Company: ATMU
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001921963-25-000134
Chunk: 75

Company: Atmus Filtration Technologies Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Item 8
Chunk 75
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 of $6.0 million compared to $31.4 million for the nine months ended September 30, 2024. The decrease in Interest expense was primarily driven by a reduction to the interest rate on our borrowings and lower outstanding borrowings on our Credit Agreement as principal payments were made.

Other Income, Net

Other income, net was $2.1 million for the nine months ended September 30, 2025, a decrease of $1.6 million compared to $3.7 million for the nine months ended September 30, 2024. The decrease in Other income, net was due to an increase in the net loss on foreign exchange rate hedging.

Income Tax Expense

Our effective tax rate for the nine months ended September 30, 2025 was 22.3%, an increase of 1.4 percentage points compared to 20.9% for the nine months ended September 30, 2024. The increase in the effective tax rate was driven by an unfavorable change in the mix of earnings among tax jurisdictions and reductions to U.S. tax incentives and credits due to the adoption of the OBBBA, partially offset by discrete tax items. Our effective tax rate differs from the U.S. statutory rate primarily due to differences in rates applicable to foreign subsidiaries, withholding taxes and state income taxes.

Liquidity and Capital Resources

Our facilities under the Credit Agreement provide for $1.0 billion in total availability, which includes a $600 million term loan and a $400 million revolving credit facility. As of September 30, 2025, we have outstanding borrowings of $577.5 million on the term loan and no amount was drawn on the revolving credit facility. As a result, we had capacity under our revolving credit facility of $400 million as of September 30, 2025.

We believe that cash from operations and the facilities under our Credit Agreement will continue to provide sufficient liquidity for our working capital needs, planned capital expenditures and future payments of our contractual, tax and benefit plan obligations and payments for share repurchases and quarterly dividends in both the short and long term. Overall, we do not expect negative effects to our funding sources that would have a material effect on our liquidity. However, if a serious economic or credit market crisis ensues or other adverse development arises, it could have a material adverse effect on our liquidity, financial condition, results of operations and cash flows.

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Our most significant ongoing short-term cash requirements relate primarily to funding operations (including expenditures for