Income Taxes |
9 Months Ended |
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Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | 5. INCOME TAXES Income tax provisions for interim (quarterly) periods are based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent or unusual items. Income tax expense for the three months ended September 30, 2026 and 2025 was $32 million and $7 million, respectively. The increase compared to the prior year period was primarily due to higher income before taxes in the current quarter, partially offset by a lower annual effective tax rate. In the three months ended September 30, 2026, we recognized net discrete tax expense of $4 million. We did not recognize any material discrete tax expense or benefit in the three months ended September 30, 2025. Income tax expense for the nine months ended September 30, 2026 and 2025 was $68 million and $35 million, respectively. The increase compared to the prior year period was primarily driven by higher year-to-date income before taxes, partially offset by a lower annual effective tax rate. In the nine months ended September 30, 2026, we recognized net discrete tax expense of $7 million, and in the nine months ended September 30, 2025, we recognized a $6 million expense related to a change in the estimated deferred tax provision offset by a $4 million benefit related to the release of uncertain tax position reserves. As of September 30, 2026, we had gross unrecognized tax benefits of $26 million. We engage in continuous discussions and negotiations with taxing authorities regarding tax matters, and we have determined that over the next twelve months we expect to resolve certain tax matters related to foreign jurisdictions.
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