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INCOME TAXES
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES.
The provision for income taxes consists of:
(in millions)202220212020
Current income taxes
U.S. federal$574.7 $745.0 $547.1 
State and local115.4 179.3 135.2 
Foreign15.5 28.1 22.9 
Deferred income taxes (benefits)(207.0)(56.3)13.7 
Total$498.6 $896.1 $718.9 

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)202220212020
Property and equipment$(64.0)$11.8 $15.6 
Asset impairments4.6 2.0 2.9 
Operating lease assets24.7 (10.6)1.0 
Operating lease liabilities(24.2)10.6 (1.0)
Stock-based compensation(8.7)(8.1)1.8 
Accrued compensation(.5)(1.6)(2.2)
Supplemental savings plan liability21.3 (29.3)(43.3)
Acquisition-related retention liability(13.6)— — 
Contingent consideration liability32.4 — — 
Acquired investments(73.0)— — 
Unrealized holding gains recognized in non-operating income(114.6)(26.1)46.8 
Other8.6 (5.0)(7.9)
Total deferred income taxes (benefits)$(207.0)$(56.3)$13.7 

The following table reconciles the statutory federal income tax rate to our effective income tax rate. 
202220212020
Statutory U.S. federal income tax rate21.0 %21.0 %21.0 %
State income taxes for current year, net of federal income tax benefits(1)
3.4 3.7 3.8 
Net income attributable to redeemable non-controlling interests(2)
1.3 (.1)(1.2)
Net excess tax benefits from stock-based compensation plans activity(.4)(2.1)(1.9)
Other items.3 (.1).5 
Effective income tax rate25.6 %22.4 %22.2 %
(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)20222021
Deferred tax assets
Stock-based compensation$96.1 $87.4 
Asset impairments— 5.4 
Operating lease liabilities48.5 24.3 
Accrued compensation9.6 9.1 
Acquired investments20.8 — 
Supplemental savings plan168.9 190.2 
Net unrealized holding losses recognized in income10.6 — 
Currency translation adjustment8.5 2.0 
Other14.3 24.6 
377.3 343.0 
Deferred tax liabilities
Acquisition-related retention liability(54.3)(68.4)
Contingent consideration liability(32.4)— 
Acquired Investments— (59.2)
Property and equipment(12.7)(76.7)
Operating lease assets(49.0)(24.3)
Net unrealized holding gains recognized in income— (104.8)
Other(12.8)(16.6)
(161.2)(350.0)
Net deferred tax (liability) asset$216.1 $(7.0)

We consider the need for valuation allowances against our deferred tax assets to the extent that we are not able to generate sufficient taxable income. During 2022, we recognized an immaterial amount of valuation allowances against our deferred tax assets. Unless we are able to generate sufficient taxable income in future periods, we may need to record additional valuation allowances to further reduce our deferred tax assets. Any additional amount of valuation allowances could materially increase our income tax expenses in future periods.

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 $874 million at December 31, 2022. 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 $0.9 million for the intended repatriation as states have varying rules on taxation of these amounts.

Other assets include tax refund receivables of $71.2 million at December 31, 2022, and $11.9 million at December 31, 2021.

Cash outflows from operating activities include net income taxes paid of $794.2 million in 2022, $948.9 million in 2021, and $643.0 million in 2020.

Additional income tax benefit arising from stock-based compensation plans activity totaling $7.1 million in 2022, $82.7 million in 2021, and $61.9 million in 2020 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)202220212020
Balance at beginning of year$29.3 $26.7 $23.9 
Changes in tax positions related to
Current year5.5 8.9 7.7 
Prior years1.3 (1.0)(2.6)
Expired statute of limitations(.7)(5.3)(2.3)
Balance at end of year$35.4 $29.3 $26.7 

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 2022 and prior years will significantly change in 2023. The U.S. has concluded examinations related to federal tax obligations through the year 2020. A net interest payable related to our unrecognized tax benefits of $2.3 million at December 31, 2022, and $1.6 million at December 31, 2021, 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.