Expense composition and rate reconciliation | | | | | | | | | | | | | | | Three months | | Six months | Periods ended June 30 (millions) | | 2026 | | 2025 | | 2026 | | 2025 | Current income tax expense | | | | | | | | | | | | | For the current reporting period | | $ | 25 | | $ | 148 | | $ | 114 | | $ | 265 | Adjustments recognized in the current period for income taxes of prior periods | | | (27) | | | (18) | | | (27) | | | (23) | Pillar Two global minimum tax | | | 1 | | | — | | | 1 | | | 1 | | | | (1) | | | 130 | | | 88 | | | 243 | Deferred income tax expense | | | | | | | | | | | | | Arising from the origination and reversal of temporary differences | | | (262) | | | (83) | | | (296) | | | (89) | Adjustments recognized in the current period for income taxes of prior periods | | | 12 | | | — | | | 12 | | | — | Arising from write-down of deferred tax asset | | | 89 | | | — | | | 89 | | | — | | | | (161) | | | (83) | | | (195) | | | (89) | | | $ | (162) | | $ | 47 | | $ | (107) | | $ | 154 |
Our income tax expense and effective income tax rate differ from those computed by applying the applicable statutory rates for the following reasons: | | | | | | | | | | | | Three-month periods ended June 30 ($ in millions) | | 2026 | | 2025 | | Income taxes computed at applicable statutory rates | | $ | (503) | | 25.3 | % | $ | (55) | | 27.8 | % | Adjustments recognized in the current period for income taxes of prior periods | | | (15) | | 0.8 | | | (18) | | 9.1 | | Pillar Two global minimum tax | | | 1 | | (0.1) | | | — | | — | | Impairment of intangible assets and goodwill | | | 229 | | (11.6) | | | 107 | | (53.9) | | Write down of deferred tax asset | | | 89 | | (4.5) | | | — | | — | | (Non-taxable) non-deductible amounts, net | | | (5) | | 0.3 | | | 4 | | (2.0) | | Withholding and other taxes | | | 5 | | (0.3) | | | 10 | | (5.1) | | Losses not recognized | | | 38 | | (1.9) | | | 2 | | (1.0) | | Foreign tax differential | | | (1) | | 0.1 | | | (2) | | 1.0 | | Other | | | — | | — | | | (1) | | 0.4 | | Income tax expense (recovery) per Consolidated statements of income and other comprehensive income | | $ | (162) | | 8.1 | % | $ | 47 | | (23.7) | % | | | | | | | | | | | | | Six-month periods ended June 30 ($ in millions) | | 2026 | | 2025 | | Income taxes computed at applicable statutory rates | | $ | (450) | | 25.1 | % | $ | 46 | | 21.9 | % | Adjustments recognized in the current period for income taxes of prior periods | | | (15) | | 0.8 | | | (23) | | (11.0) | | Pillar Two global minimum tax | | | 1 | | (0.1) | | | 1 | | 0.5 | | Impairment of intangible assets and goodwill | | | 229 | | (12.8) | | | 107 | | 51.0 | | Write down of deferred tax asset | | | 89 | | (5.0) | | | — | | — | | (Non-taxable) non-deductible amounts, net | | | (12) | | 0.7 | | | 3 | | 1.4 | | Withholding and other taxes | | | 13 | | (0.7) | | | 19 | | 9.0 | | Losses not recognized | | | 39 | | (2.1) | | | 3 | | 1.4 | | Foreign tax differential | | | (1) | | 0.1 | | | (3) | | (1.4) | | Other | | | — | | — | | | 1 | | 0.5 | | Income tax expense (recovery) per Consolidated statements of income and other comprehensive income | | $ | (107) | | 6.0 | % | $ | 154 | | 73.3 | % |
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