XML 44 R27.htm IDEA: XBRL DOCUMENT v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s consolidated income tax provision includes taxes attributable to the controlling interest and, to a lesser
extent, taxes attributable to the non-controlling interests. 
The following table presents the consolidated provision for income taxes:
 
For the Years Ended December 31,
 
2022
2023
2024
Controlling interest(1)
$347.4
$178.3
$174.8
Non-controlling interests
10.9
7.0
7.8
Income tax expense
$358.3
$185.3
$182.6
Income before income taxes (controlling interest)
$1,493.3
$851.2
$686.4
Effective tax rate (controlling interest)(2)
23.3%
20.9%
25.5%
___________________________
(1)For the years ended December 31, 2022, 2023, and 2024, income tax expense (controlling interest) included intangible-
related deferred tax expense of $32.0 million, $29.8 million, and $66.7 million, respectively.
(2)Taxes attributable to the controlling interest divided by income before income taxes (controlling interest).
The consolidated provision for income taxes consisted of the following:
 
For the Years Ended December 31,
 
2022
2023
2024
Current
 
 
 
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$222.9
$105.2
$59.6
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30.6
10.8
16.6
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
72.8
37.9
45.8
Total current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
326.3
153.9
122.0
Deferred
 
 
 
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$30.4
$27.3
$52.5
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.0
7.0
11.9
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7.4)
(2.9)
(3.8)
Total deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32.0
31.4
60.6
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$358.3
$185.3
$182.6
For financial reporting purposes, Income before income taxes consisted of the following:
 
For the Years Ended December 31,
 
2022
2023
2024
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$639.0
$782.3
$678.5
International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,107.4
309.1
244.7
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$1,746.4
$1,091.4
$923.2
The following table reconciles the U.S. federal statutory tax rate to the Company’s effective tax rate:
 
For the Years Ended December 31,
 
2022
2023
2024
Statutory U.S. federal tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21.0%
21.0%
21.0%
State income taxes, net of federal benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.5
3.5
3.5
Foreign operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1.7)
(4.1)
(0.1)
Compensation plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.8
1.1
0.7
Change in valuation allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.3
(0.1)
(0.5)
Unrecognized tax benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.4
0.6
0.2
BPEA Transaction(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1.0)
—
—
Changes in U.S. tax provision to return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.0
(0.7)
0.5
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.0
(0.4)
0.2
Effective tax rate (controlling interest) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23.3%
20.9%
25.5%
Effect of income from non-controlling interests . . . . . . . . . . . . . . . . . . . . . . . .
(2.8)
(3.9)
(5.7)
Effective tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20.5%
17.0%
19.8%
___________________________
(1)The year ended December 31, 2022 is reflective of the BPEA Transaction gain of $641.9 million and realized and
unrealized gains on EQT ordinary shares of $43.8 million and $57.9 million, respectively.
The Company’s effective tax rate (controlling interest) in 2022 is lower than the marginal tax rate of 24.5%, primarily due
to the tax benefits of foreign operations and a state tax benefit related to the BPEA Transaction.  The effective tax rate
(controlling interest) in 2023 is lower than the marginal tax rate of 24.5%, primarily due to discrete benefits from foreign
operations.  The effective tax rate (controlling interest) in 2024 is higher than the marginal tax rate of 24.5%, primarily due to
an expense to reduce the carrying value of a foreign Affiliate to fair value for which no tax benefit was recorded, partially offset
by tax windfalls attributable to share-based compensation.
The Company’s effective tax rate reflects the relative contributions of earnings in the jurisdictions in which the Company
and its Affiliates operate and is impacted by changes in the jurisdictional mix of income before taxes.
Deferred tax liability (net) reflects the expected future tax consequences of temporary differences between the financial
reporting bases and tax bases of the Company’s assets and liabilities.  The significant components of the Company’s Deferred
tax liability (net) are as follows:
 
December 31,
 
2023
2024
Deferred Tax Assets
 
 
Deferred compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$15.9
$13.7
State loss carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14.7
13.8
Foreign loss carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19.8
17.7
Federal carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
3.4
Tax benefit of uncertain tax positions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.0
9.4
Deferred income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
4.6
Lease liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.8
2.4
Foreign tax credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16.0
16.3
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.3
—
Total deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
81.5
81.3
Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(47.6)
(44.8)
Deferred tax assets, net of valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$33.9
$36.5
Deferred Tax Liabilities
 
 
Intangible asset amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$(295.8)
$(353.0)
Non-deductible intangible amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(97.0)
(101.4)
Junior convertible securities interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(83.1)
(92.6)
Right-of-use assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3.7)
(1.9)
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2.0)
(4.1)
Deferred income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(10.4)
—
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2.9)
(2.0)
Total deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(494.9)
(555.0)
Deferred tax liability (net)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$(461.0)
$(518.5)
___________________________
(1)As of December 31, 2023 and 2024, foreign loss carryforwards of $19.8 million (net of a $17.0 million valuation
allowance) and $17.7 million (net of a $15.7 million valuation allowance), respectively, are included in Other assets as they
represent a net deferred tax asset in a foreign jurisdiction.
As of December 31, 2024, the Company had available state net operating loss carryforwards of $212.9 million, a majority
of which will expire over five years to nine years.  As of December 31, 2024, the Company had foreign loss carryforwards of
$66.9 million, of which $51.0 million will expire over 11 years to 15 years and $15.9 million will carry forward indefinitely. 
As of December 31, 2024, the Company had foreign tax credit carryforwards of $16.3 million, a majority of which will expire
over four years to seven years.
The Company believed it was more-likely-than-not that the benefit from certain state and foreign loss carryforwards and
foreign tax credit carryforwards would not be fully realized, and, as of December 31, 2024, had valuation allowances of $12.8
million, $15.7 million, and $16.3 million on the state and foreign loss carryforwards and the foreign tax credit carryforwards,
respectively.  For the years ended December 31, 2023 and 2024, the Company decreased its valuation allowance $0.5 million
and $2.8 million, respectively. 
The Company’s estimates and assumptions regarding the realization of its state and foreign loss carryforwards do not
contemplate certain changes in ownership of the Company’s stock which could limit the utilization of these carryforwards.   
The Company provides for U.S. income taxes on all foreign earnings.  The Company does not provide for U.S. income
taxes on the portion of the excess of the financial reporting bases over tax bases in the Company’s investments in foreign
subsidiaries considered permanent in duration.  Such amount would generally become taxable upon the repatriation of assets
from, or a sale or liquidation of, the foreign subsidiaries.  While a determination of the potential amount of unrecognized U.S.
income tax related to these amounts is not practicable because of the numerous assumptions associated with this hypothetical
calculation, as of December 31, 2024, the estimated amount of such difference was $375.5 million.
A reconciliation of the changes in unrecognized tax benefits is as follows:
 
For the Years Ended December 31,
 
2022
2023
2024
Balance, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$52.4
$49.6
$37.8
Additions based on current year tax positions . . . . . . . . . . . . . . . . . . . . . . . . .
0.6
6.4
0.5
Additions based on prior years’ tax positions . . . . . . . . . . . . . . . . . . . . . . . . . .
4.4
1.0
3.5
Reduction for prior years’ tax positions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1.0)
(13.5)
(0.8)
Lapse of the statute of limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5.5)
(4.8)
(2.5)
Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
(1.3)
—
Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1.3)
0.4
(1.2)
Balance, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$49.6
$37.8
$37.3
Included in the balance of unrecognized tax benefits as of December 31, 2022, 2023, and 2024 were $49.6 million, $37.8
million, and $37.3 million, respectively, of tax benefits that, if recognized, would favorably affect the Company’s effective
tax rate (controlling interest).  As of December 31, 2024, certain of these benefits, if realized, would be offset by the
utilization of indirect tax benefits, for which the Company had accrued deferred tax assets of $9.4 million.
The Company records accrued interest and penalties, if any, related to unrecognized tax benefits in Income tax expense. 
For the years ended December 31, 2022, 2023, and 2024, interest and penalties related to unrecognized tax benefits were $2.6
million, $0.8 million, and $(0.5) million, respectively.  As of December 31, 2023 and 2024, the Company had accrued
interest and penalties related to unrecognized tax benefits of $14.4 million and $13.9 million, respectively.
The Company is subject to U.S. federal, state and local, and foreign income tax in multiple jurisdictions and is
periodically subject to tax examinations in these jurisdictions.  The completion of examinations may result in the payment of
additional taxes and/or the recognition of tax benefits.  The Company is generally no longer subject to income tax
examinations by U.S. federal, state and local, or foreign taxing authorities for periods prior to 2018.
The Company continues to monitor and evaluate legislative developments related to the Organization for Economic Co-
operation and Development’s Pillar Two directive (“Pillar Two”), which establishes a framework for a global minimum
corporate tax rate of 15%.  Several countries in which the Company or its Affiliates operate are adopting legislation to
implement Pillar Two. The Company currently does not expect Pillar Two to have a material impact on its Consolidated
Financial Statements.