Income Taxes |
9 Months Ended |
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Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes For interim tax reporting, we estimate an annual effective tax rate that is applied to year-to-date ordinary income or loss. We evaluate and update our estimated annual effective income tax rate on a quarterly basis based on current and forecasted operating results and tax laws. The tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. Our interim estimate of our annual effective tax rate and our interim tax provision are subject to volatility due to factors such as jurisdictions in which our deferred taxes and/or tax attributes are subject to a full valuation allowance, relative changes in unrecognized tax benefits and changes in tax laws. Based upon the mix and timing of our actual annual earnings or loss compared to annual projections, as well as changes in the factors noted above, our effective tax rate may vary quarterly and may make quarterly comparisons not meaningful. Income tax benefit (expense) was ($24 million) and $4 million during the three months ended September 30, 2026 and 2025, respectively, and ($85 million) and $151 million during the nine months ended September 30, 2026 and 2025, respectively. This represents an effective income tax rate of 74.9% and 34.7% for the three months ended September 30, 2026 and 2025, respectively. For the nine months ended September 30, 2026, the effective income tax rate was not meaningful due to earnings before income taxes being near breakeven. For the nine months ended September 30, 2025, this represents an effective income tax rate of (22.3)%, including items treated discretely. For the three months ended September 30, 2026, the income tax expense attributable to our loss before income taxes differs from the amounts computed using the statutory tax rate, primarily due to the detrimental effects of jurisdictional rate differences, the inclusion of withholding taxes on cross-border payments, net increases in valuation allowances, permanent differences, such as non-deductible expenses, and the inclusion of global minimum tax. These detrimental effects were partially offset by the beneficial effects of permanent differences, such as non-taxable income. For the nine months ended September 30, 2026, the income tax expense attributable to our earnings before income taxes differs from the amounts computed using the statutory tax rate, primarily due to the detrimental effects of jurisdictional rate differences, the inclusion of withholding taxes on cross-border payments, net return-to-provision adjustments, net increases in valuation allowances, permanent differences, such as non-deductible expenses, and the inclusion of global minimum tax. These detrimental effects were partially offset by the beneficial effects of permanent differences, such as non-taxable income, and net changes in uncertain tax positions. For the three months ended September 30, 2025, the income tax benefit attributable to our earnings before income taxes differs from the amounts computed using the statutory tax rate, primarily due to the beneficial effects of net decreases in valuation allowances, permanent differences, such as non-taxable income, net favorable return-to-provision adjustments, and changes in uncertain tax positions. These beneficial effects were partially offset by the detrimental effects of jurisdictional rate differences, the inclusion of withholding taxes on cross-border payments, permanent differences, such as non-deductible expenses and our estimate of global minimum tax. For the nine months ended September 30, 2025, the income tax benefit attributable to our loss before income taxes differs from the amounts computed using the statutory tax rate, primarily due to the beneficial effects of jurisdictional rate differences, changes in uncertain tax positions, net favorable return-to-provision adjustments, and permanent differences, such as non-taxable income. These beneficial effects were partially offset by the detrimental effects of net increases in valuation allowances, the inclusion of withholding taxes on cross-border payments, permanent differences, such as non-deductible expenses, and our estimate of global minimum tax.
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