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INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The provision for income taxes consisted of the following for the years ended December 31, 2025, 2024 and 2023:
202520242023
 (in millions)
Current provision
Federal$130 $566 $915 
State and local45 39 84 
Foreign— — 1 
Total current provision175 605 1,000 
Deferred tax expense (benefit)
Federal89 (179)(178)
State and local(14)(13)6 
Foreign— — 8 
Total deferred tax expense (benefit)75 (192)(164)
Total provision for income taxes$250 $413 $836 
The reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported for the years ended December 31, 2025, 2024 and 2023 are as follows:
202520242023
($ in millions)
U.S. federal statutory tax rate$302 21.0 %$340 21.0 %$698 21.0 %
State and local income taxes, net of federal income tax effect(6)(0.4)%14 0.9 %76 2.3 %
Changes in unrecognized tax benefits47 3.3 %29 1.8 %37 1.1 %
Gain/loss on acquisitions and dispositions(102)(7.1)%— — %(1)— %
Other adjustments9 0.6 %30 1.8 %26 0.8 %
Provision for income taxes and effective income tax rate$250 17.4 %$413 25.5 %$836 25.2 %
    
The components of income before provision for income taxes for the years ended December 31, 2025, 2024 and 2023 are as follows:
202520242023
(in millions)
Domestic$1,485 $1,662 $3,351 
Foreign(47)(42)(26)
Total$1,438 $1,620 $3,325 
As of December 31, 2025, the Company paid income taxes net of refund of $231 million for federal income taxes and $41 million for state and local income taxes ($20 million for the state of Florida, and $21 million for other states). As of December 31, 2024, the Company paid income taxes net of refund of $506 million for federal income taxes and $64 million for state and local income taxes. As of December 31, 2023, the Company paid income taxes net of refund of $903 million for federal income taxes, $92 million for state and local income taxes, and $2 million for foreign income taxes.
Deferred income tax balances reflect the impact of temporary differences between the tax bases of assets or liabilities and their reported amounts in our consolidated financial statements, and are stated at enacted tax rates expected to be in effect when the reported amounts are actually recovered or settled.
Principal components of our net deferred tax balances at December 31, 2025 and 2024 were as follows:
 Assets (Liabilities)
 20252024
 (in millions)
Benefits payable$174 $217 
Compensation and other accrued expense172 171 
Net operating loss carryforward148 93 
Deferred acquisition costs35 39 
Other26 6 
Unearned revenues35 6 
Investment securities544 510 
Total deferred income tax assets1,134 1,042 
Valuation allowance(139)(85)
Total deferred income tax assets, net of valuation allowance995 957 
Depreciable property and intangible assets(523)(502)
Prepaid expenses(353)(172)
Other(35)(23)
Total deferred income tax liabilities(911)(697)
Total net deferred income tax assets (liabilities)$84 $260 
Amounts recognized in the consolidated balance sheets:
Other long-term assets$84 $260 
All deferred tax assets and liabilities are classified as noncurrent in our consolidated balance sheets as other long-term assets and liabilities at December 31, 2025 and 2024, respectively.
Valuation allowances are provided when it is considered more likely than not deferred tax assets will not be realized. The valuation allowances primarily relate to future tax benefits on certain federal, state and non-U.S. net operating loss carryforwards. At December 31, 2025, we had approximately $0.5 million of federal net operating losses, $2.0 billion of pre-tax state net operating losses, and approximately $141 million of Puerto Rico net operating losses to carry forward. A portion of these loss carryforwards, if not used to offset future taxable income, will expire from 2026 through 2042. The remaining balance of the net operating loss carryforwards has no expiration date. Due to limitations and uncertainty regarding our ability to use some of the loss carryforwards and certain other deferred tax assets, a valuation allowance of $139 million was established. For the remainder of the net operating loss carryforwards and other cumulative temporary differences, based on our historical record of producing taxable income and profitability, we have concluded that future operating income will be sufficient to recover these deferred tax assets.
We file income tax returns in the United States and Puerto Rico. The U.S. Internal Revenue Service, or IRS, has completed its examinations of our consolidated income tax returns for 2022 and prior years. Our 2023 tax return is in the post-filing review period under the Compliance Assurance Process, or CAP, as we received a “no-change” letter in April of 2025. For our 2024 tax return, we received a full acceptance letter under the CAP, indicating that we have completed the advance (pre‑filing) review stage. With a few exceptions, which are immaterial in the aggregate, we are no longer subject to state, local and foreign tax examinations for years before 2021. We are not aware of any material adjustments that may be proposed as a result of any ongoing or future examinations.