Company: ATMU
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001921963-25-000134
Chunk: 57

Company: Atmus Filtration Technologies Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Item 8
Chunk 57
---
NOTE 5. EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES

Equity, royalty and interest income from investees, net of applicable taxes, was as follows:For the Three Months Ended September 30,For the Nine Months Ended September 30,2025202420252024(in millions)Fleetguard Filters Pvt. Ltd.$5.1 $5.3 $15.6 $17.5 Shanghai Fleetguard Filter Co. Ltd1.7 1.2 4.6 4.2 Filtrum Fibretechnologies Pvt. Ltd0.1 0.1 0.3 0.3 Atmus share of net income6.9 6.6 20.5 22.0 Royalty and interest income1.5 1.5 4.6 4.7 Equity, royalty and interest income from investees$8.4 $8.1 $25.1 $26.7 

NOTE 6. INCOME TAXES

In connection with the Separation, the Company entered into a tax matters agreement with Cummins that, among other things, formalized our agreement related to the responsibility for historical tax positions for the period prior to the IPO for jurisdictions where our business was included in the consolidated or combined tax returns of Cummins.Atmus’ effective tax rate for the three and nine months ended September 30, 2025, was 23.6% and 22.3%, respectively. Atmus’ effective tax rate for the three and nine months ended September 30, 2024, was 18.4% and 20.9%, respectively. The variance in the effective tax rate is 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 One Big Beautiful Bill Act (“OBBBA”), partially offset by discrete tax items. The Company’s 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.The international tax framework introduced by the Organization for Economic Co-operation and Development under its Pillar Two initiative includes a global minimum tax of 15 percent. Legislation adopting these provisions has been enacted in certain jurisdictions where the Company operates and was effective as of the Company’s 2024 fiscal year. The Company continues to assess this legislation and