XML 42 R27.htm IDEA: XBRL DOCUMENT
v3.25.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | 12. Income Taxes: Our provision for income taxes consisted of the following (in millions):
| For the Years Ended December 31,
| 2025 |  | 2024 As Adjusted |  | 2023 As Adjusted
Current: |  |  |  |  |
Federal | $ | 109.0 |  |  | $ | 159.2 |  |  | $ | 132.1 |
State | 34.9 |  |  | 33.7 |  |  | 26.6 |
Foreign | 27.0 |  |  | 20.0 |  |  | 14.5 |
Total current | 170.9 |  |  | 212.9 |  |  | 173.2 |
Deferred: |  |  |  |  |
Federal | 23.2 |  |  | (19.6) |  |  | (22.2) |
State | (3.5) |  |  | (4.0) |  |  | (4.9) |
Foreign | 0.4 |  |  | (1.0) |  |  | 1.6 |
Total deferred | 20.1 |  |  | (24.6) |  |  | (25.5) |
Total provision for income taxes | $ | 191.0 |  |  | $ | 188.3 |  |  | $ | 147.7 |
Income before income taxes was comprised of the following (in millions):
| For the Years Ended December 31,
| 2025 |  | 2024 As Adjusted |  | 2023 As Adjusted
Domestic | $ | 584.9 |  |  | $ | 625.8 |  |  | $ | 472.8 |
Foreign | 411.9 |  |  | 373.6 |  |  | 266.1 |
Total | $ | 996.8 |  |  | $ | 999.4 |  |  | $ | 738.9 |
The difference between the income tax provision computed at the statutory federal income tax rate and the financial statement Provision for income taxes is summarized as follows (in millions):
| For the Years Ended December 31,
| 2024 As Adjusted |  | 2023 As Adjusted
Provision at the U.S. statutory rate of 21% | $ | 209.9 |  |  | $ | 155.2 |
Increase (reduction) in tax expense resulting from: |  |  |
State income tax, net of federal income tax benefit | 23.2 |  |  | 16.4 |
Tax credits, net of unrecognized tax benefits | (5.3) |  |  | (3.4) |
Change in unrecognized tax benefits | 0.5 |  |  | 0.4 |
Change in valuation allowance | — |  |  | 0.1 |
Foreign taxes at rates other than U.S. statutory rate | (61.1) |  |  | (40.3) |
Deemed inclusions | 7.6 |  |  | 6.1 |
Global intangible low-taxed income | 20.8 |  |  | 17.5 |
Change in rates from the Tax Act & other law changes | — |  |  | 0.2 |
Excess tax benefits from stock-based compensation | (8.0) |  |  | (5.2) |
Miscellaneous other | 0.7 |  |  | 0.7 |
Total provision for income taxes | $ | 188.3 |  |  | $ | 147.7 |
| For the Year Ended December 31, 2025
| Amount |  | Percent
US federal statutory tax rate | 209.3 |  |  | 21.0 | %
State and local income taxes, net of federal income tax effect(1) | 24.8 |  |  | 2.5 |
Foreign tax effects |  |  |
Mexico |  |  |
Statutory tax rate difference between Mexico and United States | 15.2 |  |  | 1.5 |
Nontaxable income | (42.3) |  |  | (4.1) |
Other | 3.1 |  |  | 0.3 |
Other foreign jurisdictions | 7.4 |  |  | 0.7 |
Effects of changes in tax laws or rates enacted in the current period | — |  |  | — |
Effect of cross-border tax laws |  |  |
Global intangible low-taxed income | 14.0 |  |  | 1.4 |
Other | 4.3 |  |  | 0.5 |
Tax credits | (3.0) |  |  | (0.3) |
Changes in valuation allowances | (0.6) |  |  | (0.1) |
Nontaxable or nondeductible items |  |  |
Nontaxable income | (41.1) |  |  | (4.1) |
Other | (0.5) |  |  | (0.1) |
Changes in unrecognized tax benefits | 0.4 |  |  | — |
Effective tax rate | $ | 191.0 |  |  | 19.2 | %
(1) State taxes in California, Florida, Illinois, New Jersey, Pennsylvania, and Minnesota made up the majority (greater than 50%) of the tax effect in this category. Deferred income taxes reflect the tax consequences on future years of temporary differences between the tax basis of assets and liabilities and their financial reporting basis and depending on the classification of the asset or liability generating the deferred tax. The deferred tax provision for the periods shown represents the effect of changes in the amounts of temporary differences during those periods. Deferred tax assets (liabilities) were comprised of the following (in millions):
| As of December 31,
| 2025 |  | 2024 As Adjusted
Gross deferred tax assets: |  |  |
Warranties | $ | 41.6 |  |  | $ | 39.4 |
Loss carryforwards (foreign, U.S. and state) | 2.4 |  |  | 2.7 |
Post-retirement and pension benefits | 4.2 |  |  | 4.5 |
Receivables allowance | 3.9 |  |  | 7.4 |
Compensation liabilities | 7.4 |  |  | 6.6 |
Legal reserves | 20.8 |  |  | 14.2 |
Tax credits, net of federal effect | 13.4 |  |  | 12.3 |
Research and development capitalization | 32.2 |  |  | 55.8 |
Lease liabilities | 81.0 |  |  | 76.9 |
Other | 6.2 |  |  | 5.4 |
Total deferred tax assets | 213.1 |  |  | 225.2 |
Valuation allowance | (9.9) |  |  | (10.6) |
Total deferred tax assets, net of valuation allowance | 203.2 |  |  | 214.6 |
Gross deferred tax liabilities: |  |  |
Depreciation | (77.8) |  |  | (64.4) |
Intangibles | (72.5) |  |  | (17.4) |
Insurance liabilities | (4.1) |  |  | (2.0) |
Inventory reserve | (13.5) |  |  | (20.1) |
Hedges | (6.5) |  |  | (1.5) |
Lease assets | (72.1) |  |  | (70.4) |
Other | (2.3) |  |  | — |
Total deferred tax liabilities | (248.8) |  |  | (175.8) |
Net deferred tax assets | $ | (45.6) |  |  | $ | 38.8 |
As of December 31, 2025 and 2024, we had $2.4 million and $2.7 million in tax-effected foreign net operating loss carryforwards, respectively. The deferred tax asset valuation allowance relates primarily to state tax credits. The remainder of the valuation allowance relates to loss carryforwards. In assessing whether a deferred tax asset will be realized, we consider whether it is more likely than not that some portion or all the deferred tax asset will not be realized. We consider the reversal of existing taxable temporary differences, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, we believe it is more likely than not we will realize the benefits of these deductible differences, net of the existing valuation allowances, as of December 31, 2025. No provision was made for income taxes which may become payable upon distribution of our foreign subsidiaries’ earnings. An actual repatriation in the future from our non-U.S. subsidiaries could still be subject to foreign withholding taxes and U.S. state taxes, but we expect any amounts to be immaterial. Income taxes paid, net of refunds, was comprised of the following (in millions):
| For the Year Ended December 31, 2025
Federal | $ | 57.0 |
State |
California | 5.5 |
Other | 18.5 |
Foreign |
Canada | 5.8 |
Mexico | 10.8 |
Other | 6.2 |
Total | $ | 103.8 |
We and our subsidiaries file income tax returns with the U.S. federal government, various U.S. states, and various foreign jurisdictions throughout the world. We regularly engage in discussions and negotiations with tax authorities regarding tax matters, and we continue to defend any and all such claims presented. Our U.S. federal and state tax returns remain open to examination for 2018 through 2024. We are currently under a limited scope audit by the Internal Revenue Service for our 2021 and 2022 tax years. There are also ongoing U.S. state and local audits and other foreign audits covering fiscal years 2018 through 2024. We are generally no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by taxing authorities for years prior to 2018. We have no material uncertain tax provisions recorded as of December 31, 2025. We do not expect the results from any ongoing income tax audit to have a material impact on our consolidated financial condition, results of operations, or cash flows.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477617/942-740-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478822/944-740-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration