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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Income taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Income before income taxes from continuing operations consisted of the following:
| Year ended December 31,
| 2024 |  | 2023 |  | 2022
Domestic | $ | 1,374,571 |  |  | $ | 1,100,420 |  |  | $ | 926,604 |
International | 155,822 |  |  | 76,674 |  |  | 39,674 |
| $ | 1,530,393 |  |  | $ | 1,177,094 |  |  | $ | 966,278 |
Income tax expense for continuing operations consisted of the following:
| Year ended December 31,
| 2024 |  | 2023 |  | 2022
Current: |  |  |  |  |
Federal | $ | 253,504 |  |  | $ | 200,070 |  |  | $ | 201,932 |
State | 52,410 |  |  | 38,370 |  |  | 55,593 |
International | 31,532 |  |  | 21,008 |  |  | 16,253 |
Total current income tax | 337,446 |  |  | 259,448 |  |  | 273,778 |
Deferred: |  |  |  |  |
Federal | (47,715) |  |  | (40,234) |  |  | (66,400) |
State | (2,855) |  |  | 367 |  |  | (12,289) |
International | (7,220) |  |  | 535 |  |  | 2,998 |
Total deferred income tax | (57,790) |  |  | (39,332) |  |  | (75,691) |
| $ | 279,656 |  |  | $ | 220,116 |  |  | $ | 198,087 |
The reconciliation between the Company’s effective tax rate from continuing operations and the U.S. federal income tax rate is as follows:
| Year ended December 31,
| 2024 |  | 2023 |  | 2022
Federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal benefit | 3.4 |  |  | 2.6 |  |  | 3.8 |
Equity compensation | (1.1) |  |  | (1.1) |  |  | (1.6) |
Nondeductible executive compensation | 0.7 |  |  | 1.2 |  |  | 1.1 |
Political advocacy costs | 0.3 |  |  | 0.2 |  |  | 2.2 |
Unrecognized tax benefits | (0.5) |  |  | (1.1) |  |  | (1.1) |
Change in international valuation allowance | 0.1 |  |  | 0.8 |  |  | 1.2 |
Credits | (1.2) |  |  | (1.2) |  |  | (1.2) |
Other | 0.3 |  |  | 1.9 |  |  | 1.1 |
Impact of noncontrolling interests primarily attributable to non-tax paying entities | (4.7) |  |  | (5.6) |  |  | (6.0) |
Effective tax rate | 18.3 | % |  | 18.7 | % |  | 20.5 | %
Deferred tax assets and liabilities arising from temporary differences for continuing operations were as follows:
| December 31,
| 2024 |  | 2023
Receivables | $ | 37,630 |  |  | $ | 23,075 |
Accrued liabilities | 74,419 |  |  | 81,281 |
Operating lease liabilities | 508,729 |  |  | 533,859 |
Net operating loss carryforwards | 161,371 |  |  | 183,216 |
Investments in partnerships | 4,108 |  |  | — |
Other | 54,600 |  |  | 52,142 |
Deferred tax assets | 840,857 |  |  | 873,573 |
Valuation allowance | (107,952) |  |  | (113,237) |
Net deferred tax assets | 732,905 |  |  | 760,336 |
Intangible assets | (757,797) |  |  | (731,024) |
Property and equipment | (63,726) |  |  | (127,191) |
Operating lease assets | (464,455) |  |  | (486,864) |
Investments in partnerships | — |  |  | (19,119) |
Other | (66,035) |  |  | (87,918) |
Deferred tax liabilities | (1,352,013) |  |  | (1,452,116) |
Net deferred tax liabilities | $ | (619,108) |  |  | $ | (691,780) |
Reported as: |  |  |
Deferred tax liabilities | $ | (665,361) |  |  | $ | (726,217) |
Deferred tax assets (included in Other long-term assets) | 46,253 |  |  | 34,437 |
| $ | (619,108) |  |  | $ | (691,780) |
At December 31, 2024, the Company had federal net operating loss carryforwards of approximately $44,248 that expire through 2036, although a substantial amount expire by 2029. The Company also had state net operating loss carryforwards of $555,691, some of which have an indefinite life, while a substantial amount expire by 2044. Additionally, the Company had international net operating loss carryforwards of $410,313, some of which will begin to expire in 2026, though the majority have an indefinite life. The Company has a state capital loss carryover of $9,653, the majority of which will expire in 2025. The utilization of a portion of these losses may be limited in future years based on the profitability of certain entities. A valuation allowance is recorded to account for the unrealizable balances in the table above. The net decrease of $5,285 in the valuation allowance is primarily due to unutilized state capital losses that expired in the current year. The Company remains indefinitely reinvested in several of the foreign jurisdictions in which it operates as of December 31, 2024. As a result of the passage of the Tax Cuts and Jobs Act (2017 Tax Act), the Company does not expect any significant taxes to be incurred if such earnings were remitted. Unrecognized tax benefits A reconciliation of the beginning and ending liability for unrecognized tax benefits that do not meet the more-likely-than-not threshold is as follows:
| Year ended December 31,
| 2024 |  | 2023
Beginning balance | $ | 47,379 |  |  | $ | 63,985 |
Additions for tax positions related to current year | 3,866 |  |  | 4,088 |
Adjustments for tax positions related to prior years | (1,452) |  |  | (7,273) |
Reductions related to lapse of applicable statute | (8,309) |  |  | (5,428) |
Reductions related to settlements with taxing authorities | — |  |  | (7,993) |
Ending balance | $ | 41,484 |  |  | $ | 47,379 |
As of December 31, 2024, the Company’s total liability for unrecognized tax benefits relating to tax positions that do not meet the more-likely-than-not threshold is $41,484. Of this balance, $27,336 would impact the Company’s effective tax rate if recognized. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in its income tax expense. We recognized a benefit of $679 and $138 related to interest and penalties net of federal tax benefit within tax expense in 2024 and 2023, respectively. At December 31, 2024 and December 31, 2023, the Company had approximately $5,846 and $6,525, respectively, accrued for interest and penalties related to unrecognized tax benefits, net of federal tax benefit. The Company and its subsidiaries are under examination in various state, local and foreign tax jurisdictions. In 2022, the Company was able to reach a settlement with the IRS for tax years 2014-2015. Subsequent to the settlement, the Company filed a 2014 refund claim with respect to a contested issue that was included in the IRS examination. During 2023 the IRS denied the refund claim and the Company has until September 2025 to appeal. Except for the 2014 refund claim, the Company is no longer subject to U.S. federal examinations prior to 2021.

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