v3.26.1
Income Taxes
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes
5. Income Taxes
At the end of each interim period, we make our best estimate of the annual effective tax rate and the impact of discrete items, if any, and adjust the rate as necessary.
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(Dollars in millions)
Income before income tax expense$20.5 $4.4 $16.2 $29.4 
Income tax expense4.9 0.9 4.0 6.5 
Effective tax rate23.9 %20.5 %24.7 %22.1 %
The Company's effective tax rate was 23.9 percent and 24.7 percent for the three and six months ended June 30, 2026, respectively, and 20.5 percent and 22.1 percent for the three and six months ended June 30, 2025, respectively. For the three and six months ended June 30, 2026, the Company’s effective tax rate differed from the federal statutory rate of 21.0 percent primarily due to losses in jurisdictions for which no tax benefit was recognized and a valuation allowance recorded against unused foreign tax credits, partially offset by earnings attributable to the Company’s noncontrolling ownership interests in a partnership that are not subject to tax. For the three and six months ended June 30, 2025, the difference primarily reflected the impact of state taxes, compensation deduction limitations under Section 162(m) of the Internal Revenue Code and a valuation allowance recorded against unused foreign tax credits, partially offset by earnings attributable to the Company’s noncontrolling ownership interests in a partnership that are not subject to tax.