Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | INCOME TAXES For interim periods, income tax expense is recognized by applying the estimated annual effective tax rate to year-to-date results, unless doing so does not yield a reliable estimate. Each quarter, the income tax accrual is updated based on the latest estimate, and any difference from the previously accrued year-to-date balance is recorded in the current quarter. Changes in profitability estimates across jurisdictions may affect quarterly effective tax rates. The provision for income taxes for the nine months ended September 30, 2026, and 2025, reflected an estimated annual effective tax rate of 26% and 27%, respectively, excluding discrete items discussed below. The total tax provision for the three and nine months ended September 30, 2026, was $9 million and $26 million, respectively, compared to $9 million and $54 million for the corresponding periods in 2025. The total effective tax rate for the three and nine months ended September 30, 2026, was 28% and 25%, respectively, compared to 52% and 26% for the corresponding periods in 2025. During the nine months ended September 30, 2026, we recognized a $1 million net discrete tax benefit primarily related to inflationary and foreign currency exchange-related effects. During the nine months ended September 30, 2025, we recognized a $2 million net discrete tax benefit primarily related to inflationary and foreign currency exchange-related effects and stock-based compensation.
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