v3.25.4
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
The income before provision for taxes consists of the following:
FOR THE YEARS ENDED DECEMBER 31,
(MILLIONS)
202520242023
United States$171 $671 $828 
Canada429 503 599 
Other2,325 1,372 1,127 
$2,925 $2,546 $2,554 
Schedule of Components of Income Tax Expense (Benefit)
The provision (benefit) for taxes consists of the following:
FOR THE YEARS ENDED DECEMBER 31,
(MILLIONS)
202520242023
Current
United States$126 $89 $147 
Canada34 (92)65 
Other216 167 113 
Total provision for current tax376 164 325 
Deferred
United States34 60 57 
Canada72 208 31 
Other45 6 4 
Total provision for deferred tax151 274 92 
Provision for income tax
United States160 149 204 
Canada106 116 96 
Other261 173 117 
Total Provision for income tax$527 $438 $417 
Schedule of Effective Income Tax Rate Reconciliation
The Company's effective income tax rate is different from the Company's federal statutory income tax rate due to the following differences set out below:
FOR THE YEAR ENDED DECEMBER 31,
(MILLIONS)
2025
$%
Income before provision for taxes$2,925 
Federal statutory income tax rate439 15 %
(Reduction) increase in rate resulting from:
United States
International operations subject to different tax rates60 2 %
Stock compensation(43)(1)%
Changes in valuation allowance197 7 %
Other(15)— %
Canada
Provincial tax56 2 %
Other5 — %
United Kingdom42 1 %
Other jurisdictions8 — %
Incentive distributions(78)(3)%
Taxable income attributable to non-controlling interests(59)(2)%
Portion of gains subject to different tax rates(85)(3)%
Effective income tax rate$527 18 %
FOR THE YEARS ENDED DECEMBER 31,
(MILLIONS)
20242023
Combined statutory income tax rate27 %27 %
(Reduction) increase in rate resulting from:
Incentive distributions(3)%(3)%
International operations subject to different tax rates(2)%(4)%
Taxable income attributable to non-controlling interests(1)%(1)%
Portion of gains subject to different tax rates(2)%(2)%
Other(2)%(1)%
Effective income tax rate17 %16 %
Schedule of Deferred Tax Assets and Liabilities
A summary of the tax effects of the temporary differences is as follows:
AS AT DECEMBER 31,
(MILLIONS)
202520242023
Assets
Losses (United States)$445 $552 $720 
Losses (Other)6 6 6 
Investment basis differences/net unrealized gains and losses318 28 (83)
Deferred income tax assets before valuation allowance$769 $586 $643 
Valuation allowance(197)— — 
Deferred income tax assets$572 $586 $643 
Liabilities
Investment basis differences/net unrealized gains and losses169 46 40 
Deferred income tax liabilities$169 $46 $40