Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Earnings Before Income Taxes

Earnings before income taxes for the years ended December 31 were as follows:


($ in millions)	2025		2024		2023
United States	$	451.7	$	429.5	$	482.8
Non-U.S.	56.5		68.1		0.7
Total	$	508.2	$	497.6	$	483.5

Schedule of Provision (Benefit) for Income Taxes

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


($ in millions)	2025		2024		2023
Current:
Federal U.S.	$	57.7	$	69.8	$	109.3
Non-U.S.	21.4		23.9		15.1
State and local	18.4		15.8		21.9
Deferred:
Federal U.S.	7.9		(24.9)		(25.3)
Non-U.S.	(2.2)		(5.9)		(13.9)
State and local	(1.1)		(3.3)		(0.5)
Income tax provision	$	102.1	$	75.4	$	106.6

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities as of December 31 were as follows:


($ in millions)	2025		2024
Deferred tax assets:
Allowance for credit losses	$	20.4	$	21.5
Operating lease liabilities	9.3		10.8
Inventories	11.9		11.9
Pension benefits	1.9		2.2
Other accruals and prepayments	35.9		36.6
Deferred revenue	15.6		15.4
Warranty services	5.4		3.9
Stock-based compensation expense	8.2		8.6
Tax credit and loss carryforwards	75.4		64.7
Capitalized research and development	49.5		68.9
Other	8.5		4.7
Valuation allowances	(32.7)		(26.0)
Total deferred tax assets	209.3		223.2
Deferred tax liabilities:
Property, plant and equipment	(0.5)		(1.4)
Operating lease right-of-use assets	(8.2)		(9.7)

Goodwill and other intangibles	(89.8)		(95.2)
Other	(14.8)		(13.7)
Total deferred tax liabilities	(113.3)		(120.0)


Net deferred tax asset	$	96.0	$	103.2

Schedule of Effective Income Tax Rate Reconciliation

The effective tax rate for the years ended December 31 varies from the U.S. statutory federal tax rate as follows:


($ in millions)	2025				2024				2023
Statutory federal income tax rate	$	106.7	21.0	%	$	104.6	21.0	%	$	101.5	21.0	%
Increase (decrease) in tax rate resulting from:
Domestic federal
Effects of cross-border tax laws
Subpart F Income	5.7		1.1	%	6.1		1.2	%	—		—	%
Foreign Derived Intangible Income	(10.6)		(2.1)	%	(7.4)		(1.5)	%	—		—	%
Foreign Branch Income	—		—	%	—		—	%	(5.8)		(1.2)	%
Other	(3.3)		(0.7)	%	(3.2)		(0.6)	%	—		—	%
Tax credits
Research Credits	(5.5)		(1.1)	%	(7.5)		(1.5)	%	(8.5)		(1.8)	%
Other	(7.8)		(1.6)	%	(4.5)		(0.9)	%	(4.8)		(1.0)	%
Changes in valuation allowances	—		—	%	—		—	%	(2.4)		(0.5)	%
Nontaxable or non-deductible items	(2.1)		(0.4)	%	0.6		0.1	%	0.1		—	%
Business reorganizations and divestitures	0.3		0.1	%	(18.1)		(3.6)	%	(6.0)		(1.2)	%
Other	(1.1)		(0.2)	%	1.5		0.3	%	(3.0)		(0.6)	%
Domestic state and local income tax, net of federal effect(1)	13.6		2.7	%	9.8		2.0	%	16.9		3.4	%
Foreign tax effects
Israel
Changes in valuation allowances	5.5		1.1	%	—		—	%	—		—	%
Other	(0.6)		(0.1)	%	—		—	%	—		—	%
Other foreign jurisdictions	3.8		0.8	%	0.4		0.1	%	2.8		0.6	%
Worldwide changes in unrecognized tax benefits	(2.5)		(0.5)	%	(6.9)		(1.4)	%	15.8		3.3	%
Effective income tax rate	$	102.1	20.1	%	$	75.4	15.2	%	$	106.6	22.0	%

(1)State taxes in California, Pennsylvania, Illinois, Wisconsin, Texas, Iowa, Minnesota, and Georgia made up the majority (greater than 50 percent) of the tax effect in this category.

Schedule of Income Tax Payments Made (Refunds Received)

The following is a summary of the Company’s income tax payments made (refunds received) for the periods indicated:


($ in millions)	2025		2024		2023
Federal U.S.(a)	$	82.1	$	60.4	$	91.7
Non-U.S.
Germany	*		(5.0)		*
India	5.4		4.9		*
Italy	8.5		*		*
Other	16.6		14.3		14.1
State and local	13.2		18.9		20.2
Total cash paid, net of refunds received	$	125.8	$	93.5	$	126.0

* The amount of income taxes paid during the year does not meet the 5% disaggregation threshold.
(a) Includes $18.7 million paid to acquire investment tax credits during the year ended December 31, 2025.

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding amounts accrued for potential interest and penalties, is as follows as of December 31:


($ in millions)	2025		2024		2023
Unrecognized tax benefits, beginning of year	$	19.9	$	27.0	$	14.0
Additions based on tax positions related to the current year	1.1		0.8		11.8
Additions for tax positions of prior years	—		4.6		2.9
Reductions for tax positions of prior years	—		(5.3)		(0.5)
Lapse of statute of limitations	(3.4)		(0.6)		(0.4)
Settlements	(5.2)		(6.3)		(0.9)
Effect of foreign currency translation	1.1		(0.3)		0.1

Unrecognized tax benefits, end of year	$	13.5	$	19.9	$	27.0