v3.26.1
Income Taxes
6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes 13.        Income Taxes
Our provision for income taxes on a consolidated basis was $68 million for the three months ended June 30, 2026 as
compared to a provision for income taxes of $61 million for the three months ended June 30, 2025. The increase of $7 million
is primarily related to an increase in earnings. Our effective tax rate increased to 21.6% for the three months ended June 30,
2026 from 20.3% for the three months ended June 30, 2025.
Our provision for income taxes on a consolidated basis was $180 million for the six months ended June 30, 2026 as
compared to a provision for income taxes of $113 million for the six months ended June 30, 2025. The increase of $67 million
is primarily related to an increase in earnings. Our effective tax rate increased to 23.4% for the six months ended June 30, 2026
from 20.8% for the six months ended June 30, 2025.
Our effective tax rates for the three and six months ended June 30, 2026 were different than the U.S. federal statutory
tax rate of 21.0% primarily due to the U.S. state taxes and permanent book tax differences.
On July 4, 2025, the U.S. federal government enacted H.R.1, the One Big Beautiful Bill Act (OBBBA), a budget
reconciliation package that changes the U.S. federal income tax laws, including extensions of various expiring provisions from
the Tax Cuts and Jobs Act of 2017. The 2026 impacts of the OBBBA are insignificant based on our current operations.
As of June 30, 2026 and December 31, 2025, the company had gross unrecognized tax benefits of $386 million and
$364 million, respectively.