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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income before income taxes consisted of the following for the years ended December 31 (in millions):
202420232022
Domestic$118.1 $90.1 $139.1 
Foreign7.6 6.4 5.7 
Total$125.7 $96.5 $144.8 

The components of income tax expense for the years ended December 31 are as follows (in millions):
 202420232022
Current:   
Federal$32.0 $22.6 $21.9 
State14.7 11.2 14.4 
Foreign2.4 1.6 1.5 
Total current expense (benefit)49.1 35.4 37.8 
Deferred:   
Federal(9.9)(6.3)4.7 
State— 0.5 1.5 
Foreign(0.3)(0.2)0.2 
Total deferred expense (benefit)(10.2)(6.0)6.4 
Total tax expense (benefit)$38.9 $29.4 $44.2 
The Company has recognized income tax benefit related to derivative securities within other comprehensive income of $0.9 million, $0.9 million and $1.3 million in the years ended December 31, 2024, 2023 and 2022, respectively.
The provision for income taxes in 2024, 2023 and 2022 included benefits of $0.0 million, $0.0 million and $0.1 million, respectively, related to the utilization of net operating loss carryforwards.
The reconciliation of the difference between the Company’s U.S. Federal statutory income tax rate and the effective income tax rate for the years ended December 31 is as follows:
 202420232022
Tax at U.S. federal statutory income tax rate21.0 %21.0 %21.0 %
State income taxes, net of federal benefit7.1 %7.3 %8.0 %
Other permanent tax items
— %(0.2)%0.1 %
Executive Compensation0.2 %0.1 %0.2 %
Adjustment to liabilities for uncertain tax positions0.2 %0.2 %(0.1)%
Effect of foreign operations1.0 %0.8 %0.7 %
Effect of changes in tax law— %3.5 %— %
Effect of income from non-controlling interest(0.3)%(0.3)%— %
Impact of state tax obligations on deferred tax assets
1.9 %(1.5)%(0.5)%
Other(0.1)%(0.4)%1.1 %
Effective income tax rate
31.0 %30.5 %30.5 %
The Company’s effective income tax rate is higher than the US federal tax rate of 21% primarily due to its state tax obligations. During the year ended December 31, 2023, Massachusetts enacted a change in the state’s apportionment formula for corporations. The Company measures its deferred tax assets and liabilities at the enacted rates for the period in which these items would reverse. As a result, in the year ended December 31, 2023, the Company recorded the discrete tax impact due to the effect of the change in tax law.
The Company reduced its liability for uncertain tax positions by $0.1 million, $0.5 million and $0.9 million during the years ended December 31, 2024, 2023 and 2022, respectively, due to the lapse of statute of limitations.
The Company has elected to treat global intangible low-taxed income (“GILTI”) taxes as period costs in the accounting and tax periods in which they are incurred. The Company has recognized tax expense of $1.1 million, $0.6 million and $0.9 million during the years ended December 31, 2024, 2023 and 2022, respectively, related to the GILTI tax.

During the year ending December 31, 2023, the Company removed its indefinite reinvestment of foreign unremitted earnings assertion for multiple foreign subsidiaries. As of December 31, 2024, the Company maintains the assertion that the foreign unremitted earnings of multiple foreign subsidiaries are not permanently reinvested. The amount of deferred tax recorded during the period was not material. For foreign subsidiaries whose investments are permanent in duration, income and foreign withholding taxes have not been provided on the unremitted earnings of those subsidiaries. This amount may become taxable upon repatriation from the subsidiary or a sale or liquidation of the subsidiary. The amount of such unremitted earnings and the amount of any unrecognized deferred income tax liability on these unremitted earnings is immaterial at December 31, 2024.
Deferred tax assets and liabilities reflect the expected future tax consequences of temporary differences between the book carrying amounts and tax bases of the Company’s assets and liabilities.
The significant components of deferred tax assets and deferred tax liabilities for the years ended December 31 are as follows (in millions):
 20242023
Deferred tax assets:  
Investment in partnerships73.4 63.6 
Employee compensation1.3 1.6 
Other2.6 2.1 
Cash flow hedge1.6 2.6 
Total deferred tax assets78.9 69.9 
Valuation allowance— — 
Deferred tax assets, net of valuation allowance78.9 69.9 
Deferred tax liabilities:  
Right of use assets0.1 0.1 
Investments0.5 0.1 
Total deferred tax liabilities0.6 0.2 
Net deferred tax assets$78.3 $69.7 
At December 31, 2024 and 2023, the Company’s net deferred tax asset primarily relates to its basis difference in its investment in Acadian LLC, which is treated as a partnership for federal income tax purposes.

The Company assesses whether a valuation allowance should be established against its deferred income tax assets based on consideration of all available evidence, both positive and negative, using a more likely than not standard. In evaluating the Company’s ability to recover its deferred tax assets, the Company considers all available positive and negative evidence including the existence of cumulative income in the most recent fiscal years, changes in the business in which the Company operates, and the Company’s ability to forecast future taxable income. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence that is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed. The Company has three years of cumulative earnings as of December 31, 2024, 2023 and 2022. As of December 31, 2024, management believes it is more likely than not that the balance of the deferred tax assets will be realized based on forecasted taxable income.
A reconciliation of the change in gross unrecognized tax benefits for the years ended December 31 is as follows (in millions):
 202420232022
Balance as of January 1$1.1 $0.9 $1.0 
Additions based on current year tax positions0.3 0.7 0.7 
Reductions related to lapses of statutes of limitations(0.1)(0.5)(0.8)
Balance as of December 31$1.3 $1.1 $0.9 
The Company’s liability for uncertain tax positions includes unrecognized benefits of $1.0 million and $0.8 million at December 31, 2024 and 2023, respectively, that if recognized would affect the effective tax rate on income.
The Company recognized $0.1 million, $0.1 million, and $0.0 million in interest and penalties in its income tax provision for the years ended December 31, 2024, 2023 and 2022, respectively. The Company recognizes accrued interest and penalties relating to unrecognized tax benefits as income tax expense. The Company’s liability for uncertain tax positions at December 31, 2024, 2023 and 2022 includes accrued interest and penalties of $0.2 million, $0.2 million and $0.1 million, respectively.
The Company is periodically under examination by various taxing authorities. Examinations are inherently uncertain, may result in payment of additional taxes or the recognition of tax benefits and may be in process for extended periods of time. At December 31, 2024 the Company is subject to examination in three jurisdictions.
The Company and its subsidiaries file tax returns in the U.S., U.K., state, local, and other foreign jurisdictions. As of December 31, 2024, the Company is generally no longer subject to income tax examinations by U.S. federal, state, local, or foreign tax authorities for calendar years prior to 2020.

At December 31, 2024, it is reasonably possible that the total amounts of unrecognized tax benefits will change within the next twelve months due to the expiration of statutes of limitations. The Company estimates a decrease of up to $0.7 million within the next twelve months.