INCOME TAXES INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Income before Income Tax, Domestic and Foreign

The components of income (loss) from continuing operations before income taxes are as follows (in millions):


	Year Ended December 31,
	2025		2024		2023
U.S.	$	30	$	72	$	89
Foreign	262		336		491
Income (loss) from continuing operations before income taxes	$	292	$	408	$	580

Schedule of Components of Income Tax Expense (Benefit)

The major components of the Company’s provision for (benefit from) income taxes on continuing operations before income taxes are summarized below (in millions):


	Year Ended December 31,
	2025		2024		2023
Current:
Federal	$	16	$	31	$	31
State	6		5		4
Foreign	52		47		66
Current income tax provision (benefit)	74		83		101
Deferred:
Federal	(1)		(4)		(4)
State	(1)		—		(3)
Foreign	(1)		(6)		(31)
Deferred income tax (benefit) provision	(3)		(10)		(38)
Provision for (benefit from) income taxes	$	71	$	73	$	63

Schedule of Deferred Tax Assets and Liabilities

The tax effects of the basis differences between tax and financial reporting purposes for assets, liabilities and loss carry forwards as of December 31, 2025 and 2024 for continuing operations are summarized below for major balance sheet captions (in millions):


	2025		2024
Property, plant and equipment	$	(34)	$	(34)
Intangibles	3		(5)


Inventories	12		9
Accrued warranties and product liability	11		9
Loss carry forwards	162		171
Retirement plans	8		9
Accrued compensation and benefits	23		18



Research and development	15		18
Derivatives	13		(3)
Operating lease right-of-use asset	(33)		(32)
Operating lease liability	36		35
Other	23		16
Deferred tax assets valuation allowance	(40)		(44)
Net deferred tax assets (liabilities)	$	199	$	167

Schedule of Effective Income Tax Rate Reconciliation

The Company’s Provision for (benefit from) income taxes is different from the amount that would be provided by applying the statutory federal income tax rate to the Company’s Income (loss) from continuing operations before income taxes. The following table is a reconciliation of the statutory federal income tax rate to the Company’s Provision for (benefit from) income taxes for the year ended December 31, 2025 (in millions):


	Year Ended December 31, 2025
	Amount		Percent
U.S. federal statutory tax rate	$	61	21.0	%
State and local income taxes, net of federal income tax effect(1)	4		1.5	%
Foreign tax effects
Germany
Tax rate change on beginning deferred balances	9		3.1	%
India
Withholding tax	3		1.1	%
Other	1		0.3	%
Italy
Participation exemption	(11)		(3.8)	%
Other	4		1.5	%
Switzerland
Statutory tax rate difference	(21)		(7.2)	%
State and local income taxes, net of federal (national) income tax effect	17		5.7	%
Other	(2)		(0.7)	%
United Kingdom
Patent box	(7)		(2.5)	%
Other	2		0.6	%
Other foreign jurisdictions	1		0.3	%
Effect of cross-border tax laws
Global intangible low-taxed income	5		1.8	%
Subpart F income	3		1.2	%
Foreign-derived intangible income	(3)		(1.2)	%
Tax credits
Other	(4)		(1.5)	%
Changes in valuation allowances	(1)		(0.2)	%
Nontaxable or nondeductible items
Other	4		1.2	%
Changes in unrecognized tax benefits	3		1.1	%
Other adjustments
Other	3		1.0	%
Effective tax rate	$	71	24.3	%

(1) State and local taxes in Texas, California, Oklahoma, New York, New Hampshire, New York City, and Illinois made up the majority (greater than 50 percent) of the tax effect in this category.

The following table is a reconciliation of the statutory federal income tax rate to the Company’s Provision for (benefit from) income taxes for the years ended December 31, 2024 and 2023 (in millions):


	Year Ended December 31,
	2024		2023
Tax at statutory U.S. federal income tax rate	$	86	$	122
State taxes	4		1
Change in valuation allowance	(7)		(3)
Foreign tax differential on income/losses of foreign subsidiaries	(18)		(25)
U.S. tax on multi-national operations	8		13



Swiss cantonal tax attribute	—		(42)
Research and development	(2)		(2)
Provision to return adjustments	(5)		(3)
Compensation	—		3

Other	7		(1)
Provision for (benefit from) income taxes	$	73	$	63

Schedule of Tax Years Subject to Examination by Major Tax Jurisdiction


Major Tax Jurisdiction			Open Tax Years
Australia			2017 - present
China			2014 - present
Germany			2017 - present
India			2005-2010, 2012, 2016, 2019 - present
Italy			2004-2005, 2009-2011, 2014, 2020 - present
Switzerland			2021 - present
United Kingdom			2019 - present
United States - federal			2017 - present
United States - states			2017 - present

Schedule of Unrecognized Tax Benefits Roll Forward

The following table summarizes the activity related to the Company’s unrecognized tax benefits (in millions).


Balance as of January 1, 2023	$	3
Additions for current year tax positions	—
Additions for prior year tax positions	5
Reductions for prior year tax positions	(2)
Reductions for current year tax positions	—
Reductions for expiration of statute of limitations	—
Settlements	—

Balance as of December 31, 2023	6
Additions for current year tax positions	—
Additions for prior year tax positions	7
Reductions for prior year tax positions	—
Reductions for current year tax positions	—
Reductions for expiration of statute of limitations	—
Settlements	—
Acquired balances	5
Balance as of December 31, 2024	18
Additions for current year tax positions	—
Additions for prior year tax positions	3
Reductions for prior year tax positions	—
Reductions for current year tax positions	—
Reductions for expiration of statute of limitations	(1)
Settlements	—

Balance as of December 31, 2025	$	20

Schedule of Cash Flow, Supplemental Disclosures

The following table is a summary of net income tax payments by jurisdiction for the year ended December 31, 2025 (in millions):


	Year Ended December 31,
	2025
Federal	$	5
State	5
Foreign
Australia	7
China	2
India	5
Italy	5
Mexico	6
Switzerland	9
United Kingdom	(6)
Other	5
Total net income tax payments	$	43