Income Taxes |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Note 12. Income Taxes In July 2025, the One Big Beautiful Bill Act (the “Act”) was enacted, which included a broad range of tax reform provisions affecting businesses such as the repeal of mandatory capitalization of research and development expenditures and the extension of 100% bonus depreciation. Upon implementing the provisions included in the Act in 2025, the Company incurred a corporate alternative minimum tax (“CAMT”) liability of $285 million. CAMT is a 15% minimum tax on the adjusted financial statement income (“AFSI”) of certain large corporations. The Company also recorded a deferred tax asset for CAMT credit carryforwards of $285 million at December 31, 2025. On February 18, 2026, the Internal Revenue Service issued Notice 2026-7 (the “Notice”) that provides additional guidance on calculating CAMT. The Notice addresses disparities between financial accounting treatment and tax treatment in certain areas and provides new or modified AFSI adjustments that taxpayers may apply in determining their CAMT liability, including adjustments for domestic research and development costs which can reduce CAMT exposure for affected taxpayers. The Notice is considered new information that clarifies the interpretation of existing income tax law for accounting purposes. In accordance with U.S. GAAP, the Company recognized the tax effects of the Notice in the first quarter of 2026, the reporting period that includes the issuance date. As a result, the Company’s CAMT liability for the 2025 tax year was reduced by $224 million, with the impact reflected as an increase in the Company's net federal income tax receivable and a corresponding decrease in the deferred tax asset relating to CAMT credit carryforwards on the condensed consolidated balance sheet at March 31, 2026. The Notice had no impact on the Company's income tax expense (benefit) or effective tax rate for the three months ended March 31, 2026. |