v3.25.4

Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of Components of Income (Loss) before Income Taxes | The components of Income (Loss) before Income Taxes follow:
(In millions) | 2025 |  | 2024 |  | 2023
U.S. | $ | (1,047) |  |  | $ | (286) |  |  | $ | (325) |
Foreign | 914 |  |  | 416 |  |  | (396) |
| $ | (133) |  |  | $ | 130 |  |  | $ | (721) |
Schedule of Reconciliation of Income Taxes at the U.S. Statutory Rate to United States and Foreign Tax Expense | In accordance with the adoption of ASU 2023-09, a reconciliation of income taxes at the U.S. statutory rate to United States and Foreign Tax Expense for the year ended December 31, 2025 is as follows:
(In millions) | 2025 |  | %
U.S. federal income tax expense (benefit) at the statutory rate of 21% | $ | (28) |  |  | 21.0 | %
State income taxes, net of U.S. federal benefit(1) | 183 |  |  | (137.4) | %
Foreign tax effects |  |  |
Luxembourg |  |  |
Changes in valuation allowances | (53) |  |  | 39.6 | %
Rate differential | 11 |  |  | (8.0) | %
Other | (1) |  |  | 1.1 | %
Other foreign jurisdictions | 57 |  |  | (42.7) | %
Effect of cross-border tax laws | (13) |  |  | 9.8 | %
Tax credits |  |  |
Research and development credits | (6) |  |  | 4.5 | %
Changes in valuation allowances | 1,267 |  |  | (949.1) | %
Nontaxable or nondeductible items |  |  |
Goodwill impairment | 140 |  |  | (104.8) | %
Changes in unrecognized tax benefits | 9 |  |  | (6.7) | %
Other Adjustments | 1 |  |  | (1.0) | %
United States and Foreign Tax Expense | $ | 1,567 |  |  | (1,173.7) | %
(1) State taxes in Pennsylvania, Illinois, Michigan, Kansas, California, Louisiana and Georgia made up the majority (greater than 50 percent) of the tax effect in this category.
For the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, a reconciliation of income taxes at the U.S. statutory rate to United States and Foreign Tax Expense for the years then ended is as follows:
(In millions) | 2024 |  | 2023
U.S. federal income tax expense (benefit) at the statutory rate of 21% | $ | 27 |  |  | $ | (151) |
Net foreign losses with no tax due to valuation allowances | 48 |  |  | 122 |
Adjustment for foreign income taxed at different rates and nontaxable foreign items | 44 |  |  | 14 |
U.S. charges (benefits) related to foreign tax credits, R&D and foreign derived intangible deduction | (30) |  |  | 4 |
Net establishment (release) of uncertain tax positions | 6 |  |  | (3) |
Net establishment of foreign valuation allowances and write-off of deferred taxes | 4 |  |  | — |
State income taxes, net of U.S. federal benefit | (8) |  |  | (12) |
Net establishment of U.S. valuation allowances | 4 |  |  | — |
Goodwill impairment | — |  |  | 34 |
Other | — |  |  | 2 |
United States and Foreign Tax Expense | $ | 95 |  |  | $ | 10 |
Schedule of Components of United States and Foreign Tax Expense | The components of United States and Foreign Tax Expense by taxing jurisdiction, follow:
(In millions) | 2025 |  | 2024 |  | 2023
Current: |  |  |  |  |
Federal | $ | (8) |  |  | $ | (29) |  |  | $ | 37 |
Foreign | 212 |  |  | 189 |  |  | 177 |
State | 6 |  |  | — |  |  | 26 |
| 210 |  |  | 160 |  |  | 240 |
Deferred: |  |  |  |  |
Federal | 1,126 |  |  | (78) |  |  | (123) |
Foreign | 5 |  |  | 31 |  |  | (62) |
State | 226 |  |  | (18) |  |  | (45) |
| 1,357 |  |  | (65) |  |  | (230) |
United States and Foreign Tax Expense | $ | 1,567 |  |  | $ | 95 |  |  | $ | 10 |
Schedule of Deferred Tax Assets and Liabilities | Temporary differences and carryforwards giving rise to deferred tax assets and liabilities at December 31 follow:
(In millions) | 2025 |  | 2024
Tax loss carryforwards and credits | $ | 1,321 |  |  | $ | 1,233 |
Capitalized research and development expenditures | 466 |  |  | 486 |
Accrued expenses deductible as paid | 353 |  |  | 316 |
Prepaid royalty income | 337 |  |  | 344 |
Partnership basis differences | 279 |  |  | 299 |
Property basis differences | 79 |  |  | 29 |
Other prepayments income | 119 |  |  | 32 |
Lease liabilities | 76 |  |  | 83 |
Postretirement benefits and pensions | 57 |  |  | 67 |
Rationalizations and other provisions | 27 |  |  | 25 |
Vacation and sick pay | 22 |  |  | 24 |
Other | 73 |  |  | 139 |
| 3,209 |  |  | 3,077 |
Valuation allowance | (2,734) |  |  | (1,252) |
Total deferred tax assets | 475 |  |  | 1,825 |
Intangible property basis differences related to Cooper Tire acquisition | (160) |  |  | (167) |
Right-of-use assets | (72) |  |  | (80) |
Total net deferred tax assets | $ | 243 |  |  | $ | 1,578 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A summary of our unrecognized tax benefits and changes during the year follows:
(In millions) | 2025 |  | 2024 |  | 2023
Balance at January 1 | $ | 98 |  |  | $ | 92 |  |  | $ | 87 |
Increases related to prior year tax positions | 10 |  |  | 20 |  |  | 5 |
Decreases related to prior year tax positions | (2) |  |  | — |  |  | — |
Settlements | (5) |  |  | — |  |  | (1) |
Foreign currency impact | 9 |  |  | (14) |  |  | 4 |
Increases related to current year tax positions | — |  |  | — |  |  | — |
Lapse of statute of limitations | (3) |  |  | — |  |  | (3) |
Balance at December 31 | $ | 107 |  |  | $ | 98 |  |  | $ | 92 |
Schedule of Income Taxes Paid, Net | In accordance with the adoption of ASU 2023-09, below is a summary of income taxes paid, net of refunds received, by jurisdiction for the year ended December 31, 2025:
(In millions) | 2025
U.S. Federal | $ | 9 |
U.S. state and local | 8 |
Total U.S. | $ | 17 |
Foreign |
Brazil | 32 |
China | 28 |
Germany | 15 |
Canada | 14 |
Other | 54 |
Total Foreign | $ | 143 |
Total | $ | 160 |

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