OLIN CorpOLN
OLIN Corp Income Taxes Disclosure
NOTE 14. INCOME TAXES
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Components of Income (Loss) Before Taxes | ($ in millions) | ||||||||||||||||
| U.S. | $ | (285.8) | $ | (59.9) | $ | 456.7 | |||||||||||
| Foreign | 124.7 | 201.6 | 102.6 | ||||||||||||||
| Income (loss) before taxes | $ | (161.1) | $ | 141.7 | $ | 559.3 | |||||||||||
| Components of Income Tax (Benefit) Provision | |||||||||||||||||
| Current: | |||||||||||||||||
| Federal | $ | 3.8 | $ | 46.4 | $ | 96.2 | |||||||||||
| State | 0.4 | 7.3 | 19.4 | ||||||||||||||
| Foreign | 27.5 | 22.8 | 48.0 | ||||||||||||||
| Total current | 31.7 | 76.5 | 163.6 | ||||||||||||||
| Deferred: | |||||||||||||||||
| Federal | (72.6) | (55.1) | (25.3) | ||||||||||||||
| State | (11.0) | (8.0) | (7.9) | ||||||||||||||
| Foreign | (8.1) | 23.3 | (23.1) | ||||||||||||||
| Total deferred | (91.7) | (39.8) | (56.3) | ||||||||||||||
| Income tax (benefit) provision | $ | (60.0) | $ | 36.7 | $ | 107.3 | |||||||||||
We account for non-refundable tax credits in accordance with ASC 740, Income Taxes, recognizing a decrease to our income tax expense. Refundable tax credits are accounted for outside the scope of ASC 740, and treated, by analogy, as government grants, using International Accounting Standards (IAS) 20, Accounting for Government Grants and Disclosure of Government Assistance, recognizing such grants when the Company has probable assurance that it will comply with the grant’s conditions and that the grant will be received.
In August 2022, the Inflation Reduction Act (IRA) was enacted and provides various beneficial credits for energy efficient related manufacturing, transportation and fuels, hydrogen/carbon recapture and renewable energy. During 2025, Olin realized $22.0 million of investment tax credits related to the IRA via our Hidrogenii joint venture interest and recorded a tax benefit of $2.6 million. In 2025, we determined that we qualified for the clean hydrogen production tax credit under Section 45V as part of the IRA. As a result, we recorded a $34.5 million reduction to costs of goods sold primarily related to Section 45V. We expect to continue to qualify for Section 45V through 2032.
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted in the U.S. This act introduces significant changes to tax law and other areas affecting company operations, including items such as extensions of Tax Cuts and Jobs Act provisions, changes to business interest deductions, modifications to depreciation deductions and impacts on energy tax credits. Due to a decrease in taxable income from changes to depreciation methods, business interest deductions and research and development, we recorded a $2.5 million tax expense in the third quarter of 2025 associated with the valuation allowance on foreign tax credits which are no longer expected to be utilized before their expiration date.
The following table accounts for the difference between the actual tax provision and the amounts obtained by applying the statutory U.S. federal income tax rate to the income (loss) before taxes.
| Years Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Effective Tax Rate Reconciliation (Percent) | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||||||||||
| ($ in millions) | |||||||||||||||||||||||||||||||||||
| US Federal Statutory Income Tax Rate | (33.8) | 21.0 | % | 29.8 | 21.0 | % | 117.5 | 21.0 | % | ||||||||||||||||||||||||||
| Domestic Federal | |||||||||||||||||||||||||||||||||||
| Tax credits | |||||||||||||||||||||||||||||||||||
| IRA credits | (10.2) | 6.3 | — | — | — | — | |||||||||||||||||||||||||||||
| Purchase discount on tax credits | — | — | (2.7) | (1.9) | — | — | |||||||||||||||||||||||||||||
| Research credits | (0.1) | 0.1 | — | — | (2.1) | (0.4) | |||||||||||||||||||||||||||||
| Nontaxable or nondeductible items | |||||||||||||||||||||||||||||||||||
| IRA credits associated with clean hydrogen production | (11.9) | 7.4 | — | — | — | — | |||||||||||||||||||||||||||||
| Salt depletion | (8.7) | 5.4 | (9.3) | (6.6) | (9.0) | (1.6) | |||||||||||||||||||||||||||||
| Share based payments | 0.1 | (0.1) | (2.7) | (1.9) | (5.5) | (1.0) | |||||||||||||||||||||||||||||
| Nontaxable or nondeductible exchange rate results | (9.5) | 5.9 | 4.8 | 3.4 | (2.5) | (0.4) | |||||||||||||||||||||||||||||
| Prior year taxes | 5.0 | (3.1) | 0.6 | 0.4 | (16.3) | (2.9) | |||||||||||||||||||||||||||||
| Non-deductible intercompany transactions | 1.7 | (1.1) | — | — | — | — | |||||||||||||||||||||||||||||
| Other reconciling items | 0.8 | (0.5) | 1.2 | 0.8 | 2.3 | 0.4 | |||||||||||||||||||||||||||||
| Cross-border tax laws | |||||||||||||||||||||||||||||||||||
Subpart F (1) | 3.2 | (2.0) | 3.4 | 2.4 | 7.0 | 1.3 | |||||||||||||||||||||||||||||
Global intangible low-taxed income (GILTI) (1) | 1.8 | (1.1) | — | — | — | — | |||||||||||||||||||||||||||||
| US taxation on foreign branches | (4.7) | 2.9 | (13.1) | (9.2) | (6.4) | (1.1) | |||||||||||||||||||||||||||||
| Withholding tax on unremitted earnings | 4.4 | (2.7) | 1.0 | 0.7 | 5.8 | 1.0 | |||||||||||||||||||||||||||||
| Changes in valuation allowances | 13.7 | (8.5) | 14.4 | 10.2 | 6.0 | 1.1 | |||||||||||||||||||||||||||||
Domestic state and local income taxes, net of federal effect (2) | (11.3) | 7.0 | (2.3) | (1.6) | 11.5 | 2.1 | |||||||||||||||||||||||||||||
| Foreign Tax Effects | |||||||||||||||||||||||||||||||||||
| Canada | |||||||||||||||||||||||||||||||||||
| Statutory income tax rate differential | (4.7) | 2.9 | (5.6) | (4.0) | (7.1) | (1.3) | |||||||||||||||||||||||||||||
| Provincial tax | 8.8 | (5.5) | 10.5 | 7.4 | 13.1 | 2.3 | |||||||||||||||||||||||||||||
| Nontaxable or nondeductible exchange rate results | (0.4) | 0.2 | 3.6 | 2.5 | (0.5) | (0.1) | |||||||||||||||||||||||||||||
| Tax credits | (0.7) | 0.4 | (2.9) | (2.0) | (1.2) | (0.2) | |||||||||||||||||||||||||||||
| Other | (0.5) | 0.3 | 1.0 | 0.7 | (2.1) | (0.4) | |||||||||||||||||||||||||||||
| Germany | |||||||||||||||||||||||||||||||||||
| Statutory income tax rate differential | 0.4 | (0.2) | (0.8) | (0.6) | (1.2) | (0.2) | |||||||||||||||||||||||||||||
| Trade tax | (1.1) | 0.7 | 2.1 | 1.5 | 3.1 | 0.6 | |||||||||||||||||||||||||||||
| Tax audit settlement | — | — | 2.4 | 1.7 | — | — | |||||||||||||||||||||||||||||
| Statutory tax rate change | 7.0 | (4.3) | — | — | — | — | |||||||||||||||||||||||||||||
| Other | (1.9) | 1.2 | 0.5 | 0.4 | 2.1 | 0.4 | |||||||||||||||||||||||||||||
| Years Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Effective Tax Rate Reconciliation (Percent) | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||||||||||
| ($ in millions) | |||||||||||||||||||||||||||||||||||
| Brazil | |||||||||||||||||||||||||||||||||||
| Statutory income tax rate differential | (1.1) | 0.7 | (3.9) | (2.8) | (6.6) | (1.2) | |||||||||||||||||||||||||||||
| Non-deductible exchange rate results | (1.1) | 0.7 | 5.8 | 4.1 | (2.2) | (0.4) | |||||||||||||||||||||||||||||
| Valuation allowances | 3.9 | (2.4) | 23.9 | 16.9 | — | — | |||||||||||||||||||||||||||||
| Other | (1.1) | 0.7 | (1.3) | (0.9) | 1.7 | 0.3 | |||||||||||||||||||||||||||||
| Switzerland | |||||||||||||||||||||||||||||||||||
| Statutory income tax rate differential | (10.0) | 6.2 | (8.2) | (5.8) | (6.9) | (1.2) | |||||||||||||||||||||||||||||
| Cantonal tax | 2.7 | (1.7) | 0.4 | 0.3 | (0.2) | — | |||||||||||||||||||||||||||||
| Top-up tax | 2.4 | (1.5) | 1.9 | 1.3 | — | — | |||||||||||||||||||||||||||||
| Other | 0.4 | (0.2) | 0.2 | 0.1 | 0.9 | 0.2 | |||||||||||||||||||||||||||||
| Cyprus | |||||||||||||||||||||||||||||||||||
| Statutory income tax rate differential | — | — | 1.0 | 0.7 | (2.1) | (0.4) | |||||||||||||||||||||||||||||
| Non-deductible intercompany transactions | — | — | 4.3 | 3.0 | — | — | |||||||||||||||||||||||||||||
| Non-taxable interest | — | — | (2.1) | (1.5) | (2.0) | (0.4) | |||||||||||||||||||||||||||||
| Other | 0.4 | (0.2) | (0.1) | (0.1) | (0.6) | (0.1) | |||||||||||||||||||||||||||||
| Malta | |||||||||||||||||||||||||||||||||||
| Statutory income tax rate differential | (3.0) | 1.9 | — | — | — | — | |||||||||||||||||||||||||||||
| Netherlands | |||||||||||||||||||||||||||||||||||
| Statutory income tax rate differential | (3.0) | 1.9 | 1.3 | 0.9 | (1.0) | (0.2) | |||||||||||||||||||||||||||||
| Withholding tax on unremitted earnings | (0.4) | 0.2 | 0.9 | 0.6 | (1.0) | (0.2) | |||||||||||||||||||||||||||||
| Other | 1.7 | (1.1) | 0.3 | 0.2 | 2.9 | 0.5 | |||||||||||||||||||||||||||||
| China | |||||||||||||||||||||||||||||||||||
| Statutory income tax rate differential | 0.4 | (0.2) | 1.0 | 0.7 | (0.8) | (0.1) | |||||||||||||||||||||||||||||
| Non-taxable intercompany transactions | — | — | (7.0) | (4.9) | — | — | |||||||||||||||||||||||||||||
| Valuation allowances | (2.6) | 1.6 | 0.9 | 0.6 | 5.5 | 1.0 | |||||||||||||||||||||||||||||
| Other | 0.2 | (0.1) | — | — | (0.4) | (0.1) | |||||||||||||||||||||||||||||
| Hong Kong | |||||||||||||||||||||||||||||||||||
| Statutory income tax rate differential | (0.1) | 0.1 | 0.2 | 0.1 | 0.2 | — | |||||||||||||||||||||||||||||
| Valuation allowances | (0.4) | 0.2 | 1.6 | 1.1 | — | — | |||||||||||||||||||||||||||||
| Other | — | — | (0.1) | (0.1) | 0.1 | — | |||||||||||||||||||||||||||||
| Korea | |||||||||||||||||||||||||||||||||||
| Statutory income tax rate differential | (0.2) | 0.1 | (0.1) | (0.1) | 0.2 | — | |||||||||||||||||||||||||||||
| Non-taxable intercompany transactions | (1.6) | 1.0 | (1.2) | (0.7) | — | — | |||||||||||||||||||||||||||||
| Valuation allowances | — | — | 0.2 | 0.2 | 1.6 | 0.3 | |||||||||||||||||||||||||||||
| Other | 0.3 | (0.2) | — | — | 0.1 | — | |||||||||||||||||||||||||||||
| Other foreign jurisdictions | (0.5) | 0.2 | 5.4 | 3.9 | 5.1 | 0.9 | |||||||||||||||||||||||||||||
Worldwide changes in unrecognized tax benefits (3) | 5.3 | (3.3) | (24.5) | (17.2) | (1.7) | (0.3) | |||||||||||||||||||||||||||||
| Effective tax rate | $ | (60.0) | 37.2 | % | $ | 36.7 | 25.9 | % | $ | 107.3 | 19.2 | % | |||||||||||||||||||||||
(2) For the years ended December 31, 2025, 2024, and 2023 at least 50% of state income tax expense or benefit related to California, Illinois, Louisiana and Missouri.
(3) We elected to reflect the changes in unrecognized tax benefits on an aggregate basis for all jurisdictions worldwide.
The tax benefit for 2025 was $60.0 million, resulting in a tax rate of 37.2%. The effective tax rate was higher than the 21.0% U.S. federal statutory rate, primarily due to state income tax, non-taxable exchange rate results, U.S. federal tax credits and favorable permanent salt depletion deductions, partially offset by foreign income inclusions, changes in tax contingencies and remeasurement of deferred taxes due to a decrease in tax rates in a foreign jurisdiction.
Tax expense for 2024 was $36.7 million, resulting in a tax rate of 25.9%. The effective tax rate was higher than the 21.0% U.S. federal statutory rate, primarily due to state income tax, foreign income inclusions, non-deductible exchange rate results, expenses from prior year tax positions and from a net increase in the valuation allowance related to deferred tax assets in foreign jurisdictions, partially offset by favorable permanent salt depletion deductions, benefits associated with stock-based compensation, U.S. federal tax credits purchased at a discount, changes in tax contingencies and remeasurement of deferred taxes due to a decrease in our state effective tax rates.
Tax expense for 2023 was $107.3 million, resulting in a tax rate of 19.2%. The effective tax rate was lower than the 21.0% U.S. federal statutory rate primarily due to a favorable foreign rate differential, favorable permanent salt depletion deductions, benefits associated with a legal entity liquidation, prior year tax positions, stock-based compensation, remeasurement of deferred taxes due to a decrease in our state effective tax rates and foreign rate changes, and from a change in tax contingencies, partially offset by state income tax, an increase in the valuation allowance related to losses in foreign jurisdictions and foreign income inclusions.
| Years Ended December 31, | |||||||||||||||||||||||||||||||||||
| Income Taxes Paid (Refunded) | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||||||||||
| US Federal | $ | 29.1 | 17.4 | % | $ | 57.0 | 53.9 | % | $ | 35.6 | 31.9 | % | |||||||||||||||||||||||
| US State and Local | |||||||||||||||||||||||||||||||||||
| Illinois | (0.7) | (0.4) | % | — | — | % | (8.9) | (8.0) | % | ||||||||||||||||||||||||||
| Other | 0.1 | 0.1 | % | 11.3 | 10.7 | % | 9.4 | 8.4 | % | ||||||||||||||||||||||||||
| Total state and local | (0.6) | (0.3) | % | 11.3 | 10.7 | % | 0.5 | 0.4 | % | ||||||||||||||||||||||||||
| Foreign | |||||||||||||||||||||||||||||||||||
| Canada | |||||||||||||||||||||||||||||||||||
| Federal | 23.4 | 14.0 | % | 19.6 | 18.5 | % | 28.5 | 25.5 | % | ||||||||||||||||||||||||||
| Provincial tax | 9.6 | 5.7 | % | 8.5 | 8.0 | % | 15.8 | 14.1 | % | ||||||||||||||||||||||||||
| Germany | |||||||||||||||||||||||||||||||||||
| Federal | 52.5 | 31.4 | % | — | — | % | — | — | % | ||||||||||||||||||||||||||
| Trade tax | 36.0 | 21.5 | % | 1.8 | 1.7 | % | (0.2) | (0.2) | % | ||||||||||||||||||||||||||
| Brazil | 0.7 | 0.4 | % | — | — | % | 26.3 | 23.5 | % | ||||||||||||||||||||||||||
| Switzerland | |||||||||||||||||||||||||||||||||||
| Federal | 9.2 | 5.5 | % | 2.7 | 2.6 | % | 0.4 | 0.4 | % | ||||||||||||||||||||||||||
| Cantonal tax | 1.7 | 1.0 | % | 0.4 | 0.4 | % | 0.1 | 0.1 | % | ||||||||||||||||||||||||||
| Other | 5.5 | 3.4 | % | 4.4 | 4.2 | % | 4.7 | 4.3 | % | ||||||||||||||||||||||||||
| Total foreign | 138.6 | 82.9 | % | 37.4 | 35.4 | % | 75.6 | 67.7 | % | ||||||||||||||||||||||||||
| Total taxes paid | $ | 167.1 | 100.0 | % | $ | 105.7 | 100.0 | % | $ | 111.7 | 100.0 | % | |||||||||||||||||||||||
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Components of Deferred Tax Assets and Liabilities | ($ in millions) | ||||||||||
| Deferred Tax Assets | |||||||||||
| Pension and postretirement benefits | $ | 1.7 | $ | 24.7 | |||||||
| Environmental reserves | 38.8 | 39.3 | |||||||||
| Asset retirement obligations | 26.3 | 19.3 | |||||||||
| Accrued liabilities | 68.0 | 33.9 | |||||||||
| Lease liabilities | 76.8 | 76.5 | |||||||||
| Tax credits | 112.0 | 62.0 | |||||||||
| Net operating losses (NOL) | 60.0 | 57.5 | |||||||||
| Interest deduction limitation | 29.3 | 22.8 | |||||||||
| Other miscellaneous items | 1.0 | — | |||||||||
| Total deferred tax assets | 413.9 | 336.0 | |||||||||
| Valuation allowance | (126.1) | (118.9) | |||||||||
| Net deferred tax assets | 287.8 | 217.1 | |||||||||
| Deferred Tax Liabilities | |||||||||||
| Property, plant and equipment | 345.4 | 387.7 | |||||||||
| Right-of-use lease assets | 73.5 | 75.1 | |||||||||
| Intangible amortization | 111.8 | 92.4 | |||||||||
| Inventory and prepaids | 4.7 | 8.3 | |||||||||
| Taxes on unremitted earnings | 22.8 | 18.7 | |||||||||
| Other miscellaneous items | — | 12.0 | |||||||||
| Total deferred tax liabilities | 558.2 | 594.2 | |||||||||
| Net deferred income tax liability | $ | (270.4) | $ | (377.1) | |||||||
Realization of the net deferred tax assets, irrespective of indefinite-lived deferred tax liabilities, is dependent on future reversals of existing taxable temporary differences and adequate future taxable income, exclusive of reversing temporary differences and carryforwards. Although realization is not assured, we believe that it is more likely than not that the net deferred tax assets will be realized.
At December 31, 2025, we had deferred state tax assets of $16.0 million relating to state NOLs, which will expire in years 2030 through 2043, if not utilized.
At December 31, 2025, we had deferred state tax assets of $22.8 million relating to state tax credits, which will expire in years 2026 through 2040, if not utilized.
At December 31, 2025, we had foreign tax credits of $62.5 million, that will expire in years 2027 through 2035, if not utilized.
At December 31, 2025, we had NOLs of approximately $153.6 million (representing $44.0 million of deferred tax assets) in various foreign jurisdictions. Of these, $45.1 million (representing $11.5 million of deferred tax assets) expire in various years from 2026 to 2032. The remaining $108.5 million (representing $32.5 million of deferred tax assets) do not expire.
As of December 31, 2025, we had recorded a valuation allowance of $126.1 million, compared to $118.9 million as of December 31, 2024, and $99.5 million as of December 31, 2023. The increase of $7.2 million in 2025 is primarily due to increases in valuation allowances on foreign tax credits and foreign NOLs.
We continue to have net deferred tax assets in several jurisdictions which we expect to realize, assuming sufficient taxable income can be generated to utilize these deferred tax benefits, which is based on certain estimates and assumptions. If these estimates and related assumptions change in the future, we may be required to reduce the value of the deferred tax assets resulting in additional tax expense.
The activity of our deferred income tax valuation allowance was as follows:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Deferred Income Tax Valuation Allowance | ($ in millions) | ||||||||||
| Beginning balance | $ | 118.9 | $ | 99.5 | |||||||
| Increases to valuation allowances | 10.1 | 39.1 | |||||||||
| Decreases to valuation allowances | (7.2) | (17.1) | |||||||||
| Foreign currency translation adjustments | 4.3 | (2.6) | |||||||||
| Ending balance | $ | 126.1 | $ | 118.9 | |||||||
As of December 31, 2025, we had $24.0 million of gross unrecognized tax benefits, which would have a net $24.0 million impact on the effective tax rate, if recognized. The changes in amounts of unrecognized tax benefits were as follows:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Unrecognized Tax Benefits | ($ in millions) | ||||||||||
| Beginning balance | $ | 21.1 | $ | 50.3 | |||||||
| Increase for current year tax positions | 1.2 | 1.0 | |||||||||
| Increase for prior year tax positions | 11.7 | 6.6 | |||||||||
| Decrease for prior year tax positions | (0.8) | (34.0) | |||||||||
| Reduction due to lapse in statute limitations | (7.2) | — | |||||||||
| Settlements with tax authorities | (2.0) | (1.0) | |||||||||
| Foreign currency translation adjustments | — | (1.8) | |||||||||
| Ending balance | $ | 24.0 | $ | 21.1 | |||||||
We recognize interest and penalty expense related to unrecognized tax positions as a component of the income tax provision. As of December 31, 2025 and 2024, interest and penalties accrued were $3.2 million and $3.2 million, respectively. For 2024 and 2023, we recorded expense related to interest and penalties of $1.2 million and $0.7 million, respectively.
We operate globally and file income tax returns in numerous jurisdictions. Our tax returns are subject to examination by various federal, state and local tax authorities. Additionally, examinations are ongoing in various states and foreign jurisdictions. We believe we have adequately provided for all tax positions; however, amounts asserted by taxing authorities could be greater than our accrued position.
For our primary tax jurisdictions, the tax years that remain subject to examination are as follows:
| Tax Years | |||||
| U.S. federal income tax | 2022 - 2024 | ||||
| U.S. state income tax | 2015 - 2024 | ||||
| Canadian federal income tax | 2018 - 2024 | ||||
| Brazil | 2019 - 2024 | ||||
| Germany | 2022 - 2024 | ||||
| China | 2015 - 2024 | ||||
| The Netherlands | 2020 - 2024 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 22, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Mar 1, 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.