Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income before Provision for Income Taxes, Classified by Source of Income

Income before provision for income taxes, classified by source of income, was as follows:


In millions	2025		2024		2023
U.S.	$	3,291	$	3,282	$	3,665
Outside the U.S.	7,606		7,062		6,857
Income before provision for income taxes	$	10,897	$	10,345	$	10,522

Provision for Income Taxes, Classified by Timing and Location of Payment

The provision for income taxes, classified by the timing and location of payment, was as follows:


In millions	2025		2024		2023
U.S. federal	$	1,085	$	1,412	$	1,340
U.S. state	198		269		263
Outside the U.S.	1,177		1,014		1,137
Current tax provision	2,460		2,695		2,740
U.S. federal	(349)		(76)		(146)
U.S. state	(84)		(20)		(30)
Outside the U.S.	307		(478)		(511)
Deferred tax (benefit) provision	(126)		(574)		(686)
Provision for income taxes	$	2,334	$	2,121	$	2,053

Net Deferred Tax Liabilities

Net deferred tax (assets) liabilities consisted of:


In millions	'December 31, 2025			2024
Lease right-of-use asset		$	3,533	$	3,213
Property and equipment		1,588		1,568
Intangible assets		91		187
Other		25		437
Total deferred tax liabilities		5,237		5,405
Lease liability		(3,615)		(3,292)
Intangible assets		(3,582)		(3,495)
Property and equipment		(488)		(469)
Deferred foreign tax credits		(69)		(50)
Employee benefit plans		(168)		(168)
Deferred revenue		(141)		(113)
Operating loss carryforwards		(197)		(195)
Other		(155)		(170)
Total deferred tax assets before valuation allowance		(8,415)		(7,951)
Valuation allowance		960		917
Net deferred tax (assets) liabilities		$	(2,218)	$	(1,629)
Balance sheet presentation:
Deferred income taxes		$	1,038	$	1,914
Other assets-miscellaneous		(3,256)		(3,543)
Net deferred tax (assets) liabilities		$	(2,218)	$	(1,629)

Statutory U.S. Federal Income Tax Rate Reconciliation to Effective Income Tax Rates

The statutory U.S. federal income tax rate reconciles to the effective income tax rates as follows:


	2025
Dollars in millions	Amount		Percent
Statutory U.S. federal income tax rate	$	2,288	21.0	%
State income taxes, net of related federal income tax benefit(1)	149		1.4
Foreign tax effects	226		2.1
Effect of changes in tax laws or rates enacted in the current period	—		—
Effect of cross-border tax laws
Global intangible low-tax income ("GILTI")	103		0.9
Foreign-derived intangible income ("FDII")	(131)		(1.2)
Other	33		0.3
Tax credits	(43)		(0.4)
Changes in valuation allowances	64		0.6
Nontaxable or nondeductible items	—		—
Changes in unrecognized tax benefits	(1)		—
Other adjustments
Tax impact of intercompany transactions	(314)		(2.9)
Other	(40)		(0.4)


Effective income tax rate	$	2,334	21.4	%

(1)State income taxes in California and Illinois make up the majority (greater than 50%) of the tax effect in this category.


	2024		2023
Statutory U.S. federal income tax rate	21.0	%	21.0	%
State income taxes, net of related federal income tax benefit	1.9		1.8
Foreign income taxed at different rates	2.4		1.9
Tax impact of intercompany transactions	(1.1)		(0.7)
Global intangible low-tax income ("GILTI")	0.5		0.5
Foreign-derived intangible income ("FDII")	(3.4)		(2.7)


Other, net	(0.8)		(2.3)
Effective income tax rates	20.5	%	19.5	%

Schedule of Unrecognized Tax Benefits Roll Forward

The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits:


In millions	2025		2024
Balance at January 1	$	461	$	588
Decreases for positions taken in prior years	(67)		(133)
Increases for positions taken in prior years	19		131
Increases for positions related to the current year	46		47
Settlements with taxing authorities	(31)		(172)
Lapsing of statutes of limitations	(14)		—
Balance at December 31(1)	$	414	$	461

(1)Of this amount, $353 million and $421 million are included in Long-term income taxes for 2025 and 2024, respectively, and $62 million and $40 million are included in Income taxes for 2025 and 2024, respectively, on the Consolidated Balance Sheet.