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Income Tax Expense
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Tax Expense

NOTE 12. INCOME TAX EXPENSE

On July 4, 2025, the U.S. federal government enacted the “One Big Beautiful Bill Act” (“OBBBA”), resulting in significant changes to the federal tax code, most notably the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act of 2017 and the restoration of favorable tax treatment for certain business provisions. Our federal income tax expense for the third quarter and nine months ended September 30, 2025 reflects the impact of the OBBBA, which resulted in an immaterial impact to our effective tax rate and a reduction in our federal cash taxes paid.

The following table presents our effective tax rate for the three and nine months ended September 30, 2025 and 2024:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Earnings before income taxes

 

$

109.5

 

 

$

103.8

 

 

$

315.5

 

 

$

271.1

 

Income tax expense

 

 

23.2

 

 

 

26.9

 

 

 

72.3

 

 

 

68.4

 

Effective tax rate

 

 

21.2

%

 

 

25.9

%

 

 

22.9

%

 

 

25.2

%

The decrease in the effective tax rate for the third quarter and first nine months of 2025, in comparison to the same periods in 2024, was primarily due to the benefits recognized from statute closures and federal investment tax credits.

It is reasonably possible that the amount of unrecognized tax benefits could significantly increase or decrease within the next twelve months. However, an estimate of the range of reasonably possible outcomes cannot be reliably made at this time. Changes to unrecognized tax benefits could result from the expiration of statutes of limitations, the completion of ongoing examinations, or other unforeseen circumstances.