POLAND RESEARCH AND DEVELOPMENT INCENTIVES

12 Months Ended

Dec. 31, 2024

Research and Development Expense [Abstract]

POLAND RESEARCH AND DEVELOPMENT INCENTIVES

POLAND RESEARCH AND DEVELOPMENT INCENTIVES

During the third quarter of 2024, the Company determined it was eligible for research and development (“R&D”) tax relief in Poland which allows the Company to reduce its tax base through bonus deductions for specific costs, such as salaries and social security contributions for employees working on R&D projects. The Company is able to utilize the tax relief by first offsetting its corporate income tax liability and then, to the extent the tax relief exceeds its corporate income tax liability, reducing future remittances of personal income tax withholding for qualified employees.

During the year ended December 31, 2024, the Company determined it was probable it would receive government incentives of $23.5 million related to R&D activities completed during the year ended December 31, 2023 and $45.4 million related to R&D activities completed during the year ended December 31, 2024, which were recorded as a reduction to Cost of revenues in the consolidated statements of income for the year ended December 31, 2024. As of December 31, 2024, $23.1 million of benefits were included in Prepaid and other current assets and $34.3 million of benefits were included in Other noncurrent assets on the consolidated balance sheet related to the Poland R&D incentive.