Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Components of income tax provision (benefits) from continuing operations

The components of Interest expense, net in our Consolidated Statements of Operations were as follows (in millions):


	For the Years Ended December 31,
	2025		2024		2023
Interest expense, net of capitalized interest	$	46.4	$	44.1	$	56.0
Less: Interest income	5.5		5.4		4.3
Interest expense, net	$	40.9	$	38.7	$	51.7

Our provision for income taxes consisted of the following (in millions):


	For the Years Ended December 31,
	2025		2024 As Adjusted		2023 As Adjusted
Current:
Federal	$	109.0	$	159.2	$	132.1
State	34.9		33.7		26.6
Foreign	27.0		20.0		14.5
Total current	170.9		212.9		173.2
Deferred:
Federal	23.2		(19.6)		(22.2)
State	(3.5)		(4.0)		(4.9)
Foreign	0.4		(1.0)		1.6
Total deferred	20.1		(24.6)		(25.5)
Total provision for income taxes	$	191.0	$	188.3	$	147.7

Income from continuing operations before income taxes

Income before income taxes was comprised of the following (in millions):


	For the Years Ended December 31,
	2025		2024 As Adjusted		2023 As Adjusted
Domestic	$	584.9	$	625.8	$	472.8
Foreign	411.9		373.6		266.1
Total	$	996.8	$	999.4	$	738.9

Summary of difference between the income tax provision from continuing operations computed at the statutory federal income tax rate and the financial statement provision for taxes

The difference between the income tax provision computed at the statutory federal income tax rate and the financial statement Provision for income taxes is summarized as follows (in millions):


	For the Years Ended December 31,
	2024 As Adjusted		2023 As Adjusted
Provision at the U.S. statutory rate of 21%	$	209.9	$	155.2
Increase (reduction) in tax expense resulting from:
State income tax, net of federal income tax benefit	23.2		16.4

Tax credits, net of unrecognized tax benefits	(5.3)		(3.4)
Change in unrecognized tax benefits	0.5		0.4
Change in valuation allowance	—		0.1
Foreign taxes at rates other than U.S. statutory rate	(61.1)		(40.3)
Deemed inclusions	7.6		6.1
Global intangible low-taxed income	20.8		17.5
Change in rates from the Tax Act & other law changes	—		0.2
Excess tax benefits from stock-based compensation	(8.0)		(5.2)
Miscellaneous other	0.7		0.7
Total provision for income taxes	$	188.3	$	147.7

	For the Year Ended December 31, 2025
	Amount		Percent
US federal statutory tax rate	209.3		21.0		%
State and local income taxes, net of federal income tax effect(1)	24.8		2.5
Foreign tax effects
Mexico
Statutory tax rate difference between Mexico and United States	15.2		1.5
Nontaxable income	(42.3)		(4.1)
Other	3.1		0.3
Other foreign jurisdictions	7.4		0.7
Effects of changes in tax laws or rates enacted in the current period	—		—
Effect of cross-border tax laws
Global intangible low-taxed income	14.0		1.4
Other	4.3		0.5
Tax credits	(3.0)		(0.3)
Changes in valuation allowances	(0.6)		(0.1)
Nontaxable or nondeductible items
Nontaxable income	(41.1)		(4.1)
Other	(0.5)		(0.1)
Changes in unrecognized tax benefits	0.4		—
Effective tax rate	$	191.0	19.2		%

(1) State taxes in California, Florida, Illinois, New Jersey, Pennsylvania, and Minnesota made up the majority (greater than 50%) of the tax effect in this category.

Summary of deferred tax assets (liabilities)

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


	As of December 31,
	2025		2024 As Adjusted
Gross deferred tax assets:
Warranties	$	41.6	$	39.4
Loss carryforwards (foreign, U.S. and state)	2.4		2.7
Post-retirement and pension benefits	4.2		4.5

Receivables allowance	3.9		7.4
Compensation liabilities	7.4		6.6

Legal reserves	20.8		14.2
Tax credits, net of federal effect	13.4		12.3
Research and development capitalization	32.2		55.8
Lease liabilities	81.0		76.9
Other	6.2		5.4
Total deferred tax assets	213.1		225.2
Valuation allowance	(9.9)		(10.6)
Total deferred tax assets, net of valuation allowance	203.2		214.6
Gross deferred tax liabilities:
Depreciation	(77.8)		(64.4)
Intangibles	(72.5)		(17.4)
Insurance liabilities	(4.1)		(2.0)
Inventory reserve	(13.5)		(20.1)
Hedges	(6.5)		(1.5)
Lease assets	(72.1)		(70.4)
Other	(2.3)		—
Total deferred tax liabilities	(248.8)		(175.8)
Net deferred tax assets	$	(45.6)	$	38.8

Schedule of Cash Flow, Supplemental Disclosures

Income taxes paid, net of refunds, was comprised of the following (in millions):


	For the Year Ended December 31, 2025
Federal	$	57.0
State
California	5.5
Other	18.5
Foreign
Canada	5.8
Mexico	10.8
Other	6.2
Total	$	103.8