Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Provision for Income Tax Expense (Benefit)

The components of provision for income tax (benefit) expense consisted of the following:


	(In thousands) Years Ended December 31,
	2025		2024		2023
	(As Restated)		(As Restated)
Current tax expense
Federal	$	830	$	10,624	$	8,796
State	336		1,603		1,095
Foreign	575		633		390
	1,741		12,860		10,281
Deferred tax benefit
Federal	(10,518)		(6,389)		(7,857)
State	(1,116)		(1,232)		(1,973)
	(11,634)		(7,621)		(9,830)
Income tax (benefit) expense	$	(9,893)	$	5,239	$	451

Schedule of Deferred Tax Assets (Liabilities)

Deferred tax assets (liabilities) were comprised of the following:


	(In thousands) December 31,
	2025		2024
	(As Restated)		(As Restated)
Deferred tax assets:
Accrued expenses	$	1,629	$	547
Allowance for credit losses	438		642
Forward loss reserves	1,679		1,145
Deferred compensation	829		694

Employment-related accruals	4,498		4,883
Environmental reserves	497		496
Federal tax credit carryforwards	3,964		—
Inventory reserves	3,180		3,907
Interest expense carryforwards	638		—
Operating lease liabilities	9,798		6,983
Pension obligation	230		143
Federal and state net operating loss carryforwards	19,727		1,764
Research expenses	16,426		29,956
State tax credit carryforwards	8,834		7,992
Stock-based compensation	2,527		1,817

Other	1,627		1,917
Total gross deferred tax assets	76,521		62,886
Valuation allowance	(7,826)		(7,216)
Total gross deferred tax assets, net of valuation allowance	68,695		55,670
Deferred tax liabilities:
Deferred revenue	(1,013)		(2,374)
Depreciation	(11,163)		(11,533)
Goodwill	(15,442)		(13,149)
Intangibles	(12,255)		(14,167)
Interest rate hedge	(2,674)		(4,129)
Operating lease right-of-use assets	(9,341)		(6,702)
Prepaid insurance	(890)		(755)

Other	(417)		(455)
Total gross deferred tax liabilities	(53,195)		(53,264)
Net deferred income taxes	$	15,500	$	2,406

Schedule of Principle Reasons for Variation Between Expected and Effective Tax Rate

As described in Note 1, we adopted ASU 2023-09 on a retrospective basis. The following table reconciles the U.S. federal statutory tax amount and rate to our effective tax amount and rate for all years presented:


	(Dollars in thousands, except percentages) Years Ended December 31,
	2025		Percentage		2024		Percentage		2023		Percentage
	(As Restated)		(As Restated)		(As Restated)		(As Restated)
U.S. federal statutory tax rate	$	(9,921)	21.0	%	$	5,652	21.0	%	$	3,440	21.0	%
State and local income taxes, net of federal income tax effect (a)	(617)		1.3	%	296		1.1	%	(702)		(4.3)	%
Foreign tax effects:
Mexico	575		(1.2)	%	606		2.3	%	260		1.6	%
Other	31		(0.1)	%	(21)		(0.1)	%	248		1.5	%
Effect of cross-border tax laws:
Foreign-derived intangible income deduction	(160)		0.3	%	(1,143)		(4.2)	%	(634)		(3.9)	%
Other	(121)		0.2	%	(127)		(0.5)	%	(55)		(0.3)	%
Tax credits:
Research and development tax credits	(4,620)		9.8	%	(5,055)		(18.8)	%	(4,471)		(27.3)	%
Other	—		—	%	(12)		—	%	(4)		—	%
Changes in valuation allowances	—		—	%	—		—	%	—		—	%
Nontaxable or nondeductible items:
Book compensation expenses	5,333		(11.3)	%	5,540		20.6	%	2,865		17.5	%
Other	(88)		0.2	%	117		0.4	%	11		0.1	%
Changes in unrecognized tax benefits	(315)		0.7	%	(730)		(2.7)	%	(550)		(3.4)	%
Effect of changes in tax laws or rates enacted in current period	—		—	%	—		—	%	—		—	%
Other	10		—	%	116		0.4	%	43		0.3	%
Effective tax rate	$	(9,893)	20.9	%	$	5,239	19.5	%	$	451	2.8	%

(a) Majority (greater than 50%) of the tax effect in this category related to Wisconsin for 2025, Kansas for 2024, and Wisconsin for 2023.

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:


	(In thousands) Years Ended December 31,
	2025		2024		2023
Balance at January 1,	$	4,533	$	4,493	$	4,944
Additions for tax positions related to the current year	685		748		646
Additions for tax positions related to prior years	207		142		220
Reductions for tax positions related to prior years	—		—		(600)
Reductions for lapse of statute of limitations	(452)		(850)		(717)
Balance at December 31,	$	4,973	$	4,533	$	4,493

Schedule of Cash Flow, Supplemental Disclosures

Supplemental Cash Flow Information


	(Dollars in thousands) Years Ended December 31,
	2025		2024		2023
Interest paid, net	$	11,069	$	14,010	$	19,856
Taxes paid, net	$	2,330	$	12,881	$	22,950
Non-cash activities:
Purchases of property and equipment not paid	$	506	$	1,087	$	807

As required under ASU 2023-09, the following table presents income taxes paid, net of refunds received, disaggregated by jurisdiction for all years presented:


	(In thousands) Years Ended December 31,
	2025		2024		2023
Federal	$	550	$	11,107	$	20,525
State:
Arkansas	212		*		*
Minnesota	159		*		*
Rhode Island	140		*		*
Oklahoma	121		*		*
Other	532		1,153		1,975
Foreign:
Mexico	616		*		*
Other	*		621		450
Income taxes paid, net of refunds received	$	2,330	$	12,881	$	22,950

* The amount of income taxes paid during the year does not meet the five percent disaggregation threshold.