Company: ATMU
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001921963-25-000134
Chunk: 58

Company: Atmus Filtration Technologies Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Item 8
Chunk 58
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 the Pillar Two provisions do not have a material impact on the Company’s tax expense.On July 4, 2025, the OBBBA was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cut and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company has evaluated the OBBBA enacted during the quarter and reflected its impact on the 

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consolidated financial statements. We will continue to evaluate the full impact of these legislative changes as additional guidance becomes available.

NOTE 7. INVENTORIES

Inventories are stated at the lower of cost or net realizable value. Inventories included the following:September 30,2025December 31,2024(in millions)Finished products$231.4 $213.3 Work-in-process and raw materials105.4 91.1 Inventories at FIFO cost336.8 304.4 Excess of FIFO over LIFO(34.0)(37.8)Total inventories$302.8 $266.6 

NOTE 8. PRODUCT WARRANTY LIABILITY

A tabular reconciliation of the product warranty liability, including accrued product campaigns, was as follows:For the Nine Months Ended September 30,20252024(in millions)Balance, beginning of year$12.2 $14.0 Provision for base warranties issued5.4 4.5 Payments made during period(3.3)(4.3)Changes in estimates for pre-existing product warranties(2.1)(1.6)Foreign currency translation and other0.4 0.1 Balance, end of period$12.6 $12.7 Warranty liabilities included in Atmus’ Condensed Consolidated Balance Sheets were as follows:September 30,2025December 31,2024(in millions)Current portion$5.1 $4.9 Long-term portion7.5 7.3 Total$12.6 $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