Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 13. INCOME TAXES

Components of Earnings Before Income Taxes

The following table summarizes the components of earnings before income taxes for the years ended December 31 (in thousands):

	2023		2022		2021
Domestic	$	2,891,644	$	2,423,809	$	2,208,168
International		572,539		1,267,001		1,114,680
Earnings before income taxes	$	3,464,183	$	3,690,810	$	3,322,848

Summary of Current and Deferred Income Taxes

The following table summarizes the components of the provision for income taxes for the years ended December 31 (in thousands):

	2023			2022			2021
Current income tax expense (benefit):
U.S. federal	$	(953	)	$	(6,645	)	$	58,906
International		175,121			112,489			103,488
State and local		19,162			16,930			10,542
Total current income tax expense		193,330			122,774			172,936
Deferred income tax expense (benefit):
U.S. federal		12,936			3,359			2,895
International		4,772			9,279			(1,573	)
Total deferred income tax expense		17,708			12,638			1,322
Total income tax expense	$	211,038		$	135,412		$	174,258

Current Income Taxes

We recognize current income tax expense for the federal and state income taxes incurred by our TRSs and taxes incurred in certain states and foreign jurisdictions. Current income tax expense fluctuates from period to period based primarily on the timing of our taxable income. Taxable income incurred over the last three years was principally due to the following: (i) the contribution of real estate properties to our unconsolidated co-investment ventures and sales to third parties; (ii) recurring and transactional strategic capital fees earned; (iii) taxable earnings from unconsolidated co-investment ventures; and (iv) adjustments to acquired tax liabilities.

During the years ended December 31, 2023, 2022 and 2021, cash paid for income taxes, net of refunds, was $149.1 million, $130.0 million and $148.7 million, respectively.

Deferred Income Taxes

The deferred income tax expense recognized in 2023, 2022 and 2021 was principally due to changes in temporary differences and utilization of NOLs.

The following table summarizes the deferred income tax assets and liabilities at December 31 (in thousands):

	2023			2022
Gross deferred income tax assets:
NOL carryforwards	$	246,768		$	229,410
Basis difference – real estate properties		48,460			94,610
Basis difference – equity investments		18,051			17,042
Section 163(j) interest limitation		1,689			2,218
Capital loss carryforward		7,161			6,903
Other – temporary differences		9,142			9,250
Total gross deferred income tax assets		331,271			359,433
Valuation allowance		(305,063	)		(295,834	)
Gross deferred income tax assets, net of valuation allowance		26,208			63,599
Gross deferred income tax liabilities:
Basis difference – real estate properties		98,529			116,102
Basis difference – equity investments		43,457			40,333
Other – temporary differences		1,673			1,189
Total gross deferred income tax liabilities		143,659			157,624
Net deferred income tax liabilities	$	117,451		$	94,025

At December 31, 2023, we had NOL carryforwards as follows (in thousands):

	U.S.		Europe		Mexico		Japan		Other
Gross NOL carryforward	$	72,151	$	608,128	$	170,656	$	68,754	$	32,399
Tax-effected NOL carryforward		18,345		157,593		53,622		9,219		7,989
Valuation allowance		17,741		150,836		53,622		9,219		7,989
Net deferred tax asset – NOL carryforward	$	604	$	6,757	$	-	$	-	$	-
Expiration periods	2024 – 2043		2024 – indefinite		2024 – 2034		2024 – 2033		2024 – indefinite

The deferred tax asset valuation allowance at December 31, 2023, was adequate to reduce the total deferred tax asset to an amount that we estimate will more likely than not be realized.

Liability for Uncertain Tax Positions

During the years ended December 31, 2023, 2022 and 2021, we believe that we had complied with the REIT requirements of the IRC. The statute of limitations for our tax returns is generally three years. As such, our tax returns that remain subject to examination would be primarily from 2020 and thereafter. Liabilities or any related settlements for uncertain tax positions for the years ended December 31, 2023, 2022 and 2021 were not material to our Consolidated Financial Statements.