Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Note 7 — Income Taxes Provision for income taxes for the three months ended September 30, 2026 was $79 million compared to $77 million for the three months ended September 30, 2025. Provision for income taxes was $206 million and $121 million for the nine months ended September 30, 2026 and 2025, respectively. The effective tax rates were 19.5% and 19.3% for the three and nine months ended September 30, 2026, respectively, and 19.7% and 12.0% for the three and nine months ended September 30, 2025, respectively. These effective tax rates are calculated using extended values from our condensed consolidated statements of comprehensive income and are therefore more precise tax rates than can be calculated from rounded values. The effective tax rate for the nine months ended September 30, 2025 was lower due to favorable discrete tax items, primarily related to provision-to-tax return adjustments. The Company recognizes deferred tax balances related to the undistributed earnings of subsidiaries when it expects that it will recover those undistributed earnings in a taxable manner, such as through receipt of dividends or sale of the investments. Historically, the Company has not provided taxes on cumulative earnings of its subsidiaries that have been reinvested indefinitely. As a result of its plans to restructure or distribute accumulated earnings of certain foreign operations, the Company has recorded an estimate of non-U.S. withholding and state income taxes. However, the Company asserts that the historical cumulative earnings of its other subsidiaries are reinvested indefinitely and therefore does not provide deferred tax liabilities on these amounts. The Company records valuation allowances against net deferred tax assets based on whether it is more likely than not that the deferred tax assets will be realized. At September 30, 2026, we have liabilities for uncertain tax positions under ASC 740, Income Taxes of $38 million, excluding interest and penalties. |