XML 33 R22.htm IDEA: XBRL DOCUMENT v3.25.2
Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s income tax provision and effective income tax rate were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(In millions)2025202420252024
Income tax provision$246 $221 $436 $374 
Effective income tax rate19.0 %19.4 %18.6 %18.2 %
The income tax provision as a percentage of income before income taxes and loss from investments in unconsolidated affiliates was 19.0% and 19.4% for the three months ended June 30, 2025 and 2024, respectively, and 18.6% and 18.2% for the six months ended June 30, 2025 and 2024, respectively. The effective income tax rate for each of the six months ended June 30, 2025 and 2024 included discrete tax benefits from equity compensation, resulting in a lower effective income tax rate compared to the statutory income tax rate.
Pursuant to provisions under the Inflation Reduction Act, the Company purchased transferable federal tax credits from various counterparties. Such federal tax credits were purchased at negotiated discounts, resulting in an income tax benefit during both the six months ended June 30, 2025 and 2024. Receivables associated with transferable federal tax credits are recorded within prepaid expenses and other current assets, and amounts owed to counterparties for the purchased credits are recorded within accounts payable and other current liabilities within the consolidated balance sheets at June 30, 2025 and December 31, 2024.
The Company’s potential liability for unrecognized tax benefits before interest and penalties was approximately $82 million at June 30, 2025. The Company believes it is reasonably possible that the liability for unrecognized tax benefits may decrease by up to $5 million over the next twelve months as a result of possible closure of tax audits, audit settlements, and the lapse of the statutes of limitations in various jurisdictions.
As of June 30, 2025, the Company’s U.S. federal income tax returns for 2023 and 2024, and tax returns in certain states and foreign jurisdictions for 2017 through 2024, remain subject to examination by taxing authorities.