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INCOME TAXES
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Our effective income tax rates for the six months ended June 30, 2026 and 2025 are as follows:
Six Months Ended
June 30,
20262025
Effective Tax Rate24.7 %23.2 %
The higher effective tax rate for the six months ended June 30, 2026 was primarily due to the unfavorable impact of foreign currency exchange losses in 2026. Also during 2026, the release of unrecognized tax benefits resulting from ongoing discussions with tax authorities in jurisdictions where we have open audits was partially offset by the $57 million of pre-tax merger and acquisition-related costs, primarily driven by the proposed Merger with AkzoNobel, for which no corresponding tax benefit was recognized.
The effective tax rate for the six months ended June 30, 2026 differs from the Bermuda statutory rate due to various items that impacted the effective rate both favorably and unfavorably, including net unfavorable impacts for increases in unrecognized tax benefits resulting from ongoing discussions with tax authorities in jurisdictions where we have open audits, non-deductible merger and acquisition-related costs and foreign taxes. These adjustments were primarily offset by favorable impacts for changes in the valuation allowance.