Company: ATMU
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001921963-25-000075
Chunk: 50

Company: Atmus Filtration Technologies Inc.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 8
Chunk 50
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 change in the mix of earnings among tax jurisdictions. 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 has assessed this legislation and the Pillar 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