Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income (Loss) before Income Tax, Domestic and Foreign
Income from continuing operations before income taxes is shown below:
Years ended December 31,
2025 2024 2023
$ 25,786  $ 45,205  $ 56,949 
Components of Income Tax Expense (Benefit)
The provision (benefit) for income taxes as shown in the accompanying consolidated statements of (loss) income consists of the following:
Years ended December 31,
2025 2024 2023
Current:  
Federal $ (10,251) $ 3,287  $ 16,707 
State (2,457) 1,423  2,401 
(12,708) 4,710  19,108 
Deferred:
Federal 17,381  (2,973) (132)
State 14,825  (2,036) (10,250)
32,206  (5,009) (10,382)
Provision (benefit) for income taxes $ 19,498  $ (299) $ 8,726 
Components of Income Tax Paid The income taxes paid by the Company, from both continuing and discontinued operations, are as follows:
Year ended December 31,
2025
Federal $ 5,600 
State 208 
Foreign 5,240 
Income taxes paid, net of refunds $ 11,048 
Income taxes paid (net of refunds) exceeds 5 percent of total income taxes paid (net of refunds) in the following jurisdictions:
Year ended December 31,
2025
State and local taxes
Louisiana $ (557)
Other states 765 
Foreign taxes
United Kingdom 4,606 
Other foreign 634 
The following table presents supplemental cash flow information for the Company, which includes activity from both continuing and discontinued operations:
Years ended December 31,
2025 2024 2023
Cash paid during the year for:
Income taxes, net of refunds $ 11,048  $ 26,259  $ 22,437 
Interest(1)
50,836  48,972  42,081 
Non-cash investing activity:
Capital expenditures acquired on account but unpaid as of the year end 3,573  4,882  3,427 
Non-cash financing activities(2):
Accrued excise tax on share repurchases (Note 8) 392  —  638 
(1)Cash paid for interest is shown net of capitalized interest and includes the cash received or paid on the Company’s interest rate cap agreements for the periods presented (see Note 17 to these consolidated financial statements for details).
(2)For the supplemental non-cash information on lease liabilities arising from obtaining right-of-use lease assets, see Note 12 to these consolidated financial statements for further information.
Tax Payments
Cash payments for income taxes, net of refunds, which includes activity from both continuing and discontinued operations, prior to the adoption of the guidance in ASU 2023-09 is as follows:
Years ended December 31,
2024 2023
Domestic $ 22,860  $ 21,973 
Foreign 3,399  464 
Cash payments for income taxes, net of refunds $ 26,259  $ 22,437 
Effective Income Tax Rate Reconciliation
The differences between income taxes expected at the U.S. federal statutory income tax rate and income taxes reported were as follows:
Year ended December 31,
2025
Income from continuing operations before income taxes $ 25,786 
U.S. federal statutory tax rate 5,415  21.0  %
State and local income taxes, net of federal income tax effect (1)
12,884  50.0  %
Nontaxable or nondeductible items
Sec. 162(m) compensation disallowance 278  1.1  %
Stock compensation 819  3.2  %
Other 218  0.8  %
Changes in unrecognized tax benefits (116) (0.4) %
Provision for income taxes $ 19,498  75.6  %
(1)     Kansas makes up the majority (greater than 50%) of the state income tax expense (benefit), net of federal income tax effect category. Additionally, this line item includes tax expense of $13,305 related to the establishment of a valuation allowance on the Company’s Kansas Investment Tax Credits (“ITCs”). After the Advanced Materials & Catalysts divestiture, the Company determined that it is no longer more likely than not that these credits will be realized as it no longer owns the Kansas property which previously qualified for the respective ITCs.
A reconciliation of income tax expense at the U.S. federal statutory income tax rate to actual income tax (benefit) expense prior to the adoption of the guidance in ASU 2023-09 is as follows:
Years ended December 31,
2024 2023
Tax at statutory rate $ 9,493  $ 11,959 
State income taxes, net of federal income tax benefit (919) 1,859 
Changes in uncertain tax positions (9,413) 985 
State credit - valuation allowance release —  (10,203)
Stock compensation 222  1,624 
Compensation disallowance under 162(m) 148  2,088 
Other, net 170  414 
(Benefit) provision for income taxes $ (299) $ 8,726 
Deferred Tax Assets and Liabilities
Deferred tax assets (liabilities) are comprised of the following:
December 31,
2025 2024
Deferred tax assets:
Net operating loss carryforwards $ 13,300  $ 13,667 
Interest disallowance carryforward —  2,968 
Pension —  280 
Inventory 1,389  — 
Operating lease liability 10,424  8,163 
Other 10,811  17,795 
State credits 13,305  14,359 
Total deferred tax assets, gross 49,229  57,232 
Valuation allowance (20,790) (7,588)
Total deferred tax assets, net 28,439  49,644 
Deferred tax liabilities:
Depreciation $ (69,470) $ (67,888)
Pension (57) — 
Inventory —  (3,306)
Intangibles (58,478) (70,677)
Operating lease right-of-use assets (10,363) (8,189)
Other (3,359) (4,979)
Total deferred tax liabilities (141,727) (155,039)
Net deferred tax liabilities $ (113,288) $ (105,395)
Unrecognized Tax Benefits Roll Forward
The following table summarizes the activity related to the Company’s gross unrecognized tax benefits. The amounts listed in the below table also represents the total unrecognized tax benefits that, if recognized, would impact the effective tax rate as of December 31, 2025 and 2024, respectively:
Years ended December 31,
2025 2024
Balance at beginning of period $ 87  $ 8,110 
Uncertain tax benefit sustained due to lapsing of statue of limitations (87) (8,023)
Balance at end of period $ —  $ 87 
Open Tax Years The following describes the open tax years, by significant tax jurisdiction, as of December 31, 2025:
Jurisdiction Period
United States-Federal 2022-2025
United States-State 2020-2025