JBT MAREL CorpJBTM
JBT MAREL Corp Income Taxes Disclosure
INCOME TAXES
Provision (Benefit) for Income Taxes
Domestic and foreign components of income from continuing operations before income taxes and non-controlling interests for the years ended on December 31, are shown below:
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| U.S. | $ | (202.6) | $ | (40.8) | $ | 65.8 | |||||||||||
| Non-U.S. | 140.2 | 136.1 | 87.3 | ||||||||||||||
| Income before income taxes | $ | (62.4) | $ | 95.3 | $ | 153.1 | |||||||||||
The provision for income taxes related to income from continuing operations for the years ended on December 31, consisted of:
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Current: | |||||||||||||||||
| U.S. federal | $ | 2.5 | $ | 1.2 | $ | 17.7 | |||||||||||
| U.S. state and local | 2.1 | 2.0 | 5.2 | ||||||||||||||
| Non-U.S. | 61.9 | 33.3 | 22.2 | ||||||||||||||
| Total current | $ | 66.5 | $ | 36.5 | $ | 45.1 | |||||||||||
| Deferred: | |||||||||||||||||
| U.S. federal | $ | (35.7) | $ | (21.0) | $ | (18.9) | |||||||||||
| U.S. state and local | (14.3) | (4.2) | (2.9) | ||||||||||||||
| Non-U.S. | (29.6) | (0.6) | 0.2 | ||||||||||||||
| Total deferred | $ | (79.6) | $ | (25.8) | $ | (21.6) | |||||||||||
| Provision for income taxes | $ | (13.1) | $ | 10.7 | $ | 23.5 | |||||||||||
The Company adopted ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” on a prospective basis, the table below provides the required disclosure pursuant to ASU 2023-09.
The effective income tax rate for the year ending December 31, 2025 was different from the statutory U.S. federal income tax rate due to the following:
| (In millions) | Dollar Value ($) | Percentage of total (%) | |||||||||
| Provision for income taxes at U.S. federal statutory tax rate | $ | (13.1) | 21 | % | |||||||
| State and local income tax, net of federal income tax effect | (9.6) | 15 | |||||||||
| Foreign tax effects | |||||||||||
| Brazil | |||||||||||
| Foreign rate differential | 3.9 | (6) | |||||||||
| Other | 0.8 | (1) | |||||||||
| Netherlands | |||||||||||
| Innovation box | (7.0) | 11 | |||||||||
| Loss on investment | 2.7 | (5) | |||||||||
| Other | (0.5) | 1 | |||||||||
| Other foreign jurisdictions | 3.4 | (5) | |||||||||
| Effect of cross-border tax laws | 2.6 | (4) | |||||||||
| Tax Credits: | |||||||||||
| Research and development credits | (4.9) | 8 | |||||||||
| Changes in valuation allowances | 0.2 | — | |||||||||
| Non-taxable or non-deductible items: | |||||||||||
| Acquisition costs | 7.8 | (13) | |||||||||
| Other | (1.4) | 2 | |||||||||
| Changes in unrecognized tax benefits | 2.0 | (3) | |||||||||
| Total tax provision and effective tax rate | $ | (13.1) | 21 | % | |||||||
State taxes in Kansas, California, Illinois, Georgia, Florida, Wisconsin, Arkansas, and Iowa make up the majority (greater than 50 percent) of the tax effect in this category.
The effective tax rate reconciliation includes a single line item for unrecognized tax positions, which reflects changes in unrecognized tax benefits arising from tax positions taken in the current year as well as changes related to prior year tax positions, including settlements, lapses of statutes of limitations, and changes in judgment. These impacts are presented on an aggregated basis in accordance with ASU 2023-09.
The table below presents the required disclosure prior to the Company’s adoption of ASU 2023-09. The effective income tax rate for the years ending December 31, 2024 and 2023 differs from the statutory U.S. federal income tax rate due to the following:
| 2024 | 2023 | ||||||||||
| Statutory U.S. federal tax rate | 21% | 21% | |||||||||
| Net difference resulting from: | |||||||||||
| Research and development tax incentives | (8) | (5) | |||||||||
| Foreign earnings subject to different tax rates | 5 | 2 | |||||||||
| State income taxes | (1) | 2 | |||||||||
| Foreign tax credits | (14) | (5) | |||||||||
| US foreign inclusions | 14 | 6 | |||||||||
| Stock based compensation - excess tax benefit | 1 | — | |||||||||
| Remeasurement of deferred tax liability | (9) | — | |||||||||
| Valuation allowance | (1) | 3 | |||||||||
| Disposition of subsidiary | — | (7) | |||||||||
| Executive Compensation | 2 | — | |||||||||
| Other | 1 | (2) | |||||||||
| Total difference | (10)% | (6)% | |||||||||
| Effective income tax rate | 11% | 15% | |||||||||
On July 4, 2025, the United States Congress reconciliation bill commonly referred to as the One Big Beautiful Bill Act (“OBBB”) was signed into law. The Company does not expect any material changes to its financial position, operations, or existing liabilities from the enactment of OBBB. The largest impact the Company currently expects from the tax law changes included in OBBB is a reduction in U.S. research and development credits for 2025 and future years. The expected impact on the Company in 2025 is a reduction in U.S. research and development credits of $1.0 million. The Company will continue to evaluate current and future period effects of the OBBB as additional guidance and regulations are issued.
The Company files income tax returns in the U.S. and foreign jurisdictions. The Company is generally subject to examination by the IRS for years 2022 and later. In addition to the U.S., the Company has tax years that remain open and subject to examination by tax authorities in the following major taxing jurisdictions: Sweden for years after 2023, Brazil for years after 2020, and the Netherlands for years after 2020.
Deferred Income Taxes
Significant components of deferred tax assets and liabilities at December 31, were as follows:
| (In millions) | 2025 | 2024 | |||||||||
| Deferred tax assets attributable to: | |||||||||||
| Accrued pension and other postretirement benefits | $ | 6.9 | $ | 5.5 | |||||||
| Accrued expenses and accounts receivable allowances | 17.7 | 8.2 | |||||||||
| Loss carryforwards | 44.5 | 6.1 | |||||||||
| Inventories | 17.1 | 7.8 | |||||||||
| Stock-based compensation | 6.2 | 5.6 | |||||||||
| Operating lease liabilities | 18.1 | 7.5 | |||||||||
| Convertible bond | 27.1 | 4.9 | |||||||||
| Research and development costs | 58.7 | 51.5 | |||||||||
| Credit carryforwards | 18.5 | 6.0 | |||||||||
| Acquisition costs | — | 5.4 | |||||||||
| Interest expense carryforwards | 10.9 | 3.5 | |||||||||
| Derivative instruments | 11.7 | — | |||||||||
| Other | 9.2 | 0.8 | |||||||||
| Total deferred tax assets | $ | 246.6 | $ | 112.8 | |||||||
| Valuation allowance | (39.2) | (5.3) | |||||||||
| Deferred tax assets, net of valuation allowance | $ | 207.4 | $ | 107.5 | |||||||
| Deferred tax liabilities attributable to: | |||||||||||
| Property, plant and equipment | 68.0 | 16.7 | |||||||||
| Goodwill and intangibles | 468.3 | 61.5 | |||||||||
| Right to use lease assets | 17.2 | 7.2 | |||||||||
| Derivative instruments | — | 0.7 | |||||||||
| Other | — | 1.0 | |||||||||
| Total deferred tax liabilities | $ | 553.5 | $ | 87.1 | |||||||
| Net deferred tax liabilities | $ | (346.1) | $ | 20.4 | |||||||
Included in deferred tax assets are tax benefits related to operating loss carryforwards totaling $44.5 million, comprised of US Federal ($9.6 million), US state ($8.0 million), and non-US ($26.9 million) loss carryforwards. Of this amount $24.9 million are available to offset future tax liabilities indefinitely, and $19.6 million, if unused, are set to expire at various dates starting in 2026 through 2045.
As of December 31, 2025 tax credit carryforwards totaled $18.5 million, which primarily include US federal credits of $15.2 million and U.S. state credits of $2.7 million which, if unused, are set to expire at various dates starting in 2032 through 2045.
Of the tax effected loss and credit carryforwards, approximately $31.5 million are subject to a full valuation allowance, as management has concluded that based on the available evidence, it is more likely than not that the deferred tax assets will not be fully utilized. These valuation allowances are primarily associated with operations in the United States, Iceland, Germany, Belgium, and Singapore.
The Company considers certain unremitted earnings of foreign subsidiaries indefinitely reinvested. The amount of unrecognized deferred tax liabilities associated with these earnings is approximately $2 million.
Income Tax Contingencies
As of December 31, 2025, the Company had unrecognized tax benefits of $16.1 million that, if recognized, would impact the Company’s effective tax rate. In 2025, the Company recorded unrecognized tax benefits related to the Marel acquisition as part of the purchase accounting, which did not impact the current year effective tax rate.
Activity related to the Company’s unrecognized tax benefits for the years ended December 31 are shown below:
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Balance, beginning of period | $ | — | $ | 0.3 | $ | — | |||||||||||
| Settlements and effective settlements with tax authorities | — | (0.3) | — | ||||||||||||||
| Changes in balance related to tax positions taken during current period | 1.7 | — | 0.3 | ||||||||||||||
| Changes in balance related to tax positions taken during prior periods | 14.4 | — | — | ||||||||||||||
| Balance, end of period | $ | 16.1 | $ | — | $ | 0.3 | |||||||||||
As of December 31, 2025, we had accrued interest and penalties, net of federal income tax benefit, related to income tax contingencies of $0.6 million through income tax expense.
Cash Taxes Paid
The Company adopted ASU 2023-09 on a prospective basis for the year ended December 31, 2025. The following table presents required disclosures of income taxes paid, net of refunds received, for the year ended December 31, 2025:
| (In millions) | |||||
| U.S. federal | $ | (1.1) | |||
| U.S. state and local | 2.4 | ||||
| Non-U.S. | |||||
| Brazil | 7.8 | ||||
| Netherlands | 25.9 | ||||
| Sweden | 15.0 | ||||
| Other foreign jurisdictions | 18.7 | ||||
| Total cash paid for taxes | $ | 68.7 | |||
Income taxes paid for the years ended December 31, 2024 and 2023 were:
| (In millions) | 2024 | 2023 | |||||||||
| Supplemental cash flow information for continuing operations: | |||||||||||
| Income taxes paid | $ | 33.2 | $ | 47.1 | |||||||
| Income taxes paid on gain from sale of AeroTech | — | 133.2 | |||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 29, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.