Income Tax |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Tax | Income Tax The effective tax rate for the three and six months ended June 30, 2026 was 74.7% and 43.7%, respectively, compared to 9.0% and 10.0% for the corresponding periods in 2025. The effective tax rate for the current year periods exceeded the applicable statutory corporate income tax rate of 37.5%, primarily driven by discrete tax items, including taxes associated with a dividend distribution from a foreign subsidiary as part of the Company’s capital allocation and funding strategy used to partially fund the acquisition of Dimensa, as well as a valuation allowance recorded against capital losses generated by impairment charges related to the Company's strategic decision to exit an Investment in equity investee as described in Note 3 - Investment in Equity Investees. The increase in the effective tax rate for the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025 is also attributable to the geographic mix of taxable income, including a larger proportion of earnings generated in higher tax rate foreign jurisdictions, compared to Puerto Rico. The Organization for Economic Co-operation and Development Inclusive Framework on Base Erosion and Profit Shifting Pillar Two Model Rules (“Pillar Two”) for a global minimum tax were effective for the Company beginning January 1, 2026. Many countries have enacted certain aspects of the Pillar Two framework. Entities operating in countries where Pillar Two has been enacted are required to estimate Pillar Two top-up tax obligations, as applicable. For the three and six months ended June 30, 2026, the Company did not estimate material Pillar Two top-up tax obligations impacting the Company’s estimated annual effective tax rate. The Company will continue to evaluate the impact of proposed and enacted Pillar Two legislation based on its results and in particular the application of the qualified domestic minimum tax in Brazil.
|