INCOME TAXES |
6 Months Ended |
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Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES Our effective income tax rate was 18.4% and 24.7% for the three months ended June 30, 2025 and 2024, respectively, and 16.6% and 24.5% for the six months ended June 30, 2025 and 2024, respectively. The tax rate for the three months ended June 30, 2025 is lower than the U.S. statutory rate primarily due to the use of tax attributes from updating our global structure following the Spin-Off and research and development (“R&D”) benefits, partially offset by withholding taxes, geographic earnings mix, and state taxes. The tax rate for the six months ended June 30, 2025 is lower than the U.S. statutory rate primarily due to the release of income tax reserves in a foreign jurisdiction 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, geographic earnings mix, and state taxes. The tax rate for the three and six months ended June 30, 2024 is higher than the U.S. statutory rate primarily due to withholding taxes, geographic earnings mix, and state taxes, partially offset by R&D benefits. The Company is currently being audited in a number of jurisdictions for tax years 2004-2023, including China, France, Germany, India, Japan, Norway, the United Kingdom, and the United States. On July 4, 2025, the President signed into law the One Big Beautiful Bill Act (“OBBBA”), which includes significant changes to the U.S. federal income tax system. The Company has evaluated the income tax impact of the OBBBA on its financial statements. As the OBBBA was enacted after the end of the Company’s reporting period but before the issuance of these financial statements, the Company has not recorded any adjustments related to the OBBBA in the period ended June 30, 2025. The Company does not expect that the OBBBA will have a material impact on our income taxes within our financial statements.
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