Income Taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

We file a consolidated federal income tax return, consolidated unitary returns in certain states, other separate state income tax returns for certain of our subsidiary companies, and applicable foreign returns.

The provision for income taxes from continuing operations consisted of the following:

	For the years ended December 31,
(in thousands)	2024		2023		2022
Current:
Federal	$	64,533	$	34,205	$	56,236
State and local	11,644		8,010		11,411
Foreign	1,053		—		—
Total current income tax provision	77,230		42,215		67,647
Deferred:
Federal	(14,663)		(53,476)		2,882
State and local	1,222		(7,278)		10,770
Foreign	(26)		(1,188)		(738)
Total deferred income tax provision	(13,467)		(61,942)		12,914
Provision (benefit) for income taxes	$	63,763	$	(19,727)	$	80,561

The difference between the statutory rate for federal income tax and the effective income tax rate was as follows:

	For the years ended December 31,
	2024		2023		2022
Statutory rate	21.0	%	21.0	%	21.0	%
Effect of:
State and local income taxes, net of federal tax benefit	4.2		0.1		7.0
Non-deductible goodwill impairment	—		(18.6)		—
Excess tax benefits from stock-based compensation	1.5		(0.2)		(0.3)
Non-deductible expenses	1.5		(0.1)		0.2
Reserve for uncertain tax positions	1.0		—		0.7
Other	1.2		(0.2)		0.5
Effective income tax rate	30.4	%	2.0	%	29.1	%

In 2023, a non-deductible expense of $855 million was recorded related to book impairment of goodwill.

The approximate effect of the temporary differences giving rise to deferred income tax assets (liabilities) were as follows:

	As of December 31,
(in thousands)	2024		2023
Temporary differences:
Property and equipment	$	(38,383)	$	(39,414)
Goodwill and other intangible assets	(377,291)		(368,876)
Investments, primarily gains and losses not yet recognized for tax purposes	4,980		2,954
Accrued expenses not deductible until paid	11,912		9,869
Deferred compensation and retiree benefits not deductible until paid	29,013		31,662
Operating lease right-of-use assets	(29,829)		(32,034)
Operating lease liabilities	32,888		34,884
Interest limitation carryforward	59,070		38,290
Other temporary differences, net	12,599		10,999
Total temporary differences	(295,041)		(311,666)
Federal and state net operating loss carryforwards	12,332		16,283
Valuation allowance for state deferred tax assets	(10,880)		(11,997)
Net deferred tax liability	$	(293,589)	$	(307,380)

Total state operating loss carryforwards were $282 million at December 31, 2024. Our state tax loss carryforwards expire through 2043. Because we file separate state income tax returns for certain of our subsidiary companies, we are not able to use state tax losses of a subsidiary company to offset state taxable income of another subsidiary company.

The Company recognizes state net operating loss carryforwards as deferred tax assets, subject to valuation allowances. At each balance sheet date, we estimate the amount of carryforwards that are not expected to be used prior to expiration of the carryforward period. The tax effect of the carryforwards that are not expected to be used prior to their expiration is included in the valuation allowance.

The Company has not provided for income taxes, including withholding tax, U.S. state taxes, or tax on foreign exchange rate changes, associated with the undistributed earnings of our non-U.S. subsidiaries because we plan to indefinitely reinvest the unremitted earnings in these entities.

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:

	For the years ended December 31,
(in thousands)	2024		2023		2022
Gross unrecognized tax benefits at beginning of year	$	15,030	$	12,124	$	10,572
Increases in tax positions for prior years	6,055		3,321		2,965
Decreases in tax positions for prior years	(217)		(2)		(390)
Increases in tax positions for current year	7,483		257		796
Decreases from lapse in statute of limitations	(252)		(670)		(173)
Decreases due to settlements with taxing authorities	—		—		(1,646)
Gross unrecognized tax benefits at end of year	$	28,099	$	15,030	$	12,124

The total amount of net unrecognized tax benefits that, if recognized, would affect the effective tax rate was $14.2 million at December 31, 2024. We accrue interest and penalties related to unrecognized tax benefits in our provision for income taxes. At December 31, 2024 and 2023, we had accrued interest related to unrecognized tax benefits of $3.4 million and $1.6 million, respectively, and penalties of $1.3 million and $1.1 million, respectively.

We file income tax returns in the U.S., Canada and in various state and local jurisdictions. We are routinely examined by tax authorities in these jurisdictions. At December 31, 2024, we are no longer subject to federal income tax examinations for years prior to 2018. For state and local jurisdictions, we are generally no longer subject to income tax examinations for years prior to 2020.

Due to the potential for resolution of federal and state examinations, and the expiration of various statutes of limitation, it is reasonably possible that our gross unrecognized tax benefits balance may change within the next twelve months by as much as $2.7 million.