Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Taxes | |
| Income Taxes | 12. Income Taxes Effective Income Tax Rate The provision for income taxes for interim periods is based on an estimated annual effective tax rate. Excluded from the estimated annual effective tax rate are discrete items occurring during the period, including those which do not relate to ordinary operating income. The effective tax rate for the three and six months ended June 30, 2026, was 13% and 14%, respectively. The effective tax rate for the three months ended June 30, 2026, differed from the U.S. federal statutory tax rate of 21% due primarily to tax benefits from the dividends received deduction, interest exclusion from taxable income, tax credits, foreign currency inflation, the impact of noncontrolling interest presentation and the impact of equity method presentation, partially offset by state income tax expense. The effective tax rate for the six months ended June 30, 2026, differed from the U.S. federal statutory tax rate of 21% due primarily to tax benefits from the dividends received deduction, interest exclusion from taxable income and the impact of equity method presentation, partially offset by state income tax expense. The effective tax rate for the three and six months ended June 30, 2025, was 14% and 7%, respectively. The effective tax rate for these periods differed from the U.S. federal statutory tax rate of 21% due primarily to tax benefits from the dividends received deduction, interest exclusion from taxable income, tax credits, changes in unrecognized tax benefits, the impact of noncontrolling interest presentation and the impact of equity method presentation, partially offset by state income tax expense and foreign statutory rate differentials. Pillar Two Model Rules We are currently monitoring global enactments of the Pillar Two model rules proposed by the Organisation for Economic Co-operation and Development (“OECD”), which brings forward a 15% global minimum tax. Generally, a company is required to consider the impact of new tax law on realizability of its deferred tax assets (“DTAs”), including determination of whether a change to its valuation allowance amounts is necessary. We made an accounting policy election to disregard the Pillar Two model rules when evaluating DTAs and rather recognize a current period tax expense when incurred. Certain foreign jurisdictions have enacted, or are in the process of enacting, legislation implementing Income Inclusion Rules or Undertaxed Profits Rules, which may result in additional tax liabilities for multinational companies. On January 5, 2026, the OECD released administrative guidance for a “Side-by-Side” agreement that addresses the interaction of Pillar Two with the U.S. tax system. We recognize the effect of income tax legislation in the period of enactment; therefore, we will monitor the legislative enactment of the “Side-by-Side” agreement on a jurisdiction-by-jurisdiction basis. Income taxes for the three and six months ended June 30, 2026, reflect the impact of enacted Pillar Two legislation in applicable jurisdictions based on management’s current interpretation of each jurisdiction’s tax law. |