Income Taxes

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

For the years ended December 31, income (loss) before income taxes were as follows ($ in millions):

	2025		2024		2023
United States	$	(26.7)	$	(1,070.9)	$	(324.7)
International	203.9		(13.8)		269.8
Total	$	177.2	$	(1,084.7)	$	(54.9)

The provision (benefit) for income taxes for the years ended December 31 were as follows ($ in millions):

	2025		2024		2023
Current:
Federal U.S.	$	40.8	$	15.6	$	33.9
Non-U.S.	66.7		47.9		44.5
State and local	10.2		(0.2)		3.9
Deferred:
Federal U.S.	15.8		(31.0)		(27.3)
Non-U.S.	(6.9)		8.6		(3.4)
State and local	3.6		(7.0)		(6.3)
Income tax provision	$	130.2	$	33.9	$	45.3

Deferred tax assets and deferred tax liabilities are classified as long-term and are included in other long-term assets and other long-term liabilities, respectively, in the accompanying Consolidated Balance Sheets. Significant components of deferred tax assets and liabilities as of December 31 were as follows ($ in millions):

	2025		2024
Deferred tax assets:
Inventories	$	12.7	$	14.6
Pension benefits	13.0		9.7
Other accruals and prepayments	65.3		57.0
Lease liabilities	36.1		35.8
Stock-based compensation expense	10.3		10.0
Unrealized gains and losses	11.6		—
Interest expense	80.1		88.4
Capitalized research expenses	21.4		39.7
Tax credit and loss carryforwards	51.3		43.7
Valuation allowances	(126.1)		(112.3)
Total deferred tax asset	175.7		186.6
Deferred tax liabilities:
Property, plant and equipment	(6.1)		(4.6)
Unremitted Foreign Earnings	—		(16.7)
Unrealized gains and losses	—		(4.9)
Right-of-use assets	(34.3)		(33.0)
Goodwill and other intangible assets	(49.1)		(41.0)
Total deferred tax liability	(89.5)		(100.2)
Net deferred tax asset	$	86.2	$	86.4

Deferred taxes associated with U.S. entities consist of net deferred tax assets of $46.6 million and $33.3 million as of December 31, 2025 and 2024, respectively. Deferred taxes associated with non-U.S. entities consist of net deferred tax assets of $39.6 million and $53.1 million as of December 31, 2025 and 2024, respectively. During 2025, the Company’s valuation allowance increased by $13.8 million primarily due to increasing a valuation allowance against a portion of the Company’s Swiss Step-up deferred tax assets.

The Company’s intent is to permanently reinvest substantially all funds outside of the United States and current plans do not demonstrate a need to repatriate the cash to fund U.S. operations. However, if these funds were repatriated, they would likely not be subject to United States federal income tax under the previously taxed income or the dividend exemption rules. The Company would likely be required to accrue and pay United States state and local taxes and withholding taxes payable to various countries. It is not practicable to estimate the tax impact of the reversal of the outside basis difference, or the repatriation of cash due to the complexity of its hypothetical calculation.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company evaluated the impact of the OBBBA during the year ended 2025 and in conjunction with accounting for the impact, changed its indefinite reinvestment assertion related to a foreign subsidiary.

Current tax law in the United States imposes tax on U.S. stockholders for global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The Company is required to make an accounting policy election of either: (1) treating taxes due on future amounts included in the U.S. taxable income related to GILTI as a current period tax expense when incurred (“the period cost method”); or (2) factoring such amounts into the Company’s measurement of its deferred tax expense (the “deferred method”). In 2018, the Company elected the period cost method for its accounting for GILTI.

The Company adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures as of December 31, 2025. ASU 2023-09 requires the disclosure of a tabular rate reconciliation using both percentages and currency amounts, and income taxes paid, net of refunds received, disaggregated by federal, state/local, and foreign. As the Company prospectively applied ASU 2023-09, the enhanced disclosures required to conform to the ASU are presented for the year ended December 31, 2025 and the information for the comparative years ended 2024 and 2023 have not been recast.

The effective income tax amount and rate for the years ended December 31, varies from the U.S. statutory federal income tax rate as follows ($ in millions):

	2025
	Amount		Percentage of Pretax Income
U.S federal statutory federal income tax rate	$	37.2	21.0	%
State and local income taxes, net of federal income tax effect1	11.2		6.3	%
Foreign tax effects
Luxembourg
Tax rate differential from U.S. federal statutory rate	3.3		1.9	%
Statutory interest deduction	(22.7)		(12.8)	%
Other	0.6		0.3	%
Switzerland
Tax rate differential from U.S. federal statutory rate	(2.3)		(1.3)	%
Change in valuation allowance	9.9		5.6	%
Other	0.2		0.1	%
Other foreign	9.8		5.5	%
Effects of changes in tax laws or rates enacted in the current period
Effect of cross-border tax laws
Subpart F, including GILTI, net of related foreign tax credits	11.9		6.7	%
Elimination of intercompany transactions	17.5		9.9	%
Change in indefinite reinvestment assertion	63.6		35.9	%
Tax Credits
Research Credits	(5.4)		(3.0)	%
Changes in valuation Allowances	(7.3)		(4.1)	%
Nontaxable or nondeductible items
Nondeductible executive compensation	3.2		1.8	%
Other nondeductible expenses	2.1		1.2	%
Changes in unrecognized tax benefits	(1.2)		(0.6)	%
Other adjustments
Other	(1.4)		(0.9)	%
Effective Tax Rate	$	130.2	73.5	%
1 State taxes in California, Florida, Pennsylvania and Texas made up the majority (greater than 50 percent) of the tax effect in this category

As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the effective income tax rate varies from the U.S. statutory federal income tax rate as follows:

	Percentage of Pretax Income
	2024		2023
Statutory federal income tax rate	21.0	%	21.0	%
Increase (decrease) in tax rate resulting from:
State income taxes (net of federal income tax benefit)	3.6		21.2
Impact of foreign operations	1.5		43.9
Foreign-Derived Intangible Income (“FDII”)	—		—
Subpart F and GILTI, net of foreign tax credits	(2.0)		(51.1)
Change in uncertain tax positions	0.1		1.5
Research and experimentation credits and other	0.5		10.5
Nondeductible convertible debt instrument	—		(12.6)
Nondeductible goodwill impairment	(21.8)		(96.7)
Permanent differences and other	(0.5)		2.0
Excess tax benefit from stock-based compensation	—		2.8
Impact of step-up of Swiss assets	(1.3)		9.5
Valuation allowance on nondeductible interest carryforwards	(2.6)		(34.5)
Unremitted foreign earnings	(1.6)		—
Effective income tax rate	(3.1)	%	(82.5)	%

Income taxes paid, net of refunds received, disaggregated by federal, state, and foreign is as follows ($ in millions):

	For the Year Ended
	December 31, 2025
Federal	10.2
State	2.9
Foreign
Canada	30.8
China	4.2
Germany	(6.8)
Luxembourg	8.6
Russia	7.2
Switzerland	4.6
All other foreign jurisdictions (each country individually <5% of total income taxes paid)	18.1
Total income taxes paid	$	79.8

As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, income taxes paid, net of refunds were $32.9 million and $98.6 million, respectively.

The Company realized tax benefits of $2.5 million, $1.6 million, and $3.6 million in 2025, 2024 and 2023, respectively, for tax deductions attributable to stock-based compensation, of which, the excess tax benefit over the amount recorded for financial reporting purposes was $0.1 million, $0.1 million and $1.5 million in 2025, 2024 and 2023, respectively. As required by ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), the excess tax benefits for the years ended December 31, 2025, 2024 and 2023 have been included in the provision for income taxes.

The Company evaluates the future realizability of tax credits and loss carryforwards considering the anticipated future earnings of the Company’s subsidiaries as well as tax planning strategies in the associated jurisdictions. Included in deferred income taxes as of December 31, 2025 are tax benefits for U.S. and non-U.S. net operating loss carryforwards totaling $34.2

million ($29.7 million of which the Company does not expect to realize and has corresponding valuation allowances). Certain of the losses can be carried forward indefinitely and others can be carried forward to various dates from 2026 through 2045.

As of December 31, 2025, gross unrecognized tax benefits totaled $2.2 million ($3.1 million, including $0.9 million associated with potential interest and penalties). As of December 31, 2024, gross unrecognized tax benefits totaled $3.6 million ($5.3 million, including $1.7 million associated with potential interest and penalties). The Company recognized $(0.9) million, $(0.5) million and $(0.4) million in potential interest and penalties associated with uncertain tax positions during 2025, 2024 and 2023, respectively. To the extent unrecognized tax benefits (including interest and penalties) are recognized with respect to uncertain tax provisions, the tax expense in future periods would be reduced by $3.1 million based upon the tax positions as of December 31, 2025. The Company recognized interest and penalties related to unrecognized tax benefits within income taxes in the accompanying Consolidated Statements of Operations. Unrecognized tax benefits and associated accrued interest and penalties are included in taxes, income and other accrued expenses as detailed in Note 9.

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding amounts accrued for potential interest and penalties, is as follows ($ in millions):

	2025		2024		2023
Unrecognized tax benefits, beginning of year	$	3.6	$	5.1	$	6.6
Additions based on tax positions related to the current year	—		—		0.3
Additions for tax positions of prior years	1.5		—		0.3
Reductions for tax positions of prior years	—		—		(0.2)
Lapse of statute of limitations	(1.9)		(1.4)		(1.3)
Settlements	(1.1)		—		(0.4)
Effect of foreign currency translation	0.1		(0.1)		(0.2)
Unrecognized tax benefits, end of year	$	2.2	$	3.6	$	5.1

The Company is routinely examined by various domestic and international taxing authorities, and operations in certain U.S. states and foreign jurisdictions remain subject to routine examination for tax years beginning with 2011.

The Company operates in various non-U.S. tax jurisdictions where “tax holiday” income tax incentives have been granted for a specific period. These tax benefits are not material to the Company’s financial statements.