Income Taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income before income taxes was taxed under the following jurisdictions:

	Year Ended December 31,
	2024		2023		2022
Domestic	$	1,312.5	$	1,298.1	$	1,355.6
Foreign	122.9		152.1		132.2
Total	$	1,435.4	$	1,450.2	$	1,487.8

Components of Income tax expense (benefit) consist of the following:

	Year Ended December 31,
	2024		2023		2022
Current:
Federal	$	267.4	$	267.3	$	281.8
State	72.8		69.7		75.8
Foreign	31.5		41.6		33.9
Total current	371.7		378.6		391.5
Deferred:
Domestic	(14.0)		(29.3)		(15.0)
Foreign	(0.1)		(3.4)		(3.2)
Total deferred	(14.1)		(32.7)		(18.2)
Income tax expense	$	357.6	$	345.9	$	373.3

The reconciliation between the statutory tax rate expressed as a percentage of income before income taxes and the effective income tax rate was as follows:

	Year Ended December 31,
	2024				2023				2022
Statutory federal income tax rate	$	301.4	21.0	%	$	304.5	21.0	%	$	312.4	21.0	%
State taxes, net of federal effect	60.0		4.2		55.8		3.8		61.1		4.1
Excess tax benefit of equity awards	(15.5)		(1.1)		(29.6)		(2.0)		(12.0)		(0.8)
Tax on foreign earnings	5.8		0.4		8.5		0.6		3.0		0.2
Other	5.9		0.4		6.7		0.5		8.8		0.6
Effective income tax rate	$	357.6	24.9	%	$	345.9	23.9	%	$	373.3	25.1	%

The tax effect of temporary differences that give rise to net deferred income tax liabilities is presented below.

	December 31,
	2024		2023
Deferred tax assets:
Contract liabilities	$	33.5	$	38.4
Equity compensation plans	29.4		34.5
Net operating loss and credit carryforwards, net	40.2		17.0
Payroll and benefits	10.3		17.2
Operating lease liabilities	38.7		45.6
Accounts receivable	20.7		20.1
Other	22.5		19.9
Total deferred tax assets	195.3		192.7
Deferred tax liabilities:
Acquisition-related intangibles	279.8		269.8
Property and equipment	14.7		22.4
Operating lease right-of-use assets	22.5		27.6
Other	23.0		26.7
Total deferred tax liabilities	340.0		346.5
Deferred tax asset valuation allowance	21.9		17.0
Net deferred tax liabilities	$	166.6	$	170.8

The Company has income tax net operating losses of $88 million that do not expire and international tax credit carryforwards of $17 million, which expire in 2027.

The Company is indefinitely reinvested in its UK business, and therefore did not provide for any US deferred taxes on the earnings of the UK business. The Company is not permanently reinvested in its Canadian business and therefore has recognized deferred tax liabilities of $7 million as of December 31, 2024 related to Canada withholding taxes on earnings of its Canadian business.

In the ordinary course of business, the Company is subject to review by domestic and foreign taxing authorities, including the Internal Revenue Service (“IRS”). In general, the Company is no longer subject to audit by the IRS or state, local, or foreign taxing authorities for tax years through 2014. Various taxing authorities are in the process of auditing income tax returns of the Company and its subsidiaries. The Company does not anticipate that any adjustments from the audits would have a material impact on its Consolidated Financial Statements.

Changes in the Company’s unrecognized tax benefits as of December 31, 2024, 2023 and 2022 were as follows:

	Year Ended December 31,
	2024		2023		2022
Balance as of January 1	$	19.3	$	18.7	$	18.4
Additions/reductions for current year and prior year	0.4		0.6		0.3
Balance as of December 31	$	19.7	$	19.3	$	18.7

As of December 31, 2024, the Company had $20 million of unrecognized tax benefits that, if recognized, would have decreased income taxes and the corresponding effective income tax rate and increased net income. The impact of recognizing these tax benefits, net of the federal income tax benefit related to unrecognized state income tax benefits, would be approximately $16 million.