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Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Our provision for income taxes on a consolidated basis was $61 million for the three months ended June 30, 2025 as compared to a provision for income taxes of $32 million for the three months ended June 30, 2024. The increase of $29 million is primarily related to an increase in current year earnings. Our effective tax rate increased to 20.3% for the three months ended June 30, 2025 from 18.5% for the three months ended June 30, 2024.
Our provision for income taxes on a consolidated basis was $113 million for the six months ended June 30, 2025 as compared to a provision for income taxes of $3 million for the six months ended June 30, 2024. The increase of $110 million is primarily related to an increase in current year earnings and a prior year benefit for the reversal of unrecognized tax positions. Our effective tax rate increased to 20.8% for the six months ended June 30, 2025 from 1.1% for the six months ended June 30, 2024.
Our effective tax rates for the three and six months ended June 30, 2025 were different than the U.S. federal statutory tax rate of 21.0% primarily due to the U.S. state taxes and favorable permanent book tax differences.
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA), a budget reconciliation package that changes the U.S. federal income tax laws, including extensions of various expiring provisions from the Tax Cuts and Jobs Act of 2017, was signed into law. The company is evaluating the impact of the legislation and forthcoming administrative guidance and regulations to our financial statements and results of operations.
As of June 30, 2025 and December 31, 2024, the company had gross unrecognized tax benefits of $360 million and $347 million, respectively. The increase of $13 million primarily relates to the accrual of gross unrecognized tax benefits.