Company: AVNT
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001122976-25-000088
Chunk: 2

Company: AVIENT CORP
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 2
Chunk 2
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 income (GILTI) tax and a benefit associated with a decrease in previously unrecognized tax benefits resulting from the expiration of statutes of limitations.

For the nine months ended September 30, 2025, the Company’s effective tax rate was 23.9%, compared to 24.3% in the prior-year period. The decrease was primarily due to a reduction in GILTI tax and the benefit associated with a decrease of previously unrecognized tax benefits resulting from the expiration of statutes of limitations. These benefits were partially offset by the jurisdictional earnings mix.

Refer to Note 6, Income Taxes, for further details.

SEGMENT INFORMATION

Avient has two reportable segments: (1) Color, Additives and Inks; and (2) Specialty Engineered Materials.

Operating income is the primary segment performance measure that is reported to our chief operating decision maker (CODM), which is the Company's chief executive officer. Our CODM utilizes this measure as an input to determine appropriate resource allocations to our segments in the annual planning process and to periodically assess segment performance, primarily by evaluating actual results in comparison to the annual operating plan and forecast. Operating income at the segment level does not include corporate general and administrative expenses that are not allocated to segments, restructuring charges, share-based compensation costs, environmental remediation costs and associated recoveries, asset impairments, acquisition-related charges, mark-to-market adjustments on pension and other post-retirement obligations, and certain other items that are not included in the measure of segment profit or loss that is reported to and reviewed by our CODM. These costs are included in Corporate.

16 AVIENT CORPORATION

Sales and Operating Income - The three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024:

                                      Three Months Ended                  Variances — Favorable                    Nine Months Ended      Variances — Favorable                
                                      September 30,                       (Unfavorable)                            September 30,          (Unfavorable)                        
  (Dollars in millions)               2025                    2024        Change                     % Change      2025                   Change                     % Change  
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Sales:                                                                                                                                                                       
  Color, Additives and Inks           $                       $           $                             (2.2)      $                      $                             (0.7)  
  Specialty Engineered Materials      297.7