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Taxes on Income (Tables)
 12 Months Ended
Dec. 31, 2025
Major components of tax expense (income) [abstract]  
Schedule of tax rates of subsidiaries incorporated outside of Israel
Country
Tax rate
Note
Brazil
34%
  
Germany
29%
(3)
United States
26%
(1)
Netherlands
25.8%
  
Spain
25%
  
China
25%
  
United Kingdom
25%
  
 
  (1)
The tax rate is an estimated average and includes federal and states taxes. Different rates may apply in each year due to changes in the allocation of income among states.
 
  (2)
In accordance with the legislation of BEPS Pillar 2, which entered into effect in 2024, there are several jurisdictions in which the Company operates where the local tax rate may require a supplement to a minimum taxation of 15%. This legislation has no material impact on the Company.
 
  (3)
Starting in fiscal year 2028, the tax rate will be gradually reduced by 1% per year, reaching 24% in fiscal year 2032.
Schedule of reconciliation of changes in deferred tax liability (asset)
 
In respect of financial position
In respect
of carry forward tax losses
Total
 
Depreciable property,
plant and equipment and intangible assets
Inventories
Provisions for employee benefits
Other
 
$ millions
 
Balance as of January 1, 2024
(596)
50
52
15
142
(337)
Changes in 2024:
            
Amounts recorded in the statement of income
(36)
(7)
4
33
23
17
Amounts recorded to a capital reserve
-
-
(8)
-
-
(8)
Translation differences
9
(1)
(1)
(7)
(10)
(10)
Balance as of December 31, 2024
(623)
42
47
41
155
(338)
             
Changes in 2025:
            
Amounts recorded in the statement of income
(2)
3
2
(16)
24
11
Amounts recorded to a capital reserve
-
-
-
(4)
-
(4)
Translation differences
(5)
-
(3)
4
13
9
Balance as of December 31, 2025
(630)
45
46
25
192
(322)
Schedule of deferred taxes denominated by currencies
 
As of December 31
 
2025
2024
 
$ millions
$ millions
 
Israeli shekels
(475)
(432)
Euro
70
51
US dollar
51
9
British pound
11
11
Brazilian real
9
15
Other
12
8
 
(322)
(338)
Schedule of composition of the taxes on income
 
For the year ended December 31
 
2025
2024
2023
 
$ millions
$ millions
$ millions
 
Current taxes (1)
162
184
251
Deferred taxes
(15)
(20)
47
Taxes in respect of prior years
14
8
(11)
 
161
172
287
 
(1) The current taxes for 2025 derived mainly from the Israeli and Chinese companies.
Schedule of effective income tax rate reconciliation
 
For the year ended December 31
 
2025
2024
2023
 
$ millions
$ millions
$ millions
 
Income before taxes on income, as reported in the statements of income
441
636
974
Statutory tax rate (in Israel)
23%
23%
23%
Theoretical tax expense
101
146
224
Add (less) – the tax effect of:
      
Surplus Profit Levy tax
6
3
62
Reduced tax due to tax benefits
(27)
(12)
(17)
Differences deriving from additional deduction and different tax rates applicable to foreign subsidiaries
(13)
(19)
(32)
Tax on dividend
6
6
4
Deductible temporary differences and their reversal (including carryforward losses) for which deferred taxes assets were not recorded and non–deductible expenses
37
29
52
Taxes in respect of prior years
14
8
(11)
Differences in measurement basis
27
3
2
Other differences
10
8
3
Taxes on income included in the income statements
161
172
287
Schedule of taxes on income relating to items recorded in equity
 
For the year ended December 31
 
2025
2024
2023
 
$ millions
$ millions
$ millions
 
Tax recorded in other comprehensive income
      
Actuarial gains from defined benefit plan
-
(8)
(8)
Change in fair value of hedging derivatives
(4)
(2)
(4)
Taxes in respect of exchange rate differences on equity loan to a subsidiary included in translation adjustment
-
27
(9)
Total
(4)
17
(21)