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Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 8 – INCOME TAXES

 

As of January 1, 2025, the Company had no unrecognized tax benefits, and there has been no change in unrecognized tax benefits during the nine months ended September 30, 2025. Accordingly, there was no accrual for uncertain tax positions as of September 30, 2025, and the Company recorded no associated interest or penalties. The Company does not expect any significant changes to this position over the next twelve months.

 

During the quarter ended September 30, 2025, the Company impaired property, plant and equipment assets within its Oilfield Services segment (see Note 6 of the Notes to the Condensed Consolidated Financial Statements for additional information) and impaired the intangible assets arising from the acquisition of QGP, within its Performance Chemicals segment, and Independence Oilfield Chemicals LLC and Bachman Services LLC., within its Oilfield Services segment (see Note 5 of the Notes to the Condensed Consolidated Financial Statements for additional information). The tax effect of the $22.9 million impairment of property, plant and equipment assets was $4.8 million, and the tax effect of the $19.1 million impairment of intangible assets was $5.1 million, both reflecting a reduction in the Company’s deferred tax liabilities.

The credit in the current year of $17.7 million relating to an adjustment to the fair value of contingent consideration associated with the acquisition of QGP within our Performance Chemicals segment has no impact on the Company’s current or future tax liabilities.

As of September 30, 2025, the Company and its U.S. subsidiaries remain open to examination by the IRS for years 2021 onwards under the statute of limitations. The Company’s subsidiaries in foreign tax jurisdictions are open to examination including Brazil (2020 onwards), Germany (2020 onwards), and the U.K. (2023 onwards).