INCOME TAXES |
6 Months Ended |
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Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | The effective tax rate for the three months ended June 30, 2026 and 2025 was 22.9% and 26.1%, respectively. For the three months ended June 30, 2026 and 2025, the effective tax rate reflects discrete income tax benefits of $14.7 million and $0.3 million, respectively, resulting from the exercise of stock-based awards. These discrete income tax benefits reduced the effective tax rates in the respective periods by approximately 5.4 and 0.1 percentage points. The effective tax rate for the six months ended June 30, 2026 and 2025 was 22.5% and 25.0%, respectively. For the six months ended June 30, 2026 and 2025, the effective tax rates reflect discrete income tax benefits of $22.5 million and $5.0 million, respectively, resulting from the exercise and vesting of stock-based awards. These discrete income tax benefits reduced the effective tax rates in the respective periods by approximately 4.8 and 1.3 percentage points. During the six months ended June 30, 2026 and 2025, the Company purchased $54.9 million and $54.4 million, respectively, of transferable clean energy tax credits to reduce its U.S. federal income tax liability. The Company has taken appropriate measures to mitigate the transferee liability associated with these tax credits, including, but not limited to, conducting due diligence to confirm the eligibility of the underlying projects or production, as applicable, for the tax credits and the eligibility of the tax credits for transfer, obtaining appropriate contractual protections from the sellers, and obtaining tax credit insurance and/or seller guarantees. The effective tax rate, excluding discrete income tax benefits, differs from the federal statutory income tax rate due primarily to state income taxes, nondeductible expenses, and the tax impact of international operations. There have been no material adjustments to the Company's assessment of uncertain tax positions since December 31, 2025. In October 2021, one of the Company’s Mexican affiliates received a tax assessment from the Mexican tax authorities related to its 2012 income tax return which was approximately $33.4 million as of December 31, 2025. The Company believed the assessment was without merit and the Company's Mexican affiliate filed an annulment lawsuit in the Mexican Federal Court of Administrative Justice (the “Court”). The Company expected to prevail in this litigation and, accordingly, did not recognize a liability for this assessment in its Consolidated Financial Statements. On April 23, 2026, the Company received the written decision of the Court, which was a split finding, mostly in favor of the government. Both parties filed appeals with the Mexican Federal Collegiate Circuit Court. The Company maintains that it ultimately expects to prevail upon final resolution of the matter.
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