Note 9 - Income Taxes

3 Months Ended

Mar. 31, 2026

Notes to Financial Statements

Income Tax Disclosure [Text Block]

9. Income Taxes

For the three-months ended March 31, 2026 and 2025, our income tax benefit and effective income tax rates were as follows (dollars in millions):

	Three Months Ended March 31,
	2026			2025
Income tax benefit	$	(8	)	$	(15	)
Effective income tax rate		29	%		63	%

We estimate our differences between taxable income or loss and recorded income or loss on an annual basis. Our tax provision for each quarter is based upon these full year projections, which are revised each reporting period. These projections incorporate estimates of permanent differences between U.S. GAAP income or loss and taxable income or loss, state income taxes and adjustments to our liability for unrecognized tax benefits to adjust our statutory federal income tax rate of 21% to our effective income tax rate. For the three-months ended March 31, 2026, these estimates increased our statutory federal income tax rate to our effective income tax rate of 29% as follows: state income taxes that added 6% and permanent differences that added 2%. For the three-months ended March 31, 2025, these estimates increased our statutory federal income tax rate to our effective income tax rate of 63% as follows: state income taxes that added 15%; permanent differences that added 39%; and restricted stock differences resulted in a decrease of 12%.

During the first quarter of 2026, we made no material federal or state income tax payments. During the remainder of 2026, we anticipate making income tax payments within a range of $90 million to $110 million. As of March 31, 2026, we have an aggregate of approximately $259 million of various state operating loss carryforwards, of which we expect that approximately $162 million will not be utilized due to Internal Revenue Code Section 382 limitations and those that will expire prior to utilization. After applying our state effective tax rate, this amount is included in our valuation allowance for deferred tax assets.