Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Taxes [Abstract] |
|
| Earnings Before Income Taxes |
Earnings before income taxes were as follows:
|
(In thousands)
|
|
2025
|
|
|
2024
|
|
|
2023
|
|
|
United States
|
|
$
|
66,358
|
|
|
$
|
57,318
|
|
|
$
|
45,900
|
|
|
Foreign
|
|
|
111,189
|
|
|
|
105,480
|
|
|
|
83,951
|
|
|
Total
|
|
$
|
177,547
|
|
|
$
|
162,798
|
|
|
$
|
129,851
|
|
|
| Provision for Income Taxes |
The provision for income taxes was as follows:
|
(In thousands)
|
|
2025
|
|
|
2024
|
|
|
2023
|
|
|
Current income tax expense:
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$
|
13,395
|
|
|
$
|
20,307
|
|
|
$
|
11,153
|
|
|
State
|
|
|
1,936
|
|
|
|
3,375
|
|
|
|
2,814
|
|
|
Foreign
|
|
|
30,432
|
|
|
|
33,048
|
|
|
|
27,590
|
|
|
|
|
|
45,763
|
|
|
|
56,730
|
|
|
|
41,557
|
|
|
Deferred expense (benefit):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
|
46
|
|
|
|
(12,743
|
)
|
|
|
(4,656
|
)
|
|
State
|
|
|
(1,338
|
)
|
|
|
(581
|
)
|
|
|
(813
|
)
|
|
Foreign
|
|
|
(1,413
|
)
|
|
|
(5,274
|
)
|
|
|
369
|
|
|
|
|
|
(2,705
|
)
|
|
|
(18,598
|
)
|
|
|
(5,100
|
)
|
|
Income taxes
|
|
$
|
43,058
|
|
|
$
|
38,132
|
|
|
$
|
36,457
|
|
|
| Income Taxes Payments |
Payments of income taxes were as follows:
|
(In thousands)
|
|
2025
|
|
Federal
|
|
$ |
13,686 |
|
State
|
|
|
3,211 |
|
Germany
|
|
|
7,389 |
|
| Thailand |
|
|
4,904 |
|
| Mexico |
|
|
3,846 |
|
China
|
|
|
3,141 |
|
France
|
|
|
2,408 |
|
Foreign - Other
|
|
|
10,221 |
|
Total
|
|
$ |
48,806 |
|
|
| Effective Income Tax Rate Reconciliation |
The company adopted ASU 2023-09 prospectively in 2025. The 2025 reconciliation
between the U.S. Federal tax rate and the actual effective tax rate under ASU 2023-09 is below. The reconciliation for 2024 and 2023 under the prior guidance follows.
|
|
|
2025
|
|
|
|
|
Amount |
|
|
Percent |
|
Taxes at statutory rate
|
|
$ |
37,285 |
|
|
|
21.0 |
% |
State income taxes, net of federal income tax benefit
|
|
|
|
|
|
|
|
|
|
Wisconsin1
|
|
|
(1,053 |
) |
|
|
(0.6 |
) |
|
Other state income taxes1
|
|
|
1,140
|
|
|
|
0.6 |
|
Tax credits
|
|
|
|
|
|
|
|
|
|
Research and Development tax credits
|
|
|
(3,674 |
) |
|
|
(2.1 |
) |
Foreign tax effects
|
|
|
|
|
|
|
|
|
|
Germany
|
|
|
|
|
|
|
|
|
Foreign statutory tax rate difference
|
|
|
(1,622 |
) |
|
|
(0.9 |
) |
|
Enacted change in tax rate impact on deferred items
|
|
|
(1,726 |
) |
|
|
(1.0 |
) |
|
|
|
|
4,039 |
|
|
|
2.3 |
|
|
Other foreign jurisdictions
|
|
|
6,823 |
|
|
|
3.9 |
|
Effect of cross-border taxes
|
|
|
|
|
|
|
|
|
|
Global intangible low-taxed income
|
|
|
474 |
|
|
|
0.3 |
|
|
Foreign derived intangible income
|
|
|
(2,175 |
) |
|
|
(1.2 |
) |
|
Other effects of cross-border taxes
|
|
|
733 |
|
|
|
0.4 |
|
Nontaxable or nondeductible items
|
|
|
|
|
|
|
|
|
|
Nondeductible compensation
|
|
|
2,452 |
|
|
|
1.4 |
|
|
Other nontaxable or nondeductible items
|
|
|
(155 |
) |
|
|
(0.1 |
) |
Changes in unrecognized benefits
|
|
|
198 |
|
|
|
0.1 |
|
Other reconciling items
|
|
|
319 |
|
|
|
0.2 |
|
Effective taxes and tax rate
|
|
$ |
43,058 |
|
|
|
24.3 |
% |
1 Wisconsin had a release of a valuation allowance related to its net operating loss. The states that make up the majority of
the Other state income taxes category are California and Illinois.
|
|
|
2024
|
|
|
2023
|
|
|
Taxes at statutory rate
|
|
|
21.0
|
%
|
|
|
21.0
|
%
|
|
State income taxes, net of federal income tax benefit
|
|
|
1.0
|
|
|
|
1.1
|
|
|
Tax credits
|
|
|
(1.6
|
)
|
|
|
(1.9
|
)
|
|
Taxes on foreign earnings
|
|
|
4.1
|
|
|
|
4.8
|
|
|
Global Intangible Low-Taxed Income
|
|
|
0.5
|
|
|
|
0.6
|
|
|
Foreign Derived Intangible Income
|
|
|
(1.2
|
)
|
|
|
(1.3
|
)
|
|
Resolution of prior years’ tax matters
|
|
|
0.6
|
|
|
|
0.3
|
|
|
Valuation allowance adjustments
|
|
|
(1.4
|
)
|
|
|
2.8
|
|
Nondeductible compensation
|
|
|
0.9 |
|
|
|
1.2 |
|
|
Other, net
|
|
|
(0.5
|
)
|
|
|
(0.5
|
)
|
|
Effective tax rate
|
|
|
23.4
|
%
|
|
|
28.1
|
%
|
|
| Tax Effects of Temporary Differences - Deferred Tax Assets and Liabilities |
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities consisted of the following:
|
(In thousands)
|
|
2025
|
|
|
2024
|
|
|
Deferred tax assets:
|
|
|
|
|
|
|
|
Benefit plans
|
|
$
|
10,859
|
|
|
$
|
8,123
|
|
|
Liabilities and reserves
|
|
|
20,886
|
|
|
|
20,322
|
|
|
Operating loss and credit carryovers
|
|
|
58,598
|
|
|
|
59,834
|
|
|
Capitalized research and development costs
|
|
|
22,745 |
|
|
|
18,666 |
|
|
Other
|
|
|
20,788
|
|
|
|
5,355
|
|
|
Gross deferred tax assets
|
|
|
133,876
|
|
|
|
112,300
|
|
|
Valuation allowance
|
|
|
(29,053
|
)
|
|
|
(29,743
|
)
|
|
Deferred tax assets
|
|
|
104,823
|
|
|
|
82,557
|
|
|
Deferred tax liabilities:
|
|
|
|
|
|
|
|
|
|
Property, plant, and equipment
|
|
|
(28,265
|
)
|
|
|
(26,092
|
)
|
|
Goodwill
|
|
|
(19,005
|
)
|
|
|
(20,685
|
)
|
|
Deferred tax liabilities
|
|
|
(47,270
|
)
|
|
|
(46,777
|
)
|
|
Net deferred tax assets
|
|
$
|
57,553
|
|
|
$
|
35,780
|
|
|
| Reconciliation of Change in Liability for Unrecognized Tax Benefits |
A reconciliation of the change in the liability for unrecognized tax benefits for 2025 and 2024 is as follows:
|
(In thousands)
|
|
2025
|
|
|
2024
|
|
|
Balance at beginning of year
|
|
$
|
4,391
|
|
|
$
|
4,251
|
|
|
Increases for tax positions taken in the current year
|
|
|
840
|
|
|
|
865
|
|
| Increases for tax positions taken in prior years |
|
|
130 |
|
|
|
422 |
|
|
Decreases related to settlements with tax authorities
|
|
|
(736
|
)
|
|
|
-
|
|
|
Decreases as a result of lapse of the applicable statutes of limitations
|
|
|
(952
|
)
|
|
|
(765
|
)
|
|
Foreign currency exchange rate changes
|
|
|
457
|
|
|
|
(382
|
)
|
|
Balance at the end of year
|
|
$
|
4,130
|
|
|
$
|
4,391
|
|
|