INCOME TAXES |
9 Months Ended |
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Sep. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES Our effective income tax rate was 27.8% and 25.5% for the three months ended September 30, 2025 and 2024, respectively, and 20.3% and 24.9% for the nine months ended September 30, 2025 and 2024, respectively. The tax rate for the three months ended September 30, 2025 is higher than the U.S. statutory rate primarily due to U.S. and foreign tax law changes, reconciling adjustments to recorded tax account balances, withholding taxes, geographic earnings mix, and state taxes, offset by the use of tax attributes from updating our global structure following the Spin-Off and research and development (“R&D”) benefits. The tax rate for the nine months ended September 30, 2025 is lower than the U.S. statutory rate primarily due to foreign income tax reserve releases for tax years which are no longer subject to an assessment from the local taxing authorities, the use of tax attributes from updating our global structure following the Spin-Off, the remeasurement gain that was recorded due to the NMP acquisition which is not taxable, and R&D benefits, partially offset by withholding taxes, U.S. and foreign tax law changes, geographic earnings mix, reconciling adjustments to recorded tax account balances, and state taxes. The tax rate for the three and nine months ended September 30, 2024 is higher than the U.S. statutory rate primarily due to geographic earnings mix, reconciling adjustments to recorded tax account balances associated with the Spin-Off, withholding taxes, and state taxes, partially offset by R&D benefits. The Company is currently being audited in a number of jurisdictions for the tax years 2004-2024, including China, France, Germany, India, Japan, Norway, the United Kingdom, and the United States. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into U.S. law, which includes significant changes to the federal income tax system. The Company has recorded the OBBBA tax impacts in our provision for income taxes for the three and nine months ended September 30, 2025, none of which are material to our financial statements.
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