Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 13. Income Taxes The effective tax rate for the three and six months ended June 30, 2025 was 144.8% and 20.5%, respectively. For the three months ended June 30, 2025, the effective tax rate was primarily impacted by (i) tax expense associated with an increase in unrecognized tax benefits of $13 million, (ii) losses during the period that have not been recognized due to uncertainty regarding their future realization, and (iii) certain non-deductible expenses and other non-recurring items. 13. Income Taxes - continued For the six months ended June 30, 2025, the effective tax rate was primarily impacted by (i) the tax benefit associated with the resolution of $72 million of unrecognized tax benefits (due to the lapse of the statute of limitations), along with the release of $24 million of accrued interest and penalties associated with the unrecognized tax benefits, (ii) tax expense associated with an increase in unrecognized tax benefits of $13 million, (iii) losses during the period that have not been recognized due to uncertainty regarding their future realization, (iv) the geographical mix of where earnings are generated, and (v) certain non-deductible expenses and other non- recurring items. The effective tax rate for the three and six months ended June 30, 2024 was 29.4% and 28.9%, respectively. The effective tax rates were impacted by (i) the geographical mix of income in jurisdictions subject to tax at different tax rates, (ii) the tax effects of transaction expenses associated with the Combination, which were generally not deductible for tax, partially offset by (iii) non- recurring income not subject to tax, (iv) a reduction in tax on unremitted foreign earnings, and (v) other non-recurring items. During the six months ended June 30, 2025 and June 30, 2024, cash paid for income taxes, net of refunds, was $210 million and $79 million, respectively. On July 4, 2025, U.S. tax legislation was enacted that included a broad range of tax reform provisions affecting businesses, including extending and modifying certain existing international and domestic provisions. The Company is currently evaluating the impact of the new legislation but does not expect it will have a material impact on its results of operations.
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