INCOME TAXES |
9 Months Ended |
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Sep. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES During the nine months ended September 30, 2025, the Company recognized Income Tax Expense of $118 million on Income before Income Taxes of $490 million. The effective tax rate for the nine months ended September 30, 2025 is different from the statutory rate primarily due to a discrete tax benefit of $6 million related to the remeasurement of the Company's German net deferred tax liabilities as a result of a statutory tax rate reduction enacted during the period as well as a tax benefit of $2 million related to excess tax benefits on restricted stock units that vested during the period. In addition, the Company's effective tax rate is impacted by the mix of earnings between foreign and domestic jurisdictions, including those with and without valuation allowances. H.R. 1, The One Big Beautiful Bill Act ("the Act"), was signed into law on July 4, 2025. Among the Act's provisions, the new law extends or modifies several elements of the 2017 Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. The Company has reflected the estimated impacts of the Act in its Consolidated Financial Statements for the period ending September 30, 2025. The changes in the Act do not have a material impact on our 2025 estimated annual effective tax rate, however, the Company's 2025 U.S. federal income tax liability decreased to zero. During the nine months ended September 30, 2024, the Company recognized Income Tax Expense of $182 million on Income before Income Taxes of $701 million. The effective tax rate for the nine months ended September 30, 2024 is different from the statutory rate primarily due to the write-off of non-deductible book goodwill associated with the Augusta Divestiture; a benefit from purchased tax credits; discrete tax adjustments, including a tax benefit of $3 million related to excess tax benefits on restricted stock units that vested during the period; and the mix of earnings between foreign and domestic jurisdictions, including those with and without valuation allowances.
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