Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 4. INCOME TAXES The effective tax rate for the three months period ended September 30, 2026 was 32.5% compared to 26.9% for the three months period ended September 30, 2025. Discrete tax items, net for the three months period ended September 30, 2026 increased the effective tax rate by 4.9% primarily related to settlement of prior-year income tax audits in non-U.S. jurisdictions. Discrete tax items, net for the three months period ended September 30, 2025 had a favorable impact of 1.3%. The effective tax rate for the nine months period ended September 30, 2026 was 32.2% compared to 26.4% for the nine months period ended September 30, 2025. Discrete tax items, net for the nine months period ended September 30, 2026 had an unfavorable impact of 4.2%. Discrete tax items, net for the nine months period ended September 30, 2025 had a favorable impact of 1.8%. The Company files income tax returns in the U.S. federal jurisdiction, various U.S. states, and non-U.S. jurisdictions. At any given time, the Company is undergoing tax audits in several tax jurisdictions covering multiple years. The Company is no longer subject to income tax examination by the U.S. federal income tax authorities for years prior to 2022. With few exceptions, the Company is no longer subject to income tax examination by U.S. state or local tax authorities or by non-U.S. tax authorities for years before 2016. As of September 30, 2026, the Company is not aware of any proposed income tax adjustments resulting from tax examinations that would have a material impact on the Company’s condensed consolidated financial statements. The conclusion of such audits could result in additional increases or decreases to unrecognized tax benefits in some future period or periods. During the nine months period ended September 30, 2026, the Company recorded a net increase of $4 million to income tax reserves for unrecognized tax benefits based on tax positions related to the current year, including accruing additional interest related to unrecognized tax benefits from prior years. Of the total unrecognized tax benefits of $46 million recorded as of September 30, 2026, $8 million is classified as current tax payable within Other current liabilities and $38 million is classified as non-current tax payable within Other non-current liabilities on the Condensed Consolidated Balance Sheets. |