v3.26.3
Income Taxes
 9 Months Ended
Sep. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
For interim reporting periods, an estimate of the Company’s annual effective tax rate (“AETR”), adjusted for discrete items, if any, is used to determine the Company’s estimated tax provision or benefit from income taxes. Quarterly, the Company updates the estimate of the annual effective tax rate and any applicable discrete adjustments with cumulative adjustments to the total estimated tax provision or benefit from income taxes. During periods in which the AETR method cannot provide a reliable estimate, a fully discrete method is used.
Income Tax Allocation
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2026202520262025
Loss before income taxes$(117)$(64)$(241)$(203)
Benefit for income taxes10 25 10 1 
Effective tax rate8.5 %39.1 %4.1 %0.5 %
The Company classifies accruals for uncertain tax positions within Other long-term liabilities on the Balance Sheets, separate from any related income tax payable or deferred income taxes. Reserve amounts relate to any potential income tax liabilities resulting from uncertain tax positions as well as potential interest or penalties associated with those liabilities.
Management assesses both positive and negative evidence to estimate if future taxable income will be sufficient to utilize existing deferred tax assets based on the integrated approach. The Company currently has a valuation allowance on certain federal and state deferred tax assets that are not more likely than not to be realized in the future. As of December 31, 2025, the Company had approximately $1.4 billion of deferred tax assets primarily related to long-term financing obligations, the realization of which depends on the generation of sufficient future taxable income. Given the uncertainty inherent in future taxable income estimates, additional valuation allowance may be required in future periods against these particular deferred tax assets.
The income tax benefit for the three and nine months ended September 30, 2026 differed from the expected income tax benefit based on the federal tax rate of 21% primarily due to an increase in federal and state valuation allowances against the deferred tax assets for excess business interest expense and nondeductible expenses.
The income tax benefit for the three months ended September 30, 2025 differed from the expected income tax benefit based on the federal tax rate of 21% primarily due to a decrease in federal and state valuation allowances against the deferred tax assets for excess business interest expense, primarily related to a change in tax law. The income tax benefit for the nine months ended September 30, 2025 differed from the expected income tax benefit based on the federal tax rate of 21% primarily due to an increase in federal and state valuation allowances against the deferred tax assets for excess business interest expense.
The Company, including its subsidiaries, files tax returns with federal, state, and foreign jurisdictions. The Company does not have tax sharing agreements with the other members within its consolidated group. The Company is subject to exam by various state and foreign tax authorities. With few exceptions, the Company is no longer subject to US federal or state and local tax assessments by tax authorities for years before 2022.