v3.25.3
Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
Note 5. Income Taxes
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025202420252024
(Dollars in millions)
Tax expense$25 $24 $63 $62 
Effective tax rate24.5 %31.6 %21.8 %25.4 %

The effective tax rates for the three months ended September 30, 2025 and 2024 were 24.5% and 31.6%, respectively. The effective tax rates for the nine months ended September 30, 2025 and 2024 were 21.8% and 25.4%, respectively.

The change in the effective tax rate for the three months ended September 30, 2025 compared to the prior period is primarily related to a decrease in U.S. taxes on international operations and the global mix of earnings.

The change in the effective tax rate for the nine months ended September 30, 2025 compared to the prior period is primarily related to a one-time benefit attributable to the revaluation of deferred tax assets in China.

The effective tax rate for the three months ended September 30, 2025 was higher than the U.S. federal statutory rate of 21% primarily because of U.S. taxes on international operations partially offset by lower taxes on non-U.S. earnings and global research and development benefits.

The effective tax rate for the nine months ended September 30, 2025 was higher than the U.S. federal statutory rate of 21% primarily because of U.S. taxes on international operations. This increase was partially offset by a one-time benefit attributable to the revaluation of deferred tax assets in China as well as lower taxes on non-U.S. earnings and global research and development benefits.