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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Schedules of Provision for Income Taxes and Deferred Income Taxes (Tax Benefits) | The provision for income taxes consists of:
(in millions) | 2024 |  | 2023 |  | 2022
Current income taxes |  |  |  |  |
U.S. federal | $ | 634.7 |  |  | $ | 554.0 |  |  | $ | 574.7 |
State and local | 112.4 |  |  | 68.1 |  |  | 115.4 |
Foreign | 24.7 |  |  | 23.9 |  |  | 15.5 |
Deferred income taxes (benefits) | (88.0) |  |  | 8.6 |  |  | (207.0) |
Total | $ | 683.8 |  |  | $ | 654.6 |  |  | $ | 498.6 |
The deferred income taxes (benefits) recognized as part of our provision for income taxes is related to:
(in millions) | 2024 |  | 2023 |  | 2022
Property, equipment and software | $ | (60.3) |  |  | $ | (43.2) |  |  | $ | (64.1) |
Accrued, deferred, and long-term incentive compensation | (14.2) |  |  | (28.6) |  |  | 11.8 |
Operating lease assets | (1.7) |  |  | (6.3) |  |  | 24.8 |
Operating lease liabilities | 5.0 |  |  | 3.8 |  |  | (24.3) |
Acquisition-related retention liability | (12.9) |  |  | (14.8) |  |  | (13.6) |
Contingent consideration liability | 3.1 |  |  | 15.4 |  |  | 32.4 |
Acquired investments | (27.9) |  |  | (19.5) |  |  | (73.0) |
Unrealized gains (losses) recognized in non-operating income | 16.8 |  |  | 43.8 |  |  | (114.6) |
Net operating losses | (11.2) |  |  | (31.5) |  |  | (11.0) |
Change in valuation allowance | 16.1 |  |  | 86.4 |  |  | 16.4 |
Other | (0.8) |  |  | 3.1 |  |  | 8.2 |
Total net deferred income taxes (benefits) | $ | (88.0) |  |  | $ | 8.6 |  |  | $ | (207.0) |
Schedule of Effective Income Tax Rate Reconciliation | The following table reconciles the statutory federal income tax rate to our effective income tax rate.
| 2024 |  | 2023 |  | 2022
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) | 2.9 |  |  | 2.3 |  |  | 3.4 |
Net income attributable to redeemable non-controlling interests(2) | (0.3) |  |  | (0.5) |  |  | 1.3 |
Net excess tax benefits from stock-based compensation plans activity | (0.2) |  |  | 0.1 |  |  | (0.4) |
Valuation allowance | 0.2 |  |  | 3.4 |  |  | — |
Other items | 0.7 |  |  | — |  |  | 0.3 |
Effective income tax rate | 24.3 | % |  | 26.3 | % |  | 25.6 | %
(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.
Schedule of Deferred Tax Assets and Liabilities | The net deferred tax assets recognized in our consolidated balance sheets in other assets as of December 31 relate to the following:
(in millions) | 2024 |  | 2023
Deferred tax assets |  |  |
Accrued, deferred, and long-term incentive compensation | $ | 317.7 |  |  | $ | 303.5 |
Property, equipment and software | 90.9 |  |  | 30.6 |
Acquired investments | 66.4 |  |  | 40.3 |
Net operating loss carry-forwards | 53.7 |  |  | 42.5 |
Operating lease liability | 39.8 |  |  | 44.8 |
Other | 12.9 |  |  | 16.0 |
Total deferred tax assets | 581.4 |  |  | 477.7 |
Valuation allowance | (118.9) |  |  | (102.8) |
Total deferred tax assets, net of valuation allowance | 462.5 |  |  | 374.9 |
Deferred tax liabilities |  |  |
Contingent consideration liability | (50.9) |  |  | (47.8) |
Unrealized gains (losses) recognized in non-operating income | (50.0) |  |  | (33.2) |
Operating lease assets | (41.1) |  |  | (42.8) |
Acquisition-related retention liability | (26.6) |  |  | (39.5) |
Other | (15.9) |  |  | (17.8) |
Total deferred tax liabilities | (184.5) |  |  | (181.1) |
Net deferred tax assets | $ | 278.0 |  |  | $ | 193.8 |
Schedule of Unrecognized Tax Benefits | The following table summarizes the changes in our unrecognized tax benefits.
(in millions) | 2024 |  | 2023 |  | 2022
Balance at beginning of year | $ | 42.7 |  |  | $ | 35.4 |  |  | $ | 29.3 |
Changes in tax positions related to |  |  |  |  |
Current year | 4.2 |  |  | 7.8 |  |  | 5.5 |
Prior years | (2.9) |  |  | 0.5 |  |  | 1.3 |
Expired statute of limitations | (1.0) |  |  | (1.0) |  |  | (0.7) |
Balance at end of year | $ | 43.0 |  |  | $ | 42.7 |  |  | $ | 35.4 |

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