v3.26.3
Income Taxes (Tables)
 9 Months Ended
Sep. 30, 2026
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation
The effective tax rates, including discrete items, were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Effective tax rate (1)
25.8 %34.4 %23.7 %(94.3)%
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(1) The effective tax rate for the nine months ended September 30, 2025, was impacted by the goodwill impairment charge within the APT reporting unit during the second quarter of 2025. Refer to Note 7 for more information.
The table below provides a reconciliation between our reported effective tax rates and the EAETR of our continuing operations.
Three Months Ended September 30,
20262025
In millions, except percentagesBefore taxTaxEffective tax rate % impactBefore taxTaxEffective tax rate % impact
Continuing operations$68.9 $17.8 25.8 %$62.2 $21.4 34.4 %
Discrete items:
Restructuring and other (income) charges, net (1)
0.2 0.1 1.0 0.3 
(Gain) loss on sale of business (2)
3.0 0.7 — — 
Long-lived asset impairment charge (3)
— — — — 
Goodwill impairment (4)
— — — — 
(Gain) loss on strategic investments (5)
— — — — 
Proxy contest charges (5)
— — — — 
Portfolio realignment costs (5)
1.5 0.4 — — 
Other tax only discrete items
— (0.4)— (1.7)
Total discrete items4.7 0.8 1.0 (1.4)
Continuing operations, before discrete items$73.6 $18.6 $63.2 $20.0 
EAETR (7)
25.3 %31.6 %
Nine Months Ended September 30,
20262025
In millions, except percentagesBefore taxTaxEffective tax rate % impactBefore taxTaxEffective tax rate % impact
Continuing operations$149.8 $35.5 23.7 %$(36.8)$34.7 (94.3)%
Discrete items:
Restructuring and other (income) charges, net (1)
2.4 0.6 10.1 2.5 
(Gain) loss on sale of business (2)
(5.6)(1.3)— — 
Long-lived asset impairment charge (3)
32.1 8.0 — — 
Goodwill impairment (4)
— — 183.8 5.1 
(Gain) loss on strategic investments (5)
— — 2.5 0.6 
Impairment of license agreement (5)
2.8 0.7 — — 
Litigation charge (6)
16.2 3.8 — — 
Portfolio realignment costs (5)
6.7 1.6 — — 
Proxy contest charges (5)
— — 8.2 1.9 
Other tax only discrete items— 3.7 — (2.2)
Total discrete items54.6 17.1 204.6 7.9 
Continuing operations, before discrete items$204.4 $52.6 $167.8 $42.6 
EAETR (8)
25.7 %25.4 %
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(1) Refer to Note 11 for more information.
(2) Refer to Note 16 for more information.
(3) Refer to Note 6 and Note 7 for more information.
(4) Refer to Note 7 for more information.
(5) Refer to Note 14 for more information.
(6) Refer to Note 13 for more information.
(7) Decrease in EAETR for the three months ended September 30, 2026, as compared to September 30, 2025, was due to impacts of the One Big Beautiful Bill Act (“OBBB”), which was signed into law on July 4, 2025, creating an increase in the EAETR for the three-month period in 2025, as the foreign-derived deduction-eligible income (“FDDEI”) was significantly reduced due to immediate deductibility of previously amortizable expenses.
(8) Increase in EAETR for the nine months ended September 30, 2026, as compared to September 30, 2025, is mainly driven by the elimination of the FDDEI due to anticipated overall taxable losses in the U.S. as a result of allowable deductions driven by completed divestitures in 2026.