Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Earnings (Loss) Before Income Taxes For Operations

Following is a summary of earnings (loss) before income taxes for operations:


(In millions)	2025		2024	2023
United States	$	97.4	289.0	(450.0)
Foreign	371.3		354.0	86.0
Earnings (loss) before income taxes	$	468.7	643.0	(364.0)

Following is a supplemental disclosures of cash flow information related to income taxes paid based on the newly adopted disclosure requirements under ASU 2023-09, Improvements to Income Tax Disclosures for the year ended December 31, 2025:


(In millions)	2025
U.S. Federal(1)	$	47.5

U.S. State and Local(2)	16.4

Foreign:
Brazil	13.4
Russia	26.9
Mexico	10.7

Other foreign jurisdictions	43.4
Foreign Total	94.4

Total	$	158.3

(1) Amounts presented do not include payments for credits purchased from third parties.

(2) No individual jurisdiction meets the 5% disaggregation threshold.

Schedule of Income Tax (Benefit) Expense

Income tax (benefit) expense for the years ended December 31, 2025, 2024 and 2023 consists of the following:


(In millions)	2025		2024	2023
Current income taxes:
United States federal	$	120.1	86.2	67.0
State and local	9.2		6.0	11.9
Foreign	101.3		93.2	115.9
Total current	230.6		185.4	194.8
Deferred income taxes:
United States federal	(93.2)		(26.3)	(50.1)
State and local	(1.7)		(7.3)	(5.2)
Foreign	(36.9)		(23.6)	(54.6)
Total deferred	(131.8)		(57.2)	(109.9)
Total income tax expense	$	98.8	128.2	84.9

Schedule of Reconciliation of Income Tax Expense (Benefit)

Following is a reconciliation of the amount of income tax expense (benefit) from continuing operations and the amount computed by multiplying earnings before income taxes by the United States federal statutory income tax rate based on the newly adopted disclosure requirements under ASU 2023-09, Improvements to Income Tax Disclosures for the year ended December 31, 2025:


(In millions)	2025
	Amounts		Rate
US federal statutory income tax rate	$	98.4	21.0	%
Domestic federal
Tax credits
- Foreign tax credits	(5.1)		(1.1)	%
- Other tax credits	(6.2)		(1.3)	%
Nontaxable and nondeductible items	5.5		1.2	%
Effect of cross-border tax laws
- No permanent establishment	(24.8)		(5.3)	%
- Other	4.1		0.9	%
Other adjustments
- Amended returns	13.9		3.0	%
- Other	(2.9)		(0.6)	%
Changes in tax laws/rates	—		—	%
Changes in valuation allowances	3.4		0.7	%
Domestic State & Local income taxes, net of federal effect *	6.2		1.3	%
Foreign tax effects
Belgium
- Patent box deduction	(38.6)		(8.2)	%
- Changes in valuation allowances	(8.4)		(1.8)	%
- Other	5.5		1.2	%
Brazil
- Notional interest deduction	(9.3)		(2.0)	%
- Other	7.2		1.5	%
China	5.0		1.1	%
Luxembourg
- Changes in valuation allowances	22.1		4.7	%
- Currency translation adjustments	(11.8)		(2.5)	%
- Other	3.2		0.7	%
Malta
- Changes in valuation allowances	122.5		26.1	%
- General tax credits	(7.1)		(1.5)	%
- Notional interest deduction	(175.3)		(37.4)	%
- Nondeductible interest	59.8		12.8	%
- Other	2.1		0.4	%
Russia	5.6		1.2	%
Spain	5.8		1.2	%
Switzerland
- Changes in valuation allowances	(9.6)		(2.0)	%
- Other	(1.8)		(0.4)	%
Other foreign jurisdictions	8.0		1.6	%
Worldwide changes in unrecognized tax benefits	21.4		4.6	%
Total	$	98.8	21.1	%

*State and local taxes in California, Oklahoma, St. Louis, Minnesota and Texas made up the majority (greater than 50 percent) of the tax effect in this category.


(In millions)	2024		2023
Income taxes at statutory rate	$	135.0	(76.4)
State and local income taxes, net of federal income tax benefit	(1.1)		5.7
Foreign income taxes (1)	(173.0)		(59.0)
Change in valuation allowance	218.7		302.8
Impairment of non-deductible goodwill	—		183.1




Fixed asset adjustments	(5.9)		(6.6)
Non-deductible expenses	10.3		9.3
General business credits and incentives	(16.6)		(316.3)

Global intangible low-taxed income	1.8		0.2

Prior period adjustments	3.6		(5.6)
Tax impact of restructuring	(50.8)		25.4
Tax contingencies and audit settlements, net	13.2		26.3
Impact of tax law changes on deferred taxes	6.3		0.8
Impact of foreign disregarded entities	(28.5)		—


Other, net	15.2		(4.8)
Income tax expense	$	128.2	84.9

(1) Foreign income taxes include statutory rate differences, financing arrangements, withholding taxes, local income taxes, notional deductions, and other miscellaneous items.

Schedule of Supplemental Disclosures of Cash Flow Information

Following is a supplemental disclosures of cash flow information related to income taxes paid for the years ended December 31, 2024, and 2023 prior to adopting disclosure requirements under ASU 2023-09, Improvements to Income Tax Disclosures:


(In millions)	2024		2023
Cash paid during the years for:

Income taxes*	$	137.5	187.0

*Amounts presented do not include payments for credits purchased from third parties

Supplemental disclosures of cash flow information are as follows*:


(In millions)	2025		2024	2023
Net cash paid during the years for:
Interest	$	32.9	68.5	86.4


Supplemental schedule of non-cash investing and financing activities:
Unpaid property plant and equipment in accounts payable and accrued expenses	$	68.5	73.0	81.1

Fair value of assets acquired, net of liabilities assumed:
Fair value of net assets acquired in acquisition	$	9.3	—	677.1

Liabilities assumed in acquisition	(2.4)		—	(161.7)

Fair value of net assets acquired	$	6.9	—	515.4

*The supplemental disclosures of cash flow information for leases as well as income taxes are disclosed in Note 11, Leases and Note 14, Income Taxes, respectively.

Schedule of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2025, and 2024 are presented below:


(In millions)	2025		2024
Deferred tax assets:
Accounts receivable	$	18.0	13.9
Inventories	61.3		55.4
Employee benefits	57.3		53.5
Accrued expenses and other	135.0		142.3
Deductible state tax and interest benefit	18.7		15.8
Intangibles	48.7		56.1
Lease liabilities	111.8		103.2
Interest expense	129.3		53.3
Federal, foreign and state net operating losses and credits	1,154.4		940.3
Gross deferred tax assets	1,734.5		1,433.8
Valuation allowance	(939.6)		(760.5)
Net deferred tax assets	794.9		673.3
Deferred tax liabilities:
Inventories	(25.2)		(20.8)
Plant and equipment	(392.6)		(431.7)
Intangibles	(109.5)		(108.1)
Right of use operating lease assets	(105.3)		(96.6)
Prepaids	(57.6)		(52.0)
Other liabilities	(55.1)		(43.7)
Gross deferred tax liabilities	(745.3)		(752.9)
Net deferred tax asset (liability)	$	49.6	(79.6)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


(In millions)	2025		2024
Balance as of January 1	$	1,195.7	1,304.7
Additions based on tax positions related to the current year	2.5		5.8
Additions for tax positions of acquired companies	—		—
Additions for tax positions of prior years	17.0		6.8
Reductions resulting from change in tax rate	—		(45.7)
Reductions resulting from the lapse of the statute of limitations	(0.8)		(0.4)

Settlements with taxing authorities	(13.6)		(3.0)
Effects of foreign currency translation	143.1		(72.5)
Balance as of December 31	$	1,343.9	1,195.7