v3.25.4

Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Income (loss) before income taxes and noncontrolling interest | Income before income taxes consisted of the following:
| Years ended December 31
In millions | 2025 | 2024 | 2023
Federal (1) | $ | (48.9) |  | $ | (23.6) |  | $ | (15.4) |
International (2) | 598.9 |  | 452.8 |  | 390.7 |
Income before income taxes | $ | 550.0 |  | $ | 429.2 |  | $ | 375.3 |
(1)"Federal" reflects U.K. loss before income taxes. (2)"International" reflects non-U.K. income before income taxes.
Provision for Income Taxes | The provision (benefit) for income taxes consisted of the following:
| Years ended December 31
In millions | 2025 | 2024 | 2023
Currently payable |  |  |
Federal (1) | $ | — |  | $ | 0.8 |  | $ | — |
International (2) | 113.3 |  | 104.9 |  | 87.6 |
Total current taxes | 113.3 |  | 105.7 |  | 87.6 |
Deferred |  |  |
Federal (1) | 0.1 |  | 0.1 |  | 2.0 |
International (2) | 8.1 |  | 82.6 |  | (174.0) |
Total deferred taxes | 8.2 |  | 82.7 |  | (172.0) |
Total provision (benefit) for income taxes | $ | 121.5 |  | $ | 188.4 |  | $ | (84.4) |
(1)"Federal" represents U.K. taxes. (2)"International" represents non-U.K. taxes.
Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate | The table below provides the updated requirements of the Accounting Standards Update 2023-09, "Improvements to Income Tax Disclosures" ("ASU 2023-09"), for 2025. The reconciliations of the federal statutory income tax rate to our effective tax rate was as follows for the year ended December 31, 2025:
Dollars in millions |  |  | Amount | Percent |  |
Federal statutory tax rate |  |  | $ | 137.5 |  | 25.0 | % |  |
Foreign tax effects: |  |  |  |  |  |
Jurisdictions: |  |  |  |  |  |
Switzerland |  |  |  |  |  |
Tax rate differential |  |  | (44.8) |  | (8.1) |  |  |
Cantonal income taxes |  |  | 20.3 |  | 3.6 |  |  |
Other |  |  | 3.7 |  | 0.7 |  |  |
United States |  |  |  |  |  |
Tax rate differential |  |  | (10.6) |  | (1.9) |  |  |
State and local income taxes |  |  | 13.6 |  | 2.5 |  |  |
Other |  |  | (7.3) |  | (1.3) |  |  |
Other jurisdictions |  |  | 5.7 |  | 1.0 |  |  |
Valuation allowances |  |  | 3.5 |  | 0.7 |  |  |
Unrecognized tax benefits |  |  | (0.3) |  | (0.1) |  |  |
Other adjustments |  |  | 0.2 |  | — |  |  |
Effective tax rate |  |  | $ | 121.5 |  | 22.1 | % |  |
As previously disclosed for the years December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the reconciliations of the federal statutory income tax rate to our effective tax rate were as follows:
|  | Years ended December 31
Percentages |  | 2024 | 2023
Federal statutory income tax rate (1) |  | 25.0 | % | 23.5 | %
Tax effect of international operations (2) |  | (2.7) |  | (4.9) |
Change in other valuation allowances |  | 0.6 |  | 0.3 |
Withholding taxes |  | 0.3 |  | 0.4 |
Change in tax basis of foreign assets (3) |  | (0.1) |  | (16.4) |
Foreign income tax loss carryforwards (4) |  | 21.6 |  | (24.8) |
Excess tax benefits on stock-based compensation |  | (1.3) |  | (0.6) |
Tax effect of equity investment impairment |  | 0.5 |  | — |
Effective tax rate |  | 43.9 | % | (22.5) | %
(1)The U.K. changed its tax rate to from 19% to 25%, effective April 1, 2023. (2)The tax effect of international operations consists of non-U.K. jurisdictions. (3)In 2023, we recorded a non-cash income tax benefit of $55.4 million related to a step up in tax basis of intangible assets in Switzerland, partially offset by valuation allowances of $5.1 million. The assets were amortizable starting in 2025, and the amortization period varies based on the nature of the underlying assets from which the values were derived. (4)In 2023, we recorded a non-cash income tax benefit of $93.2 million related to foreign income tax loss carryforwards resulting from tax-deductible statutory losses in Luxembourg. We determined in 2024 that such loss carryforwards would not be utilized in the remaining carryforward period and put a valuation allowance against the adjusted remaining loss carryforward available.
Reconciliations of Gross Unrecognized Tax Benefits | Reconciliations of the beginning and ending gross unrecognized tax benefits were as follows:
| Years ended December 31
In millions | 2025 | 2024 | 2023
Beginning balance | $ | 11.7 |  | $ | 13.9 |  | $ | 13.4 |
Gross increases for tax positions in prior periods | 0.7 |  | 0.7 |  | 0.5 |
Gross decreases for tax positions in prior periods | (1.6) |  | (3.5) |  | (1.3) |
Gross increases based on tax positions related to the current year | 1.5 |  | 1.4 |  | 1.7 |
Gross decreases related to settlements with taxing authorities | (0.8) |  | — |  | (0.2) |
Reductions due to statute expiration | (1.3) |  | (0.5) |  | (0.3) |
Gross increases (decreases) due to currency fluctuations | 0.1 |  | (0.3) |  | 0.1 |
Ending balance | $ | 10.3 |  | $ | 11.7 |  | $ | 13.9 |
Schedule of Deferred Tax Assets and Liabilities | Deferred taxes were recorded in the Consolidated Balance Sheets at December 31 as follows:
In millions | 2025 | 2024
Other non-current assets | $ | 46.7 |  | $ | 57.0 |
Deferred tax liabilities | 232.0 |  | 242.7 |
Net deferred tax liabilities | $ | 185.3 |  | $ | 185.7 |
The tax effects of the major items recorded as deferred tax assets and liabilities at December 31 were as follows:
In millions | 2025 | 2024
Deferred tax assets |  |
Accrued liabilities and reserves | $ | 28.1 |  | $ | 23.3 |
Pension and other post-retirement compensation and benefits | 11.6 |  | 13.8 |
Employee compensation and benefits | 39.8 |  | 28.5 |
Tax loss and credit carryforwards | 191.8 |  | 195.8 |
Other intangibles | 33.0 |  | 43.5 |
Interest limitation | 39.3 |  | 42.7 |
Other assets | 34.0 |  | 34.8 |
Total deferred tax assets | 377.6 |  | 382.4 |
Valuation allowance | 194.4 |  | 196.0 |
Deferred tax assets, net of valuation allowance | 183.2 |  | 186.4 |
Deferred tax liabilities |  |
Property, plant and equipment | 30.5 |  | 28.9 |
Goodwill and other intangibles | 303.8 |  | 322.2 |
Other liabilities | 34.2 |  | 21.0 |
Total deferred tax liabilities | 368.5 |  | 372.1 |
Net deferred tax liabilities | $ | 185.3 |  | $ | 185.7 |
Schedule of Cash Flow, Supplemental Disclosures | The following provides supplemental information of cash paid for income taxes for 2025, including taxes paid related to the sale of the Thermal Management business, updated for the requirements of ASU 2023-09:
| Years ended December 31 |  |
In millions | 2025 |  |
Cash paid during the period for income taxes, net of refunds: |  |  |
Federal | $ | — |  |  |
Foreign | 283.3 |  |  |
Total cash paid during the period for income taxes | $ | 283.3 |  |  |
As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the following is a supplemental schedule of cash paid for income taxes:
|  | Years ended December 31
In millions |  | 2024 | 2023
Cash paid during the period for income taxes |  | $ | 120.2 |  | $ | 112.4 |

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