XML 367 R16.htm IDEA: XBRL DOCUMENT v3.25.0.1
TAXES ON INCOME
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
TAXES ON INCOME TAXES ON INCOME
    The Company's pre-tax income before equity in earnings of equity method investees consisted of approximately $1.1 billion, $1.1 billion and $1.2 billion from U.S. operations and pre-tax income of $28 million, $7 million and $2 million from foreign operations for the years ended December 31, 2024, 2023 and 2022, respectively.     
        
    The components of income tax expense (benefit) for 2024, 2023 and 2022 were as follows:
202420232022
Current:
Federal$204 $235 $200 
State and local52 59 62 
Foreign4 3 1 
Deferred:
Federal4 (38)29 
State and local2 (10)(27)
Foreign7 (1)(1)
Total$273 $248 $264 
    A reconciliation of the federal statutory income tax rate to the Company's effective income tax rate for 2024, 2023 and 2022 was as follows:
202420232022
Tax provision at statutory rate21.0 %21.0 %21.0 %
State and local income taxes, net of federal benefit4.5 4.6 4.7 
Impact of noncontrolling interests(1.1)(1.2)(1.4)
Adjustment to state deferred tax liabilities— — (1.5)
Excess tax benefits on stock-based compensation arrangements(0.7)(1.0)(1.1)
Return to provision true-ups (1.0)(1.8)(1.1)
Impact of equity earnings0.3 0.5 0.7 
Changes in reserves for uncertain tax positions0.8 0.9 0.7 
Income tax credits(1.7)(1.2)(0.9)
Other, net1.1 0.2 0.3 
Effective tax rate23.2 %22.0 %21.4 %

    The tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) as of December 31, 2024 and 2023 were as follows:
20242023
Non-current deferred tax assets (liabilities):
Accounts receivable reserves$15 $17 
Liabilities not currently deductible170 163 
Stock-based compensation35 33 
Basis differences in investments, joint ventures and subsidiaries (4)(7)
Tax attribute carryforwards, net of valuation allowances and unrecognized tax position liabilities60 48 
Operating lease right-of-use assets(146)(149)
Operating lease liabilities161 162 
Depreciation and amortization(541)(537)
Total non-current deferred tax liabilities, net$(250)$(270)
    
    As of December 31, 2024 and 2023, non-current deferred tax liabilities of $278 million and $270 million, respectively, are included in other liabilities in the consolidated balance sheet. As of December 31, 2024 and 2023, non-current deferred tax assets of $28 million and $0 million, respectively, are included in other assets in the consolidated balance sheet.

    As of December 31, 2024, the Company had estimated net operating loss carryforwards for federal and state income tax purposes of $6 million and $639 million, respectively, which expire at various dates through 2044. Estimated net operating loss carryforwards for foreign income tax purposes are $239 million as of December 31, 2024, some of which can be carried forward indefinitely, while others expire at various dates through 2034. As of December 31, 2024, the Company had capital loss carryforwards of $17 million. As of December 31, 2024 and 2023, deferred tax assets associated with net operating loss carryforwards of $95 million and $79 million, respectively, have each been reduced by valuation allowances of $35 million and $31 million, respectively.
    
    Income taxes payable, including those classified as long-term in other liabilities in the consolidated balance sheet as of December 31, 2024 and 2023, were $96 million and $83 million, respectively. Prepaid income taxes were $47 million and $48 million as of December 31, 2024 and 2023, respectively, and were recorded in prepaid expenses and other current assets in the consolidated balance sheet.
    The total amount of unrecognized tax benefits as of and for the years ended December 31, 2024, 2023 and 2022 consisted of the following:
202420232022
Balance, beginning of year$90 $94 $110 
Additions:
For tax positions of current year2 1 1 
For tax positions of prior years9 15 18 
Reductions:
Changes in judgment— (6)(7)
Expirations of statutes of limitations(5)(4)(4)
Settlements— (10)(24)
Other:
Foreign deferred tax assets reduction28 — — 
Balance, end of year$124 $90 $94 

    The contingent liabilities for tax positions primarily relate to uncertainties associated with the realization of tax benefits derived from the allocation of income and expense among state jurisdictions, the characterization and timing of certain tax deductions associated with business combinations, certain tax credits and the deductibility of certain expenses and settlement payments.

    The total amount of unrecognized tax benefits as of December 31, 2024, that, if recognized, would affect the effective income tax rate is $104 million. Based upon the expiration of statutes of limitations, settlements and/or the conclusion of tax examinations, the Company believes it is reasonably possible that the total amount of unrecognized tax benefits may decrease by up to $9 million within the next twelve months.

    Accruals for interest expense on contingent tax liabilities are classified in income tax expense in the consolidated statements of operations. Accruals for penalties have historically been immaterial. Interest expense included in income tax expense in each of the years ended December 31, 2024, 2023 and 2022 was approximately $7 million, $5 million and $3 million, respectively. As of December 31, 2024 and 2023, the Company had approximately $24 million and $17 million, respectively, accrued, net of the benefit of a federal and state deduction, for the payment of interest on uncertain tax positions.

    The recognition and measurement of certain tax benefits includes estimates and judgment by management and inherently involves subjectivity. Changes in estimates may create volatility in the Company's effective tax rate in future periods and may be due to settlements with various tax authorities (either favorable or unfavorable), the expiration of the statute of limitations on certain tax positions and obtaining new information about particular tax positions that may cause management to change its estimates.

    In the regular course of business, various federal, state, local and foreign tax authorities conduct examinations of the Company's income tax filings and the Company generally remains subject to examination until the statute of limitations expires for the respective jurisdiction. The Internal Revenue Service has either completed its examinations of the Company's consolidated federal income tax returns or the statute of limitations has expired up through and including the 2020 tax year. At this time, the Company does not believe that there will be any material additional payments beyond its recorded contingent liability reserves that may be required as a result of these tax audits. As of December 31, 2024, a summary of the tax years that remain subject to examination, awaiting approval, are under appeal, or are otherwise unresolved for the Company's major jurisdictions are:
    
    United States - federal        2021 - 2023
    United States - various states    2011 - 2023