Income Taxes

6 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

INCOME TAXES

7. INCOME TAXES

Income tax provisions for interim (quarterly) periods are based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent, or unusual items. Income tax benefit from continuing operations was $4 million for the three months ended June 30, 2025, compared to income tax expense of $10 million for the three months ended June 30, 2024. The change was primarily driven by a favorable change in discrete tax expenses and benefits, along with a higher valuation allowance in the prior year. These benefits were partially offset by the impact of a lower loss from continuing operations before taxes in the three months ended June 30, 2025 compared to the prior year.

Income tax benefit was $11 million for the six months ended June 30, 2025 compared to income tax expense of $5 million for the six months ended June 30, 2024. The change was primarily driven by a favorable change in discrete tax expenses and benefits, along with a higher valuation allowance in the prior year. These benefits were partially offset by the impact of a lower loss from continuing operations before taxes in the six months ended June 30, 2025 compared to the prior year.

The Company’s current tax liability was $18 million and $336 million as of June 30, 2025 and December 31, 2024, respectively, presented within Other current liabilities on the Condensed Consolidated Balance Sheets. The decrease in the current tax liability balance as of June 30, 2025 as compared to December 31, 2024 is due to the payment of $284 million of taxes during the three months ended June 30, 2025 related to the Digital Banking Sale.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA introduces several significant changes, including the permanent extension and modification of certain expiring provisions of the Tax Cuts and Jobs Act. The legislation has multiple effective dates, with certain provisions taking effect in tax year 2025 and others phased in through 2027. We are currently evaluating the impact of the OBBBA on our financial statements.