v3.26.1
INCOME TAXES
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The following table presents the components of our income tax (benefit) provision and effective tax rate:

 Three months ended
March 31,
 20262025
(in millions)
(Loss) income before income taxes
$(760)$162 
Current income tax provision
1 12 
Deferred income tax (benefit) provision
(50)35 
Income tax (benefit) provision
$(49)$47 
Annual effective tax rate
6 %29 %

Our income tax (benefit) provision for interim periods is determined by applying an estimated annual effective tax rate to (loss) income before income taxes with the result adjusted for discrete items, if any, in the relevant period. Our annual effective tax rate for the three months ended March 31, 2026 differed from the U.S. statutory rate of 21% primarily due to nondeductible compensation and tax credits. For the three months ended March 31, 2025, the difference between the U.S. statutory rate of 21% and our effective tax rate is primarily due to state taxes.
Management expects to realize the recorded deferred tax assets primarily through future income and reversal of taxable temporary differences. Realization of our existing deferred tax assets is not assured and depends on a number of factors including our ability to generate sufficient taxable income in future periods.