Income Taxes

3 Months Ended

Mar. 30, 2025

Income Taxes [Abstract]

Income Taxes

Note 5.  Income Taxes

Provision (benefit) for taxes was $(32.1) million and $13.9 million during the three-month periods ended March 30, 2025 and March 31, 2024, respectively.  The benefit from taxes in the current year relates to pre-tax losses in the period, primarily as a result of the provision for litigation reserve recorded in the first quarter. The effective tax rate was 18.2% for the three-month period ended March 30, 2025, as compared with  23.1% for the three-month period ended March 31, 2024. The lower rate was primarily due to the provision for the litigation reserve.

As of March 30, 2025, the Company had approximately $2.0 million of total unrecognized income tax benefits. Included in this amount were a total of $1.4 million of unrecognized income tax benefits that, if recognized, would affect the Company’s effective tax rate.  While it is expected that the amount of unrecognized tax benefits will change in the next 12 months, the Company does not expect the change to have a significant impact on the results of operations or the financial position of the Company.

The Company’s accounting policy is to recognize interest and penalties accrued, relating to unrecognized income tax or benefit as part of its provision for income taxes. The Company recorded net immaterial additions during the three-month period ended March 30, 2025 and had an accrued balance of $0.4 million of interest and penalties as of March 30, 2025.

The Company operates in multiple taxing jurisdictions, both within and outside the U.S.  In certain situations, a taxing authority may challenge positions that the Company has adopted in its income tax filings. The Company, with a few exceptions (none of which are material), is no longer subject to U.S. federal, state, local, and international income tax examinations by tax authorities for years prior to 2017.

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

In December 2021, the Organization for Economic Co-operation and Development (“OECD”) released the Pillar Two Model Rules which aim to reform international corporate taxation rules, including the implementation of a global minimum tax rate. The Company began implementation of the Pillar Two Model Rules in the first quarter of 2024. The Company continues to assess the effect of the Pillar 2 Model Rules in all jurisdictions and does not expect that Pillar 2 will have a material impact on its consolidated financial statements.