Income Taxes

6 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

We recognized total income tax expense from continuing operations of $84 million and $25 million for the three months and six months ended June 30, 2025, respectively, compared to income tax expense of $60 million and $100 million for the same periods in 2024. The increase in income tax expense for the three months ended June 30, 2025, compared to the same period in 2024, was primarily due to the tax effects of an increase in pretax earnings during the three months ended June 30, 2025. This increase was partially offset by an income tax benefit from the revaluation of our deferred tax assets and liabilities as a result of a California tax law enacted during the second quarter of 2025. The decrease in income tax expense for the six months ended June 30, 2025, compared to the same period in 2024, was primarily attributable to the tax effects of a loss on investments recognized as a result of our balance sheet repositioning of a portion of our available-for-sale securities during the six months ended June 30, 2025, as well as the aforementioned income tax benefit from the revaluation of our deferred tax assets and liabilities.

As of each reporting date, we consider existing evidence, both positive and negative, that could impact our view with regard to future realization of deferred tax assets. We continue to believe it is more likely than not that the benefit for certain foreign tax credit carryforwards and state net operating loss carryforwards will not be realized. In recognition of this risk, we continue to provide a partial valuation allowance on the deferred tax assets relating to these carryforwards and it is reasonably possible that the valuation allowance may change in the next 12 months.