Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Income before Income Tax, Domestic and Foreign

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)

Schedule of Components of Income Tax Expense (Benefit)

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

Schedule of Deferred Tax Assets and Liabilities

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

Summary Of Effective Income Tax Rate

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)	%

Schedule of Cash Flow, Supplemental Disclosures

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

Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward

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