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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Data from Continuing Operations

The following table displays information regarding income tax expense (benefit) from continuing operations.


For the Year Ended December 31	2025			2024			2023
Income (loss) components:
United States	$	276.2		$	266.3		$	166.9
International	375.3			383.4			354.9
Income from continuing operations before income tax	651.5			649.7			521.8
Income tax expense (benefit) components:
Current income tax expense (benefit):
United States – federal	40.7			46.2			41.9
United States – state and local	2.4			6.0			5.5
International	112.4			94.7			85.6
Total current income tax expense	155.5			146.9			133.0
Deferred income tax expense (benefit) components:
United States – federal	4.1			(6.4)			(14.1)
United States – state and local	1.5			(4.5)			(2.7)
International	(1.0)			(9.7)			(10.8)
Total deferred income tax expense (benefit)	4.6			(20.6)			(27.6)
Income tax expense	$	160.1		$	126.3		$	105.4
Effective income tax rate	24.6		%	19.4		%	20.2		%

Statutory Tax Rate to Effective Tax Rate Reconciliation

The following table includes a reconciliation of the U.S. statutory tax rate to our effective income tax rate related to income from continuing operations. The disclosures below reflect the requirements of ASU 2023-09 and are presented prospectively. Prior-year disclosures are presented under previous guidance and are not comparable.


For the Year Ended December 31, 2025	Amount		Percentage
U.S federal statutory tax rate	$	136.8	21.0	%
State and local income taxes, net of federal income tax effect	3.8		0.6	%
Foreign tax effects
Luxembourg	7.7		1.2	%
Italy	6.4		1.0	%
China	5.6		0.9	%
Netherlands	3.6		0.5	%
Chile	3.0		0.5	%
Mexico	3.0		0.4	%
Other foreign jurisdictions	8.8		1.4	%

Effect of cross-border tax laws
Global intangible low taxed income (“GILTI”)	36.8		5.6	%
Foreign derived intangible income (“FDII”)	(8.7)		(1.3)	%
Loss from disregarded entity	(7.1)		(1.1)	%
Foreign exchange gain/(loss) on foreign remittances	(6.0)		(0.9)	%
Subpart F	4.4		0.7	%
Other	5.0		0.8	%
Tax credits
Foreign tax credit - GILTI basket	(26.1)		(4.0)	%
Foreign tax credit - general basket	(13.4)		(2.1)	%
Foreign tax credit - foreign branch basket	(7.2)		(1.1)	%
Research and development credit	(2.0)		(0.3)	%
Foreign tax credit - passive basket	(0.3)		—	%
Changes in valuation allowances	(0.4)		(0.1)	%
Nontaxable or nondeductible items	(0.5)		(0.1)	%
Changes in unrecognized tax benefits	3.6		0.5	%
Other adjustments
Other	3.3		0.5	%
Effective tax rate	$	160.1	24.6	%

Reconciliation of Tax Provision for Continuing Operations

The following table includes a reconciliation of the U.S. statutory tax rate to our effective income tax rate related

to income from continuing operations.


For the Year Ended December 31	2024		2023
Tax provision at U.S. statutory rate	21.0	%	21.0	%
State and local income tax	1.1	%	0.9	%
U.S. tax on foreign earnings	0.9	%	1.3	%
Italy patent box	(0.8)	%	(1.1)	%
Foreign-Derived Intangible Income ("FDII")	(1.3)	%	(1.2)	%
Excess tax benefits on stock-based compensation	(0.3)	%	(0.2)	%
Audit settlements and unrecognized tax benefits	0.2	%	2.7	%
Valuation allowance on deferred tax assets	(1.0)	%	(3.1)	%
Tax on undistributed foreign earnings	(0.9)	%	0.3	%
Wolverine divestiture	(1.6)	%	—	%
Foreign tax rate differential	2.1	%	1.6	%
Amended tax return	—	%	(1.0)	%
Other adjustments	—	%	(1.0)	%
Effective income tax rate	19.4	%	20.2	%

Deferred Tax Assets and Liabilities

eferred tax assets and liabilities.


As of December 31	2025		2024
Deferred Tax Assets:
Loss carryforwards	$	119.1	$	114.4
Inventory	27.4		23.7
Accruals	37.3		30.5
Employee benefits	34.1		30.9
Research and expenditures capitalization	11.0		22.4
Credit carryforwards	18.9		13.7

Other	34.2		32.3
Gross deferred tax assets	282.0		267.9
Less: Valuation allowance	96.9		90.3
Net deferred tax assets	$	185.1	$	177.6
Deferred Tax Liabilities:
Intangibles	$	(94.6)	$	(96.9)
Undistributed earnings	(51.7)		(32.4)
Accelerated depreciation	(25.4)		(26.3)
Total deferred tax liabilities	$	(171.7)	$	(155.6)
Net deferred tax assets	$	13.4	$	22.0

Deferred Taxes in Consolidated Balance Sheets

Deferred taxes included in our Consolidated Balance Sheets were as follows:


As of December 31	2025		2024
Other non-current assets	$	82.4	$	74.4
Other non-current liabilities	(69.0)		(52.4)
Net deferred tax assets	$	13.4	$	22.0

Deferred Tax Asset Valuation Allowance Rollforward [Table Text Block]

The table below provides a rollforward of our valuation allowance on net deferred tax assets (DTA).


	Federal		State		Foreign		Total
DTA valuation allowance as of December 31, 2022	$	—	$	39.5	$	62.9	$	102.4
Change in assessment	—		(23.1)		(16.4)		(39.5)
Current year operations	—		(0.8)		11.2		10.4
DTA valuation allowance as of December 31, 2023	$	—	$	15.6	$	57.7	$	73.3
Change in assessment	—		(8.3)		—		(8.3)
Current year operations	29.1		(0.2)		(3.6)		25.3
DTA valuation allowance as of December 31, 2024	$	29.1	$	7.1	$	54.1	$	90.3
Change in assessment	—		—		0.1		0.1
Current year operations	(0.6)		(1.3)		8.4		6.5
DTA valuation allowance as of December 31, 2025	$	28.5	$	5.8	$	62.6	$	96.9

Attributes Available for Utilization

We have the following tax attributes available for utilization at December 31, 2025:


Attribute	Amount		First Year of Expiration
U.S. federal capital losses	$	135.9	12/31/2029
U.S. federal net operating losses	34.6		12/31/2026
U.S. state net operating losses	232.1		12/31/2026
U.S. federal tax credits	18.4		12/31/2030
U.S. state tax credits	0.5		12/31/2028
Foreign net operating losses(a)	287.4		12/31/2026

(a)Includes approximately $234.4 of net operating loss carryforwards in Luxembourg as of December 31, 2025.

Schedule of Unrecognized Tax Benefits Roll Forward

The following table displays a rollforward of our unrecognized tax benefits.


For the Year Ended December 31	2025		2024		2023
Unrecognized tax benefits – January 1	$	6.4	$	5.7	$	6.7
Additions for:
Current year tax positions	1.9		1.8		1.4
Prior year tax positions	2.7		0.1		0.5

Reductions for:
Prior year tax positions			—		(0.6)
Expiration of statute of limitations	(1.5)		(1.2)		(2.3)
Settlements	—		—		—
Unrecognized tax benefits – December 31	$	9.5	$	6.4	$	5.7

Open Tax Years by Major Jurisdiction

The following table summarizes the earliest open tax years by major jurisdiction as of December 31, 2025:


Jurisdiction			Earliest Open Year
China			2020
Czechia			2015
Denmark			2020
Germany			2018
Hong Kong			2020
India			2014
Italy			2017
Japan			2022
Korea			2023
Luxembourg			2018
Mexico			2017
Singapore			2020
United States			2022

Cash Paid for income taxes, net of refunds by jurisdiction

The following table displays the cash paid for income taxes, net of refunds by jurisdiction for the year ended December 31, 2025:


For the year ended December 31	2025
United States - Federal	$	33.7
United States - State and local	7.8
Foreign:
Italy	22.2
China	14.4
Denmark	9.4
Korea	8.6
Germany	7.0
Saudi Arabia	6.6
Czechia	6.2
Other foreign jurisdiction	$	35.7
Total cash paid for income taxes, net of refunds received	$	151.6

Cash paid for income taxes, net of refunds, totaled $128.6 and $113.1 for the years ended December 31, 2024 and 2023, respectively. Disclosure of cash paid for income taxes by jurisdiction is not required for 2024 and 2023.