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Income Taxes Level 1 (Notes) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | Income Taxes The provision or benefit for income taxes includes U.S. federal income taxes (determined on a consolidated return basis), foreign income taxes, and state income taxes. We actively participate in tax credit equity investments for projects eligible to receive renewable energy credits. These investments, accounted for under the equity method, are recorded in Deferred charges and other assets, net of reserves on our Consolidated Balance Sheet. Upon realization, tax credits associated with these investments are recognized as a reduction of tax expense. This reduction is offset by amortization of the investment in proportion to the tax benefits received during the period under the proportional amortization method. During 2024, we recognized investment tax credits totaling $7.4 million and $3.1 million in other tax benefits primarily from depreciation. As a result, the equity investment was amortized by $10.0 million to reflect the realization of these benefits. This amortization is reflected within the Provision for income taxes in the Consolidated Statement of Operations. Income before income taxes was composed of the following components:
| Years Ended December 31,
| 2024 |  | 2023 |  | 2022
| (In thousands)
United States | $ | 631,159 |  |  | $ | 664,745 |  |  | $ | 703,131 |
Foreign | 44,259 |  |  | 43,861 |  |  | 52,497 |
Total income before income taxes | $ | 675,418 |  |  | $ | 708,606 |  |  | $ | 755,628 |
Income tax provision consisted of the following:
| Years Ended December 31,
| 2024 |  | 2023 |  | 2022
| (In thousands)
Current: |  |  |  |  |
United States | $ | 113,379 |  |  | $ | (30,832) |  |  | $ | 139,132 |
Foreign | 13,069 |  |  | 14,989 |  |  | 14,486 |
State | 22,676 |  |  | (4,728) |  |  | 32,505 |
Total current income taxes | 149,124 |  |  | (20,571) |  |  | 186,123 |
Deferred: |  |  |  |  |
United States | $ | 5,971 |  |  | $ | 155,677 |  |  | $ | (59) |
Foreign | (32) |  |  | (1,999) |  |  | 780 |
State | 1,602 |  |  | 37,838 |  |  | 2,750 |
Total deferred income taxes | 7,541 |  |  | 191,516 |  |  | 3,471 |
Total income taxes | $ | 156,665 |  |  | $ | 170,945 |  |  | $ | 189,594 |
We made income tax payments of $23.7 million, $85.5 million, and $183.7 million in 2024, 2023, and 2022, respectively, and received refunds of $2.8 million, $1.7 million, and $4.2 million, respectively. The differences between the U.S. federal statutory income tax rate and our effective tax rate were as follows:
| Years Ended December 31, |  |
| 2024 |  | 2023 |  | 2022 |  |
| (In thousands) |  |
Computed tax provision at the applicable federal statutory income tax rate | $ | 141,838 |  |  | $ | 148,807 |  |  | $ | 158,682 |  |  |
State and local taxes, net of federal income tax benefits | 21,587 |  |  | 27,041 |  |  | 28,817 |  |  |
Foreign jurisdiction differences | 3,509 |  |  | 3,756 |  |  | 3,976 |  |  |
Permanent differences associated with divestitures | 365 |  |  | 47 |  |  | 200 |  |  |
Changes in uncertain tax positions and audit settlements | (1,083) |  |  | 110 |  |  | 53 |  |  |
Excess tax benefit from share-based compensation | (11,924) |  |  | (8,406) |  |  | (8,918) |  |  |
Other | 2,373 |  |  | (410) |  |  | 6,784 |  |  |
Provision for income taxes | $ | 156,665 |  |  | $ | 170,945 |  |  | $ | 189,594 |  |  |
Total consolidated effective tax rate | 23.2 | % |  | 24.1 | % |  | 25.1 | % |  |
The 2024 consolidated effective tax rate was 23.2%, compared to 24.1% in 2023. The lower effective tax rate in 2024 was primarily due to an increase in excess tax benefit recognized on the settlement of employee share-based awards. Deferred taxes are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates. The tax effects of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities consisted of the following:
| Years Ended December 31,
| 2024 |  | 2023
| (In thousands)
Inventories and cemetery property | $ | (195,851) |  |  | $ | (196,887) |
Deferred incremental direct selling costs | (110,305) |  |  | (104,686) |
Property and equipment | (146,121) |  |  | (177,411) |
Intangibles | (213,641) |  |  | (207,727) |
Deferred revenue on preneed funeral and cemetery contracts | (100,095) |  |  | (80,178) |
Other | (6,085) |  |  | (5,746) |
Deferred tax liabilities | (772,098) |  |  | (772,635) |
Loss and tax credit carryforwards | 113,603 |  |  | 127,796 |
Accrued liabilities | 115,515 |  |  | 122,887 |
Deferred tax assets | 229,118 |  |  | 250,683 |
Less: valuation allowance | (99,325) |  |  | (108,834) |
Net deferred income tax liability | $ | (642,305) |  |  | $ | (630,786) |
Deferred tax assets and deferred income tax liabilities are recognized in our Consolidated Balance Sheet as follows:
| Years Ended December 31,
| 2024 |  | 2023
| (In thousands)
Non-current deferred tax assets - included in Deferred charges and other assets, net | $ | 6,890 |  |  | $ | 7,320 |
Non-current deferred tax liabilities - included in Deferred tax liability | (649,195) |  |  | (638,106) |
Net deferred income tax liability | $ | (642,305) |  |  | $ | (630,786) |
As of December 31, 2024, foreign withholding taxes have not been provided on the estimated $254.8 million of undistributed earnings and profits (E&P) of our foreign subsidiaries as we intend to permanently reinvest these foreign E&P in the respective businesses outside the U.S. However, if we were to repatriate such foreign E&P, the foreign withholding tax liability is estimated to be $13.2 million. Additionally, if we were to repatriate E&P in excess of our previously taxed income under the Tax Cuts and Jobs Act of 2017, such excess repatriation may cause us to incur an additional U.S. federal income tax of approximately $7.7 million related to our hybrid debt structure between Canada and the United States that was eliminated in 2022. The following table summarizes the activity related to our gross unrecognized tax benefits from January 1, 2022 to December 31, 2024 (in thousands):
| Federal, State, and Foreign Tax
| (In thousands)
Balance at December 31, 2021 | $ | 1,348 |
Reduction to tax positions related to prior years | — |
Balance at December 31, 2022 | $ | 1,348 |
Reductions to tax positions related to prior years | — |
Balance at December 31, 2023 | $ | 1,348 |
Reductions to tax positions due to lapse of statutes of limitations | (1,348) |
Additions to tax positions related to prior years | $ | 834 |
Balance at December 31, 2024 | $ | 834 |
Our total unrecognized tax benefits that, if recognized, would affect our effective tax rates were $0.8 million, $1.3 million and $1.3 million as of December 31, 2024, 2023 and 2022, respectively. We include potential accrued interest and penalties related to unrecognized tax benefits within our income tax provision account. We have accrued $0.4 million, $1.0 million and $0.9 million for the payment of interest, net of tax benefits, and penalties as of December 31, 2024, 2023 and 2022, respectively. We recorded a decrease of interest and penalties of $0.6 million and an increase of $0.1 million and $0.1 million for years ended December 31, 2024, 2023 and 2022, respectively. To the extent interest and penalties are not assessed with respect to uncertain tax positions or the uncertainty of deductions in the future, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision. We file income tax returns, including tax returns for our subsidiaries, with federal, state, local, and foreign jurisdictions. We consider the United States to be our most significant jurisdiction; however, all tax returns are subject to routine compliance review by the taxing authorities in the jurisdictions in which we file tax returns in the ordinary course of business. The federal statutes of limitations have expired for all tax years prior to 2021, and we are not currently under audit by the IRS. Various state and foreign jurisdictions are auditing years 2020 through 2022. We believe that it is reasonably possible that the recorded amount of gross unrecognized tax benefits may decrease by $0.4 million within the next twelve months as a result of the resolution of certain state tax matters. Various subsidiaries have federal, state, and foreign loss carryforwards totaling $2.4 billion with expiration dates ranging through 2042. Such loss carryforwards will expire as follows:
| Federal |  | State |  | Foreign |  | Total
| (In thousands)
2025 | $ | — |  |  | $ | 318,676 |  |  | $ | 471 |  |  | $ | 319,147 |
2026 | — |  |  | 354,652 |  |  | 942 |  |  | 355,594 |
2027 | — |  |  | 189,456 |  |  | 981 |  |  | 190,437 |
2028 | — |  |  | 234,560 |  |  | 3,075 |  |  | 237,635 |
Thereafter | — |  |  | 1,255,198 |  |  | 1,134 |  |  | 1,256,332 |
Total loss carryforwards | $ | — |  |  | $ | 2,352,542 |  |  | $ | 6,603 |  |  | $ | 2,359,145 |
In addition to the above loss carryforwards, we have $2.2 million of foreign alternative minimum tax credits that can be carried forward indefinitely. In assessing the usefulness of deferred tax assets, we consider whether it is more likely than not that some portion or all of the net deferred tax assets will not be realized. The future realization of net deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. During 2024, we recorded a net $9.5 million decrease in our valuation allowance primarily driven by utilization and expiration of state net operating losses, along with legislative changes in certain states. The valuation allowances can be affected in future periods by changes to tax laws, changes to statutory tax rates, and changes in estimates of future taxable income. At December 31, 2024, our loss and tax credit carryforward deferred tax assets and related valuation allowances by jurisdiction are as follows (presented net of federal benefit).
| Federal |  | State |  | Foreign |  | Total
|  |  | (In thousands) |  |
Loss and tax credit carryforwards | $ | — |  |  | $ | 108,973 |  |  | $ | 4,630 |  |  | $ | 113,603 |
Valuation allowance | $ | — |  |  | $ | 84,469 |  |  | $ | 14,856 |  |  | $ | 99,325 |

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