XML 56 R39.htm IDEA: XBRL DOCUMENT v3.25.4
INCOME TAXES INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
Income before income taxes consisted of the following:
(In millions)202520242023
Domestic$108.9 $169.5 $163.9 
Foreign85.8 62.3 78.3 
$194.7 $231.8 $242.2 
Schedule of Components of Income Tax Expense (Benefit)
The income tax provision/(benefit) consisted of the following:
(In millions)202520242023
Current:   
Federal$22.0 $42.5 $27.0 
Foreign25.5 17.3 14.9 
State6.1 10.0 7.2 
Total current53.6 69.8 49.1 
Deferred:   
Federal(2.5)(16.0)(1.1)
Foreign(3.8)(0.8)(0.3)
State(1.3)(2.8)(0.2)
Total deferred$(7.6)$(19.6)$(1.6)
 $46.0 $50.2 $47.5 
Schedule of Effective Income Tax Rate Reconciliation
The table below provides the updated requirements of ASU 2023-09 for 2025.

A reconciliation of the tax provision for continuing operations at the U.S. statutory rate to the effective income tax expense rate as reported is as follows:
(In millions)
2025(a)
AmountPercent
U.S. Federal Statutory Tax Rate$40.9 21.0 %
U.S. State and Local Income Taxes, Net of Federal Income Tax Effect (a)3.4 1.7 
Foreign Tax Effects
Netherlands
Exemption of Foreign Business Profits(7.2)(3.7)
Pillar Two Global Minimum Tax2.9 1.5 
Other1.3 0.6 
Other foreign jurisdictions7.3 3.7 
Effect of Cross-Border under U.S. Tax Laws
Foreign-derived intangible income(4.0)(2.1)
Other(0.3)(0.1)
U.S. Nontaxable or Nondeductible Items
Nondeductible officer's compensation2.5 1.3 
Other0.1 0.1 
Other U.S. Adjustments(0.9)(0.4)
Effective Tax Rate$46.0 23.6 %
(a) The following jurisdictions made up the majority (greater than 50 percent) of the tax effect in this category:
2025 - California, Texas, Florida, Michigan, Pennsylvania, Illinois, and New York;

As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the reconciliation of the tax provision for continuing operations at the U.S. statutory rate to the effective income tax expense rate as reported is as follows.
 20242023
U.S. Federal statutory rate21.0 %21.0 %
State income taxes, net of federal benefit2.3 2.3 
Foreign operations1.0 (0.7)
R&D tax credits(0.6)(0.4)
Uncertain tax position adjustments0.2 (0.1)
Valuation allowance on state and foreign deferred tax0.2 (0.2)
Share-based compensation(0.8)(1.0)
Other items0.9 (0.1)
Foreign Derived Intangible Income(3.5)(2.4)
Nondeductible officer's compensation1.0 1.2 
Effective tax rate21.7 %19.6 %
Schedule of Deferred Tax Assets and Liabilities
Significant components of the Company’s deferred tax assets and liabilities were as follows:
(In millions)20252024
Deferred tax assets:  
Accrued expenses and reserves$16.7 $15.5 
Compensation and employee benefits11.9 16.0 
Intercompany prepayments (FDII related)14.9 16.9 
Net operating losses, tax credit carryforwards, and other10.3 11.8 
Lease liability 16.8 15.7 
Research and development expenditures, net4.5 7.4 
Valuation allowance on state and foreign deferred tax(4.4)(4.4)
Total deferred tax assets70.7 78.9 
Deferred tax liabilities:  
Accelerated depreciation on fixed assets17.3 15.6 
Amortization of intangibles68.7 49.2 
Lease right-of-use asset, net16.8 15.7 
Other items0.6 0.4 
Total deferred tax liabilities103.4 80.9 
Net deferred tax liabilities$(32.7)$(2.0)
Summary of Operating Loss Carryforwards The Company has foreign income tax net operating loss (“NOL”) and credit carryforwards of $6.5 million and U.S. state income tax credit carryforwards of $3.8 million, which will expire on various dates as follows:
(In millions)
2026-2029$3.2 
2030-20341.6 
2035-20390.6 
2040-20450.3 
Unlimited4.6 
$10.3 
Schedule of Unrecognized Tax Benefits Rollforward
As of the beginning of 2025, the Company had gross unrecognized tax benefits of $1.3 million, excluding accrued interest and penalties. The unrecognized tax benefits increased due to uncertain tax positions identified for the current and prior years based on evaluations made during 2025, which were offset by statute expirations. The Company had gross unrecognized tax benefits, excluding accrued interest and penalties, of $3.0 million as of December 31, 2025.
During the first quarter of 2025, the Company recorded additional unrecognized tax benefits (excluding accrued interest and penalties) of $1.5 million. This amount is associated with uncertain tax positions taken by newly acquired companies in tax years prior to the acquisition of these companies. The stock purchase agreement related to the acquisition provides the Company the right to recover tax liabilities related to pre-acquisition tax years from the sellers and has accordingly recognized an indemnification receivable.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for 2025, 2024, and 2023 (excluding interest and penalties) is as follows:
(In millions)202520242023
Beginning balance$1.3 $0.8 $0.9 
Additions for tax positions of the current year0.3 0.6 0.3 
Additions for tax positions of prior years1.5 0.2 — 
Statute expirations(0.1)(0.3)(0.4)
Ending balance$3.0 $1.3 $0.8 
Schedule of Cash Flow, Supplemental Disclosures
Total cash paid for income taxes, net of refunds are as follows:
(In millions)2025
Federal$43.8 
State9.2 
Foreign23.7 
Total$76.7 

Income taxes paid (net of refunds) exceeded 5 percent of total income taxes paid (net of refunds) in the following jurisdictions:
(In millions)2025
Federal
United States$43.8 
Foreign
Brazil$4.7