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Income Taxes
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes
Note 5. Income Taxes
Three Months Ended
March 31,
20262025
(Dollars in millions)
Tax expense$23 $23 
Effective tax rate19.5 %27.1 %

The effective tax rates for the three months ended March 31, 2026 and 2025 were 19.5% and 27.1%, respectively. The change in the effective tax rate for the three months ended March 31, 2026 compared to the prior period is primarily related to a decrease in U.S. taxes on international operations, the global mix of earnings, and deductions related to employee share-based payments.

The effective tax rate for the three months ended March 31, 2026 was lower than the U.S. federal statutory rate of 21% primarily because of the global mix of earnings, benefits related to research and development expenses, and deductions related to employee share-based compensation.