v3.25.4

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Schedule of Income From Continuing Operations before Income Tax, Related to Domestic and Foreign

Income (loss) from continuing operations before taxes related to our U.S. and foreign operations was as follows:

						Years Ended December 31,
(In millions)						2025						2024						2023
U.S.						$	456					$	486					$	286
Foreign						(19)						(13)						(26)
Income from continuing operations before income tax provision						$	437					$	473					$	260

Schedule of Components of Income Tax Expense (Benefit)

The income tax provision is comprised of the following:

						Years Ended December 31,
(In millions)						2025						2024						2023
Current:
U.S. Federal						$	2					$	8					$	25
State						4						6						6
Foreign						17						15						6
Total current income tax provision (benefit)						$	22					$	29					$	37
Deferred:
U.S. Federal						$	94					$	56					$	38
State						10						7						3
Foreign						(5)						(6)						(10)
Total deferred income tax provision						$	99					$	57					$	31
Total:
U.S. Federal						$	96					$	64					$	63
State						14						13						9
Foreign						11						9						(4)
Total income tax provision						$	121					$	86					$	68

Schedule of Effective Income Tax Rate Reconciliation

The effective tax rate reconciliations were as follows:

						Years Ended December 31,
(Dollars in millions)						2025									2024									2023
US federal statutory income tax rate						$	92		21.0		%				$	99		21.0		%				$	54		21.0		%
Domestic state and local taxes, net of federal effect (1)						11			2.5						11			2.3						7			2.7
Foreign Tax Effects
France
Changes in valuation allowances						4			1.0						7			1.4						1			0.2
Other						3			0.7						4			0.8						2			0.7
Spain
Changes in valuation allowances						8			1.8						—			—						—			—
Other						(2)			(0.4)						(2)			(0.4)						(1)			(0.3)
Other foreign jurisdictions						3			0.6						3			0.6						(1)			(0.3)
Effect of Cross-Border Tax Laws
Global intangible low-taxed income						—			—						9			1.8						—			(0.1)
Other						1			0.2						—			—						(2)			(0.6)
Nontaxable or Nondeductible Items
Non-deductible compensation						11			2.6						15			3.1						13			5.0
Other						1			0.1						—			0.1						1			0.2
Changes in Unrecognized Tax Benefits						—			—						—			0.1						(3)			(1.1)
Tax Credits
Foreign Tax Credits						(6)			(1.4)						(3)			(0.5)						—			—
Other						(2)			(0.5)						(2)			(0.3)						(2)			(0.7)
Other Adjustments
Stock-based compensation						(5)			(1.1)						(6)			(1.2)						—			(0.2)
Benefit from legal entity reorganization (2)						—			—						(50)			(10.5)						—			—
Other adjustments						2			0.5						—			(0.1)						(1)			(0.6)
Effective tax rate						$	121		27.8		%				$	86		18.1		%				$	68		26.0		%

(1)    State taxes in California, Wisconsin, Massachusetts, Illinois, Michigan, and Georgia made up the majority (greater than 50%) of the tax effect in this category.

(2)    During the second quarter of 2024, the Company executed a legal entity reorganization in our European Transportation business that resulted in a one-time tax benefit of $41 million in 2024. The impact of this benefit is reflected in the table within Domestic state and local taxes ($3 million benefit), Foreign tax effects ($5 million expense), Effect of cross-border laws ($9 million expense), Tax credits ($2 million benefit), and Other adjustments ($50 million benefit). As previously disclosed, we expect the legal entity reorganization in our European Transportation business to generate a net cash refund of approximately $45 million. In 2024, we made tax payments of $7 million and in 2025 we received a cash refund of $49 million. We expect to receive the remaining $3 million cash refund in 2026.

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax asset and deferred tax liability were as follows:

						Years Ended December 31,
(In millions)						2025						2024
Deferred tax asset
Net operating loss and other tax attribute carryforwards						$	63					$	33
Accrued expenses						49						75
Other						44						24
Total deferred tax asset						156						132
Valuation allowance						(54)						(26)
Total deferred tax asset, net						102						106
Deferred tax liability
Intangible assets						(79)						(80)
Property and equipment						(454)						(384)
Pension and other retirement obligations						(7)						—
Other						(31)						(25)
Total deferred tax liability						(571)						(489)
Net deferred tax liability						$	(470)					$	(382)

The deferred tax asset and deferred tax liability above are reflected on our Consolidated Balance Sheets as follows:

						December 31,
(In millions)						2025						2024
Other long-term assets						$	12					$	11
Deferred tax liability						(482)						(393)
Net deferred tax liability						$	(470)					$	(382)

The balances and activity related to our valuation allowance were as follows:

(In millions)						Beginning Balance						Additions						Reductions						Ending Balance
Year Ended December 31, 2025						$	26					$	29					$	(1)					$	54
Year Ended December 31, 2024						18						9						(1)						26
Year Ended December 31, 2023						35						1						(18)						18

Schedule of Tax Credit Carryforwards

Our operating loss and tax credit carryforwards were as follows:

												December 31,
(In millions)						Expiration Date						2025						2024
Tax effect (before federal benefit) of state net operating      losses						Various times starting in 2026 (1)						$	6					$	5
Federal tax credit carryforwards						Various times starting in 2033						2						—
State tax credit carryforward						Various times starting in 2026 (1)						1						1
Foreign net operating losses available to offset future      taxable income						Various times starting in 2026 (1)						211						109

(1)    Some credits and losses have unlimited carryforward periods.

Schedule of Operating Loss Carryforwards

Our operating loss and tax credit carryforwards were as follows:

												December 31,
(In millions)						Expiration Date						2025						2024
Tax effect (before federal benefit) of state net operating      losses						Various times starting in 2026 (1)						$	6					$	5
Federal tax credit carryforwards						Various times starting in 2033						2						—
State tax credit carryforward						Various times starting in 2026 (1)						1						1
Foreign net operating losses available to offset future      taxable income						Various times starting in 2026 (1)						211						109

(1)    Some credits and losses have unlimited carryforward periods.

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

						Years Ended December 31,
(In millions)						2025						2024						2023
Beginning balance						$	3					$	4					$	6
Additions for tax positions of prior years						—						—						2
Settlements with tax authorities						—						(1)						—
Reductions due to the statute of limitations						—						—						(4)
Ending balance						$	3					$	3					$	4
Interest and penalties						3						2						2
Gross unrecognized tax benefits						$	6					$	5					$	6
Total unrecognized tax benefits that, if recognized, would impact      the effective income tax rate as of the end of the year						$	6					$	5					$	6

Cash Paid (Received) for Income Taxes

Cash paid (received) for income taxes is comprised of the following:

						Years Ended December 31,
(In millions)						2025						2024						2023
U.S. Federal						$	(28)					$	65					$	21
U.S. State and Local						9						13						4
Foreign
United Kingdom						5						6						3
Canada						4						*						3
France						2						*						*
Other						5						6						3
Total Foreign						15						12						10
Total cash paid (received) for income taxes, net of refunds						$	(4)					$	90					$	34

*Jurisdiction below the threshold for separate disclosure for the period presented. Cash paid (received) included in Other.

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