Company: ATMU
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001921963-25-000075
Chunk: 19

Company: Atmus Filtration Technologies Inc.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 1
Chunk 19
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 Two provisions do not have a material impact on the Company’s tax expense.

NOTE 7. INVENTORIES

Inventories are stated at the lower of cost or net realizable value. Inventories included the following:March 31,2025December 31,2024(in millions)Finished products$203.7 $213.3 Work-in-process and raw materials98.6 91.1 Inventories at FIFO cost302.3 304.4 Excess of FIFO over LIFO(31.5)(37.8)Total inventories$270.8 $266.6 

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NOTE 8. PRODUCT WARRANTY LIABILITY

A tabular reconciliation of the product warranty liability, including accrued product campaigns, was as follows:For the Three Months Ended March 31,20252024(in millions)Balance, beginning of year$12.2 $14.0 Provision for base warranties issued1.5 2.2 Payments made during period(1.3)(0.7)Changes in estimates for pre-existing product warranties(0.5)0.3 Foreign currency translation and other0.5 — Balance, end of period$12.4 $15.8 Warranty liabilities included in Atmus’ Condensed Consolidated Balance Sheets were as follows:March 31,2025December 31,2024(in millions)Current portion$5.0 $4.9 Long-term portion7.4 7.3 Total$12.4 $12.2 

NOTE 9. DEBT AND BORROWING ARRANGEMENTS

Atmus entered into the Credit Agreement with a syndicate of banks, providing for a term loan and a revolving credit facility, in anticipation of the Separation. Borrowings under the Credit Agreement did not become available under the Credit Agreement until the IPO occurred. The facilities covered by the Credit Agreement will mature on September 30, 2027.Upon completion of the IPO, we borrowed $650 million under the Credit Agreement, consisting of proceeds of the term loan and amounts drawn under the revolving credit facility, and paid such amounts to Cummins in partial consideration for the Separation.Borrowings under the Credit Agreement bear interest at varying rates, depending on the type of loan and, in some cases, the rates of designated benchmarks and the applicable election made. Generally, U.S. dollar-denominated loans bear interest at an adjusted term Secured Overnight