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INCOME TAXES
 9 Months Ended
Sep. 30, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Our effective income tax rates for the nine months ended September 30, 2026 and 2025 are as follows:
Nine Months Ended
September 30,
20262025
Effective Tax Rate25.1 %25.3 %
The lower effective tax rate for the nine months ended September 30, 2026 was primarily due the release of unrecognized tax benefits resulting from ongoing discussions with tax authorities in jurisdictions where we have open audits, which was partially offset by the $76 million of pre-tax merger and acquisition-related costs, primarily driven by the proposed Merger with AkzoNobel, for which only a $1 million tax benefit was recognized related to these costs.
The effective tax rate for the nine months ended September 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.