What changed in Entegris's 10-K for the fiscal year ended December 31, 2025

Several factors outside of our control, including, but not limited to, surges in demand for semiconductors, changes in trade policies, the imposition of foreign export controls on critical materials and minerals and international conflicts, have resulted in, and may in the future result in, a shortage of raw materials and components needed to manufacture and deliver our products, higher raw materials costs, costly and time-consuming re-qualification of products manufactured with new raw materials and delays in, and unpredictability of, shipments due to transportation interruptions. These results could harm our reputation or the competitiveness of our products. Such shortages, delays and unpredictability have adversely impacted, and may impact in the future (1) our suppliers' ability to meet our demand requirements, (2) our manufacturing operations, (3) our ability to meet customer demand, (4) our gross margins and (5) our other operating results. Our actions to counteract adverse impacts to our gross margins and other operating results could be unsuccessful or reduce demand, which would adversely impact our revenue. Additionally, our suppliers may not have the capacity to meet increases in our demand for raw materials and other components, in turn, making us unable to meet customer demand for our products. If our suppliers or sub-suppliers are unable to maintain their operations due to operational restrictions or financial hardship caused by an economic slowdown or recession, we may need to increase our safety stocks of raw materials or components or alter our payment terms with such suppliers, including prepaying for raw materials. [added] These measures could reduce our available working capital, increase our inventory carrying costs, and negatively impact our liquidity and overall financial flexibility.

[added] Higher or sustained interest rates and tighter credit market conditions could increase our borrowing costs, reduce refinancing flexibility and limit access to capital. Any downgrade in our credit profile, or reduced lender or investor appetite for debt financing, could further increase our cost of capital and adversely affect our liquidity and financial condition.

[added] From time to time, we may receive and enter agreements for grants, subsidies, loans, tax arrangements and other incentives from national, state and local governments in jurisdictions throughout the world designed to encourage us to establish, maintain or increase our investment, research and development and production activities in those jurisdictions. Our future business plans are impacted by obtaining these government incentives, and they typically require us to achieve or maintain certain levels of investment, capital spending, employment, technology deployment or development milestones, construction or production milestones, or research and development activities to qualify for such incentives or could restrict us from undertaking certain activities. Compliance with these requirements may add complexity to our operations and increase our costs, and a failure to comply could result in cancellation of agreements or transactions, investigations, civil and criminal penalties, forfeiture of profits, reduction, termination or clawback of any funding, suspension or debarment from doing business with the government, or other penalties, any of which could have a material and adverse effect on our business, financial condition and results of operations. For example, we have entered into a direct funding agreement with the U.S. Department of Commerce to receive a grant under the U.S. CHIPS and Science Act of 2022. We may be unable to successfully achieve the milestones and ancillary requirements to qualify for these incentives or such incentives may otherwise be withheld. In addition, incentives may be subject to ongoing compliance "guardrails," audit rights, domestic sourcing or workforce requirements, and restrictions on certain activities or transactions. The timing of any reimbursements or funding may not align with our capital spending or operating needs, and we may be required to fund substantial costs in advance of receiving any benefits (if received at all). We also may be unable to obtain future incentives, which may put us at a disadvantage against competitors, especially foreign competitors that may benefit from such incentives in the countries in which they are headquartered.

[added] Because we have limited or no contractual recourse if our customers decided to stop buying and using our products with limited advance notice, the cancellation, reduction or deferral of purchases of our products by any one of these customers could significantly reduce our revenues in any particular quarter. If we were to lose any of our significant customers, if our products are not specified for our significant customers' products, if our customers lose market share to competitors with whom we do not have as strong relationships or as favorable commercial terms, or if we suffer a material reduction in their purchase orders, our revenue could decline and our business, financial condition and results of operations could be materially and adversely affected. Due to the long design and development cycle and lengthy customer product qualification periods required for most of our products, we may be unable to replace these customers quickly, if at all. In addition, our principal customers hold considerable purchasing power and may be able to negotiate sales terms that result in decreased pricing, increased costs, lower margins and/or limit our ability to share jointly-developed technology with others. The semiconductor industry may continue to undergo consolidation, and if any of our customers merge or are acquired, we may experience lower overall sales to, or lower profitability from sales to, the merged or combined companies. Furthermore, we rely on independent distributors, in addition to our direct sales force, to market and sell certain of our products globally. If these distributors fail to devote sufficient resources to selling our products or are otherwise unsuccessful in doing so, our revenue and results of operations could be materially adversely affected.

Over the last several years, the U.S. and other governments have significantly expanded export controls on certain technologies and commodities to certain markets, particularly with respect to semiconductor and other high technology exports to China, a market which represented approximately 21% of our sales in 2025. These and other regulations have reduced our ability to sell our products to customers in China and it is possible future regulation could further reduce demand for our products. As a result of these restrictive measures, certain of our customers have made efforts to source products domestically in order to mitigate perceived risks to their supply chain. Furthermore, these restrictive measures have incentivized Chinese domestic semiconductor companies to work more closely with local Chinese companies and companies headquartered outside of the U.S. in an effort to enable these companies to enhance the technology-level and quality of their products and, as a result, to better compete with our products. We may be unable to continue to compete favorably against these local and foreign competitors. If these efforts are successful, are widespread amongst our customers and expand to our products and solutions broadly, overall global demand for our products may be reduced, which could have a material adverse effect on our business, financial condition and results of operations. [added] Furthermore, government authorities may take retaliatory actions, impose conditions that require the use of local suppliers or partnerships with local companies, increase tariff and other customs costs, impose export restrictions on raw materials and components, such as the restrictions imposed on critical materials and minerals by China in 2025, or require the license or other transfer of intellectual property, which could have a significant adverse impact on our business.

[added] In recent years, including during 2025, the U.S. government has imposed tariffs and implemented other trade actions affecting products and materials imported into the U.S. In response to these tariffs and other changes in U.S. trade policy, several countries, including China, have threatened or imposed retaliatory tariffs on U.S. exports. The continuing imposition of tariffs by the U.S. and others may also give rise to further escalations of protectionist and retaliatory trade measures. Tariffs and related trade measures may be expanded, modified or restructured, and exemptions or exclusions may be limited or unavailable, which could further increase costs or disrupt supply chains.

[added] This change in accounting estimate is effective beginning in fiscal year 2026 and is applied prospectively to the assets on our balance sheet as of December 31, 2025 and to future asset purchases. Based on the carrying amount of the assets included in property, plant and equipment, net in our Consolidated Balance Sheet as of December 31, 2025, we expect total depreciation expense in 2026 to be reduced by $72.9 million. We expect this change will result in an increase in gross margin of approximately $52.4 million, a decrease in ER&D expenses of approximately $11.4 million and a decrease in ending inventory values of $9.1 million.

[added] Our strategy has been, and will continue to be, to build a resilient and robust supply chain and a global manufacturing footprint near our customers. While this strategy should mitigate the Company from financial and operational impacts of a volatile trade environment in the medium to long term, our business could still be impacted by sudden changes in trade policy in the near term, particularly, for example, our products manufactured in the United States and sold to customers located in China. Given the dynamic nature of this situation, the direct and indirect impact to our customers and our business is difficult to quantify; however, we will continue to closely monitor this evolving situation, further leverage our global footprint and regional supply chain, and explore additional options to mitigate this volatility.

No corresponding language in the FY2025 10-K.

No corresponding language in the FY2025 10-K.

No corresponding language in the FY2025 10-K.

No corresponding language in the FY2025 10-K.

No corresponding language in the FY2025 10-K.

We are subject to risks related to new, different, inconsistent, or even conflicting laws, rules, and regulations that may be enacted by legislative or executive bodies and/or regulatory agencies in the countries where we operate; disagreements or disputes related to international trade; and the interpretation and application of laws, rules, and regulations. As a public company with global operations, we are subject to the laws of multiple jurisdictions and the rules and regulations of various governing bodies, including those related to health and safety, import and export controls, financial and other disclosures, accounting standards, corporate governance, public procurement and public funding, environment (including those relating to [added] sustainability, carbon emissions and climate [added] change concerns), privacy, anti-corruption, such as the Foreign Corrupt Practices Act and other local laws prohibiting corrupt payments to governmental officials or customers, conflict minerals or other social responsibility legislation, employment practices, immigration or travel regulations and antitrust regulations, among others. Each of these laws, rules and regulations imposes costs on our business, including financial costs and potential diversion of our management's [added] attention. There have been, and may [added] continue to be, instances where we fail to ensure full compliance with all of the laws, rules and regulations to which we are subject. These instances present risks to our business, including potential fines, restrictions on our actions and reputational [added] damage. The volume of changes to such laws, rules and regulations may increase in the countries where we operate.

[added] These tariffs and other trade measures could have a material adverse effect on our business, results of operations, or financial condition. Our business and operating results are heavily dependent on international trade. We import raw materials and finished goods into the U.S. and we export products from the U.S. to our customers throughout the world, including those in China. Because of the recent tariffs and other trade restrictions, we have experienced increased and additional costs with respect to our import and export of such materials, finished goods, and products, and we may continue to experience these costs. In turn, we may be required to increase the prices of our products or add surcharges, which may reduce demand and harm our relationships with our customers. If we do not, or are unable to, increase prices or add surcharges without reducing demand, we may experience reduced profitability. Furthermore, retaliatory tariffs imposed by countries where we have significant sales, like China, could cause our customers to source products from local and non-U.S. competitors, which could further reduce demand for, and the overall competitiveness of, our products and decrease our market share. Additionally, we may be required to source our materials from alternative suppliers which could significantly increase our costs, lead to significant delays, and result in reliability or quality issues, all of which could harm our reputation and decrease demand for our products. The extent and duration of the tariffs and the resulting impact on general economic conditions and on our business are uncertain and depend on various factors, such as negotiations and overall relationships between the U.S. and affected countries, the responses of other countries or regions, exemptions or exclusions that may be granted, availability and cost of alternative sources of supply, and demand for our products in affected markets.

Compared to [added] 2024, the $63.7 million increase in cash provided by operating activities in [added] 2025 was primarily driven by [added] $101.6 million of changes in operating assets and liabilities, [added] partially offset by a [added] $37.9 million decrease of net income adjusted for non-cash reconciling items.

[added] Net cash used in investing activities was $300.8 million in 2025 compared to [added] net cash provided by investing activities [added] $67.1 million cash used in investing activities in 2024, primarily reflecting lower proceeds from divestitures of [added] $257.5 million, partially offset by a [added] $16.4 million decrease in capital expenditures [added] and $8.2 million of proceeds from government incentives.

During the twelve months ended December 31, [added] 2025, the Company borrowed and repaid [added] $567.0 million under this Revolving Facility and no balance was outstanding at December 31, [added] 2025.

Long-term debt and interest payments on long-term debt. We have contractual obligations for principal and interest payments on our long-term debt. See Note [added] 9 of the consolidated financials for additional information. Debt obligations are classified based on their stated maturity date, regardless of their classification on the Company's consolidated balance sheets. Interest projections on both variable and fixed rate long-term debt are based on interest rates effective as of December 31, [added] 2025 and do not include [added] $47.4 million for unamortized discounts and debt issuance costs.

[added] (1) Our senior secured term loan due 2029 bears interest rate at a rate per annum equal to, at the Company's option, either (i) [added] SOFR, plus an applicable margin of 1.75%, or (ii) a base rate plus an applicable margin of [added] 0.75%.

[added] Recent and continuing developments in U.S. and foreign trade policy have heightened global trade tensions and sparked significant uncertainty in macroeconomic and geopolitical environments, particularly with respect to [added] China. The nature of our global business exposes us to risks associated with trade conflicts between the U.S. and its trading partners. Additionally, our manufacturing operations rely on a global supply chain to manufacture our products, including, in some instances, raw materials from China. The recent tariffs and other similar trade policies may increase our sourcing and manufacturing costs, force us to find alternative suppliers, or result in manufacturing and delivery delays. As a result, we may face a reduction in the demand for, and in the competitiveness of, our products, harm to our relationships with our customers, and decreased profitability. These issues may be exacerbated by the overall macroeconomic uncertainty stemming from current trade tensions which may slow economic growth and negatively impact the demand for products containing semiconductors, thereby decreasing the demand for our products.

As described in the table above, the decrease in net sales was primarily attributable to (i) the absence of [added] $33.9 million in sales associated with [added] the divested PIM business and (ii) a reduction of [added] $14.2 million of sales mainly due to decreased semiconductor market demand compared to the year ago period ended December 31, [added] 2024. These sales were partially offset by an increase of [added] $3.5 million of sales [added] attributable to favorable foreign currency translation effects, primarily related to the strengthening of the Taiwanese dollar, Japanese yen and euro relative to the U.S. dollar compared to the year ago period ended December 31, [added] 2024.

During the fiscal year [added] 2025, the Company repaid [added] $300.0 million net of borrowings under the [added] senior secured term loan.

Our business is organized and operated in two operating [added] segments.

[added] The Company reports its financial performance based on two reportable [added] segments. See Note 20 to the consolidated financial statements for additional information on the Company's two segments.

The [added] decrease in the effective tax rate from [added] 2024 to 2025 primarily relates to [added] lower income and the release of unrecognized tax benefits resulting from the expiration of applicable statute of limitations. This benefit was partially offset by an increase in discrete tax expense recorded associated with share-based compensation and the enactment of the One Big Beautiful Bill Act.

[added] 6 Impairment of long-lived assets related to a small, industrial specialty chemicals [added] business.

[added] 5 Loss (gain) from the sale of [added] the Company's PIM and small, industrial specialty chemicals businesses.

[added] 8 Impairment of long-lived assets related to a small, industrial specialty chemicals business.

[added] 7 Loss (gain) from the sale of [added] the Company's PIM and small, industrial specialty chemicals businesses.

We expect capital expenditure spending to be approximately [added] $250.0 million in [added] 2026.

[added] 3 Restructuring charges resulting from [added] discrete cost saving [added] initiatives inclusive of employee termination benefit, contract termination costs and asset impairment charges, primarily related to (i) an internal reorganization, combining two complementary divisions into one and realigning our customer facing organization and (ii) workforce reductions, contract termination costs and the abandonment of certain capital equipment no longer necessary for the Company's long-term objectives.

[added] 3 Restructuring charges resulting from [added] discrete cost saving [added] initiatives inclusive of employee termination benefit, contract termination costs and asset impairment charges, primarily related to (i) an internal reorganization, combining two complementary divisions into one and realigning our customer facing organization and (ii) workforce reductions, contract termination costs and the abandonment of certain capital equipment no longer necessary for the Company's long-term objectives.

Gross margin [added] decreased by 1.5% for 2025 compared to [added] 2024. Gross margin [added] decreased primarily due to [added] plant performance and higher depreciation expense.

[added] Our complementary capabilities enable co-optimized, integrated solutions [added] that improve device performance, lower cost of ownership and [added] accelerate time to market. [added] We address complex manufacturing challenges across deposition, CMP and post-CMP [added] modules with solutions including advanced deposition materials, CMP slurries, pads and post-CMP cleaning chemistries (each from our MS segment), and CMP slurry filters, high-purity packaging and fluid monitoring systems (each from our APS segment).[added] As leading semiconductor manufacturers implement molybdenum into advanced nodes, Entegris is uniquely positioned to support this transition and to solve challenges associated with integrating a new material through our expertise and solutions in precursors, deposition, etch, CMP consumables and contamination control.

In [added] 2025, other expense, net consisted mainly of loss of extinguishment of debt of [added] $3.2 million associated with the repayments on the Company's senior secured term loan facility [added] (see Note 9 to the Company's consolidated financial statements) and foreign currency transaction losses of $7.1 million.

Non-GAAP Net Income is defined by the Company as net [added] income, adjusted to exclude the impact of any Special Items and the tax effect of the foregoing adjustments to net income, stated on a per share basis, divided by diluted weighted average shares outstanding. Non-GAAP EPS is defined as Non-GAAP Net Income divided by our diluted weighted-average shares outstanding.

If a reporting unit fails the quantitative impairment test, impairment expense is immediately recorded as the difference between the reporting unit's fair value and carrying value not to exceed the amount of goodwill recorded.[added] We recorded no impairment charges related to goodwill during the fiscal years ended December 31, 2025 and 2024. Adverse changes in the future could reduce the underlying cash flows used to estimate the reporting unit fair values and could result in a further decrease in fair value that could trigger a future impairment charge of the goodwill balance.

Interest income Interest income was [added] $7.9 million in [added] 2025 and $7.3 million in [added] 2024. The increase primarily reflects [added] higher average cash [added] balances at our foreign subsidiaries.

Unallocated general and administrative expenses for [added] 2025 totaled $62.7 million compared to [added] $58.3 million for [added] 2024. The $4.4 million increase is primarily due to an increase in employee [added] costs.

Changes in operating assets and liabilities were driven by changes in trade accounts and notes receivable, inventories and [added] income taxes payable and [added] refundable income taxes. The change for trade receivables was mainly due to [added] timing of collections. The change for inventory was driven by [added] decreased business activity. The change [added] in income tax payable and [added] refundable incomes taxes is primarily due to higher income tax payments.

Goodwill is tested for impairment annually as of August 31. If circumstances change during interim periods between annual tests that would more likely than not reduce the fair value of a reporting unit below its carrying value, the Company will test goodwill for impairment. Factors that would necessitate an interim goodwill impairment assessment include a sustained decline in the Company's stock price, effects on a reporting unit such as a change in the composition or carrying amounts of its net assets, prolonged negative industry or economic trends, or significant under-performance relative to expected, historical or projected future operating results. [added] We allocate goodwill to reporting units at the time of acquisition or when there is a change in the reporting structure and base that allocation on which reporting units [added] will benefit from the acquired assets and liabilities. Reporting units are defined as operating segments or one level below an operating segment, referred to as a component. The Company has defined its reporting units as its operating segments, MS and APS as disclosed in Note 20 to our consolidated financial statements.

For [added] 2025, APS net sales decreased to [added] $1,799.1 million, down [added] 3% $1,850.2 million in [added] 2024. The sales decrease was [added] mainly due to [added] a decline in facilities-based capital expenditure investments in the semiconductor industry, which led to decreased demand for our fluid handling products and FOUPs, partially offset by [added] an increase in sales from [added] gas and liquid filtration products.

The decreases in Adjusted Operating Income and Adjusted EBITDA in [added] 2025 compared to [added] 2024 are generally attributable to decreased [added] gross profit and the absence of segment profit associated with the divested PIM business. The decrease in Non-GAAP EPS in [added] 2025 compared to [added] 2024 is primarily attributable to [added] decreased gross profit and the absence of segment profit associated with the divested PIM business, partially offset by lower interest expense.

An analysis of the factors underlying the [added] increase in SG&A expenses is presented in the following table:

APS reported a segment profit of [added] $426.4 million for [added] 2025, down 14% compared to [added] $496.1 million in [added] 2024. The decrease in APS's profit in [added] 2025 was primarily due to [added] lower sales, unfavorable plant performance, higher depreciation expense and higher restructuring costs of $21.9 million.

MS reported a segment profit of [added] $276.6 million for [added] 2025, down 3% compared to [added] $286.2 million in [added] 2024. The decrease was primarily associated with (1) the [added] net impact related to the divested PIM business of $14.5 million (2) loss on sale of small, industrial specialty chemicals business of $10.9 million and (3) lower plant performance, partially offset with (4) a decrease of a [added] $13.0 million of impairment charges related to the long-lived assets of [added] the aforementioned industrial specialty chemicals business in [added] 2024 and (5) higher sales volume.

Adjusted EBITDA is defined by the Company as net income [added] adjusted to exclude (1) equity in net loss of affiliates, (2) income tax [added] expense, (3) interest expense, (4) interest income, (5) other expense, net, (6) [added] depreciation, and (7) the impact of any Special Items. Adjusted Operating Income is defined by the Company as Adjusted EBITDA exclusive of the depreciation addback noted above. The Company also utilizes ratios of non-GAAP financial measures such as Adjusted EBITDA to Company net sales and Adjusted Operating Income to Company net sales (referred to as Adjusted EBITDA Margin and Adjusted Operating Margin, respectively).

Amortization of intangible assets Amortization of intangible assets was [added] $184.4 million in [added] 2025 compared to [added] $190.1 million for [added] 2024. The decrease primarily reflects the absence of amortization for certain identifiable intangible assets acquired in previous acquisitions that became fully [added] amortized.

For [added] 2025, MS net sales [added] increased to $1,406.7 million, up from $1,400.1 million in [added] 2024. The sales [added] increase was driven [added] by increased sales from CMP consumables, selective etch and deposition materials, partially offset by the absence of $33.9 million in prior-year sales from [added] the divested PIM business and decreased sales from advanced materials products.

Net income Net income was [added] $235.6 million, or [added] $1.55 per diluted share, in [added] 2025 compared to net income of [added] $292.8 million, or [added] $1.93 per diluted share, in [added] 2024. The decrease reflects the Company's aforementioned operating results described in greater detail above.

Income tax expense The Company recorded income tax expense of [added] $18.0 million in [added] 2025 compared to income tax [added] expense of $28.3 million in [added] 2024. The Company's effective tax rate was [added] 7.1% in 2025 compared to an effective tax rate of [added] 8.8% in 2024.

The decrease in sales to customers in North America primarily [added] relates to the absence of sales from [added] the divested PIM business and from decreased demand for our MS and APS products. The increase in sales to customers in Taiwan primarily relates to increased demand for our [added] MS and APS products. The [added] decrease in sales to customers in China primarily relates to [added] decreased demand for our [added] APS products, partially offset by increased demand for our MS products. The [added] increase in sales to customers in South Korea primarily relates to [added] increased demand for our MS and APS products. The [added] increase in sales to customers in Japan primarily relates to [added] increased demand for our [added] MS products, partially offset by [added] decreased demand for our [added] APS products. The decrease in sales to customers in Europe primarily [added] relates to decreased demand for our MS and APS products. The increase in sales to customers in Southeast Asia primarily relates to increased demand for our MS [added] and APS products.

Selling, general and administrative ("SG&A") expenses consist primarily of payroll and related expenses for the sales and administrative staff, professional fees (including accounting, legal and technology costs and expenses), and sales and marketing costs. SG&A expenses for [added] 2025 increased $4.0 million, or [added] 1%, to $450.6 million from [added] $446.6 million in [added] 2024.

These risks and uncertainties include, but are not limited to, fluctuations in the demand for [added] semiconductors; the impact of global economic uncertainty, including volatile financial markets, inflationary pressures and interest rate fluctuations, economic recessions, national debt and bank failures, raw material shortages, supply constraints, and price increases; supply chain interruptions and the Company's dependence on sole, single and limited source suppliers; operational, political and legal risks [added] associated with the Company's international [added] operations, including those related to geopolitical uncertainty and regional and global [added] instabilities and hostilities, including, but not limited to, the ongoing conflicts between Ukraine and Russia, and between Israel and Hamas, as well as the global responses thereto; export controls, economic sanctions, and similar restrictions; the concentration and consolidation of the Company's customer base; the Company's ability to meet rapid demand shifts; the Company's ability to continue technological innovation and to introduce new products to meet customers' rapidly changing requirements; manufacturing and other operational disruptions or delays; [added] IT system failures, network disruptions, and cybersecurity risks; tariffs, additional taxes and other protectionist measures resulting from international trade disputes, strained international relations and changes in foreign and national security policy; the risks associated with the use and manufacture of hazardous materials; goodwill impairment; challenges in attracting and retaining qualified personnel; the Company's ability to protect and enforce intellectual property rights; [added] artificial intelligence; the Company's environmental, social, and governance commitments; legal and regulatory risks, including changes in laws and regulations related to the environment, health and safety, accounting standards, and corporate governance, across the jurisdictions in which the Company operates; changes in taxation or adverse tax rulings; the Company's ability to effectively implement any organizational changes; the ability to obtain government incentives and the possibility that competitors will benefit from government incentives; the amount and consequences of the Company's indebtedness, its ability to repay its debt and to obtain future financing, and the Company's obligations under its current outstanding credit facilities; volatility in the Company's stock price; the payment of cash dividends and the adoption of future share repurchase programs; challenges associated with a potential change of control; substantial competition; the Company's ability to identify, complete and integrate acquisitions, joint ventures, divestitures or other similar transactions; the impacts of climate change; and other matters. These risks and uncertainties also include, but are not limited to, the risk factors and additional information described in this Annual Report on Form 10-K under the caption "Risk Factors," elsewhere in this Annual Report on Form 10-K and in the Company's other periodic filings. Except as required under the federal securities laws and the rules and regulations of the SEC, the Company undertakes no obligation to update publicly any forward-looking statements or information contained herein, which speak as of their respective dates.

(2) Our senior secured revolving credit facility due 2027 (the "Revolving Facility") bears interest at a rate per annum equal to SOFR, plus an applicable margin of [added] 1.75%, or (ii) a base rate plus an appliable margin of 0.75%. The Revolving Facility has commitments of $575.0 million.

Investing cash flows consist primarily of capital expenditures, cash used for acquisitions, proceeds [added] and payments from sales of businesses and proceeds from sales of property and equipment.

Other expense, net Other expense, net, was [added] $9.4 million in [added] 2025 compared to [added] $4.0 million in [added] 2024.

Income tax liabilities. Of the tax liabilities included in the table above, [added] $33.7 million relates to uncertain tax positions. We are unable to accurately predict when these amounts will be realized or released. However, it is reasonably possible that there could be significant changes to our unrecognized tax benefits in the next twelve months due to an unforeseeable event (such as a tax audit settlement). See Note 16 of the consolidated financials for additional information.