Income Taxes

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

We consider new evidence (both positive and negative) at each reporting date that could affect our view of the future realization of deferred tax assets. We evaluate information such as historical financial results, historical taxable income, projected future taxable income, expected timing of the reversals of existing temporary differences and available prudent and feasible tax planning strategies in our analysis. Based on the available evidence, valuation allowances in certain U.S. and non-U.S. jurisdictions remain consistent as of September 30, 2024.

Our income tax expense (including discrete items) was $17 million and $61 million for the three and nine months ended September 30, 2024, respectively, and $14 million and $27 million for the three and nine months ended September 30, 2023, respectively. In all periods, we recorded tax expense relative to pre-tax earnings in jurisdictions without valuation allowances.

During the second quarter of 2024, the Company was notified by the Internal Revenue Service that the Company’s U.S. federal income tax returns for tax years 2021 and 2022 are subject to examination.