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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Income Before Taxes and Provisions for Taxes on Income

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.

Summary of Variations Between the Effective and Statutory U.S. Federal Income Tax Rates

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.

Schedule Showing Tax Effects of Significant Temporary Differences Representing Deferred Tax Assets and Liabilities

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

Schedule of Reconciliations of Unrecognized Tax Benefits

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

Summary of Cash Payments of Income Taxes

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