XML 57 R41.htm IDEA: XBRL DOCUMENT v3.25.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense
The following table sets forth the components of income tax expense:
Year Ended December 31,
(in thousands)202520242023
Current taxes:
Federal$56,094 $55,297 $43,143 
State3,271 2,181 2,561 
Deferred taxes:
Federal(7,008)(6,391)(7,916)
State(979)(5,915)(4,334)
Total income tax expense$51,378 $45,172 $33,454 
Schedule of Reconciliation of the U.S. Statutory Tax Rate to Annual Effective Tax Rate
The following table sets forth a reconciliation of income tax at the federal statutory rate to recorded income tax expense:
($ in thousands)
Year Ended
December 31, 2025
Loss before income taxes$(66,815)
U.S. Statutory Rate21%
Recovery based on Statutory Rate$(14,031)
Expense (recovery) resulting from:
State and local income taxes, net of federal income tax effect(3,442)5.2 %
Effect of changes in tax laws or rates enacted in the current period3,931 (5.9)%
Uncertain tax position, inclusive of interest and penalties
62,138 (93.0)%
Equity-based compensation shortfall152 (0.2)%
Changes in valuation allowance1,803 (2.7)%
Other, net827 (1.2)%
Income tax expense$51,378 (76.9)%
As previously disclosed for 2024 and 2023, prior to the adoption of ASU 2023-09, the following table sets forth a reconciliation of income tax at the federal statutory rate to recorded income tax expense:
Year Ended December 31,
($ in thousands)20242023
Loss before income taxes$(39,822)$(14,760)
U.S. Statutory Rate21%21%
Recovery based on Statutory Rate$(8,363)$(3,100)
Expense (recovery) resulting from:
State and local income taxes(3,734)(1,773)
Uncertain tax position, inclusive of interest and penalties
51,127 40,149 
(Refundable) nondeductible penalties and interest
— (658)
Equity-based compensation shortfall980 1,322 
Acquisition-related adjustments
— (3,150)
Other permanent differences1,960 429 
Nondeductible executive compensation
3,202 267 
Other, net— (32)
Income tax expense$45,172 $33,454 
Schedule of Income Taxes Paid
The following table presents supplemental cash flow information related to income taxes paid (net of refunds received), subsequent to the adoption of ASU 2023-09:
(in thousands)
Year Ended
December 31, 2025
US federal
$— 
US state and local
4,502 
Total cash taxes paid, net of refunds received
$4,502 
Schedule of Components of Deferred Tax Assets and Liabilities
The following tables set forth the components of deferred income taxes:
December 31,
(in thousands)20252024
Deferred tax assets attributable to:
State and local net operating loss carryforwards$1,265 $873 
Federal net operating loss carryforwards69 — 
Operating lease liabilities69,904 67,439 
Acquired intangible assets
4,292 3,964 
Property and equipment833 686 
Loyalty program328 425 
Equity-based compensation251 184 
Other
5,919 3,868 
Gross deferred tax assets82,861 77,439 
Valuation allowance(1,803)— 
Total deferred tax assets$81,058 $77,439 
Deferred tax liabilities attributable to:
Goodwill and other acquired intangible assets$(48,150)$(46,620)
Property and equipment(19,316)(24,969)
Operating lease right-of-use assets(35,107)(29,289)
Total deferred tax liabilities$(102,573)$(100,878)
Net deferred tax liabilities$(21,515)$(23,439)
Schedule of Unrecognized Tax Benefits
The following table shows a reconciliation of the beginning and ending amount of unrecognized tax benefits:
Balance, December 31, 2022
$— 
Additions for tax positions related to the current year
35,367 
Additions for tax positions related to prior years
37,588 
Balance, December 31, 2023
$72,955 
Additions for tax positions related to the current year
38,289 
Additions for tax positions related to prior years(1)
38,163 
Balance, December 31, 2024
$149,407 
Additions for tax positions related to the current year
36,728 
Additions for tax positions related to prior years
17,749 
Balance, December 31, 2025
$203,884 
(1)Includes approximately $27,000 of IRC Section 280E refunds received during 2024.