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Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense was $98 million and $111 million for the three months ended September 30, 2025 and 2024, respectively. The effective income tax rate, expressed by calculating the income tax expense as a percentage of Income before income taxes, was 25.3% and 26.0% for the three months ended September 30, 2025 and 2024, respectively.
The effective income tax rate for the three months ended September 30, 2025 differed from the US federal statutory rate of 21.0% primarily due to state and local income taxes and nondeductible expenses, partially offset by the anticipated benefit from federal tax credits. The effective income tax rate for the three months ended September 30, 2024 differed from the US federal statutory rate of 21.0% primarily due to state and local income taxes and nondeductible expenses.
Income tax expense was $271 million and $270 million for the nine months ended September 30, 2025 and 2024, respectively. The effective income tax rate was 25.6% and 24.9% for the nine months ended September 30, 2025 and 2024, respectively.
The effective income tax rate for the nine months ended September 30, 2025 differed from the US federal statutory rate of 21.0% primarily due to state and local income taxes, partially offset by excess tax benefits on equity-based compensation and the anticipated benefit from federal tax credits. The effective income tax rate for the nine months ended September 30, 2024 differed from the US federal statutory rate of 21.0% primarily due to state and local income taxes, partially offset by excess tax benefits on equity-based compensation.
On July 4, 2025, the One Big Beautiful Bill Act (the “Act”) was enacted into law in the US with certain provisions effective in 2025 and other provisions effective after 2025. The Act includes various provisions, including the immediate expensing of domestic research and development expenditures and the restoration of 100% bonus depreciation. These provisions did not have a material impact on the Company’s Consolidated Financial Statements as of September 30, 2025 and for the three and nine months ended September 30, 2025.