v3.25.2
Income taxes
 6 Months Ended
Jun. 30, 2025
Income taxes  
Income taxes

Note 11 - Income taxes:

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Three months ended

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Six months ended

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June 30, 

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June 30, 

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2024

    

2025

    

2024

    

2025

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(In millions)

Expected tax expense (benefit), at U.S. federal statutory 
   income tax rate of 21%

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$

5.9

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$

(1.2)

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$

8.3

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$

4.2

Non-U.S. tax rates

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.1

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(.3)

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.1

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.3

Incremental net tax benefit on earnings and losses of U.S.
   and non-U.S. companies

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(2.1)

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(.8)

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(2.7)

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(1.3)

Valuation allowance, net

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2.6

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5.0

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3.6

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5.7

Global intangible low-taxed income, net

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1.3

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1.1

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1.6

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1.8

Adjustment to the reserve for uncertain tax positions, net

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.2

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(.1)

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.3

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(.1)

State income tax expense (benefit), net

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.2

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(.3)

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.2

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(.3)

Nondeductible expenses

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.5

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.7

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.7

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1.3

Other, net

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(.2)

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(.6)

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(.1)

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(.5)

Income tax expense

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$

8.5

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$

3.5

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$

12.0

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$

11.1

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Comprehensive provision for income taxes allocable to:

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Net income

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$

8.5

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$

3.5

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$

12.0

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$

11.1

Other comprehensive income - pension plans

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.1

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.1

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.3

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.2

Total

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$

8.6

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$

3.6

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$

12.3

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$

11.3

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The amount shown in the preceding table of our income tax rate reconciliation for non-U.S. tax rates represents the result determined by multiplying the pre-tax earnings or losses of each of our non-U.S. subsidiaries by the difference between the applicable statutory income tax rate for each non-U.S. jurisdiction and the U.S. federal statutory tax rate. The amount shown on such table for incremental net tax benefit on earnings and losses of U.S. and non-U.S. companies includes, as applicable, (i) deferred income taxes (or deferred income tax benefits) associated with the current-year earnings (losses) of all of our non-U.S. subsidiaries and (ii) current U.S. income taxes (or current income tax benefit), including U.S. personal holding company tax, as applicable, attributable to current-year income (losses) of one of our non-U.S. subsidiaries, which subsidiary is treated as a dual resident for U.S. income tax purposes, to the extent the current-year income (losses) of such subsidiary is subject to U.S. income tax under the U.S. dual-resident provisions of the Internal Revenue Code.

Tax authorities are examining certain of our U.S. and non-U.S. tax returns and may propose tax deficiencies, including penalties and interest. We believe we have adequate accruals for additional taxes and related interest expense which could ultimately result from tax examinations. We believe the ultimate disposition of tax examinations should not have a material adverse effect on our consolidated financial position, results of operations or liquidity. Excluding any potential adjustments resulting from on-going examinations by tax authorities, we currently estimate that our unrecognized tax benefits will not change materially during the next twelve months.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law in the United States. The OBBBA, among other provisions, provides for bonus depreciation of qualified property, permanently modifies the interest expense deduction to use an adjusted taxable income based on a calculation similar to EBITDA and other computational changes, and makes changes to the international tax framework. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We are in the process of evaluating the impact of the provisions of the OBBBA on our consolidated financial statements.  

On July 18, 2025, Germany enacted legislation which includes, among other provisions, an additional depreciation allowance for certain fixed assets, improvements to the research and development tax allowance and, starting in 2028, a reduction of the 15% corporate tax rate by one percentage point in each of five years until the tax rate reaches 10% in 2032. We have significant German corporate net operating loss carryforwards and we expect to record deferred income tax expense of between $20 million and $23 million in the third quarter of 2025 to reduce our net deferred tax assets as a result of the reduction of the German corporate tax rate.