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Income Tax
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block] INCOME TAX
The effective tax rate on pre-tax income for the three and nine months ended September 30, 2025, was 20.3% and 29.7%, respectively. The tax rate for the three months ended September 30, 2025, was lower than the U.S. statutory rate primarily due to the jurisdictional mix of earnings and the U.S. tax benefits received from taxes paid in foreign jurisdictions. The tax rate for the nine months ended September 30, 2025, was higher than the U.S. statutory rate primarily due to tax expense related to legal entity restructuring, the establishment of a valuation allowance on foreign tax credit carryforwards, as well as income earned in foreign jurisdictions with statutory rates higher than in the U.S. These increases were partially offset with benefits received from tax credits generated during the year. The effective tax rate on pre-tax income for the three and nine months ended September 30, 2024, was 26.7% and 24.2%, respectively. The tax rate was higher than the U.S. statutory rate primarily due to adjustments related to tax returns filed during the quarter as well as U.S. taxation of foreign profits. These increases were partially offset with benefits due to differences of tax basis in foreign jurisdictions and adjustments to the valuation allowance.
The One Big Beautiful Bill Act was enacted on July 4, 2025. The impact of such legislation on the Company was immaterial for the three months ended September 30, 2025.
The Organization for Economic Cooperation and Development developed Model Global Anti-Base Erosion rules establishing a Global Minimum Tax to ensure that multinational enterprises with consolidated revenue of more than EUR 750 million pay an effective tax rate of at least 15% on income arising in each jurisdiction in which they operate. As of September 30, 2025, many of the jurisdictions in which the Company operates enacted legislation under those rules, with an effective date of January 1, 2024 or January 1, 2025. The tax impact of such legislation on the Company was immaterial for the nine months ended September 30, 2025.
The Inflation Reduction Act of 2022 was enacted in 2022. For tax years ending after December 31, 2022, the Act imposes a 15% minimum tax on adjusted financial statement income for “applicable corporations” with average financial statement income over $1 billion for the previous 3-year period ending in 2022 or after. Based on the current guidance, the Company is not an applicable corporation under the Act for 2025. The Act also imposes a 1% excise tax on stock buybacks of publicly traded corporations. The Act is not expected to have a material impact to the Company’s tax expense.
Bermuda enacted the Corporate Income Tax Act of 2023 on December 27, 2023. The Bermuda corporate income tax regime establishes a statutory tax rate of 15% and is applicable to multinational companies with annual revenue of EUR 750 million or more. The corporate income tax regime is effective for fiscal years beginning on or after January 1, 2025. The tax impact of Bermuda’s corporate income tax regime on the Company was immaterial for the nine months ended September 30, 2025.