v3.25.1
INCOME TAXES (Tables)
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Differences Between the U.S. Federal Income Tax Rate and the Company's Effective Tax Rate
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 %
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.