
Foreign rate differential		(1,094	)		(1.8	)
Philippine Economic Zone Authority tax holiday		1,513			2.5
Other		420			0.7
Other foreign jurisdictions		820			1.4
Worldwide changes in unrecognized tax benefits		(6,024	)		(10.1	)
Total income tax provision	$	13,009			21.7

(1)State taxes in Illinois, Pennsylvania, California, Wisconsin and Texas made up the majority (greater than 50%) of the tax effect in this category.

	2024						2023
(In thousands)	Amount			%			Amount			%
Federal income tax provision at statutory    tax rate	$	12,692			21.0		$	10,162			21.0
State income tax provision, less applicable    federal tax benefit		334			0.6			(588	)		(1.2	)
Foreign income taxed at different rates		4,556			7.5			1,153			2.4
U.S. taxation of foreign earnings (1)		(159	)		(0.3	)		1,079			2.2
Unrecognized tax benefits		4,520			7.5			4,090			8.5
Prior years return to provision true-up (2)		(6,795	)		(11.2	)		(2,424	)		(5.0	)
Stock based compensation, excess tax    benefits		(937	)		(1.6	)		(1,262	)		(2.6	)
U.S. tax credits		(5,500	)		(9.1	)		(4,582	)		(9.5	)
Non-deductible expenses and other    items, net		1,358			2.3			559			1.1
Total income tax provision	$	10,069			16.7		$	8,187			16.9

(1)Includes Subpart F activity, a direct inclusion of foreign affiliate(s) income in U.S. taxable income (all years), global intangible low-taxed income (GILTI) for 2023. For 2024, GILTI was zero due to the High Tax Election. 2024 includes a U.S. permanent foreign exchange tax benefit recognized upon repatriation.

(2)For 2024, amount resulted largely from a fixed asset inflationary tax benefit in Mexico. For 2023, amount resulted from higher federal research credit and lower GILTI.

At December 31, 2025 and 2024, the tax effects of significant temporary differences representing deferred tax assets and liabilities were as follows:

(In thousands)	2025			2024
Deferred Tax Assets:
Pensions	$	1,862		$	1,467
Deferred revenue		2,243			2,067
Other accruals and reserves		8,961			12,324
Legal and environmental accruals		7,409			7,244
Deferred compensation		7,261			9,361
Bad debt and rebate reserves		4,252			4,950
Net operating loss carryforwards		26,124			7,615
Amortization of intangibles		52,355			52,868
Inventories		6,337			8,004
Tax credit carryforwards		22,786			19,383
Disallowed interest expense carryforwards		—			6,035
	$	139,590		$	131,318
Deferred Tax Liabilities:
Depreciation	$	(100,120	)	$	(94,012	)
Unrealized foreign exchange loss		(3,166	)		(3,222	)
Other		(3,243	)		(2,878	)
	$	(106,529	)	$	(100,112	)
Valuation Allowance	$	(776	)	$	(764	)
Net Deferred Tax Assets	$	32,285		$	30,442
Reconciliation to Consolidated Balance Sheet:
Non-current deferred tax assets (in other non-current assets)		43,735			40,054
Non-current deferred tax liabilities		(11,450	)		(9,612	)
Net Deferred Tax Assets	$	32,285		$	30,442

Earnings generated by a foreign subsidiary are presumed to ultimately be transferred to the parent company. Therefore, the establishment of deferred taxes may be required with respect to the excess of the investment value for financial reporting over the tax

basis of investments in those foreign subsidiaries (also referred to as book-over-tax outside basis differences). A company may overcome this presumption and forgo recording a deferred tax liability in its financial statements if it can assert that management has the intent and ability to indefinitely reinvest the earnings of its foreign subsidiaries. Pursuant to the 2017 U.S. Tax Cuts and Jobs Act (Tax Act), the Company’s foreign earnings have been subject to U.S. federal taxes. The Company now has the ability to repatriate to the U.S. parent the cash associated with these foreign earnings with little additional U.S. federal taxes. This cash may, however, be subject to foreign income and/or local country taxes if repatriated to the United States. In addition, repatriation of some foreign cash balances may be further restricted by local laws. As such, the Company intends to limit its distributions to earnings previously taxed in the U.S. or earnings that would qualify for the 100 percent dividends received deduction provided for in the Tax Act as long as such distributions would not result in any significant foreign taxes.

In 2025, the Company repatriated $58,495,000 between April and December from its Brazil, European, Singapore and Canada subsidiaries. The Company incurred an incremental tax expense of $2,183,000 as a result of this repatriation. The effect of the adjustment on the 2025 effective tax rate was an increase of approximately 3.6 percent. In 2024, the Company repatriated $54,464,000 between July and December from its Singapore and Canada subsidiaries. The Company incurred an incremental tax expense of $647,000 as a result of this repatriation. The effect of the adjustment on the 2024 effective tax rate was an increase of approximately 1.1 percent. In 2023, the Company repatriated $54,944,000 between July and December from its Netherlands, Singapore and Canada subsidiaries. The Company incurred an incremental tax expense of $397,000 as a result of this repatriation. The effect of the adjustment on the 2023 effective tax rate was an increase of approximately 0.8 percent.

The Company evaluated its indefinite reinvestment assertion with regards to certain accumulated foreign earnings as of December 31, 2025. The Company did not consider the undistributed earnings of its Canadian subsidiary to be indefinitely reinvested in foreign operations to the extent of the subsidiary’s paid-up capital (PUC) as determined under Canadian tax law, which is used to determine tax-free distributions for Canadian tax purposes. In 2024, all Canadian PUC was utilized, and any future distributions would be subject to Canada’s 5.0 percent withholding tax. The Company also does not consider the undistributed earnings of one of its Dutch subsidiaries, and one of its Singapore subsidiaries to be indefinitely reinvested in foreign operations. A distribution from any of these subsidiaries should not result in any significant foreign taxes to the extent of the distribution limitations discussed above and therefore, the Company has not recognized a deferred tax liability for these undistributed earnings as of December 31, 2025. As a result of the SPQI manufacturing assets sale, the Company intends to repatriate cash of approximately $7,000,000 as soon as the local tax authorities and other governmental agencies approve. In addition, the Company considers up to $13,000,000 from two of its subsidiaries to not be indefinitely reinvested. As a result, a deferred tax liability of $995,000 was established to reflect the tax impact. The effect of the adjustment on the 2025 effective tax rate was an increase of approximately 1.7 percent. The Company considers the undistributed earnings of its remaining foreign subsidiaries to be indefinitely reinvested in foreign operations. At this time, the determination of deferred tax liabilities on this amount is not practicable.

The Company had non-U.S. tax loss carryforwards of $19,558,000 (pretax) as of December 31, 2025, and $16,390,000 as of December 31, 2024, that are available for use by the Company between 2026 and 2035. The Company generated a $50,655,000 U.S. tax loss in 2025. This U.S. loss is expected to be utilized in 2027 or 2028.

The Company had tax credit carryforwards of $22,786,000 as of December 31, 2025, and $19,383,000 as of December 31, 2024, that are available for use by the Company between 2026 and 2045. The Company had non-U.S. capital loss carryforwards of $587,000 as of December 31, 2025, and $560,000 as of December 31, 2024. The Company’s capital loss carryforwards do not expire.

As of December 31, 2025 and 2024, the Company had valuation allowances of $776,000 and $764,000, respectively, which were attributable to deferred tax assets in Argentina, Canada, India and the Philippines. The realization of deferred tax assets is dependent on the generation of sufficient taxable income in the appropriate tax jurisdictions. The Company believes that it is more likely than not that the related deferred tax assets will not be realized.

As of December 31, 2025, 2024 and 2023, unrecognized tax benefits totaled $11,333,000, $17,326,000 and $14,590,000, respectively. The amount of unrecognized tax benefits that, if recognized, would favorably affect the Company’s effective income tax rate in any future periods, net of the federal benefit on state issues, was approximately $10,819,000, $16,767,000 and $14,056,000 at December 31, 2025, 2024 and 2023, respectively. The Company does not believe that the amount of unrecognized tax benefits related to its current uncertain tax positions will change significantly over the next 12 months unless certain statute of limitations expire.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. In 2025, the Company recognized net interest and penalty expense of $823,000 compared to $1,261,000 of net interest and penalty expense in 2024 and $435,000 of net interest and penalty expense in 2023. At December 31, 2025, the liability for interest and penalties was $3,062,000 compared to $2,239,000 at December 31, 2024.

The Company files income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Company is not subject to U.S. federal income tax examinations by tax authorities for years before 2022. Some foreign jurisdictions and various U.S. states jurisdictions may be subject to examination back to 2018 (2015 in one jurisdiction).

During 2025, the Internal Revenue Service settled its audit of the 2016-2020 tax years. The adjustments were related to the disallowance of certain credits for which an uncertain tax position was previously established.

Below are reconciliations of the January 1 and December 31 balances of unrecognized tax benefits for 2025, 2024 and 2023:

(In thousands)	2025			2024			2023
Unrecognized tax benefits, opening balance	$	17,326		$	14,590		$	10,682
Gross increases (decreases) – tax positions in prior period		(1,295	)		833			1,891
Gross increases – current period tax positions		505			2,477			2,139
Settlements/State voluntary disclosure		(3,926	)		—			(343	)
Foreign currency translation		831			(548	)		241
Lapse of statute of limitations		(2,108	)		(26	)		(20	)
Unrecognized tax benefits, ending balance	$	11,333		$	17,326		$	14,590

The following table summarizes cash payments of income taxes for 2025:

(In thousands)	2025 (1)
U.S. federal	$	(905	)
U.S. state and local
Illinois	$	(2,014	)
Other		(1,208	)
Total U.S. state and local	$	(3,222	)
Foreign
Brazil	$	2,962
Canada		(1,120	)
China		850
Colombia		642
France		3,958
Germany - Federal		436
Germany - Municipal		457
Netherlands		637
Philippines		743
Singapore		981
U.K.		1,601
Other		479
Total foreign	$	12,626
Total	$	8,499

For 2024, cash refunds received for income taxes, prior to the adoption of ASU 2023-09, was $12,342,000. For 2023, cash paid for income taxes, prior to the adoption of ASU 2023-09, was $29,558,000.