INCOME TAXES (Table)

12 Months Ended

Dec. 31, 2025

Schedule Of Income Before Income Tax, Domestic and Foreign [Table Text Block]

Earnings before income taxes for the years ended December 31 consists of:


(In thousands)	2025		2024		2023
Domestic	$	368,512	$	323,898	$	300,200
Foreign	251,498		198,158		162,870
	$	620,010	$	522,056	$	463,070

Schedule Of Provision For Income Taxes [Table Text Block]

The provision for income taxes for the years ended December 31 consists of:


(In thousands)	2025		2024		2023
Current:
Federal	$	58,205	$	62,165	$	58,629
State	17,411		18,272		13,098
Foreign	50,309		43,200		36,791
Total current	125,925		123,637		108,518

Deferred:
Federal	11,381		(5,507)		(180)
State	(606)		950		507
Foreign	(918)		(2,002)		(284)
Total deferred	9,857		(6,559)		43
Provision for income taxes	$	135,782	$	117,078	$	108,561

Schedule Of Effective Income Tax Rate Reconciliation [Table Text Block]

The effective tax rate varies from the U.S. federal statutory tax rate for the year ended December 31, 2025, principally:


	$'s		%'s
U.S. federal statutory tax rate	$	130,202	21.0	%
Add (deduct):
State and local taxes, net of federal benefit(1)	14,414		2.3	%
Foreign earnings(2)
Canada
Provincial taxes	8,704		1.4	%
Other	(1,769)		(0.3)	%
Other foreign jurisdictions	5,106		0.8	%
Effect of Cross-border Tax Laws
Foreign-Derived Deduction - Eligible Income ("FDDEI")	(8,052)		(1.3)	%
Financing arrangement(3)	(10,453)		(1.7)	%
Other	1,883		0.3	%
R&D tax credits	(7,050)		(1.1)	%
Nontaxable or nondeductible items	2,407		0.4	%
Changes in unrecognized tax benefits	390		0.1	%
	$	135,782	21.9	%

(1) State Taxes in Pennsylvania and Maryland contributed to the majority of the tax effect in this category.

(2) Foreign earnings primarily include the net impact of differences between local statutory rates and the U.S. Federal statutory rate, the cost of repatriating foreign earnings, and the impact of changes to foreign valuation allowances.

(3) In an effort to simplify its organizational structure and facilitate repatriation, the Corporation underwent a substantial internal reorganization of its foreign ownership structure in 2024 that included the establishment of financing arrangements.

The effective tax rate varies from the U.S. federal statutory tax rate for the years ended December 31, 2024 and 2023, principally:


	2024		2023
U.S. federal statutory tax rate	21.0	%	21.0	%
Add (deduct):
State and local taxes, net of federal benefit	3.0		2.3
Foreign earnings	1.1		1.3
Financing arrangement	(1.0)		—
R&D tax credits	(1.3)		(1.1)
Foreign-derived intangible income	(1.4)		(1.2)
All other, net	1.0		1.1
Effective tax rate	22.4	%	23.4	%

Schedule Of Deferred Tax Assets And Liabilities [Table Text Block]

The components of the Corporation’s deferred tax assets and liabilities as of December 31 are as follows:


(In thousands)	2025		2024
Deferred tax assets:
Capitalized R&D expenses	$	52,527	$	60,818
Operating lease liabilities	37,733		40,840
Inventories, net	24,649		23,926
Incentive compensation	12,402		11,011
Environmental reserves	9,961		9,324
Net operating loss	5,264		6,431
Other	44,527		34,264
Total deferred tax assets	187,063		186,614
Deferred tax liabilities:
Goodwill amortization	127,615		117,340
Other intangible amortization	55,610		62,277
Pension and other postretirement assets	53,468		46,828
Operating lease right-of-use assets, net	35,005		38,741
Withholding taxes	14,682		13,017
Depreciation	18,507		14,880
Contract revenue recognition	13,296		15,256
Other	9,410		3,776
Total deferred tax liabilities	327,593		312,115
Valuation allowance	3,953		4,988
Net deferred tax liabilities	$	144,483	$	130,489

Deferred tax assets and liabilities are reflected on the Corporation’s Consolidated Balance Sheets as of December 31 as follows:


(In thousands)	2025		2024
Net noncurrent deferred tax assets(1)	$	9,519	$	10,170
Net noncurrent deferred tax liabilities	154,002		140,659
Net deferred tax liabilities	$	144,483	$	130,489

(1)Amount is classified within the "Other Assets" caption in the Corporation's Consolidated Balance Sheets as of December 31, 2025 and December 31, 2024, respectively.

Summary Of Unrecognized Tax Benefits [Table Text Block]

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


(In thousands)	2025		2024		2023
Balance as of January 1,	$	19,012	$	17,888	$	17,371
Additions for tax positions of prior periods	3,201		1,805		2,387
Reductions for tax positions of prior periods	(2,150)		(2,213)		(2,419)
Additions for tax positions related to the current year	948		1,747		1,744
Settlements	—		(215)		(1,195)
Balance as of December 31,	$	21,011	$	19,012	$	17,888

Summary Of Open Tax Years [Table Text Block]

The following describes the open tax years, by major tax jurisdiction, as of December 31, 2025:


United States (Federal)	2020	-	present
United States (Various states)	2014	-	present
United Kingdom	2023	-	present
Canada	2020	-	present

Schedule of Cash Flow, Supplemental Disclosures

Income tax payments, net of refunds, by jurisdiction for the year ended December 31, 2025 were as follows:


	2025
Federal(1)	$	74,018
State	15,990
Foreign
Canada
Federal	10,029
Ontario	6,915
Other Canadian jurisdictions	659
United Kingdom	13,621
Other Foreign jurisdictions	13,046
Total Foreign	44,270
Total	$	134,278

(1) The immediate expensing of research and development expenditures under the OBBBA resulted in lower income tax payments in the current year.

CURTISS WRIGHT CORP 10-K