v3.25.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The sources of pre-tax income and the components of income tax expense (benefit) are as follows:
Year Ended December 31,
(in thousands)202520242023
Income components
United States$84,378 $31,024 $(32,143)
Foreign16,525 7,817 7,625 
Total pre-tax income (loss)$100,903 $38,841 $(24,518)
Income tax expense (benefit) components
Current income tax expense (benefit)
United States-Federal$(130)$(10,015)$(3,776)
United States-State and local1,531 (1,207)1,648 
Foreign12,286 7,168 7,208 
Total current income tax expense (benefit)13,687 (4,054)5,080 
Deferred income tax expense (benefit)
United States-Federal7,577 7,849 (7,368)
United States-State and local1,943 2,394 747 
Foreign(186)(2,032)(404)
Total deferred income tax expense (benefit)9,334 8,211 (7,025)
Total income tax expense (benefit)$23,021 $4,157 $(1,945)
Effective income tax rate22.8 %10.7 %7.9 %
Schedule of Effective Income Tax Rate Reconciliation
The following table shows the principal reasons for the difference between the effective income tax rate and the statutory federal income tax rate:
Year Ended December 31,
202520242023
(In thousands, except percent data)AmountPercentAmountPercentAmountPercent
Tax provision at U.S. statutory rate$21,190 21.0 %$8,157 21.0 %$(5,149)21.0 %
State and local income tax, net of federal income tax effect1
2,550 2.5 %1,422 3.7 %1,892 (7.7)%
Foreign tax effects
Germany
Statutory tax rate difference between Germany and United States
1,101 1.1 %174 0.4 %499 (2.0)%
Other countries967 1.0 %(492)(1.3)%376 (1.5)%
Effects of cross-border tax laws
GILTI, net of GILTI Foreign Tax Credits(309)(0.3)%780 2.0 %252 (1.0)%
Tax Credits
Research and Development Credit66 0.1 %324 0.8 %(1,310)5.3 %
Work Opportunity Tax Credit(643)(0.6)%(1,482)(3.8)%(1,246)5.1 %
Nontaxable or Nondeductible items
Non-deductible compensation expense806 0.8 %2,392 6.2 %1,957 (8.0)%
Transaction cost amortization— — %— — %2,799 (11.4)%
Foreign derived intangible income deduction(542)(0.5)%— — %(266)1.1 %
Dividend received deduction(739)(0.7)%(2,282)(5.9)%— — %
Unrealized loss (gain)675 0.7 %(659)(1.7)%189 (0.8)%
Meals and entertainment14 — %(448)(1.2)%494 (2.0)%
Tax on gain from acquisitions— — %(664)(1.7)%— — %
Other226 — %(61)(0.1)%(411)1.6 %
Changes in Unrecognized Tax Benefits
Uncertain tax positions(2,341)(2.3)%(3,004)(7.7)%(2,021)8.2 %
Effective income tax rate$23,021 22.8 %$4,157 10.7 %$(1,945)7.9 %
 1State taxes in California, Maryland, Texas and Virginia made up the majority (greater than 50%) of the tax effect in this category
Schedule of Cash Flow, Supplemental Disclosures
The amount of income taxes paid, net of amounts refunded are as follows:
Year Ended December 31,
(in thousands)202520242023
Federal$— $758 $1,300 
State
California146 558 249 
Maryland105 483 168 
Texas837 596 487 
Other states(630)1,821 1,641 
Foreign
Canada1,189 320 — 
Germany1,872 2,765 2,215 
Iraq560 553 907 
Saudi Arabia5,043 — — 
Other countries510 965 1,389 
Total income taxes paid, net of amounts refunded$9,632 $8,819 $8,356 
Schedule of Deferred Tax Assets and Liabilities Deferred tax assets and liabilities include the following:
As of December 31,
(in thousands)20252024
Deferred tax assets
Compensation and benefits$14,820 $12,371 
Reserves23,343 23,208 
Lease liability9,941 10,477 
Research expenditures— 14,092 
Tax credits14,447 7,951 
Disallowed interest39,802 49,229 
Net operating losses2,909 2,724 
Other3,386 3,967 
Total deferred tax assets$108,648 $124,019 
Deferred tax liabilities
Goodwill and intangibles$(96,962)$(97,225)
Unbilled receivables(19,715)(22,229)
Property, plant and equipment, net(5,799)(7,888)
Right-of-use assets(7,217)(8,775)
Other liabilities(7,312)(8,885)
Total deferred tax liabilities(137,005)(145,002)
Net deferred tax liabilities$(28,357)$(20,983)
Schedule of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Year Ended December 31,
(in thousands)202520242023
Unrecognized tax benefits-January 1,$3,577 $6,593 $8,611 
Additions for:
Current year tax positions— — 517 
Prior year tax positions— — 28 
Reductions for:
Lapse of statute of limitations(2,329)(3,016)(2,563)
Unrecognized tax benefits-December 31,$1,248 $3,577 $6,593