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Income Taxes | 9 Months Ended
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Sep. 30, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Effective Income Tax Rate and Income Tax Provision For interim tax reporting, we estimate one annual effective tax rate for tax jurisdictions not subject to a valuation allowance and apply that rate to the year-to-date ordinary income/(loss). Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. Compared to the U.S. statutory rate of 21.0%, state income taxes, foreign earnings subject to higher tax rates and non-deductible expenses typically increase the Company's effective income tax rate, whereas research and development credits typically decrease the Company's effective tax rate. Our effective income tax rate was (60.5)% and (6.1)% for the three and nine months ended September 30, 2025, respectively. In addition to the above referenced items, the three month period ended September 30, 2025 was favorably impacted by the reversal of accruals for uncertain tax positions in the U.S. associated with the resolution of an IRS audit, partially offset by the establishment of a valuation allowance in Luxembourg and the impact of the U.S. tax reform. The nine month period ended September 30, 2025 was favorably impacted by the reversal of accruals for uncertain tax positions in the U.S. associated with the resolution of an IRS audit and the resolution of certain previous years' international tax matters, partially offset by the establishment of a valuation allowance in Luxembourg, the impact of U.S. tax reform, and interest accruals for other uncertain tax positions. Our effective income tax rate was 25.7% and 27.8% for the three and nine months ended September 30, 2024, respectively. In addition to the above referenced items, which typically impact the effective tax rate, the three and nine month periods were unfavorably impacted by accruals for uncertain tax positions. For the three and nine months ended September 30, 2025, the valuation allowance increased $16.5 million because we are no longer projecting future taxable income to offset losses at one of our subsidiaries in Luxembourg. There were no significant changes in our valuation allowances for the three and nine months ended September 30, 2024. Net decreases in unrecognized tax positions were $149.7 million and $189.2 million for the three and nine months ended September 30, 2025, respectively. The unrecognized tax position for the three month period ended September 30, 2025 decreased as a result of the resolution of an IRS audit while the unrecognized tax position for the nine month period ended September 30, 2025 decreased as a result of the resolution of an IRS audit and the resolution of certain previous years’ international tax matters. The decreases in both periods were partially offset by interest accruals on existing uncertain tax positions. Net increases in uncertain tax positions were $2.2 million and $9.1 million for the three and nine months ended September 30, 2024, respectively, and were primarily related to interest accruals on existing uncertain tax positions. We are not currently able to reasonably estimate the amount by which the remaining liability for unrecognized tax positions may increase or decrease as a result of current and future tax examination activity or resolution. Interest and penalties on tax assessments are included in Income tax provision on our Condensed Consolidated Statements of Operations. Net income reflected in Discontinued Operations for the three and nine months ended September 30, 2025 is $69.4 million and $64.9 million, respectively. The amount recognized for the three months ended September 30, 2025 is primarily the result of the reduction of uncertain tax positions associated with the resolution of an IRS audit while the amount recognized for the nine months ended September 30, 2025 is primarily the result of the reduction of uncertain tax positions associated with the resolution of an IRS audit, partially offset by interest accruals on liabilities for tax indemnification associated with the sale of Diversey in 2017. On July 4, 2025, the One Big Beautiful Bill Act (“OBBB”), which includes a broad range of tax reform provisions that may affect the Company's financial results, was signed into law. The OBBB allows an elective deduction for domestic Research and Development (“R&D”), a reinstatement of elective 100% first-year bonus depreciation, and a more favorable tax rate on Foreign-derived Deduction Eligible Income and income from non-U.S. subsidiaries (Net CFC tested income), among other provisions. The Company has incorporated the impact of the new legislation into its year-to-date effective tax rate and continues to assess the impact on the consolidated financial statements. The Organization for Economic Co-operation and Development (“OECD”) has issued Pillar Two model rules (“Pillar Two”) introducing a new global minimum tax of 15% as of January 1, 2024. These model rules have been agreed upon in principle by over 140 countries and many countries have incorporated Pillar Two model rule concepts into their domestic laws. In June 2025, the G7 agreed to exclude U.S. Multi-National Entities (“MNEs”) from certain aspects of the Pillar Two global minimum tax rules (the G7 Statement) in exchange for the U.S. not imposing retaliatory taxes in the OBBB. We will continue to monitor the G7 Statement, which has not yet been incorporated into the OECD framework. As countries continue to enact and refine the Pillar Two rules, we will evaluate the impact on our financial position. The Pillar Two minimum tax did not have a material impact on the Company's financial position or results of operations for the three and nine months ended September 30, 2025.

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