v3.26.3
Income Tax Expense
 9 Months Ended
Sep. 30, 2026
Income Tax Disclosure [Abstract]  
Income Tax Expense

NOTE 12. INCOME TAX EXPENSE

The following table presents our effective tax rate for the three and nine months ended September 30, 2026 and 2025:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Earnings before income taxes

 

$

124.4

 

 

$

109.5

 

 

$

339.7

 

 

$

315.5

 

Income tax expense

 

 

32.5

 

 

 

23.2

 

 

 

84.3

 

 

 

72.3

 

Effective tax rate

 

 

26.1

%

 

 

21.2

%

 

 

24.8

%

 

 

22.9

%

The increase in the effective tax rate for the third quarter and the first nine months of 2026 compared to the same periods in 2025 were primarily due to the absence of prior-year benefits recognized from statute closures and federal investment tax credits.

It is reasonably possible that the amount of unrecognized tax benefits could significantly increase or decrease within the next twelve months. However, an estimate of the range of reasonably possible outcomes cannot be reliably made at this time. Changes to unrecognized tax benefits could result from the expiration of statutes of limitations, the completion of ongoing examinations, or other unforeseen circumstances.