OSHKOSH CORPORATION NOTES OF CONSOLIDATED FINANCIAL STATEMENTS
Deferred income tax assets and liabilities were comprised of the following (in millions):
December 31,
2025
2024
Deferred tax assets: Customer advances
$
185.4 $
183.5 132.8
Research and development
79.2 52.3 41.3 30.3 23.5 19.4 70.3
Losses and credits
44.8 15.9 29.0 29.8 16.0 64.2
Inventories
Employee benefit plans Payroll-related obligations
Accrued warranties
Other
Gross deferred tax assets Less valuation allowance Deferred tax assets, net Deferred tax liabilities: Property, plant and equipment
501.7
516.0
(21.4)
(17.9)
480.3
498.1
(144.5) (77.7) (82.8) (305.0)
(111.3) (76.1) (78.6) (266.0)
Intangible assets
Other
Deferred tax liabilities Net deferred tax asset
$
175.3 $
232.1
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted in the United States. The OBBBA includes provisions to expense previously deferred domestic research and development costs, increase bonus depreciation and modify the international tax framework. The changes to the deferred taxes for "research and development" and "property, plant, and equipment" reflect the impacts resulting from OBBBA. The net deferred tax asset is classified in the Consolidated Balance Sheets as follows (in millions): December 31, 2025 2024 Non-current net deferred tax asset $ 201.0 $ 259.0 Non-current net deferred tax liability (25.7) (26.9) Net deferred tax asset $ 175.3 $ 232.1 As of December 31, 2025, the Company had $26.4 million of net operating loss carryforwards available to reduce future taxable income of certain foreign subsidiaries in countries which allow such losses to be carried forward anywhere from five years to an unlimited period. In addition, the Company had $156.0 million of state net operating loss carryforwards, which can be carried forward anywhere from fifteen years to an unlimited period and state credit carryforwards of $35.0 million, which are subject to expiration in 2029 to 2039. Deferred tax assets for foreign net operating loss carryforwards, state net operating loss carryforwards, state tax credit carryforwards and foreign tax credit carryforwards were $6.7 million, $7.9 million, $22.5 million and $15.1 million, respectively, as of December 31, 2025. Amounts are reviewed for recoverability based on historical taxable income, the expected reversals of existing temporary differences, tax-planning strategies and projections of future taxable income. The Company maintains valuation allowances against domestic deferred tax assets, state tax credit carryforwards, foreign net deferred tax assets, including net operating losses, and foreign tax credit deferred tax assets of $2.4 million, $0.2 million, $7.1 million and $11.7 million, respectively, as of December 31, 2025.
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