v3.26.1
Income Taxes
 3 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense was as follows:
Three Months Ended June 30,
(Dollars in millions)20262025
Income tax expense$276 $220 
Reported income tax rate21.1 %20.9 %
Fluctuations in the Company’s reported income tax rates were primarily due to changes in the mix of earnings among various taxing jurisdictions and discrete items recognized in the quarters.
During the three months ended June 30, 2026 and 2025, the Company recognized a net discrete tax benefit of $33 million and $23 million, respectively, primarily related to the tax impact of share-based compensation.
The Company files income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions, and various foreign jurisdictions. As of June 30, 2026, the Company had $1.6 billion of unrecognized tax benefits, of which $1.5 billion would reduce income tax expense and the effective tax rate if recognized.