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INCOME TAXES | 12 Months Ended
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Dec. 31, 2025
INCOME TAXES |
INCOME TAXES | NOTE 13 – INCOME TAXES The components of income before income taxes were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ ​ ​ | Year Ended December 31,
​ | ​ ​ ​ | 2025 | ​ ​ ​ | 2024 | ​ ​ ​ | 2023
U.S. | ​ | $ | 514,355 | ​ | $ | 496,339 | ​ | $ | 508,316
Non-U.S. | ​ |  | 161,095 | ​ |  | 97,810 | ​ |  | 178,550
Total | ​ | $ | 675,450 | ​ | $ | 594,149 | ​ | $ | 686,866
​ The components of income tax expense (benefit) were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ ​ ​ | Year Ended December 31,
​ | ​ ​ ​ | 2025 | ​ ​ ​ | 2024 | ​ ​ ​ | 2023
Current: | ​ | ​ | ​ |  | ​ | ​ |  | ​ | ​
Federal | ​ | $ | 15,863 | ​ | $ | 109,943 | ​ | $ | 95,514
Non-U.S. | ​ |  | 42,685 | ​ |  | 37,997 | ​ |  | 45,830
State and local | ​ |  | 13,395 | ​ |  | 21,217 | ​ |  | 24,132
​ | ​ |  | 71,943 | ​ |  | 169,157 | ​ |  | 165,476
Deferred: | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Federal | ​ |  | 74,885 | ​ |  | (31,178) | ​ |  | (13,068)
Non-U.S. | ​ |  | (4,124) | ​ |  | (5,269) | ​ |  | (7,515)
State and local | ​ |  | 12,213 | ​ |  | (4,669) | ​ |  | (3,275)
​ | ​ |  | 82,974 | ​ |  | (41,116) | ​ |  | (23,858)
Total | ​ | $ | 154,917 | ​ | $ | 128,041 | ​ | $ | 141,618
​ The differences between total income tax expense and the amount computed by applying the statutory federal income tax rate to income before income taxes for the three years ended December 31, 2025 were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ ​ ​ | Year Ended December 31, |
​ | ​ ​ ​ | 2025 | ​ ​ ​ | 2024 | ​ ​ ​ | 2023 |
Statutory rate applied to pre-tax income | ​ | $ | 141,845 | ​ | 21.0 | % | ​ | $ | 124,771 | ​ | 21.0 | % | ​ | $ | 144,242 | ​ | 21.0 | % | ​
Domestic reconciling items: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
State and local income taxes, net of federal tax benefit (1) | ​ |  | 22,795 | ​ | 3.4 | ​ | ​ |  | 14,172 | ​ | 2.4 | ​ | ​ |  | 17,979 | ​ | 2.6 | ​ | ​
Tax credits | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Research and development credit | ​ |  | (8,800) | ​ | (1.3) | ​ | ​ |  | (10,010) | ​ | (1.7) | ​ | ​ |  | (9,600) | ​ | (1.4) | ​ | ​
Other | ​ | ​ | (102) | ​ | — | ​ | ​ | ​ | (102) | ​ | — | ​ | ​ | ​ | (99) | ​ | — | ​ | ​
Nontaxable and nondeductible items | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Section 162(m) limitation | ​ |  | 7,560 | ​ | 1.1 | ​ | ​ |  | 12,810 | ​ | 2.2 | ​ | ​ |  | 3,360 | ​ | 0.5 | ​ | ​
Other | ​ |  | 679 | ​ | 0.1 | ​ | ​ |  | 679 | ​ | 0.1 | ​ | ​ |  | 694 | ​ | 0.1 | ​ | ​
Cross-border taxes | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Foreign tax credit | ​ |  | (6,018) | ​ | (0.9) | ​ | ​ |  | (7,042) | ​ | (1.2) | ​ | ​ |  | (7,136) | ​ | (1.0) | ​ | ​
Foreign derived intangible income deduction | ​ |  | — | ​ | — | ​ | ​ |  | (13,766) | ​ | (2.3) | ​ | ​ |  | (10,411) | ​ | (1.5) | ​ | ​
Other | ​ | ​ | 171 | ​ | — | ​ | ​ | ​ | (1,039) | ​ | (0.2) | ​ | ​ | ​ | (2,040) | ​ | (0.3) | ​ | ​
Exercises of stock-based compensation | ​ |  | (7,525) | ​ | (1.1) | ​ | ​ |  | (12,528) | ​ | (2.1) | ​ | ​ |  | (8,814) | ​ | (1.3) | ​ | ​
Other | ​ | ​ | (8,027) | ​ | (1.3) | ​ | ​ | ​ | 361 | ​ | 0.1 | ​ | ​ | ​ | 5,625 | ​ | 0.8 | ​ | ​
Foreign reconciling items: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Mexico | ​ | ​ | 7,959 | ​ | 1.2 | ​ | ​ |  | 1,926 | ​ | 0.3 | ​ | ​ |  | 3,090 | ​ | 0.4 | ​ | ​
Other foreign jurisdictions | ​ | ​ | 4,491 | ​ | 0.7 | ​ | ​ |  | 17,329 | ​ | 2.9 | ​ | ​ |  | 5,046 | ​ | 0.7 | ​ | ​
Worldwide changes in prior year unrecognized tax benefits | ​ | ​ | (111) | ​ | — | ​ | ​ | ​ | 480 | ​ | 0.1 | ​ | ​ | ​ | (318) | ​ | — | ​ | ​
Total effective tax rate | ​ | $ | 154,917 | ​ | 22.9 | % | ​ | $ | 128,041 | ​ | 21.6 | % | ​ | $ | 141,618 | ​ | 20.6 | % | ​
| (1) | State and local income taxes in California, Florida, Michigan, Minnesota, Pennsylvania, Texas and Wisconsin for 2025, California, Illinois, Kentucky, Michigan, Pennsylvania, Wisconsin, and City of Euclid, Ohio for 2024 and California, Iowa, Illinois, Kentucky, Michigan, Pennsylvania, Wisconsin and City of Euclid, Ohio for 2023 made up the majority (greater than 50%) of the tax effect in this category.
​ The One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States on July 4, 2025. Many of the tax provisions within the OBBBA are designed to accelerate tax deductions and could lead to lower tax payments. The OBBBA has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. During 2025, the Company recognized a one-time tax expense of approximately $11,700 related to the cumulative impact of the OBBBA provisions to date. This tax expense primarily relates to restoration of immediate expensing for current and previously capitalized domestic research and development expenditures and the reinstatement of 100% bonus depreciation on qualified property both of which impact international tax provisions regarding foreign derived intangible income. ​ The effective tax rate was higher in 2025 as compared to 2024 primarily driven by the impact of the OBBBA as discussed above, partially offset by the mix of earnings and timing of discrete tax items. The amounts of income tax payments, net of refunds, were as follows: ​
​ | ​ | ​ | ​
​ | ​ ​ ​ | Year Ended December 31,
​ | ​ ​ ​ | 2025
Federal | ​ | $ | 47,779
Foreign | ​ | ​ | ​
Canada | ​ | ​ | 8,562
Mexico | ​ | ​ | 5,836
All other foreign | ​ | ​ | 18,214
State and local | ​ |  | 20,331
Total (1) | ​ | $ | 100,722
​
| (1) | Total income tax payments, net of refunds, in 2025 as compared to 2024 were lower primarily due to the election of provisions from the OBBBA.
Total income tax payments, net of refunds, during the years ended December 31, 2024 and 2023 were $157,542 and $180,512, respectively. Deferred Taxes Significant components of deferred tax assets and liabilities at December 31, 2025 and 2024, were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ ​ ​ | December 31,
​ | ​ ​ ​ | 2025 | ​ ​ ​ | 2024
Deferred tax assets: | ​ | ​ | ​ |  | ​ | ​
Tax loss and credit carry-forwards | ​ | $ | 27,883 | ​ | $ | 43,417
Inventory | ​ |  | 7,348 | ​ |  | 1,555
Other accruals | ​ |  | 29,308 | ​ |  | 31,671
Research and development capitalization | ​ | ​ | 5,454 | ​ | ​ | 86,697
Employee benefits | ​ |  | 27,495 | ​ |  | 27,866
Pension obligations | ​ |  | 4,647 | ​ |  | 7,025
Other | ​ |  | 14,758 | ​ |  | 9,508
Deferred tax assets, gross | ​ |  | 116,893 | ​ |  | 207,739
Valuation allowance | ​ |  | (4,802) | ​ |  | (35,284)
Deferred tax assets, net | ​ |  | 112,091 | ​ |  | 172,455
Deferred tax liabilities: | ​ |  | ​ | ​ |  | ​
Property, plant and equipment | ​ |  | 50,169 | ​ |  | 43,048
Intangible assets | ​ |  | 34,279 | ​ |  | 31,214
Inventory | ​ |  | 7,720 | ​ |  | 6,785
Pension and other benefit liabilities | ​ |  | 2,302 | ​ |  | 5,890
Other | ​ |  | 22,648 | ​ |  | 18,371
Deferred tax liabilities | ​ |  | 117,118 | ​ |  | 105,308
Total deferred taxes | ​ | $ | (5,027) | ​ | $ | 67,147
​ At December 31, 2025, certain subsidiaries had net operating loss carry-forwards of approximately $7,491 that expire in various years from 2033 through 2035, plus $59,479 for which there is no expiration date. In assessing the realizability of deferred tax assets, the Company assesses whether it is more-likely-than-not that a portion or all of the deferred tax assets will not be realized. The Company considers the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in making this assessment. At December 31, 2025, a valuation allowance of $4,802 was recorded against certain deferred tax assets based on this assessment. The Company believes it is more-likely-than-not that the tax benefit of the remaining net deferred tax assets will be realized. The amount of net deferred tax assets considered realizable could be increased or reduced in the future if the Company’s assessment of future taxable income or tax planning strategies changes. The Company determined it will repatriate earnings for certain non-U.S. subsidiaries, which are subject to foreign withholding taxes. The Company has estimated the associated tax to be $78. The Company considers remaining earnings and outside basis in all other non-U.S. subsidiaries to be indefinitely reinvested and has not recorded any deferred taxes as such estimate is not practicable. Unrecognized Tax Benefits Liabilities for unrecognized tax benefits related to uncertain tax positions are classified as Other liabilities unless expected to be paid in one year. Additionally, to the extent a position would not result in a cash tax liability, those amounts are generally recorded to Deferred income taxes to offset tax attributes. The Company recognizes interest and penalties related to unrecognized tax benefits in Income taxes. Current income tax expense included benefit of $152 and expense of $145 for the years ended December 31, 2025 and 2024, respectively, for interest and penalties. For those same years, the Company’s accrual for interest and penalties related to unrecognized tax benefits totaled $2,512 and $2,495, respectively. The following table summarizes the activity related to unrecognized tax benefits: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ ​ ​ | 2025 | ​ | 2024
Balance at beginning of year | ​ ​ ​ | $ | 10,887 | ​ ​ ​ | $ | 12,592
Increase related to current year tax positions | ​ |  | 1,010 | ​ |  | 1,701
Decrease related to prior years' tax positions | ​ |  | (110) | ​ |  | (870)
Decrease related to settlements with taxing authorities | ​ |  | — | ​ |  | —
Resolution of and other decreases in prior years' tax liabilities | ​ |  | (2,152) | ​ |  | (1,982)
Other | ​ |  | 678 | ​ |  | (554)
Balance at end of year | ​ | $ | 10,313 | ​ | $ | 10,887
​ The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $8,840 at December 31, 2025 and $9,343 at December 31, 2024. The Company files income tax returns in the U.S. and various state, local and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2020. The Company is currently subject to various state, U.S. and non-U.S. income tax audits. The Company is generally not able to precisely estimate the ultimate settlement amounts or timing until after the close of an audit. The Company evaluates its tax positions and establishes liabilities for unrecognized tax benefits related to uncertain tax positions that may be challenged by local authorities and may not be fully sustained. Unrecognized tax benefits are reviewed on an ongoing basis and are adjusted for changing facts and circumstances, including management’s judgment in the interpretation of applicable tax law, regulation or tax ruling, the progress of tax audits and closing of statutes of limitations. Based on information currently available, management believes that additional audit activity could be completed and/or statutes of limitations may close relating to existing unrecognized tax benefits.

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