v3.26.1
Income taxes
 6 Months Ended
Jun. 30, 2026
Income taxes  
Income taxes

Note 13 – Income taxes:

The provision for income taxes and the difference between such provision for income taxes and the amount that would be expected using the U.S. federal statutory income tax rate of 21% are presented below.  

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended June 30,

​

Six months ended June 30,

​

  ​ ​ ​

2025

  ​ ​ ​

2026

  ​ ​ ​

2025

​

2026

​

​

(In millions)

U.S. federal statutory income tax rate

  ​

$

3.2

​

$

10.0

​

$

9.7

​

$

12.9

Germany:

​

​

​

​

​

​

​

​

​

​

​

​

Subnational income taxes

​

​

(.9)

​

​

1.0

​

​

(.6)

​

​

1.2

Changes in valuation allowances

​

​

—

​

​

.8

​

​

—

​

​

1.3

Other

​

​

1.2

​

​

—

​

​

1.7

​

​

.2

Belgium:

​

​

​

​

​

​

​

​

​

​

​

​

Changes in valuation allowances

​

​

2.7

​

​

.4

​

​

2.8

​

​

.9

Other foreign jurisdictions

​

​

.2

​

​

.6

​

​

.6

​

​

.9

Effect of cross-border tax laws:

​

​

​

​

​

​

​

​

​

​

​

​

Net controlled-foreign-corporation tested income

​

​

1.7

​

​

1.3

​

​

2.3

​

​

2.0

Incremental tax benefit on earnings or losses of subsidiary

​

​

(2.3)

​

​

(1.7)

​

​

(3.6)

​

​

(2.5)

Other

​

​

.2

​

​

.1

​

​

.2

​

​

.1

Changes in valuation allowances

​

​

3.6

​

​

1.3

​

​

4.4

​

​

2.1

Changes in unrecognized tax benefits, net

​

​

(.1)

​

​

.1

​

​

(.1)

​

​

2.6

Other adjustments:

​

​

​

​

​

​

​

​

​

​

​

​

Incremental tax benefit on investment in Kronos

​

​

(1.6)

​

​

(1.3)

​

​

(2.1)

​

​

(2.6)

Incremental tax expense (benefit) on investment in BMI/LandWell

​

​

.5

​

​

(.9)

​

​

.9

​

​

(1.1)

Other

​

​

(.4)

​

​

.1

​

​

(.2)

​

​

.1

Income tax expense

​

$

8.0

​

$

11.8

​

$

16.0

​

$

18.1

​

​

​

​

​

​

​

​

​

​

​

​

​

Comprehensive provision for income taxes allocable to:

​

​

​

​

​

​

​

​

​

​

​

​

Net income

​

$

8.0

​

$

11.8

​

$

16.0

​

$

18.1

Other comprehensive income (loss):

​

​

​

​

​

​

​

​

​

​

​

​

Currency translation

​

​

1.7

​

​

(.5)

​

​

3.6

​

​

—

Defined benefit pension plans

​

​

.2

​

​

.2

​

​

.4

​

​

.3

Comprehensive income tax expense

​

$

9.9

​

$

11.5

​

$

20.0

​

$

18.4

​

The amount shown in the preceding table of our income tax rate reconciliation for incremental tax benefit on earnings or losses of subsidiary represents net current and deferred U.S. income tax benefit attributable to one of our Chemicals Segment’s non-U.S. subsidiaries which is treated as a dual resident for U.S. income tax purposes. The amount shown for incremental tax expense (benefit) on investment in BMI/LandWell represents current and deferred income taxes associated with distributions and earnings from our investment in BMI and LandWell. BMI and LandWell are not members of our consolidated tax group for federal and state tax purposes although we do hold a controlling interest. Income allocable to non-affiliated equity holders is not taxable to us and results in a net incremental tax benefit.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law in the United States.  It did not have a material impact on our consolidated financial statements.

Tax authorities are examining certain of our U.S. and non-U.S. income tax returns and may propose tax deficiencies, including penalties and interest. In March 2026, we received notices of assessment from the German tax authorities for tax years 2019 through 2021. We disagree with the assessments and have filed notice of appeal. However, due to the uncertainty of the appeal and the complexity of the appeal process, during the first quarter of 2026 we recorded net income tax expense of $2.0 million to establish an uncertain tax position, net of amounts expected to be received from other taxing jurisdictions.

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.