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Income Taxes
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 19 – Income Taxes

 

The Company’s tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items. The Company’s reported effective income tax rate was 3.5% and 18.2% for the three months ended March 31, 2025 and 2024, respectively. The effective tax rate of 3.5% for the three months ended March 31, 2025 is lower than the effective tax rate for the three months ended March 31, 2024 primarily driven by an increase in United States forecasted earnings with limited resulting United States tax expense due to the United States valuation allowance.

 

The effective tax rate of 3.5% varies from the United States statutory tax rate of 21% primarily due to a full valuation allowance in the United States, partially offset by earnings from international jurisdictions and permanent differences, predominantly in Mexico, taxed at a higher tax rate. This pre-tax income compared to the overall tax expense, mostly from Mexico operations and Mexico nondeductible expenses, results in a positive year to date effective tax rate. The effective tax rate for the first quarter of 2024 was lower than the 21% United States statutory tax rate primarily due to earnings from international jurisdictions and permanent differences and discrete events, predominantly in Mexico, taxed at higher tax rates and a full valuation allowance in the United States.