XML 39 R21.htm IDEA: XBRL DOCUMENT
v3.25.0.1

INCOME TAX | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
INCOME TAX | INCOME TAX The income tax expense for the years ended December 31, 2024, 2023 and 2022 consisted of the following:
| Years Ended December 31,
| 2024 |  | 2023 |  | 2022
| (in thousands)
Current income tax expense (benefit): |  |  |  |  |
Federal | $ | 361,904 |  |  | $ | 399,900 |  |  | $ | 277,120 |
State | 78,314 |  |  | 98,224 |  |  | 68,120 |
Foreign | 201,143 |  |  | 209,955 |  |  | 125,580 |
| 641,361 |  |  | 708,079 |  |  | 470,820 |
Deferred income tax expense (benefit): |  |  |  |  |
Federal | (238,554) |  |  | (330,647) |  |  | (235,727) |
State | (46,689) |  |  | (84,729) |  |  | (41,770) |
Foreign | (60,985) |  |  | (83,683) |  |  | (26,629) |
| (346,228) |  |  | (499,059) |  |  | (304,126) |
| $ | 295,133 |  |  | $ | 209,020 |  |  | $ | 166,694 |
Income tax expense allocated to noncontrolling interests was $16.6 million, $12.9 million and $9.8 million for the years ended December 31, 2024, 2023 and 2022, respectively. The following table presents income (loss) before income taxes for the years ended December 31, 2024, 2023 and 2022:
| Years Ended December 31,
| 2024 |  |  |  | 2023 |  | 2022
| (in thousands)
United States | $ | 1,255,792 |  |  |  |  | $ | 597,969 |  |  | $ | (189,030) |
Foreign | 612,995 |  |  |  |  | 571,978 |  |  | 413,352 |
| $ | 1,868,787 |  |  |  |  | $ | 1,169,947 |  |  | $ | 224,322 |
Approximately $60.5 million of our undistributed foreign earnings are considered to be indefinitely reinvested outside the United States as of December 31, 2024. Because those earnings are considered to be indefinitely reinvested, no deferred income taxes have been provided thereon. If we were to make a distribution of any portion of those earnings in the form of dividends or otherwise, any such amounts would be subject to withholding taxes payable to various foreign jurisdictions; however, the amounts would not be subject to any additional U.S. income tax. Our effective tax rates for the years ended December 31, 2024, 2023 and 2022 differ from the federal statutory rate for those periods as follows:
| Years Ended December 31,
| 2024 |  | 2023 |  | 2022
Federal U.S. statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Foreign inclusion, net of foreign tax credits | 2.3 |  |  | 3.4 |  |  | 8.2 |
Foreign income taxes | 1.8 |  |  | 2.2 |  |  | 1.4 |
State income taxes, net of federal income tax benefit | 1.3 |  |  | 0.9 |  |  | 9.0 |
Uncertain tax positions | 0.9 |  |  | 0.5 |  |  | (0.7) |
Nondeductible executive compensation | 0.3 |  |  | 0.9 |  |  | 4.7 |
Share-based compensation expense | 0.2 |  |  | 0.9 |  |  | 2.0 |
Deemed royalty | 0.2 |  |  | 0.7 |  |  | 1.2 |
Net gain on dispositions and liquidations | — |  |  | 4.3 |  |  | 12.1 |
Goodwill impairment | — |  |  | — |  |  | 78.0 |
Valuation allowance | (0.3) |  |  | (0.4) |  |  | (0.2) |
Foreign-derived intangible income deduction | (1.7) |  |  | (3.8) |  |  | (12.4) |
Tax credits | (4.4) |  |  | (3.8) |  |  | (19.5) |
Foreign interest income not subject to tax | (6.3) |  |  | (9.5) |  |  | (29.9) |
Other | 0.5 |  |  | 0.6 |  |  | (0.6) |
Effective tax rate | 15.8 | % |  | 17.9 | % |  | 74.3 | %
Deferred income taxes are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax laws and rates. Deferred income taxes as of December 31, 2024 and 2023 reflect the effect of temporary differences between the amounts of assets and liabilities for financial accounting and income tax purposes. As of December 31, 2024 and 2023, principal components of deferred tax items were as follows:
| 2024 |  | 2023
| (in thousands)
Deferred income tax assets: |  |  |
Research and development costs | $ | 286,859 |  |  | $ | 267,098 |
Foreign net operating loss carryforwards | 223,535 |  |  | 187,247 |
Credits | 200,474 |  |  | 144,053 |
Financial instruments | 110,621 |  |  | 91,032 |
Lease liabilities | 69,751 |  |  | 89,645 |
Accrued expenses | 51,632 |  |  | 54,478 |
Share-based compensation expense | 33,683 |  |  | 42,376 |
Domestic net operating loss carryforwards | 28,711 |  |  | 34,121 |
Other | 100,507 |  |  | 72,484 |
| 1,105,773 |  |  | 982,534 |
Valuation allowance | (241,197) |  |  | (211,049) |
| 864,576 |  |  | 771,485 |
Deferred tax liabilities: |  |  |
Acquired intangibles | 1,286,709 |  |  | 2,200,082 |
Partnership interests | 896,411 |  |  | 238,139 |
Property and equipment | 360,066 |  |  | 398,439 |
Right-of-use assets | 42,441 |  |  | 59,124 |
Other | 5,862 |  |  | 6,094 |
| 2,591,489 |  |  | 2,901,878 |
Net deferred income tax liability | $ | 1,726,913 |  |  | $ | 2,130,393 |
During the year ended December 31, 2024, as part of the integration of EVO into our Merchant Solutions business, certain deferred taxes, primarily those related to acquired intangibles, property and equipment and research and development costs, were reclassified into partnership interests. The net deferred income taxes reflected in our consolidated balance sheets as of December 31, 2024 and 2023 are as follows:
| 2024 |  | 2023
| (in thousands)
Noncurrent deferred income tax asset | $ | (106,083) |  |  | $ | (111,712) |
Noncurrent deferred income tax liability | 1,832,996 |  |  | 2,242,105 |
Net deferred income tax liability | $ | 1,726,913 |  |  | $ | 2,130,393 |
A valuation allowance is provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Changes to our valuation allowance during the years ended December 31, 2024, 2023 and 2022 are summarized below (in thousands):
Balance at December 31, 2021 | $ | (112,259) |
Allowance for foreign net operating losses | (122) |
Allowance for foreign tax credits | 60 |
Allowance for state tax credits | 2,282 |
Allowance for domestic net operating losses | (4) |
Balance at December 31, 2022 | (110,043) |
Allowance for foreign net operating losses | (674) |
Allowance for foreign tax credits | (101,271) |
Allowance for state tax credits | 3,079 |
Allowance for state interest limitation | (2,335) |
Allowance for domestic net operating losses | 195 |
Balance at December 31, 2023 | (211,049) |
Allowance for foreign net operating losses | (12,533) |
Allowance for foreign tax credits | (16,975) |
Allowance for state tax credits | (463) |
Allowance for state interest limitation | (177) |
Balance at December 31, 2024 | $ | (241,197) |
The change in the valuation allowance for the year ended December 31, 2024 is primarily related to foreign tax credits and foreign net operating loss carryforwards. The change in the valuation allowance for the year ended December 31, 2023 is primarily related to anticipatory foreign tax credits and state interest deduction carryforwards offset by recognition of state tax credit carryforwards determined more likely than not to be realized. The decrease in the valuation allowance for the year ended December 31, 2022 is primarily related to the utilization of state tax credit carryforwards. Foreign net operating loss carryforwards of $110.6 million will expire between December 31, 2025 and December 31, 2044, if not utilized. Foreign net operating loss carryforwards of $112.9 million have indefinite carryforward periods. Domestic net operating loss carryforwards of $28.7 million and tax credit carryforwards of $103.0 million will expire between December 31, 2025 and December 31, 2044, if not utilized. We conduct business globally and file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities around the world. We are no longer subject to state income tax examinations for years ended on or before December 31, 2015, U.S. federal income tax examinations for years ended on or before December 31, 2016 and international corporation tax examinations for years ended on or before December 31, 2020. A reconciliation of the beginning and ending amounts of unrecognized income tax benefits, excluding penalties and interest, for the years ended December 31, 2024, 2023 and 2022 is as follows:
| Years Ended December 31,
| 2024 |  | 2023 |  | 2022
| (in thousands)
Balance at the beginning of the year | $ | 43,229 |  |  | $ | 31,315 |  |  | $ | 34,905 |
Additions related to acquisitions | — |  |  | 4,054 |  |  | — |
Reductions for income tax positions of prior years | (164) |  |  | (887) |  |  | (8,301) |
Settlements with income tax authorities | (1,656) |  |  | (988) |  |  | (3,245) |
Additions for income tax positions of prior years | 9,092 |  |  | 1,809 |  |  | 911 |
Additions based on income tax positions related to the current year | 7,801 |  |  | 7,926 |  |  | 7,045 |
Balance at the end of the year | $ | 58,302 |  |  | $ | 43,229 |  |  | $ | 31,315 |
As of December 31, 2024, the total amount of gross unrecognized income tax benefits that, if recognized, would affect the provision for income taxes is $56.8 million.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration