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v3.25.4

Income Taxes | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | (5) Income Taxes The earnings (loss) before income taxes was as follows:
Year Ended December 31 |  | 2025 |  |  | 2024 |  |  | 2023 |
United States |  | $ | (4.3 | ) |  | $ | 10.8 |  |  | $ | 40.7 |
Non-United States |  |  | 97.7 |  |  |  | 246.0 |  |  |  | 165.2 |
Total earnings before income taxes |  | $ | 93.4 |  |  | $ | 256.8 |  |  | $ | 205.9 |
The provision for income taxes was as follows:
Year Ended December 31 |  | 2025 |  |  | 2024 |  |  | 2023 |
Current |  |  |  |  |  |  |  |  |
United States |  |  |  |  |  |  |  |  |
Federal |  | $ | 31.6 |  |  | $ | 2.4 |  |  | $ | (2.9 | )
State |  |  | 3.9 |  |  |  | 0.8 |  |  |  | 7.3 |
Non-United States |  |  | 107.0 |  |  |  | 140.9 |  |  |  | 133.3 |
Total current |  |  | 142.5 |  |  |  | 144.1 |  |  |  | 137.7 |
Deferred |  |  |  |  |  |  |  |  |
United States |  |  |  |  |  |  |  |  |
Federal |  |  | (34.2 | ) |  |  | (22.6 | ) |  |  | (8.6 | )
State |  |  | (2.0 | ) |  |  | 2.9 |  |  |  | (4.0 | )
Non-United States |  |  | 0.4 |  |  |  | (12.7 | ) |  |  | (8.0 | )
Total deferred |  |  | (35.8 | ) |  |  | (32.4 | ) |  |  | (20.6 | )
Total provision |  | $ | 106.7 |  |  | $ | 111.7 |  |  | $ | 117.1 |
The cash paid, net of refunds, for income taxes was as follows:
Year Ended December 31 |  | 2025 |
United States |  |  |
Federal |  | $ | 32.2 |
States |  |  | 1.1 |
Non-United States |  |  |
France |  |  | 50.4 |
Italy |  |  | 9.6 |
Japan |  |  | 14.7 |
Other, net |  |  | 39.7 |
Total income taxes paid, net |  |  | 147.7 |
A tax reconciliati on, between taxes computed at the United States federal statutory rat e of 21% a nd the consolidated effective tax rate for 2025 i s as follows:
Year Ended December 31 |  | 2025 |
|  | Amount |  |  | Percent |
Tax provision at the U.S. federal statutory rate |  | $ | 19.6 |  |  |  | 21.0 | %
Foreign tax effects |  |  |  |  |  |
France |  |  |  |  |  |
Statutory income tax rate differential |  |  | 4.6 |  |  |  | 4.9 | %
Effects of changes in tax legislation(a) |  |  | 10.8 |  |  |  | 11.6 | %
French business tax(b) |  |  | 9.3 |  |  |  | 10.0 | %
Other, net |  |  | 0.9 |  |  |  | 1.0 | %
Germany |  |  |  |  |  |
Statutory income tax rate differential |  |  | 2.9 |  |  |  | 3.1 | %
Change in valuation allowance |  |  | 7.4 |  |  |  | 7.9 | %
Other, net |  |  | 1.1 |  |  |  | 1.2 | %
Italy |  |  |  |  |  |
Statutory income tax rate differential |  |  | 2.1 |  |  |  | 2.2 | %
Withholding Taxes |  |  | 3.6 |  |  |  | 3.9 | %
Italy Regional Production Tax |  |  | 3.2 |  |  |  | 3.4 | %
Other, net |  |  | 0.8 |  |  |  | 0.9 | %
United Kingdom |  |  |  |  |  |
Goodwill Impairment(c) |  |  | 6.4 |  |  |  | 6.9 | %
Other, net |  |  | 0.8 |  |  |  | 0.9 | %
Switzerland |  |  |  |  |  |
Goodwill Impairment(c) |  |  | 5.2 |  |  |  | 5.6 | %
Other, net |  |  | (1.5 | ) |  |  | (1.6 | )%
Denmark |  |  |  |  |  |
Nondeductible interest |  |  | 3.6 |  |  |  | 3.9 | %
Other, net |  |  | 1.1 |  |  |  | 1.2 | %
Netherlands |  |  |  |  |  |
Change in valuation allowance |  |  | 5.2 |  |  |  | 5.6 | %
Other, net |  |  | (1.1 | ) |  |  | (1.2 | )%
Japan |  |  |  |  |  |
Statutory income tax rate differential |  |  | 4.5 |  |  |  | 4.8 | %
Other, net |  |  | (0.5 | ) |  |  | (0.5 | )%
Other foreign jurisdictions, net |  |  | 23.0 |  |  |  | 24.6 | %
Effect of cross-border tax laws |  |  | 4.4 |  |  |  | 4.7 | %
State and local income taxes, net of federal benefit(d) |  |  | 1.4 |  |  |  | 1.5 | %
Tax Credits |  |  |  |  |  |
Foreign Tax Credits |  |  | (8.5 | ) |  |  | (9.1 | )%
General business tax credits(e) |  |  | (5.9 | ) |  |  | (6.3 | )%
Change in valuation allowance |  |  | (0.7 | ) |  |  | (0.7 | )%
Nontaxable or nondeductible items |  |  | 5.6 |  |  |  | 6.0 | %
Change in unrecognized tax benefits |  |  | 2.6 |  |  |  | 2.8 | %
Other, net |  |  | (5.2 | ) |  |  | (6.0 | )%
Tax provision |  | $ | 106.7 |  |  |  | 114.2 | %
(a) In February 2025, the French Parliament approved the Finance Bill for 2025 which enacted an exceptional corporate income tax surcharge. In February 2026, the French government passed the Finance Bill for 2026 which includes a one-year extension of the exceptional corporate income tax surcharge. (b) The French business tax is allowed as a deduction for French income tax purposes. The gross amount of the French business tax was $11.8 for 2025. The $9.3 for 2025 represents the French business tax expense net of the French tax benefit using the United States federal rate of 21%. In addition to the previously mentioned exceptional surcharge, the Finance bill for 2025 included a three-year delay to the scheduled phase-out of the French business tax. (c) Non-deductible portion of the goodwill impairment charges recorded in Switzerland and the United Kingdom in 2025. (d) New York and Texas account for the majority of the state and local income tax expense. (e) The Work Opportunity Tax Credit expired on December 31, 2025. A tax reconciliation between taxes computed at the United States federal statutory rate of 21% a nd the consolidated effective tax rate for 2024 and 2023 is as follows:
Year Ended December 31 |  | 2024 |  |  | 2023 |
Income tax based on statutory rate |  | $ | 53.9 |  |  | $ | 43.2 |
Increase (decrease) resulting from: |  |  |  |  |  |
Non-United States tax rate difference: |  |  |  |  |  |
French business tax(a) |  |  | 9.2 |  |  |  | 13.0 |
Other(b) |  |  | 18.0 |  |  |  | 10.4 |
Repatriation of non-United States earnings |  |  | (5.8 | ) |  |  | 4.6 |
State income taxes, net of federal benefit |  |  | 3.6 |  |  |  | 2.0 |
Change in valuation allowance(c) |  |  | 34.1 |  |  |  | 53.5 |
Work Opportunity Tax Credit |  |  | (4.6 | ) |  |  | (5.6 | )
Foreign-Derived Intangible Income deduction |  |  | (3.6 | ) |  |  | (7.2 | )
Goodwill impairment(d) |  |  | — |  |  |  | 10.9 |
Change in unrecognized tax benefits(e) |  |  | (0.3 | ) |  |  | (14.4 | )
Other, net |  |  | 7.2 |  |  |  | 6.7 |
Tax provision |  | $ | 111.7 |  |  | $ | 117.1 |
(a) The French business tax is allowed as a deduction for French income tax purposes. The gross amount of the French business tax was $11.7, and $16.4 for 2024 and 2023 respectively. The $9.2 and $13.0 for 2024 and 2023, respectively, represent the French business tax expense net of the French tax benefit using the United States federal rate of 21%. (b) Included in Other Non-United States tax rate differences is the impact of all Non-United States pre-tax earnings and permanent tax differences at the local statutory tax rate versus the United States federal rate of 21%. (c) Losses incurred in 2024 and 2023 in Germany resulted in an increase in valuation allowance of $16.1 and $46.3, respectively. (d) Non-deductible portion of the goodwill impairment charges recorded in the Netherlands in 2023. (e) The 2023 amount includes a tax benefit of $10.8 resulting from an effective settlement of an audit. Deferred income taxes are recorded based on temporary differences at the tax rate expected to be in effect when the temporary differences reverse. Temporary differences, which give rise to the deferred taxes, are as follows:
December 31 |  | 2025 |  |  | 2024 |
Future Income Tax Benefits (Expense) |  |  |  |  |  |
Accrued payroll taxes and insurance |  | $ | 11.8 |  |  | $ | 11.5 |
Employee compensation payable |  |  | 41.2 |  |  |  | 40.9 |
Pension and postretirement benefits |  |  | 71.4 |  |  |  | 66.9 |
Intangible assets |  |  | (132.6 | ) |  |  | (130.9 | )
Repatriation of non-United States earnings |  |  | (31.3 | ) |  |  | (24.2 | )
Loans denominated in foreign currencies |  |  | 15.8 |  |  |  | (4.8 | )
Operating lease ROU assets |  |  | (99.6 | ) |  |  | (95.1 | )
Operating lease liabilities |  |  | 104.6 |  |  |  | 90.8 |
Tax credit and other carryforwards |  |  | 87.1 |  |  |  | 59.2 |
Tax loss carryforwards |  |  | 264.5 |  |  |  | 212.1 |
Other |  |  | 108.3 |  |  |  | 115.9 |
Valuation allowance |  |  | (262.5 | ) |  |  | (222.9 | )
Total future tax benefits |  | $ | 178.7 |  |  | $ | 119.4 |
Deferred tax asset |  | $ | 185.0 |  |  | $ | 135.0 |
Deferred tax liability |  |  | (6.3 | ) |  |  | (15.6 | )
Total future tax benefits |  | $ | 178.7 |  |  | $ | 119.4 |
The tax loss carryforward category includes capital loss carryforwards of $25.6 and $27.4 fo r 2025 and 2024, respectively, which are fully offset by valuation allowance due to the expiration of carryforwards and uncertain source of future capital gains. The tax credit and other carryforwards consist primarily of U.S. foreign and general business tax credits. A related valuation allowance of $13.4 was recorded as of December 31, 2025, as management believes that realization of certain tax credit carryforwards is unlikely. We have not provided deferred taxes on $372.0 of accumulated unremitted earnings of non-United States subsidiaries that are considered indefinitely reinvested. We have not estimated the deferred tax liability on these earnings as such estimation is not practicable to determine or immaterial to the financial statements. As of December 31, 2025, deferred taxes for non-United States withholding and other taxes were provided on $1,662.1 of accumulated unremitted earnings of non-United States subsidiaries that may be remitted to the United States. As of December 31, 2025 and 2024, we have recorded a deferred tax liability of $28.2 and $25.9, res pectively, related to these non-United States earnings that may be remitted. We had United States federal and non-United States net operating loss carryforwards and United States state net operating loss carryforwards totalin g $1,303.1 an d $178.4, respectively, as of December 31, 2025. The net operating loss carryforwards expire as follows:
|  | United States Federal and Non-United States |  |  | United States State |
2026 |  |  | — |  |  |  | 6.6 |
2027 |  |  | 0.2 |  |  |  | 5.6 |
2028 |  |  | 3.8 |  |  |  | 0.1 |
2029 |  |  | 7.1 |  |  | 3.1 |
2030 |  |  | 6.2 |  |  | 4.1 |
Thereafter |  |  | 27.3 |  |  |  | 129.4 |
No expirations |  |  | 1,258.5 |  |  |  | 29.5 |
Total net operating loss carryforwards |  | $ | 1,303.1 |  |  | $ | 178.4 |
We have recorded a deferred tax asset of $238.9 as of December 31, 2025 for the benefit of these net operating losses. Realization of this asset is dependent on generating sufficient taxable income prior to the expiration of the loss carryforwards. A related valuation allowance of $206.8 was recorded as of December 31, 2025, due to the expiration of net operating loss carryforwards and uncertain source of future taxable income. We had gross unrecognized tax benefits related to various tax jurisdictions, including interest and penalties, of $41.4, $36.1 and $32.8 i n 2025, 2024 and 2023, respectively. If recognized, the entire amount would favorably affect the effective tax rate except for $10.0. Our unrecognized tax benefits decreased by $48.8 during 2023 primarily due to the effective settlement of an audit during the third quarter, which resulted in the recognition of a tax benefit of $10.8. We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. We accrued net interest and penalties of $0.4, $0.5 and $0.6 in 2025, 2024 and 2023, respectively. We reduced our accrued interest and penalties related to unrecognized tax benefits by $4.2 primari ly due to the effectively settled income tax audit in the third quarter of 2023. The following table summarizes the activity related to our unrecognized tax benefits during 2025, 2024, and 2023:
|  | 2025 |  |  | 2024 |  |  | 2023 |
Gross unrecognized tax benefits, beginning of year |  | $ | 34.7 |  |  | $ | 31.1 |  |  | $ | 76.3 |
Increases in prior year tax positions |  |  | 5.6 |  |  |  | 6.5 |  |  |  | 4.6 |
Decreases in prior year tax positions |  |  | (0.4 | ) |  |  | (0.6 | ) |  |  | (1.2 | )
Increases for current year tax positions |  |  | 2.4 |  |  |  | 2.2 |  |  |  | 2.6 |
Expiration of statute of limitations and audit settlements |  |  | (2.5 | ) |  |  | (4.5 | ) |  |  | (51.2 | )
Gross unrecognized tax benefits, end of year |  | $ | 39.8 |  |  | $ | 34.7 |  |  | $ | 31.1 |
Potential interest and penalties |  |  | 1.6 |  |  |  | 1.4 |  |  |  | 1.7 |
Balance, end of year |  | $ | 41.4 |  |  | $ | 36.1 |  |  | $ | 32.8 |
We conduct business globally in various countries and territories. We are routinely audited by the tax authorities of the various tax jurisdictions in which we operate. Generally, the tax years that could be subject to examination are 2018 through 2025 for our major operations in France, Italy, the United Kingdom and the United States. As of December 31, 2025, we were subject to tax audits in Germany, India, Israel, Spain and the United States.

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