INCOME TAXES

9 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

In connection with the Separation, the Company entered into a Tax Matters Agreement with Cummins that among other things, formalized our agreement related to the responsibility for historical tax positions for the period prior to the IPO for jurisdictions where our business was included in the consolidated or combined tax returns of Cummins.

Atmus’s effective tax rate for the three and nine month periods ended September 30, 2023, was 23.1% and 23.8%, respectively. Atmus’s effective tax rate for the three and nine month periods ended September 30, 2022,

was 22.0% and 21.3%, respectively. The increase in the effective tax rate was driven by a change in the mix of earnings among tax jurisdictions partially offset by a change in discrete tax items. The Company’s effective tax rate differs from the U.S. statutory rate primarily due to differences in rates applicable to foreign subsidiaries, withholding taxes and state income taxes.