v3.26.3
Income Tax
 9 Months Ended
Sep. 30, 2026
Income Tax Disclosure [Abstract]  
Income Tax
3. Income Tax
Indivior is subject to taxation in several different jurisdictions. The Company's tax provision for each period presented was calculated using a forecasted annual tax rate, adjusted for discrete items occurring during the applicable period to arrive at an effective tax rate. The effective income tax rates for the relevant periods are calculated as follows:
Three Months Ended September 30,Nine Months Ended September 30,
20262026
Total income before income taxes$182 $457 
Total income tax expense45 109 
Total effective tax rate
25 %24 %
On January 26, 2026, the Company completed a redomiciliation to the United States, which resulted in a change in the applicable statutory income tax rate from the U.K. rate of 25% to the U.S. federal statutory rate of 21%.
The Company's income tax rate for the three months ended September 30, 2026 of 25% differs from the U.S. federal statutory rate of 21%, primarily driven by foreign earnings taxed at different tax rates, U.K. global minimum top-up tax, state taxes, and disallowed expenses, partially offset by U.K. innovation deductions.
The company's income tax rate for the nine months ended September 30, 2026 of 24% differs from the U.S. federal statutory rate of 21% primarily driven by foreign earnings taxed at different tax rates, U.K. global minimum top-up tax, state taxes, disallowed expenses and a write-off of U.K. Net Operating Losses, partially offset by U.K. innovation deductions.
Three Months Ended September 30,Nine Months Ended September 30,
20252025
Total income before income taxes$37 $158 
Total income tax (benefit) expense(5)50 
Total effective tax rate(14)%32 %
The Company's income tax rate for the three months ended September 30, 2025 differs from the U.K. statutory rate of 25%, primarily due to U.K. innovation deductions and a reduction in Pillar II top-up tax expense, offset by disallowed expenses.
The Company's income tax rate for the nine months ended September 30, 2025 differs from the U.K. statutory rate of 25%, primarily due to expense recognized for a U.K. HMRC settlement which became probable during the second quarter of 2025, a valuation allowance against corporate interest limitation carryforwards, share-based compensation shortfall tax expense and disallowed expenses, partially offset by U.K. innovation deductions and intragroup financing transactions. The HMRC settlement relates to aspects of prior years' intercompany financing arrangements and is not expected to impact future tax rates.
The Company is subject to income taxation in many jurisdictions. Unrecognized tax benefits reflect the differences between tax positions the Company has taken or expect to take on income tax returns and the amounts recognized in its financial statements. Resolution of the related tax positions with the relevant tax authorities may take many years to complete, and such timing is not entirely within the Company's control.
Changes in unrecognized tax benefits are summarized as follows for the nine months ended September 30, 2026.

Balance at December 31, 2025
$5 
Additions for tax positions of prior years— 
Balance at September 30, 2026
$5 
During the nine months ended September 30, 2026 there were no material changes to the Company's unrecognized tax benefit when compared to the year ended December 31, 2025.
The total amount of unrecognized tax benefits relating to the Company’s tax positions is subject to change based on future events including, but not limited to, the settlement of ongoing tax audits and assessments and the expiration of applicable statutes of limitations.
The Company files income tax returns in the U.S., U.K., and in various foreign, state and local jurisdictions. The Company is subject to tax audits in the various jurisdictions until the respective statutes of limitations expire. The Company is no longer subject to U.K. examinations by tax authorities for fiscal years before 2020 and U.S. federal income tax examinations by tax authorities for fiscal years before 2022. U.K. and U.S. state and local audits covering 2018 - 2023 are ongoing.