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v3.25.4

Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense (Benefit) | Income before income tax consisted of the following:
|  | Year Ended December 31,
(in thousands) |  | 2025 |  | 2024 |  | 2023
U.S. operations |  | $ | (1,738) |  |  | $ | 83,120 |  |  | $ | 125,578 |
Foreign operations |  | 231,362 |  |  | 215,067 |  |  | 200,614 |
Income before income tax |  | $ | 229,624 |  |  | $ | 298,187 |  |  | $ | 326,192 |
Components of the provision for income taxes consisted of the following:
|  | Year Ended December 31,
(in thousands) |  | 2025 |  | 2024 |  | 2023
Current: |  |  |  |  |  |
Federal |  | $ | 7,757 |  |  | $ | 32,073 |  |  | $ | 39,939 |
State and local |  | 4,588 |  |  | 8,394 |  |  | 6,879 |
Non-U.S. |  | 39,633 |  |  | 40,651 |  |  | 33,109 |
|  | 51,978 |  |  | 81,118 |  |  | 79,927 |
Deferred: |  |  |  |  |  |
Federal |  | (3,732) |  |  | (11,925) |  |  | (5,492) |
State and local |  | (2,986) |  |  | (1,258) |  |  | (1,589) |
Non-U.S. |  | 7,140 |  |  | 6,979 |  |  | 1,946 |
|  | 422 |  |  | (6,204) |  |  | (5,135) |
Income tax expense |  | $ | 52,400 |  |  | $ | 74,914 |  |  | $ | 74,792 |
Reconciliation of Statutory Federal Income Tax Rate to Effective Rate | The following table presents a reconciliation of the federal statutory tax rate to the effective tax rate reported in the financial statements:
|  |  |  | Year Ended December 31,
|  | 2025 |  | 2024 |  | 2023
(in thousands, except for percentages of income before tax) |  | Amount |  | % |  | Amount |  | % |  | Amount |  | %
U.S. federal statutory tax rate |  | $ | 48,221 |  |  | 21.0 | % |  | $ | 62,619 |  |  | 21.0 | % |  | $ | 68,500 |  |  | 21.0 | %
State and local income taxes, net of federal income tax effect |  | 1,717 |  |  | 0.7 |  |  | 5,802 |  |  | 1.9 |  |  | 5,567 |  |  | 1.7 |
Foreign tax effects: |  |  |  |  |  |  |  |  |  |  |  |
Canada: |  |  |  |  |  |  |  |  |  |  |  |
Non-federal taxes |  | 3,044 |  |  | 1.3 |  |  | 3,811 |  |  | 1.3 |  |  | 4,198 |  |  | 1.3 |
Other |  | 948 |  |  | 0.4 |  |  | 689 |  |  | 0.2 |  |  | 859 |  |  | 0.3 |
China: |  |  |  |  |  |  |  |  |  |  |  |
Other |  | 7,181 |  |  | 3.1 |  |  | 2,430 |  |  | 0.8 |  |  | 4,372 |  |  | 1.3 |
Korea: |  |  |  |  |  |  |  |  |  |  |  |
Changes in valuation allowance |  | 480 |  |  | 0.2 |  |  | 6,355 |  |  | 2.1 |  |  | — |  |  | — |
Other |  | 95 |  |  | — |  |  | 244 |  |  | 0.1 |  |  | 956 |  |  | 0.3 |
Switzerland: |  |  |  |  |  |  |  |  |  |  |  |
Statutory tax rate difference between Switzerland and the U.S. |  | (20,208) |  |  | (8.8) |  |  | (17,489) |  |  | (5.9) |  |  | (15,113) |  |  | (4.6) |
Non-federal taxes |  | 10,935 |  |  | 4.8 |  |  | 9,536 |  |  | 3.2 |  |  | 7,137 |  |  | 2.2 |
Changes in valuation allowance |  | (141) |  |  | (0.1) |  |  | (538) |  |  | (0.2) |  |  | 7,001 |  |  | 2.1 |
Intangible assets |  | — |  |  | — |  |  | — |  |  | — |  |  | (9,458) |  |  | (2.9) |
Other |  | 27 |  |  | — |  |  | (745) |  |  | (0.2) |  |  | (2,059) |  |  | (0.6) |
Other foreign jurisdictions |  | 490 |  |  | 0.3 |  |  | 1,062 |  |  | 0.4 |  |  | 1,542 |  |  | 0.5 |
Enactment of new tax laws: |  |  |  |  |  |  |  |  |  |  |  |
Section 987 regulations |  | (2,860) |  |  | (1.2) |  |  | — |  |  | — |  |  | — |  |  | — |
Effect of cross-border tax laws: |  |  |  |  |  |  |  |  |  |  |  |
Other |  | 509 |  |  | 0.3 |  |  | 2,981 |  |  | 1.0 |  |  | 4,118 |  |  | 1.3 |
Tax credits: |  |  |  |  |  |  |  |  |  |  |  |
Research and developments tax credits |  | (622) |  |  | (0.3) |  |  | (2,223) |  |  | (0.7) |  |  | (2,373) |  |  | (0.7) |
Foreign tax credits |  | (3,640) |  |  | (1.6) |  |  | (1,676) |  |  | (0.6) |  |  | (1,674) |  |  | (0.5) |
Nontaxable or nondeductible items: |  |  |  |  |  |  |  |  |  |  |  |
Impairment of goodwill |  | 2,553 |  |  | 1.1 |  |  | — |  |  | — |  |  | — |  |  | — |
Other |  | 1,571 |  |  | 0.7 |  |  | 1,733 |  |  | 0.6 |  |  | 1,141 |  |  | 0.3 |
Changes in unrecognized tax benefits |  | 1,598 |  |  | 0.7 |  |  | 323 |  |  | 0.1 |  |  | 790 |  |  | 0.2 |
Other adjustments |  | 502 |  |  | 0.2 |  |  | — |  |  | — |  |  | (712) |  |  | (0.3) |
Effective tax rate |  | $ | 52,400 |  |  | 22.8 | % |  | $ | 74,914 |  |  | 25.1 | % |  | $ | 74,792 |  |  | 22.9 | %
(a) State taxes in Oregon, California, Texas, Florida, New Jersey, and Georgia in the current period made up the majority (greater than 50 percent) of the tax effect in this category.
Significant Components of Deferred Taxes | Significant components of the Company's deferred taxes consisted of the following:
|  | As of December 31,
(in thousands) |  | 2025 |  | 2024
Deferred tax assets: |  |  |  |
Accruals and allowances |  | $ | 41,251 |  |  | $ | 37,436 |
Operating lease liabilities |  | 120,198 |  |  | 114,079 |
Capitalized inventory costs |  | 18,087 |  |  | 17,895 |
Sales reserves |  | 15,083 |  |  | 16,648 |
Share-based compensation |  | 11,529 |  |  | 10,682 |
Net operating loss carryforwards |  | 3,156 |  |  | 2,550 |
Depreciation and amortization |  | 6,398 |  |  | 10,473 |
Capitalized research and development expenditures |  | 18,087 |  |  | 23,392 |
Tax credits |  | 3,241 |  |  | 153 |
Other |  | 1,399 |  |  | 3,153 |
Gross deferred tax assets |  | 238,429 |  |  | 236,461 |
Valuation allowance |  | (11,182) |  |  | (10,670) |
Net deferred tax assets |  | 227,247 |  |  | 225,791 |
Deferred tax liabilities: |  |  |  |
Depreciation and amortization |  | (1,540) |  |  | (3,149) |
Prepaid expenses |  | (3,044) |  |  | (3,216) |
Operating lease ROU assets |  | (104,927) |  |  | (100,475) |
Deferred tax liability associated with future repatriations |  | (7,953) |  |  | (7,849) |
Foreign currency |  | (2,689) |  |  | (7,209) |
Gross deferred tax liabilities |  | (120,153) |  |  | (121,898) |
Total net deferred taxes |  | $ | 107,094 |  |  | $ | 103,893 |
Schedule of Cash Flow, Supplemental Disclosures | Net cash paid (refunds received) for income taxes consisted of the following:
|  | Year Ended December 31,
(in thousands) |  | 2025 |  | 2024 |  | 2023
Federal |  | $ | 36,065 |  |  | $ | 25,606 |  |  | $ | 43,000 |
Aggregated state and local jurisdictions |  | 1,940 |  |  | 4,875 |  |  | 5,855 |
Disaggregated state and local jurisdictions: |  |  |  |  |  |
California |  | 654 |  |  | 1,870 |  |  | 1,700 |
Oregon |  | (303) |  |  | 1,165 |  |  | 921 |
Illinois |  | — |  |  | — |  |  | 845 |
New Jersey |  | 375 |  |  | 475 |  |  | 750 |
New York |  | 428 |  |  | 492 |  |  | 929 |
Minnesota |  | 346 |  |  | — |  |  | — |
Texas |  | 314 |  |  | — |  |  | — |
Florida |  | 317 |  |  | — |  |  | — |
Pennsylvania |  | 290 |  |  | — |  |  | — |
Aggregated foreign jurisdictions |  | 4,497 |  |  | 7,978 |  |  | 6,432 |
Disaggregated foreign jurisdictions: |  |  |  |  |  |
Canada |  | 10,931 |  |  | 12,313 |  |  | 14,447 |
China |  | 16,567 |  |  | 11,289 |  |  | 9,461 |
Switzerland |  | 13,973 |  |  | 10,041 |  |  | 6,167 |
Net cash paid for income taxes |  | $ | 86,394 |  |  | $ | 76,104 |  |  | $ | 90,507 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
|  | Year Ended December 31,
(in thousands) |  | 2025 |  | 2024 |  | 2023
Balance at beginning of year |  | $ | 10,064 |  |  | $ | 10,318 |  |  | $ | 10,177 |
Increases related to prior year tax positions |  | 728 |  |  | 264 |  |  | 578 |
Decreases related to prior year tax positions |  | (523) |  |  | (307) |  |  | — |
Increases related to current year tax positions |  | 2,169 |  |  | 1,247 |  |  | 1,376 |
Expiration of statute of limitations |  | (1,402) |  |  | (1,458) |  |  | (1,813) |
Balance at end of year |  | $ | 11,036 |  |  | $ | 10,064 |  |  | $ | 10,318 |

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