v3.25.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Earnings from Continuing Operations before Income Taxes
The components of "Earnings from continuing operations before income taxes" and the "Provision for income taxes" from continuing operations in the Consolidated Statements of Earnings were as follows:
(In millions)202520242023
Earnings from continuing operations before income taxes
United States$576 $555 $479 
Foreign109 106 139 
Total$685 $661 $618 
Provision for income taxes
Current tax expense from continuing operations:
Federal$6 $112 $35 
State22 15 45 
Foreign26 24 17 
54 151 97 
Deferred tax expense (income) from continuing operations:
Federal114 (13)88 
State14 28 (8)
Foreign2 6 35 
130 21 115 
Total$184 $172 $212 
Schedule of Reconciliation of Federal Statutory Tax Rate with Effective Tax Rate from Continuing Operations
A reconciliation of the federal statutory tax rate with the effective tax rate from continuing operations follows:

 December 31, 2025December 31, 2024December 31, 2023
(Percentage of pre-tax earnings)AmountPercentAmountPercentAmountPercent
U.S. federal statutory tax rate$144 21.0 %$139 21.0 %$130 21.0 %
State income taxes, net of federal income tax effect (1)
32 4.7 %37 5.6 %31 5.0 %
Foreign tax effects
U.K. loss carryforward write-off— — %— — %10 1.6 %
U.K. other4 0.5 %— — %1 0.2 %
Canadian provincial taxes9 1.4 %9 1.4 %10 1.7 %
Other foreign jurisdictions(6)(0.9)%(1)(0.2)%2 0.3 %
Effect of cross-border tax laws
Global intangible low-taxed income— — %— — %8 1.2 %
Tax credits
Foreign tax credit— — %(6)(0.8)%(10)(1.5)%
Other(3)(0.4)%(3)(0.5)%— — %
Nontaxable or nondeductible items
Currency translation adjustment— — %— — %34 5.5 %
Other4 0.5 %1 0.2 %(1)(0.2)%
Changes in unrecognized tax benefits1 0.1 %(6)(0.8)%(2)(0.3)%
Other(1)(0.1)%2 0.1 %(1)(0.2)%
Effective tax rate$184 26.8 %$172 26.0 %$212 34.3 %
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(1)States that make up the majority (greater than 50 percent) of the tax effect in this category are: in 2025, TX, CA, IL, FL, PA, MI, NJ, and GA; in 2024, TX, CA, IL, FL, PA, GA, NJ, MI and IN; in 2023, TX, CA, IL, FL, PA and GA.
Schedule of Income Taxes Paid, Net of Refunds by Jurisdiction
A reconciliation of the income taxes paid, net of refunds by jurisdiction was as follows:

(In millions)202520242023
U.S. federal$10 $157 $24 
U.S. state & local
Texas5 4 5 
California— 3 7 
Illinois— 2 7 
New Jersey3 1 2 
Other5 22 26 
Total U.S. state & local13 32 47 
Foreign
Mexico17 10 13 
Canada12 8 9 
Other— — 3 
Total foreign29 18 25 
Total income taxes paid, net of refunds$52 $207 $96 
Supplemental cash flow information was as follows:
 
As of and for the Years Ended December 31,
(In millions)
202520242023
Interest paid
$399 $372 $269 
Income taxes paid, net of refunds
$52 $207 $96 
Cash paid for operating lease liabilities$373 $359 $249 
Right-of-use assets obtained in exchange for lease obligations:
Finance leases$78 $46 $26 
Operating leases$257 $148 $477 
Capital expenditures acquired but not yet paid$174 $263 $244 
Schedule of Components of Net Deferred Income Tax Liability
The components of the net deferred income tax liability were as follows:
 December 31,
(In millions)
20252024
Deferred income tax assets:
Self-insurance accruals$135 $131 
Operating lease liabilities (1)
262 282 
Net operating loss carryforwards53 33 
Accrued compensation and benefits117 102 
Pension benefits23 35 
Deferred revenue23 23 
Interest expense limitation
8 75 
Other
56 47 
677 728 
Valuation allowance(14)(12)
663 716 
Deferred income tax liabilities:
Property and equipment basis differences(2,058)(1,993)
Operating right-of-use lease assets (1)
(253)(268)
Intangible assets bases difference
(89)(92)
Other(55)(20)
(2,455)(2,373)
Net deferred income tax liability (2)
$(1,792)$(1,657)
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(1)Prior period amounts have been revised.
(2)Deferred tax assets of $16 million and $14 million have been included in "Sales-type leases and other assets" as of December 31, 2025 and 2024.
Schedule Of Valuation Allowance On Deferred Tax Assets
Changes to the valuation allowance on deferred tax assets consisted of the following:
(In millions)202520242023
Balance at January 1$12 $87 $88 
Additions
2 — — 
Deductions
— (75)(1)
Balance as of December 31
$14 $12 $87 
Schedule of Net Operating Losses and Tax Benefits with Related Valuation Allowances
Our carryforwards for net operating losses and tax benefits with the related valuation allowances were as follows:
December 31, 2025December 31, 2024
(Dollars in millions)
Carryforwards (1)
Valuation AllowanceNet Carryforwards
Carryforwards (1)
Valuation AllowanceNet Carryforwards
Net operating losses and
tax benefits
U.S. Federal jurisdictions
(expires 2034 - 2037)
$8 $(2)$6 $6 $(3)$3 
U.S. Federal jurisdictions (with no expiration)
25 — 25 11 — 11 
U.S. State jurisdictions
(expires 2026 - 2045)
26 (1)25 27 — 27 
U.S. State jurisdictions
(with no expiration)
5 — 5 3 — 3 
Foreign jurisdictions
(expires 2031 - 2043)
5 (5)— 7 (7)— 
Foreign jurisdictions
(with no expiration)
5 (6)(1)4 (2)2 
Total carryforwards$74 $(14)$60 $58 $(12)$46 
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(1)Net operating losses are shown before unrecognized tax benefits. State amounts presented net of federal benefits.
Schedule of Uncertain Tax Positions
In many cases, our uncertain tax positions are related to tax years that remain subject to examination by the relevant taxing authorities. The following table summarizes these open tax years by jurisdiction:
JurisdictionOpen Tax Year
United States (Federal)2019, 2022 - 2025
Canada2013 - 2015, 2018 - 2025
Mexico2020 - 2025
United Kingdom (discontinued operations)2024 - 2025
Brazil (discontinued operations)2021- 2025
Schedule of Activity Related to Unrecognized Tax Benefits
The following table summarizes the activity related to unrecognized tax benefits (excluding the federal benefit received from state positions):
(In millions)
202520242023
Balance at January 1$26 $32 $34 
Increases related to tax positions taken during the current year
1 2 2 
Increases related to tax positions taken during prior years
7 — — 
Reductions due to lapse of applicable statutes of limitation(7)(8)(4)
Total before interest and penalties at December 3127 26 32 
Interest and penalties2 3 3 
Balance at December 31$29 $29 $35