Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Schedule of Income Before Income Taxes

The components of income before income taxes are as follows:

(in millions)	2025		2024		2023
United States	$	(408)	$	(1,073)	$	(217)
Foreign	1,005		1,546		801
Income before income taxes	$	597	$	473	$	584

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) were as follows:

(in millions)	2025		2024		2023
Current taxes
U.S federal	$	(35)	$	76	$	62
U.S. state and local	—		—		—
Foreign	381		106		46
Current taxes	346		182		108
Deferred taxes
U.S. federal	(48)		(15)		21
U.S. state and local	—		—		—
Foreign	85		240		(905)
Deferred taxes	37		225		(884)
Income tax expense (benefit)	$	383	$	407	$	(776)

Schedule of Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate

Differences between the provision at the federal statutory rate and the provision recorded at the consolidated level for 2025 are as follows:

(in millions, except percentages)	2025
U.S. federal statutory tax rate	$	125	21.0	%
State and local income taxes, net of federal income tax effect	—		—	%
Foreign tax effects
Korea
Statutory tax rate difference between countries	46		7.7	%
Local income tax	41		6.9	%
Effect of changes in tax laws or rates	(34)		(5.7)	%
Tax credits	(8)		(1.3)	%
Other	7		1.2	%
Other foreign jurisdictions	182		30.5	%
Effect of cross-border tax laws
Branch loss	(33)		(5.5)	%
Foreign currency loss	(14)		(2.3)	%
Tax credits	(38)		(6.4)	%
Changes in valuation allowance	8		1.3	%
Nontaxable and nondeductible items
Stock compensation	49		8.2	%
Other	26		4.4	%
Changes in unrecognized tax benefits	33		5.5	%
Other adjustments	(7)		(1.2)	%
Income tax expense	$	383	64.2	%

Differences between the provision at the federal statutory rate and the provision recorded at the consolidated level for 2024 and 2023 were as follows:

(in millions)	2024		2023
Taxes computed at the federal statutory rate	$	99	$	122
Differences resulting from:
Statutory rate difference	32		28
Change in valuation allowances	193		(1,031)
U.S. taxes on foreign earnings	153		108
Stock compensation	56		44
Tax credit	(133)		(47)
Other nondeductible expense	17		—
Other	(10)		—
Income tax expense (benefit)	$	407	$	(776)

Schedule of Income Tax Effects of Temporary Differences that Give Rise to Deferred Income Tax Assets and Deferred Income Tax Liabilities

The income tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities were as follows:

(in millions)	December 31, 2025		December 31, 2024
Deferred tax assets
Provision and allowances	$	114	$	89
Stock compensation	27		22
Depreciation	15		13
Accrued expenses	117		104
Amortization	22		22
Defined severance benefits	166		118
Lease liabilities	761		500
Net operating loss carryforwards	1,152		989
Tax credits	84		89
Other	115		48
Total deferred tax assets	2,573		1,994
Less: valuation allowances	(1,271)		(903)
Total deferred tax assets net of valuation allowance	$	1,302	$	1,091
Deferred tax liabilities
Lease asset	(704)		(466)
Other	(2)		(3)
Total deferred tax liabilities	(706)		(469)
Net deferred tax assets	$	596	$	622

Schedule of Valuation Allowance

Changes in the valuation allowances were as follows:

(in millions)	2025		2024		2023
Beginning balance, January 1	$	(903)	$	(82)	$	(1,085)
Changes to existing valuation allowances	(359)		(193)		140
Farfetch Acquisition	—		(633)		—
Derecognition of valuation allowances	—		—		905
Changes in foreign exchange rates, statutory rates and other	(9)		5		(42)
Ending balance, December 31	$	(1,271)	$	(903)	$	(82)