Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 11 – Income Taxes We recognized a tax expense of $46 million and $56 million for the three and six months ended June 30, 2025, respectively, compared to three and six months ended June 30, 2024 where we recognized a tax expense of $73 million and $132 million, respectively. Income tax expense was lower in the three and six months ended June 30, 2025 compared to the same periods in 2024 primarily due to decreased earnings before taxes and the recognition of a benefit from previously uncertain tax positions of $26 million recognized in the first quarter of 2025. We calculate our income tax provision using the estimated annual effective tax rate method in accordance with Accounting Standards Codification “ASC” 740 - Income Taxes. The relationship between our pre-tax income or loss and our income tax provision or benefit varies from period to period due to various factors which include changes in total pre-tax income or loss, the jurisdictions in which our income is earned, the tax laws in those jurisdictions and in our operating structure. We provide for income taxes based on the laws and rates in effect in the countries in which operations are conducted, or in which we or our subsidiaries are considered residents for income tax purposes. Our income tax provisions are primarily driven by income in certain jurisdictions and withholding taxes on intercompany and third-party transactions that do not directly correlate to ordinary income or loss. Certain charges and impairments recognized do not result in a significant tax benefit as a result of being attributed to a non-income tax jurisdiction or our inability to forecast realization of the tax benefit of such losses. This is partially offset by the utilization of previously unbenefited deferred tax assets, such as net operating loss carryforwards. We routinely undergo tax examination in various jurisdictions. We cannot predict the timing or outcome regarding resolution of these tax examinations or if they will have a material impact on our financial statements. As of June 30, 2025, we anticipate that it is reasonably possible that our uncertain tax positions of $268 million, including interest and penalties offset by net operating losses and other tax attributes if settled, may decrease by up to $91 million in the next twelve months due to expiration of statutes of limitations, settlements and/or conclusions of tax examinations. On July 4, 2025 the “One Big Beautiful Bill Act” was enacted in the United States. The bill is expected to have an immaterial impact on the Company through tax savings.
|