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INCOME TAXES | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES. The provision for income taxes consists of:
(in millions) | 2021 |  | 2020 |  | 2019
Current income taxes |  |  |  |  |
U.S. federal | $ | 745.0 |  |  | $ | 547.1 |  |  | $ | 490.9 |
State and local | 179.3 |  |  | 135.2 |  |  | 135.9 |
Foreign | 28.1 |  |  | 22.9 |  |  | 18.3 |
Deferred income taxes (benefits) | (56.3) |  |  | 13.7 |  |  | 33.3 |
Total | $ | 896.1 |  |  | $ | 718.9 |  |  | $ | 678.4 |
Deferred income taxes and benefits arise from temporary differences between taxable income for financial statement and income tax return purposes. The deferred income taxes (benefits) recognized as part of our provision for income taxes is related to:
(in millions) | 2021 |  | 2020 |  | 2019
Property and equipment | $ | 11.8 |  |  | $ | 15.6 |  |  | $ | 3.0 |
Asset impairments | 2.0 |  |  | 2.9 |  |  | (2.4) |
Stock-based compensation | (8.1) |  |  | 1.8 |  |  | 4.5 |
Accrued compensation | (1.6) |  |  | (2.2) |  |  | 1.3 |
Supplemental savings plan liability | (29.3) |  |  | (43.3) |  |  | (33.6) |
Unrealized holding gains recognized in non-operating income | (26.1) |  |  | 46.8 |  |  | 63.0 |
Other | (5.0) |  |  | (7.9) |  |  | (2.5) |
Total deferred income taxes (benefits) | $ | (56.3) |  |  | $ | 13.7 |  |  | $ | 33.3 |
The following table reconciles the statutory federal income tax rate to our effective income tax rate.
| 2021 |  | 2020 |  | 2019
Statutory U.S. federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes for current year, net of federal income tax benefits(1) | 3.7 |  |  | 3.8 |  |  | 4.3 |
Net income attributable to redeemable non-controlling interests(2) | (.1) |  |  | (1.2) |  |  | (1.0) |
Net excess tax benefits from stock-based compensation plans activity | (2.1) |  |  | (1.9) |  |  | (1.5) |
Other items | (.1) |  |  | .5 |  |  | .4 |
Effective income tax rate | 22.4 | % |  | 22.2 | % |  | 23.2 | %
(1) State income tax benefits are reflected in the total benefits for net income attributable to redeemable non-controlling interests and stock-based compensation plans activity. (2) Net income attributable to redeemable non-controlling interests represents the portion of earnings held in the firm's consolidated investment products, which are not taxable to the firm despite being included in pre-tax income. The net deferred tax assets recognized in our consolidated balance sheets in other assets as of December 31 relate to the following:
(in millions) | 2021 |  | 2020
Deferred tax assets |  |  |
Stock-based compensation | $ | 87.4 |  |  | $ | 79.3 |
Asset impairments | 5.4 |  |  | 7.4 |
Operating lease liabilities | 24.3 |  |  | 34.9 |
Accrued compensation | 9.1 |  |  | 7.5 |
Supplemental savings plan | 190.2 |  |  | 160.9 |
Currency translation adjustment | 2.0 |  |  | .2 |
Other | 24.6 |  |  | 13.5 |
| 343.0 |  |  | 303.7 |
Deferred tax liabilities |  |  |
Acquisition-related retention liability | (68.4) |  |  | — |
Acquired Investments | (59.2) |  |  | — |
Property and equipment | (76.7) |  |  | (64.9) |
Operating lease assets | (24.3) |  |  | (34.9) |
Net unrealized holding gains recognized in income | (104.8) |  |  | (130.9) |
Other | (16.6) |  |  | (12.4) |
| (350.0) |  |  | (243.1) |
Net deferred tax (liability) asset | $ | (7.0) |  |  | $ | 60.6 |
We intend to repatriate earnings of T. Rowe Price foreign subsidiaries to the U.S. in an amount not to exceed these subsidiaries' previously taxed earnings and profits ("PTEP"), which are estimated to be approximately $864 million at December 31, 2021. These earnings as well as our pro rata share of the earnings of foreign corporations in which T. Rowe Price owns 10% or more were subject to the repatriation tax enacted with the U.S. tax reform and are treated as PTEP. As such, we did not record a deferred tax liability with respect to the U.S. federal or foreign withholding taxes as the PTEP should not be taxed in these jurisdictions. We did recognize a state deferred tax liability of $0.8 million for the intended repatriation as states have varying rules on taxation of these amounts. Other assets include tax refund receivables of $11.9 million at December 31, 2021, and $25.0 million at December 31, 2020. Cash outflows from operating activities include net income taxes paid of $948.9 million in 2021, $643.0 million in 2020, and $677.3 million in 2019. Additional income tax benefit arising from stock-based compensation plans activity totaling $82.7 million in 2021, $61.9 million in 2020, and $42.7 million in 2019 reduced the amount of income taxes that would have otherwise been payable. These income tax benefits were recognized in the income tax provision. The following table summarizes the changes in our unrecognized tax benefits.
(in millions) | 2021 |  | 2020 |  | 2019
Balance at beginning of year | $ | 26.7 |  |  | $ | 23.9 |  |  | $ | 16.1 |
Changes in tax positions related to |  |  |  |  |
Current year | 8.9 |  |  | 7.7 |  |  | 8.1 |
Prior years | (1.0) |  |  | (2.6) |  |  | .5 |
Expired statute of limitations | (5.3) |  |  | (2.3) |  |  | (.8) |
Balance at end of year | $ | 29.3 |  |  | $ | 26.7 |  |  | $ | 23.9 |
If recognized, these tax benefits would affect our effective tax rate; however, we do not expect that unrecognized tax benefits for tax positions taken with respect to 2021 and prior years will significantly change in 2022. The U.S. has concluded examinations related to federal tax obligations through the year 2019. A net interest payable related to our unrecognized tax benefits of $1.6 million at December 31, 2021, and $1.9 million at December 31, 2020, are recognized in our consolidated balance sheets. Our accounting policy with respect to interest and penalties arising from income tax settlements is to recognize them as part of our provision for income taxes. Interest recognized as part of our provision for income taxes was not material.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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