Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Loss before income taxes was derived from the following sources:

Income tax expense (benefit) consisted of the following:


(in thousands)	2025		2024		2023
Current
Federal	$	—	$	—	$	(1,268)
State and local	273		153		1,139
Foreign	6,328		5,378		9,738
Total current tax expense	6,601		5,531		9,609
Deferred
Federal	29,571		(17,535)		(12,200)
State and local	5,203		(395)		(443)
Foreign	8,018		(9,704)		(15,480)
Total deferred tax expense (benefit)	42,792		(27,634)		(28,123)
Income tax expense (benefit)	$	49,393	$	(22,103)	$	(18,514)

With the adoption of ASU 2023-09, a reconciliation of income taxes for 2025 at the U.S. statutory rate to income tax expense follows:


(dollars in thousands)	2025
	Amount		%
Loss before income taxes	$	(170,442)

U.S. federal tax at statutory rate	$	(35,793)	21.0	%
State and local income taxes, net of federal income tax effect
Change in valuation allowance	4,481		(2.7)	%
Other	883		(0.5)	%
Foreign tax effects:
Switzerland:
Statutory tax rate difference between U.S. and Switzerland	6,223		(3.7)	%
Changes in valuation allowance	20,274		(11.9)	%
Investment impairment in subsidiaries	(1,905)		1.1	%
Other	50		—	%
Other foreign jurisdictions	7,933		(4.6)	%
Change in valuation allowance	47,232		(27.7)	%
Other permanent items	15		—	%
Effective tax rate	$	49,393	(29.0)	%

Prior to the adoption of ASU 2023-09, a reconciliation of income taxes for 2024 and 2023 at the U.S. statutory rate to income tax benefit follows:


(dollars in thousands)	2024		2023
U.S. federal tax at statutory rate	$	(32,190)	$	(57,490)
Impact of U.S. Tax Cuts and Jobs Act of 2017 - GILTI	195		1,041
Impact of Tax Receivable Agreement	(26)		91
Valuation allowance	10,396		(282)
State taxes, net of federal tax benefit	(10,054)		818
U.S. tax impact of foreign earnings (net of foreign tax credits)	587		311
Establishment/resolution of uncertain tax positions	—		(36)
Adjustment for foreign income taxed at different rates	11,476		16,666
Foreign tax credits	—		(2,534)
Impact of non-deductible goodwill impairment	—		24,570
Other	(2,487)		(1,669)
Income tax benefit	$	(22,103)	$	(18,514)

Supplemental cash-flow and other information related to leases is as follows:


(in thousands)	2025		2024		2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows - payments on operating leases	$	(2,115)	$	(2,815)	$	(3,919)
Operating cash outflows - interest payments on finance leases	(28)		(27)		(13)
Financing cash outflows - payments on finance lease obligations	(111)		(82)		(36)
Right-of-use assets obtained in exchange for operating lease obligations	—		4,775		2,621
Right-of-use assets obtained in exchange for finance lease obligations	86		130		291

Net cash paid (refunds received) for income taxes consisted of the following:


(in thousands)	2025		2024		2023
U.S. Federal	$	—	$	(2,944)	$	—
U.S. State and local	(384)		1,124		1,588
Foreign	6,539		6,730		41,738
Net cash paid for income taxes	$	6,155	$	4,910	$	43,326

Net cash paid for income taxes exceeded 5% of total net income tax paid in the following jurisdictions:

(1) Includes Switzerland cantonal capital tax paid in lieu of income tax when losses occur.


(in thousands)	2025		2024
Deferred tax assets:
Post-employment and other employee benefits	$	15,144	$	15,240
Operating losses	50,976		39,908
Capital loss and foreign tax credit	14,690		14,245
Disallowed interest carryforward	43,079		27,529
Inventory adjustments	6,601		4,936



Long-term contract option amortization	781		845
Other	4,529		4,618
Total gross deferred tax assets	135,800		107,321
Less: valuation allowance	(92,200)		(19,308)
Total deferred tax assets	43,600		88,013
Deferred tax liabilities:
Fixed assets	$	51,623	$	50,247


Goodwill and acquired intangibles	7,364		6,676
Other	426		1,922
Total deferred tax liabilities	59,413		58,845
Net deferred tax (liability) asset	$	(15,813)	$	29,168

Valuation allowance activity for 2025, 2024 and 2023 is as follows: