Income Taxes

6 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income tax expense was $94 million and $99 million for the three months ended June 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 25.7% and 26.0% for the three months ended June 30, 2025 and 2024, respectively.

Income tax expense was $173 million and $159 million for the six months ended June 30, 2025 and 2024, respectively. The effective income tax rate was 25.8% and 24.2% for the six months ended June 30, 2025 and 2024, respectively.

The effective income tax rate for both the three and six months ended June 30, 2025 and 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 with certain provisions effective in 2025 and other provisions effective after 2025. The Act includes various provisions, including the permanent extension of the Tax Cuts Jobs Act. The Company is in the process of evaluating the impact of the Act to its Consolidated Financial Statements.