v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of components of income tax provision
The components of income tax provision attributable to continuing operations were as follows:
Years Ended December 31,
202520242023
(in millions)
Current income tax
Federal$605 $583 $518 
State and local154 137 124 
Foreign25 21 18 
Total current income tax784 741 660 
Deferred income tax
Federal157 164 45 
State and local(2)(29)(14)
Foreign2 (10)(13)
Total deferred income tax157 125 18 
Total income tax provision$941 $866 $678 
Schedule of geographic sources of pretax income
The geographic sources of pretax income from continuing operations were as follows:
Years Ended December 31,
202520242023
(in millions)
United States$4,406 $4,221 $3,199 
Foreign98 46 35 
Total$4,504 $4,267 $3,234 
Schedule of reasons for aggregate income tax provision differences to U.S. statutory rate
The principal reasons that the aggregate income tax provision attributable to continuing operations is different from that computed by using the U.S. statutory rate of 21% were as follows:
Years Ended December 31,
202520242023
AmountPercentageAmountPercentageAmountPercentage
(in millions, except percentages)
U.S. federal statutory tax rate
$946 21.0%$896 21.0%$679 21.0%
State and local income taxes, net of federal income tax effect (1)
103 2.385 2.087 2.7
Foreign tax effects6 0.11 —(2)(0.1)
Effect of cross-border tax laws
2 —1 —— —
Tax credits(46)(1.0)(47)(1.1)(61)(1.9)
Nontaxable or nondeductible items:
Incentive compensation(61)(1.4)(66)(1.6)(47)(1.5)
Other(12)(0.2)(12)(0.3)3 0.1
Changes in unrecognized tax benefits
13 0.319 0.526 0.8
Other adjustments
(10)(0.2)(11)(0.2)(7)(0.1)
Effective tax rate
$94120.9%$86620.3%$67821.0%
(1) State taxes in California, Minnesota, New York, Massachusetts and New Jersey made up the majority (greater than 50 percent) of the tax effect in this category for 2025. State taxes in Minnesota, California, New York, Georgia, and Wisconsin made up the majority (greater than 50 percent) of the tax effect in this category for 2024. State taxes in California, Minnesota, New York and New Jersey made up the majority (greater than 50 percent) of the tax effect in this category for 2023.
Schedule of significant components of deferred income tax assets and liabilities The significant components of the Company’s deferred income tax assets and liabilities, which are included net within Other assets or Other liabilities, were as follows:
December 31,
20252024
(in millions)
Deferred income tax assets
Deferred compensation including corresponding hedges
$715 $655 
Insurance and annuity benefits including corresponding hedges
525 802 
Investments including net unrealized on Available-for-Sale securities
195 381 
Net operating loss and tax credit carryforward
159 221 
Other200 159 
Gross deferred income tax assets1,794 2,218 
Less: valuation allowance65 67 
Total deferred income tax assets1,729 2,151 
Deferred income tax liabilities
Deferred acquisition costs333 364 
Goodwill and intangibles
323 323 
Other153 137 
Gross deferred income tax liabilities809 824 
Net deferred income tax assets$920 $1,327 
Reconciliation rollforward of gross unrecognized tax benefits
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows:
202520242023
(in millions)
Balance at January 1$164 $150 $138 
Additions for tax positions related to the current year
19 22 26 
Reductions for tax positions related to the current year
(2)(2)(3)
Additions for tax positions of prior years15 23 80 
Reductions for tax positions of prior years(20)(8)(85)
Reductions due to lapse of statutes of limitations
(5)(20)(5)
Audit settlements(3)(1)(1)
Balance at December 31$168 $164 $150 
Schedule of supplemental cash flow Information
The following table presents supplemental cash flow information related to operating and finance leases:
Years Ended December 31,
Supplemental Cash Flow Information202520242023
(in millions)
Operating cash flows:
Cash paid for amounts included in measurement of operating lease liabilities$73 $69 $68 
Cash paid for amounts included in measurement of finance lease liabilities— 1 1 
Financing cash flows:
Cash paid for amounts included in measurement of finance lease liabilities$9 $11 $10 
Income taxes paid were as follows:
202520242023
(in millions)
Income taxes paid, net$885 $496 $1,036 
Federal716 366 885 
State and local
146 117 129 
Foreign23 13 22