Income Taxes |
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| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes | Note 9 – Income Taxes Income tax expense consists of the following:
The Company’s effective income tax rate was 30.8% and 30.2% for the three and six months ended June 30, 2026, respectively, compared with the U.S. federal statutory income tax rate of 21%. The higher effective tax rates were primarily attributable to losses incurred in certain jurisdictions for which no tax benefit was recognized, the geographic mix of earnings among the jurisdictions in which the Company operates, and the impact of the Organization for Economic Co-operation and Development (OECD) Pillar Two Global Minimum Tax. These impacts were partially offset by tax incentives available in certain foreign jurisdictions.
The Company's effective income tax rate was 94.1% and 81.5% for the three and six months ended June 30, 2025, respectively, and differed from the U.S. federal statutory income tax rate of 21% primarily due to a discrete tax expense related to foreign withholding taxes on repatriated dividends and the recognition of deferred tax liabilities associated with unremitted earnings in China, as well as losses incurred in jurisdictions for which no tax benefit was recognized. The Company has been granted certain tax incentives, including tax holidays, for its subsidiaries in Thailand and China. These incentives expire at various dates, unless extended, renewed, or otherwise modified, and are subject to certain conditions with which the Company expects to remain in compliance. Tax incentives in Thailand expire at various dates through December 31, 2031. In the fourth quarter of 2024, the Company was granted a tax incentive in China that applies retroactively from January 1, 2024 through December 31, 2026 and reduces the statutory tax rate from 25% to 15%. The net impact of these tax incentives reduced foreign income tax expense by approximately $2.8 million (approximately $0.08 per diluted share) and $3.0 million (approximately $0.08 per diluted share) for the six months ended June 30, 2026 and 2025, respectively. A summary of the Company’s tax incentives follows:
Determining the consolidated income tax expense, income tax liabilities and deferred tax assets and liabilities involves judgment. The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates, which requires estimating current tax exposures and making judgments regarding the recoverability of deferred tax assets in each jurisdiction. Actual results may differ from these estimates, which could have a significant impact on operating results in future periods. |
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