v3.25.1
INCOME TAXES
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The following table presents the components of our income tax provision (benefit) and effective tax rate:

 Three months ended
March 31,
 20252024
(in millions)
Income (loss) before income taxes
$162 $(19)
Current income tax provision12 — 
Deferred income tax provision (benefit)
35 (9)
Income tax provision (benefit)
$47 $(9)
Effective tax rate
29 %47 %
Our income tax provision or benefit for interim periods is determined by applying an estimated annual effective tax rate to income (loss) before income taxes with the result adjusted for discrete items, if any, in the relevant period. A reconciliation of the U.S. federal statutory tax rate to our effective tax rate, including discrete items, for the three months ended March 31, 2025 and 2024 is shown below:

Three months ended March 31,
20252024
PercentAmountPercentAmount
U.S federal statutory tax rate
21 %$34 21 %$(4)
State income taxes, net of federal income tax effect(a)
7 127 (1)
Other
1 1 3 (1)
Annual effective tax rate
29 %$47 31 %$(6)
Discrete items recognized in the period:
Stock-based compensation and other
— — 16 (3)
Effective tax rate
29 %$47 47 %$(9)
(a)State and local income taxes are predominantly in California.

During the three months ended March 31, 2024, we recognized an income tax benefit related to the settlement of certain equity-settled stock-based compensation awards, which had the effect of increasing our effective tax rate by 16%.