INCOME TAXES |
6 Months Ended |
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Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES Our effective income tax rate was 15% and 8% for the three months ended June 30, 2026 and 2025, respectively, and 22% and (43)% for the six months ended June 30, 2026 and 2025, respectively. Our effective income tax rate can differ from the 21% U.S. federal statutory rate due to a number of factors, including foreign rate differences, tax incentives, non-deductible expenses, non-taxable income, increases or decreases in valuation allowances, increases or decreases in liabilities for uncertain tax positions, and excess tax benefits or shortfalls on stock compensation awards. For the three months ended June 30, 2026, the difference between our effective income tax rate and the U.S. federal statutory rate was primarily driven by global earnings mix, partially offset by increases to our valuation allowance on U.S. deferred tax assets and tax shortfalls on stock compensation awards. For the six months ended June 30, 2026, the difference between our effective income tax rate and the U.S. federal statutory rate was primarily driven by global earnings mix, partially offset by increases to our valuation allowance on U.S. deferred tax assets and tax shortfalls on stock compensation awards. For the three months ended June 30, 2025, the difference between our effective income tax rate and the U.S. federal statutory rate was primarily driven by our global earnings mix. For the six months ended June 30, 2025, the difference between our effective income tax rate and the U.S. federal statutory rate was primarily driven by a tax benefit driven by an entity classification election that we made for U.S. tax purposes, which resulted in a capital loss. In the first quarter of 2026, we received a Notice of Proposed Adjustment (NOPA) from the Internal Revenue Service (IRS) for examination related to transfer pricing matters related to transactions with our manufacturing operations in Costa Rica and Puerto Rico for the 2019 and 2020 tax years. In the second quarter of 2026, we settled the examination by the IRS related to these matters for amounts materially consistent with our existing and previously disclosed uncertain tax position reserves. The previously disclosed uncertain tax position reserves for tax years 2021 through 2025 were not adjusted as a result of the aforementioned IRS settlement for 2019 and 2020 tax years.
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