v3.26.1
Provision for Income Taxes
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Provision for Income Taxes
12.
Provision for Income Taxes

 

The components of provision for income taxes are as follows (in millions):

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Income tax provision (benefit)

 

$

14.2

 

 

$

(3.1

)

 

$

16.7

 

 

$

5.6

 

Effective tax rates (a)

 

Not meaningful

 

 

Not meaningful

 

 

Not meaningful

 

 

 

21.9

%

Penalties and interest (recorded in provision for
   income taxes for unrecognized tax benefits)

 

$

0.4

 

 

$

0.8

 

 

$

0.8

 

 

$

1.2

 
(a)
The Company recorded an income tax provision for the three and six months ended June 30, 2026, despite an operating net loss. The tax expense for the quarter was adversely affected by nondeductible goodwill impairment charges recorded in the Company’s BSB and CST reporting units, which created permanent tax differences (refer to Note 5, Goodwill and Intangible Assets, for more information).

 

The table below summarizes unrecognized tax benefits and accrued interest and penalties components (in millions):

 

 

 

June 30,
2026

 

 

December 31,
2025

 

Unrecognized tax benefits (a)

 

$

82.5

 

 

$

72.8

 

Accrued interest and penalties (b)

 

$

7.1

 

 

$

6.4

 
(a)
This excludes penalties and interest. If these unrecognized tax benefits were recognized, there would be a reduction of the Company's effective tax rate.
(b)
These are related to uncertain tax positions and were included in other long-term liabilities on the Company's unaudited condensed consolidated balance sheets.

The Company files tax returns in the United States, which include federal, state and local jurisdictions, and many foreign jurisdictions with varying statutes of limitations. The Company considers Germany, the United States and Switzerland to be its significant tax jurisdictions. The majority of the Company’s earnings are derived in Germany and Switzerland. Accounting for the various federal and local taxing authorities, the statutory rates for 2026 are approximately 30.0% and 20.0% for Germany and Switzerland, respectively, compared to the U.S. statutory rate of 21.0%.

 

The Organization for Economic Co-operation and Development introduced its Pillar Two Framework Model Rules (“Pillar Two”), which provides guidance for a global minimum tax. Various countries have either enacted or are in the process of enacting legislation to implement this framework. The Company’s income tax provision for the three and six months ended June 30, 2026, reflects currently enacted legislation and guidance related to the model rules. This enacted legislation and guidance did not have a material impact on the Company’s income tax provision for the six months ended June 30, 2026. The Company continues to monitor the countries in which it operates as they enact legislation implementing Pillar Two.