GLOBAL PAYMENTS INC

Previous wording

Through our SMB segment, we provide payment, software and related commerce solutions to small and medium-sized businesses (“SMBs”). Our offerings include point-of-sale technologies, business management software and other value-added commerce solutions designed to help our SMB clients operate and grow their businesses.

Current wording

Through our SMB segment, we provide payment, software and related commerce solutions to small and medium-sized businesses. Our offerings include point-of-sale technologies, business management software and other value-added commerce solutions designed to help our SMB clients operate and grow their businesses.

Previous wording

Highlights related to our results of continuing operations for the three and six months ended June 30, 2026 include the following:

Current wording

Highlights related to our results of continuing operations for the three and nine months ended September 30, 2026 include the following:

Previous wording

•Consolidated revenues for the three months ended June 30, 2026 increased to $3,320.8 million compared to $1,969.3 million for the prior year, and for the six months ended June 30, 2026 increased to $6,290.5 million compared to $3,789.6 million for the prior year, primarily due to additional revenues from the acquisition of the Worldpay business. The Worldpay acquisition also contributed to revenue growth across all three reportable segments.

Current wording

•Consolidated revenues for the three months ended September 30, 2026 increased to $3,306.3 million compared to $2,019.5 million for the prior year, and for the nine months ended September 30, 2026 increased to $9,596.8 million compared to $5,809.1 million for the prior year, primarily due to additional revenues from the acquisition of the Worldpay business. The Worldpay acquisition contributed to revenue growth across all three reportable segments.

Previous wording

•Enterprise segment operating income increased for the three and six months ended June 30, 2026 compared to the prior year primarily due to incremental operating income from the Worldpay acquisition.

Current wording

•Enterprise segment operating income increased for the three and nine months ended September 30, 2026 compared to the prior year primarily due to incremental operating income from the Worldpay acquisition.

Previous wording

•Platforms segment operating income for the three and six months ended June 30, 2026 increased compared to the prior year primarily due to incremental operating income from the Worldpay acquisition.

Current wording

•Platforms segment operating income for the three and nine months ended September 30, 2026 increased compared to the prior year primarily due to incremental operating income from the Worldpay acquisition.

Previous wording

•SMB segment operating income for the three and six months ended June 30, 2026 decreased compared to the prior year primarily due to higher amortization expense related to acquired Worldpay intangible assets.

Current wording

•SMB segment operating income for the three and nine months ended September 30, 2026 decreased compared to the prior year primarily due to higher amortization expense related to acquired Worldpay intangible assets.

Previous wording

•Consolidated operating income and operating margin for the three and six months ended June 30, 2026 decreased compared to the prior year primarily due to an increase in amortization expense related to acquired Worldpay intangible assets and higher acquisition and integration expenses. The higher amortization expense also resulted in lower operating margins across all three reportable segments.

Current wording

•Consolidated operating income and operating margin for the three and nine months ended September 30, 2026 decreased compared to the prior year primarily due to an increase in amortization expense related to acquired Worldpay intangible assets and higher acquisition and integration expenses. Consolidated operating income for the three and nine months ended September 30, 2025 also includes the gain recognized on the sale of Heartland Payroll Solutions, Inc ("Payroll Solutions"). The higher amortization expense resulted in lower operating margins across all three reportable segments.

Previous wording

The acquisition of Worldpay and sale of the Issuer Solutions business further catalyzes our transformation agenda. Accordingly, following the closing of those transactions, we have combined all transformation and integration activities into one program.

Current wording

The acquisition of Worldpay and sale of our Issuer Solutions business further catalyzed our transformation agenda. Accordingly, following the closing of those transactions, we have combined all transformation and integration activities into one program.

Previous wording

We currently expect our transformation initiatives to generate more than $650 million of annual run-rate operating income benefit by the first half of 2027 and for our Worldpay integration activities to generate $600 million of annual run-rate expense synergies by year-end 2028.

Current wording

We currently expect our transformation initiatives to generate more than $650 million of annual run-rate operating income benefit by the first half of 2027 and for our Worldpay integration activities to generate $650 million of annual run-rate synergies by year-end 2028.

Previous wording

We operate our business in three segments: Enterprise, Platforms and SMB. We evaluate performance and allocate resources based on segment operating income, which includes externally generated revenues attributable to the segment less expenses directly related to those revenues. Centrally-managed corporate costs, technology and operations costs, share-based compensation expense, corporate bonus costs, impairment of goodwill, gains or losses on business dispositions and other reconciling items are not included in determining segment operating income. For further information about our reportable segments, see “Note 15—Segment Information” in the notes to the accompanying unaudited consolidated financial statements.

Current wording

We operate our business in three segments: Enterprise, Platforms and SMB. We evaluate performance and allocate resources based on segment operating income, which includes externally generated revenues attributable to the segment less expenses directly related to those revenues. The costs of centrally-managed technology, operations, product development and support functions, share-based compensation expense, corporate bonus costs, impairment of goodwill, gains or losses on business dispositions and other reconciling items are not included in determining segment operating income. For further information about our reportable segments, see “Note 15—Segment Information” in the notes to the accompanying unaudited consolidated financial statements.

Previous wording

(3) Other revenues primarily consist of revenues related to certain portfolios and relationships that are non-core and are not aligned to our go forward strategy.

Current wording

(3) Other revenues primarily consist of revenues related to certain portfolios and relationships that are noncore and are not aligned with our go-forward strategy.

Previous wording

(4) Comprised of centrally managed corporate functions, including human resources, finance, legal and compliance. These expenses are included within cost of service and selling, general and administrative expenses.

Current wording

(4) Comprised of centrally managed support functions, including human resources, finance, legal and compliance. These expenses are included within cost of service and selling, general and administrative expenses.

Previous wording

(5) Technology, operations and product development expenses relate to functions managed at the corporate level, which support and benefit the overall business. These expenses are included within cost of service and selling, general and administrative expenses.

Current wording

(5) Technology, operations and product development expenses relate to functions centrally managed, which support and benefit the overall business. These expenses are included within cost of service and selling, general and administrative expenses.

Previous wording

(6) Operating income included acquisition, transformation and transaction expenses of $197.8 million and $133.7 million for the three months ended June 30, 2026 and 2025, respectively, which were primarily included within Corporate and other expenses.

Current wording

(6) Operating income included acquisition, transformation and transaction expenses of $273.7 million and $205.1 million for the three months ended September 30, 2026 and 2025, respectively, which were primarily included within Corporate and other expenses.

Previous wording

The following table sets forth key selected financial data for the six months ended June 30, 2026 and 2025, certain data as a percentage of total revenues and the changes between periods in dollars and as a percentage of the prior period amount. The income statement data for the six months ended June 30, 2026 and 2025 is derived from the accompanying unaudited consolidated financial statements.

Current wording

The following table sets forth key selected financial data for the nine months ended September 30, 2026 and 2025, certain data as a percentage of total revenues and the changes between periods in dollars and as a percentage of the prior period amount. The income statement data for the nine months ended September 30, 2026 and 2025 is derived from the accompanying unaudited consolidated financial statements.

Previous wording

(3) Other revenues primarily consist of revenues related to certain portfolios and relationships that are non-core and are not aligned to our go forward strategy.

Current wording

(3) Other revenues primarily consist of revenues related to certain portfolios and relationships that are noncore and are not aligned with our go-forward strategy.

Previous wording

(4) Comprised of centrally managed corporate functions, including human resources, finance, legal and compliance. These expenses are included within cost of service and selling, general and administrative expenses.

Current wording

(4) Comprised of centrally managed support functions, including human resources, finance, legal and compliance. These expenses are included within cost of service and selling, general and administrative expenses.

Previous wording

(5) Technology, operations and product development expenses relate to functions managed at the corporate level, which support and benefit the overall business. These expenses are included within cost of service and selling, general and administrative expenses.

Current wording

(5) Technology, operations and product development expenses relate to functions centrally managed, which support and benefit the overall business. These expenses are included within cost of service and selling, general and administrative expenses.

Previous wording

(6) Operating income included acquisition, transformation and transaction expenses of $585.1 million and $228.3 million for the six months ended June 30, 2026 and 2025, respectively, which were primarily included within Corporate and other expenses.

Current wording

(6) Operating income included acquisition, transformation and transaction expenses of $858.8 million and $433.4 million for the nine months ended September 30, 2026 and 2025, respectively, which were primarily included within Corporate and other expenses.

Previous wording

Consolidated revenues for the three months ended June 30, 2026 increased by 68.6% from $1,969.3 million in the prior year to $3,320.8 million, and consolidated revenues for the six months ended June 30, 2026 increased by 66.0% from $3,789.6 million in the prior year to $6,290.5 million. The increase in consolidated revenues was primarily driven by the acquisition of the Worldpay business, which contributed approximately $1.4 billion and $2.6 billion in revenue growth for the three and six months ended June 30, 2026, respectively. The remaining change was attributable to the effects of business dispositions in 2025 that were not individually significant.

Current wording

Consolidated revenues for the three months ended September 30, 2026 increased by 63.7% from $2,019.5 million in the prior year to $3,306.3 million, and consolidated revenues for the nine months ended September 30, 2026 increased by 65.2% from $5,809.1 million in the prior year to $9,596.8 million. The increase in consolidated revenues was primarily driven by the acquisition of the Worldpay business, which contributed approximately $1.4 billion and $4.0 billion in revenue growth for the three and nine months ended September 30, 2026, respectively. The remaining change was attributable to the effects of business dispositions in 2025 that were not individually significant.

Previous wording

Enterprise Segment. Revenues from our Enterprise segment for the three months ended June 30, 2026 increased by $689.3 million to $838.3 million from $149.0 million in the prior year. Revenues from our Enterprise segment for the six months ended June 30, 2026 increased by $1,276.2 million to $1,560.7 million from $284.5 million in the prior year.

Current wording

Enterprise Segment. Revenues from our Enterprise segment for the three months ended September 30, 2026 increased by $680.1 million to $836.3 million from $156.2 million in the prior year. Revenues from our Enterprise segment for the nine months ended September 30, 2026 increased by $1,956.3 million to $2,397.0 million from $440.7 million in the prior year.

Previous wording

The higher Enterprise segment revenues resulted from growth in card-not-present activity, which increased $549.5 million and $1,016.6 million for the three and six months ended June 30, 2026, respectively, and growth in card-present activity, which increased $139.7 million and $259.6 million for the three and six months ended June 30, 2026, respectively. The revenue increase in both areas was primarily driven by the inclusion of the acquired Worldpay operations.

Current wording

The higher Enterprise segment revenues resulted from growth in card-not-present activity, which increased $538.8 million and $1,555.4 million for the three and nine months ended September 30, 2026, respectively, and growth in card-present activity, which increased $141.3 million and $400.9 million for the three and nine months ended September 30, 2026, respectively. The revenue increase in both areas was primarily driven by the inclusion of the acquired Worldpay operations.

Previous wording

The higher Platforms segment revenues resulted from growth in the embedded payments service line, which increased $145.6 million and $272.4 million for the three and six months ended June 30, 2026, respectively, and growth in the integrated partners service line, which increased $219.4 million and $386.6 million for the three and six months ended June 30, 2026, respectively. The revenue increase in both service lines was primarily driven by the inclusion of the acquired Worldpay operations.

Current wording

The higher Platforms segment revenues resulted from growth in the embedded payments service line, which increased $135.6 million and $408.0 million for the three and nine months ended September 30, 2026, respectively, and growth in the integrated partners service line, which increased $213.3 million and $599.8 million for the three and nine months ended September 30, 2026, respectively. The revenue increase in both service lines was primarily driven by the inclusion of the acquired Worldpay operations.

Previous wording

The higher SMB segment revenues resulted from growth in the Americas, which increased $183.1 million and $332.7 million for the three and six months ended June 30, 2026, respectively, and growth in the rest of the world, which increased $132.4 million and $272.6 million for the three and six months ended June 30, 2026, respectively. The revenue increase in both geographies was primarily driven by the inclusion of the acquired Worldpay operations.

Current wording

The higher SMB segment revenues resulted from growth in the Americas, which increased $181.1 million and $513.8 million for the three and nine months ended September 30, 2026, respectively, and growth in the rest of the world, which increased $111.9 million and $384.5 million for the three and nine months ended September 30, 2026, respectively. The revenue increase in both geographies was primarily driven by the inclusion of the acquired Worldpay operations.

Previous wording

Other Revenues. Other revenues for the three months ended June 30, 2026 decreased by $18.3 million, or 9.2%, to $180.8 million from $199.1 million in the prior year. Other revenues for the six months ended June 30, 2026 decreased by $39.6 million, or 10.0%, to $356.6 million from $396.2 million in the prior year. The decrease in other revenues was primarily driven by attrition on non-core portfolios and relationships.

Current wording

Other Revenues. Other revenues for the three months ended September 30, 2026 decreased by $35.2 million, or 17.0%, to $172.5 million from $207.7 million in the prior year. Other revenues for the nine months ended September 30, 2026 decreased by $74.8 million, or 12.4%, to $529.2 million from $603.9 million in the prior year. The decrease in other revenues was primarily driven by attrition on noncore portfolios and the exit of certain nonstrategic relationships.

Previous wording

Cost of Service. Cost of service for the three months ended June 30, 2026 increased by $792.1 million, or 157.9%, to $1,293.9 million from $501.8 million in the prior year, and cost of service for the six months ended June 30, 2026 increased by $1,570.5 million, or 157.5%, to $2,567.5 million from $996.9 million in the prior year, primarily due to additional costs from the acquisition of the Worldpay business. Cost of service as a percentage of revenues increased to 39.0% for the three months ended June 30, 2026 from 25.5% in the prior year, and increased to 40.8% for the six months ended June 30, 2026 from 26.3% in the prior year. For the three months ended June 30, 2026, the Worldpay acquisition had the effect of increasing cost of service by approximately $732.4 million and cost of service as a percentage of revenue by 9.7%. For the six months ended June 30, 2026, the Worldpay acquisition had the effect of increasing cost of service by approximately $1,496.5 million and cost of service as a percentage of revenue by 11.7%.

Current wording

Cost of Service. Cost of service for the three months ended September 30, 2026 increased by $737.6 million, or 131.9%, to $1,296.7 million from $559.1 million in the prior year, and cost of service for the nine months ended September 30, 2026 increased by $2,308.2 million, or 148.3%, to $3,864.2 million from $1,556.0 million in the prior year, primarily due to additional costs from the acquisition of the Worldpay business. Cost of service as a percentage of revenues increased to 39.2% for the three months ended September 30, 2026 from 27.7% in the prior year, and increased to 40.3% for the nine months ended September 30, 2026 from 26.8% in the prior year. For the three months ended September 30, 2026, the Worldpay acquisition had the effect of increasing cost of service by approximately $759.3 million and cost of service as a percentage of revenue by 11.7%. For the nine months ended September 30, 2026, the Worldpay acquisition had the effect of increasing cost of service by approximately $2,265.3 million and cost of service as a percentage of revenue by 11.8%.

Previous wording

Amortization of Acquired Intangible Assets. The most significant component of our cost of service is amortization of acquired intangible assets, which was $757.6 million and $200.7 million, or approximately 59% and 40% of cost of service, for the three months ended June 30, 2026 and 2025, respectively. For the six months ended June 30, 2026 and 2025, amortization of acquired intangible assets was $1,504.7 million and $397.9 million, or approximately 59% and 40% of cost of service, respectively. The increase in amortization of acquired intangible assets for the three and six months ended June 30, 2026 compared to the prior year was due to a higher intangible asset base from intangible assets acquired with the Worldpay acquisition.

Current wording

Amortization of Acquired Intangible Assets. The most significant component of our cost of service is amortization of acquired intangible assets, which was $754.4 million and $208.6 million, or approximately 58% and 37% of cost of service, for the three months ended September 30, 2026 and 2025, respectively. For the nine months ended September 30, 2026 and 2025, amortization of acquired intangible assets was $2,259.1 million and $606.4 million, or approximately 58% and 39% of cost of service, respectively. The increase in amortization of acquired intangible assets for the three and nine months ended September 30, 2026 compared to the prior year was due to a higher intangible asset base from intangible assets acquired with the Worldpay acquisition.

Previous wording

Selling, General and Administrative Expense. Selling, general and administrative expense for the three months ended June 30, 2026 increased by $648.5 million, or 62.3%, to $1,689.8 million from $1,041.3 million in the prior year, and selling, general and administrative expense for the six months ended June 30, 2026 increased by $1,403.1 million, or 70.2%, to $3,401.5 million from $1,998.4 million in the prior year, primarily due to additional costs from the acquisition of the Worldpay business. Selling, general and administrative expense as a percentage of segment revenues was 50.9% and 52.9% for the three months ended June 30, 2026 and 2025, respectively, and 54.1% and 52.7% for the six months ended June 30, 2026 and 2025, respectively. For the three and six months ended June 30, 2026, the Worldpay acquisition had the effect of increasing selling, general and administrative expense by approximately $792.9 million and $1,528.7 million, respectively.

Current wording

Selling, General and Administrative Expense. Selling, general and administrative expense for the three months ended September 30, 2026 increased by $733.1 million, or 71.2%, to $1,763.4 million from $1,030.3 million in the prior year, and selling, general and administrative expense for the nine months ended September 30, 2026 increased by $2,136.1 million, or 70.5%, to $5,164.9 million from $3,028.7 million in the prior year, primarily due to additional costs from the acquisition of the Worldpay business. Selling, general and administrative expense as a percentage of revenues was 53.3% and 51.0% for the three months ended September 30, 2026 and 2025, respectively, and 53.8% and 52.1% for the nine months ended September 30, 2026 and 2025, respectively. For the three and nine months ended September 30, 2026, the Worldpay acquisition had the effect of increasing selling, general and administrative expense by approximately $737.7 million and $2,238.6 million, respectively.

Previous wording

Corporate and Other Expenses. Corporate and other expenses for the three months ended June 30, 2026 increased by $53.2 million, or 13.4%, to $450.0 million from $396.7 million in the prior year, and corporate and other expenses for the six months ended June 30, 2026 increased by $359.8 million, or 49.0%, to $1,093.6 million from $733.8 million in the prior year, primarily driven by the acquisition of the Worldpay business and higher acquisition and integration expenses.

Current wording

Corporate and Other Expenses. Corporate and other expenses for the three months ended September 30, 2026 increased by $230.8 million, or 61.9%, to $603.6 million from $372.7 million in the prior year, and corporate and other expenses for the nine months ended September 30, 2026 increased by $590.6 million, or 53.4%, to $1,697.1 million from $1,106.5 million in the prior year, primarily driven by the acquisition of the Worldpay business and higher acquisition and integration expenses.

Previous wording

Technology, Operations and Product Development Expenses. Technology, operations and product development expenses for the three months ended June 30, 2026 increased by $212.7 million, or 85.2%, to $462.5 million from $249.8 million in the prior year, and technology, operations and product development expenses for the six months ended June 30, 2026 increased by $380.0 million, or 74.3%, to $891.1 million from $511.1 million in the prior year, primarily driven by the acquisition of the Worldpay business.

Current wording

Technology, Operations and Product Development Expenses. Technology, operations and product development expenses for the three months ended September 30, 2026 increased by $172.1 million, or 65.9%, to $433.1 million from $261.1 million in the prior year, and technology, operations and product development expenses for the nine months ended September 30, 2026 increased by $552.1 million, or 71.5%, to $1,324.3 million from $772.2 million in the prior year, primarily driven by the acquisition of the Worldpay business.

Previous wording

Consolidated operating income for the three and six months ended June 30, 2026 was $337.1 million and $321.5 million, respectively, compared to $393.3 million and $765.3 million, respectively, for the prior year. Operating margin for the three and six months ended June 30, 2026 was 10.2% and 5.1%, respectively, compared to 20.0% and 20.2%, respectively, for the prior year.

Current wording

Consolidated operating income for the three and nine months ended September 30, 2026 was $246.2 million and $567.7 million, respectively, compared to $774.0 million and $1,539.3 million, respectively, for the prior year. Operating margin for the three and nine months ended September 30, 2026 was 7.4% and 5.9%, respectively, compared to 38.3% and 26.5%, respectively, for the prior year.

Previous wording

•Enterprise segment operating income increased $163.3 million, reflecting incremental operating income from the Worldpay acquisition. Enterprise operating margin decreased 27.1% due to higher amortization expense related to acquired Worldpay intangible assets;

Current wording

•Enterprise segment operating income increased $189.1 million, reflecting incremental operating income from the Worldpay acquisition. Enterprise operating margin decreased 23.3 percentage points due to higher amortization expense related to acquired Worldpay intangible assets;

Previous wording

•Platforms segment operating income increased $72.5 million, reflecting incremental operating income from the Worldpay acquisition. Platforms operating margin decreased 12.3% due to higher amortization expense related to acquired Worldpay intangible assets; and

Current wording

•Platforms segment operating income increased $88.3 million, reflecting incremental operating income from the Worldpay acquisition. Platforms operating margin decreased 7.0 percentage points due to higher amortization expense related to acquired Worldpay intangible assets; and

Previous wording

•Enterprise segment operating income increased $254.3 million, reflecting incremental operating income from the Worldpay acquisition. Enterprise operating margin decreased 28.2% due to higher amortization expense related to acquired Worldpay intangible assets;

Current wording

•Enterprise segment operating income increased $443.4 million, reflecting incremental operating income from the Worldpay acquisition. Enterprise operating margin decreased 26.6 percentage points due to higher amortization expense related to acquired Worldpay intangible assets;

Previous wording

•Platforms segment operating income increased $124.3 million, reflecting incremental operating income from the Worldpay acquisition. Platforms operating margin decreased 12.4% due to higher amortization expense related to acquired Worldpay intangible assets; and

Current wording

•Platforms segment operating income increased $212.6 million, reflecting incremental operating income from the Worldpay acquisition. Platforms operating margin decreased 10.6 percentage points due to higher amortization expense related to acquired Worldpay intangible assets; and

Previous wording

Interest and other income for the three months ended June 30, 2026 increased $9.2 million to $44.7 million, compared to $35.5 million for the prior year, and increased $4.6 million for the six months ended June 30, 2026 to $78.2 million, compared to $73.6 million for the prior year, primarily due to the acquisition of the Worldpay business.

Current wording

Interest and other income for the three months ended September 30, 2026 increased $12.6 million to $34.1 million, compared to $21.5 million for the prior year, and increased $17.3 million for the nine months ended September 30, 2026 to $112.3 million, compared to $95.0 million for the prior year, primarily due to the acquisition of the Worldpay business.

Previous wording

Interest and other expense for the three months ended June 30, 2026 increased $125.0 million to $277.5 million, compared to $152.5 million for the prior year, and increased $218.8 million for the six months ended June 30, 2026 to $519.9 million, compared to $301.1 million for the prior year, primarily due to an increase in our average outstanding borrowings associated with the Worldpay acquisition and higher average interest rates from recent debt refinancing in the first half of 2026.

Current wording

Interest and other expense for the three months ended September 30, 2026 increased $132.1 million to $276.2 million, compared to $144.1 million for the prior year, and increased $351.0 million for the nine months ended September 30, 2026 to $796.1 million, compared to $445.1 million for the prior year, primarily due to an increase in our average outstanding borrowings associated with the Worldpay acquisition and higher average interest rates from recent debt refinancing in the first half of 2026.

Previous wording

Our effective income tax rates for the three months ended June 30, 2026 and 2025 were (4.7)% and 14.8%, respectively. Our effective income tax rates for the six months ended June 30, 2026 and 2025 were 13.9% and 15.7%, respectively. The decrease in the effective income tax rate was primarily due to the jurisdictional mixture of income (loss) from continuing operations before income taxes and related tax effects of tax credits, foreign branch operations and other earnings outside the U.S. These permanent differences, applied against lower income before income taxes, resulted in a decrease to the effective income tax rate.

Current wording

We recognized an income tax benefit for the three and nine months ended September 30, 2026 of $66.7 million and $83.5 million, respectively, compared to income tax expense for the three and nine months ended September 30, 2025 of $199.5 million and $288.7 million, respectively. The change in income tax expense (benefit) was primarily due to lower earnings from continuing operations before income taxes and related tax effects of tax credits, foreign branch operations and other earnings outside the U.S.

Previous wording

Various foreign taxing jurisdictions enacted local legislation formally adopting the Global Anti-Base Erosion Model Rules ("Pillar Two"), which generally provides for a minimum effective tax rate of 15%, as established by the Organization for Economic Co-operation and Development ("OECD") Pillar Two Framework. The Group of Seven (G7) countries have agreed that U.S. Multi-National Entities (“MNEs”) should be excluded from certain aspects of the Pillar Two global minimum tax rules in exchange for the U.S. not imposing retaliatory taxes. On January 5, 2026, the OECD released additional guidance and announced the Side-by-Side package which introduces simplifications and new safe harbors for U.S. MNEs.

Current wording

Various foreign taxing jurisdictions enacted local legislation formally adopting the Global Anti-Base Erosion Model Rules ("Pillar Two"), which generally provides for a minimum effective income tax rate of 15%, as established by the Organization for Economic Co-operation and Development ("OECD") Pillar Two Framework. The Group of Seven (G7) countries have agreed that U.S. Multi-National Entities (“MNEs”) should be excluded from certain aspects of the Pillar Two global minimum tax rules in exchange for the U.S. not imposing retaliatory taxes. On January 5, 2026, the OECD released additional guidance and announced the Side-by-Side package which introduces simplifications and new safe harbors for U.S. MNEs.

Previous wording

The OBBBA and Pillar Two directive did not have a material effect on our financial statements for the three and six months ended June 30, 2026, and we are continuing to evaluate the potential effect on future periods.

Current wording

The OBBBA and Pillar Two directive did not have a material effect on our financial statements for the three and nine months ended September 30, 2026, and we are continuing to evaluate the potential effect on future periods.