Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.26.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax (Expense) Benefit
Income tax benefit (expense) consists of:
Years ended December 31,
2025 2024 2023
amounts in millions
Current:
Federal $ 8  (86) (8)
State and local 19  (6) 12 
Foreign (72) (78) (84)
(45) (170) (80)
Deferred:
Federal 210  172  (50)
State and local 23  42  (3)
Foreign (3) (3) (27)
230  211  (80)
Income tax benefit (expense) $ 185  41  (160)
Summary of Domestic and Foreign Earnings (Losses) from Continuing Operations before Income Taxes
The following table presents a summary of our domestic and foreign earnings (losses) from continuing operations before income taxes:
Years ended December 31,
2025 2024 2023
amounts in millions
Domestic $ (2,757) (1,525) (236)
Foreign 174  234  302 
Total $ (2,583) (1,291) 66 
Schedule of Effective Income Tax Rate Reconciliation
Total Income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 21% in 2025 as a result of the following:
Year ended December 31, 2025
amounts in millions percent
US Federal statutory income tax rate $ 542  21.0  %
Domestic federal
Tax credits 5 0.2%
Nontaxable and non-deductible items, net
   Goodwill impairment (310) (12)%
   Other non-deductible items (36) (1.4)%
Cross-border tax laws (23) (0.9)%
Valuation Allowance - FTC C/F (11) (0.4)%
Other 6 0.2%
Domestic state and local income taxes, net of federal tax effect (1) 25  1.0  %
Foreign tax effects (13) (0.5) %
Worldwide changes in unrecognized tax benefits —  —  %
Total tax benefit (expense) $ 185  7.2  %
(1) The following jurisdictions make up greater than 50% of the state income tax expense for 2025: California and New York.
Total Income tax benefit (expense) for 2024 and 2023 differs from the amounts computed by applying the U.S. federal income tax rate of 21% as a result of the following:
Years ended December 31,
2024 2023
amounts in millions
Computed expected tax benefit (expense) $ 271  (14)
State and local income taxes, net of federal income taxes 24  (21)
Tax on foreign earnings, net of federal tax benefits 210  (24)
Change in valuation allowance affecting tax expense (236) — 
Impairment of non-deductible goodwill (189) (68)
Non-deductible interest on Preferred Stock (21) (21)
Stock compensation (6) (17)
Executive compensation (6) (4)
Change in tax rate (2) 16 
Non-deductible equity distribution (1) — 
Other, net (3) (7)
Income tax benefit (expense) $ 41  (160)
Schedule of Deferred Tax Assets and Liabilities
The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below:
December 31,
2025 2024
amounts in millions
Deferred tax assets:
Tax losses and credit carryforwards $ 772  594 
Foreign tax credit carryforwards 102  101 
Operating lease liability 152  123 
Other accrued liabilities 25  35 
Prepaid royalty 23  43 
Other —  15 
Deferred tax assets 1,074  911 
Valuation allowance (535) (500)
Net deferred tax assets 539  411 
Deferred tax liabilities:
Intangible assets 304  540 
Fixed assets 36  22 
Discount on exchangeable debentures 1,275  1,136 
Other 46  — 
Deferred tax liabilities 1,661  1,698 
Net deferred tax liabilities $ 1,122  1,287 
Schedule of Reconciliation of Unrecognized Tax Benefits
A reconciliation of unrecognized tax benefits is as follows:
Years ended December 31,
2025 2024 2023
amounts in millions
Balance at beginning of year $ 61  67  97 
Additions based on tax positions related to the current year 3  3  5 
Additions for tax positions of prior years 8  —  1 
Reductions for tax positions of prior years (10) (3) (3)
Lapse of statute and settlements (3) (6) (33)
Balance at end of year $ 59  61  67 
Schedule of Supplemental Disclosures to Consolidated Statements of Cash Flows
Years ended December 31,
2025 2024 2023
amounts in millions
Cash paid for interest $ 414  458  471 
Cash paid for income taxes, net $ 106  153  107 
Income taxes paid during 2025 by taxing jurisdiction are as follows:
Year ended December 31,
2025
amounts in millions
US Federal $ 27 
US state and local 9 
Foreign
   Japan 51 
   Other 19 
Total $ 106