v3.25.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Geographical Breakdown of Income Before the Provision for Income Taxes
The following is a geographical breakdown of earnings before income taxes:
Year ended December 31
202520242023
Domestic (Canada) income
$120.9 $42.7 $7.4 
Foreign income862.3 489.5 298.6 
Earnings before income taxes
$983.2 $532.2 $306.0 
Schedule of the Provision for /(Recovery of) income taxes
The income tax expense (recovery) consisted of the following:
Year ended December 31
202520242023
Current income taxes (recoveries)
Domestic (Canada) (i)
$0.2 $1.5 $1.4 
Foreign218.9 134.6 63.8 
Total current income taxes (ii) (iii)
219.1 136.1 65.2 
Deferred income taxes (recoveries)
Domestic (Canada)— — — 
Foreign(68.4)(31.9)(3.6)
Total deferred income taxes recoveries (ii) (iii)
(68.4)(31.9)(3.6)
Income tax expense$150.7 — $104.2 — $61.6 
(i) Domestic (Canada) current income taxes for 2025 consists of a $0.2 federal income tax.
Schedule of Effective Income Tax Rate Reconciliation A reconciliation of the income tax rate based on the prospective adoption of ASU 2023-09 for 2025 is below. The Canadian federal statutory rate used is 25%. A 10% federal tax abatement is included in the "Provincial income taxes, net of federal income tax effect" line. The "Provincial income taxes, net of federal income tax effect" line is solely attributable to the province of Ontario.
Year ended December 31, 2025
 AmountPercentage (%)
Earnings before income taxes$983.2 
Canadian federal statutory tax rate$245.8 25.0 %
Provincial income taxes, net of federal income tax effect— — %
Foreign tax effects(ii) (iii):
Thailand:
Statutory tax rate difference (23.4)(2.4)%
Tax incentives, other than credits(52.8)(5.4)%
Withholding taxes35.5 3.6 %
Other(4.4)(0.5)%
U.S.:
Statutory tax rate difference (12.3)(1.3)%
Change in valuation allowance(70.6)(7.2)%
Share-based and other performance-based compensation(21.5)(2.2)%
Derivatives14.3 1.5 %
Other2.6 0.3 %
Other foreign jurisdictions21.7 2.2 %
Change in valuation allowance18.6 1.9 %
Non-taxable or non-deductible items:
Share-based payment awards(24.9)(2.5)%
Derivatives(15.5)(1.6)%
Other non-taxable or non-deductible items(8.7)(0.9)%
Change in unrecognized tax benefits46.5 4.7 %
Other adjustments(iii)(iv)
(0.2)— %
Income tax expense and effective tax rate$150.7 15.3 %

A reconciliation of the expected income tax expense calculated using combined Canadian federal and provincial income tax rate with our income tax expense for 2024 and 2023 is as follows:
Year ended December 31
20242023
Expected statutory rate26.5 %26.5 %
Expected income tax expense calculated using expected statutory rate$141.0 $81.1 
Effect of foreign tax rate differences(73.9)(45.7)
Effect of foreign exchange(10.7)4.3 
Effect of other, including non-taxable/non-deductible items and changes to net provisions related to tax uncertainties (ii) (iii)
26.6 (3.3)
Change in valuation allowance (iii)
21.2 25.2 
Income tax expense$104.2 $61.6 
(ii)    These line items in the tables above include: (i) for 2025, $35.5 of withholding tax expenses in respect of repatriations from certain of our Asian subsidiaries; (ii) for 2024, $22.3 withholding tax expenses in respect of repatriations from certain of our Asian subsidiaries; and (iii) for 2023, $11.3 tax expenses arising from both withholding taxes in respect of repatriations and taxable temporary differences associated with then-anticipated repatriation of undistributed earnings from certain of our Asian subsidiaries.
(iii)    These line items for 2025, 2024 and 2023 in the tables above include tax benefits related to return-to-provision adjustments for changes in estimates related to prior years based on changes in facts or circumstances (RTP Adjustments), and net adjustments for tax liabilities and uncertainties (discussed below).
(iv)    Includes the tax effects of changes in tax laws or rates enacted in the current period, the effect of cross-border tax laws, and tax credits.
Schedule of Primary Components of the Deferred Tax Assets and Liabilities are as Follows
The components of the deferred income taxes are as follows:
December 31
20252024
Deferred tax assets:
Accounting provisions not currently deductible$135.7 $65.1 
Pensions and non-pension post-retirement benefits22.3 7.6 
PP&E and intangibles30.5 — 
Tax loss carryforwards224.1 357.2 
Other77.8 60.8 
Total gross deferred tax assets490.4 490.7 
Less: valuation allowance(353.6)(386.0)
Total net deferred tax assets$136.8 $104.7 
Deferred tax liabilities:
Unrealized foreign exchange gains$21.6 $16.4 
PP&E and intangibles— 50.0 
Total deferred tax liabilities$21.6 $66.4 
Net deferred tax assets$115.2 $38.3 
Comprised of:
Non-current assets$156.4 $87.7 
Non-current liabilities41.2 49.4 
$115.2 $38.3 
Schedule of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Year ended December 31
20252024
Balance, beginning of year$50.0 $46.1 
Additions, based on current year tax positions0.2 0.2 
Additions, for prior years' tax positions (i)
48.6 23.0 
Reductions for prior years' tax positions— (2.7)
Reductions for lapse of statute of limitations(2.3)(11.5)
Reductions due to settlements
— (2.4)
Impact of foreign exchange fluctuation2.8 (2.7)
Balance, end of year
$99.3 $50.0 
(i)    This line item in the table above for 2025 includes $41.7 tax expenses for tax uncertainties relating to certain of our subsidiaries (2024 — $19.5).
Schedule of Income Tax Paid
Information regarding income taxes paid based on the prospective adoption of ASU 2023-09 is set forth below:
Year ended
December 31, 2025
Canadian income taxes paid, net of refunds received:
Federal $0.1 
Provincial0.1 
Foreign income taxes paid, net of refunds received:
Thailand95.6 
Malaysia27.2 
U.S.26.8 
All other foreign jurisdictions25.0 
Worldwide income taxes paid, net of refunds$174.8