INCOME TAXES

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

For the years ended December 31, income from continuing operations before income taxes consisted of the following:

(in thousands)	2025		2024		2023
Income before income taxes
Domestic	$	664,780	$	592,704	$	548,428
Foreign	36,146		37,526		37,829
Total income from continuing operations before income taxes	$	700,926	$	630,230	$	586,257

For the years ended December 31, the Company’s income tax provision consisted of the following:

	2025		2024		2023
(in thousands)
Current:
Federal	$	105,940	$	126,246	$	112,647
State	35,326		36,328		33,516
Foreign	13,803		11,613		12,781
Total current tax expense	155,069		174,187		158,944
Deferred:
Federal	17,541		(6,848)		(2,349)
State	5,253		(2,336)		(2,925)
Foreign	(3,642)		(1,152)		(2,370)
Total deferred tax expense (benefit)	19,152		(10,336)		(7,644)
Total income tax provision	$	174,221	$	163,851	$	151,300

The following table presents the principal components of the difference between the effective tax rate and the U.S. federal statutory income tax rate for the years ended December 31:

	2025					2024				2023
(in thousands)	$		%			$		%		$		%
Income tax at statutory rate	$	147,210	21.0	%		$	132,361	21.0	%	$	123,114	21.0	%
State and local income taxes, net of federal income tax effect (1)	32,485		4.6	%		26,647		4.2	%	23,653		4.0	%
Foreign tax effects	3,330		0.5	%		3,303		0.5	%	841		0.1	%
Effect of changes in tax laws or rates enacted in the current period	—		—	%		—		—	%	—		—	%
Effect of cross-border tax laws	(883)		(0.1)	%		384		0.1	%	505		0.1	%
Tax credits:
Investment tax credits	(7,687)		(1.1)	%		—		—	%	—		—	%
Other tax credits	(1,506)		(0.2)	%		(1,308)		(0.2)	%	(1,300)		(0.2)	%
Changes in valuation allowances	—		—	%		—		—	%	—		—	%
Nontaxable or nondeductible items	2,893		0.5	%		2,163		0.3	%	1,940		0.3	%
Changes in unrecognized tax benefits	(1,411)		(0.2)	%		44		—	%	958		0.2	%
Other adjustments	(210)		(0.1)	%		257		0.1	%	1,589		0.3	%
Total income tax provision	$	174,221	24.9	%	—	$	163,851	26.0	%	$	151,300	25.8	%

(1) State taxes in California, Florida, Georgia, Illinois, and New Jersey make up the majority (greater than 50 percent) of the tax effect in this category.

Deferred income taxes reflect the net tax effects of the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and income tax purposes. The Company’s deferred tax assets and liabilities as of December 31, 2025 and 2024 are as follows:

	2025		2024
(in thousands)
Deferred tax assets:
Employee compensation and benefits	$	16,644	$	15,146
Unearned revenues	16,056		15,243
Insurance reserves	31,285		29,773
Lease liabilities	103,960		118,382
Non-amortizable intangible assets	8,680		7,792
Other deferred tax assets	14,129		16,415
Total deferred tax assets	190,754		202,751
Valuation allowance	(8,680)		(7,792)
Net deferred tax assets	$	182,074	$	194,959
Deferred tax liabilities:
Fixed assets and depreciation	$	11,546	$	9,599
Intangible assets	106,162		93,872
Right of use assets	99,649		102,299
Total deferred tax liabilities	$	217,357	$	205,770
Net deferred taxes
Deferred tax assets	1,715		4,841
Deferred tax liabilities	(36,998)		(15,652)
Net deferred taxes	$	(35,283)	$	(10,811)

Deferred tax assets are included in "Other assets" and deferred tax liabilities are included in "Other long-term accrued liabilities" on the consolidated statements of financial position

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all the deferred tax assets will not be realized. As of December 31, 2025, the Company increased its valuation allowance by approximately $0.9 million related to deferred tax assets on intangible assets held in Australia. The Company does not expect to recognize such deferred tax assets as it expects to continue its operations in Australia for the foreseeable future and the related intangible assets are not amortizable for tax purposes in Australia.

The changes in the Company’s valuation allowance for deferred tax assets are as follows:

(in thousands)
December 31, 2023	$	6,883
Charged to income tax expense	909
Charged to other accounts	—
December 31, 2024	7,792
Charged to income tax expense	888
Charged to other accounts	—
December 31, 2025	$	8,680

As of December 31, 2025, the Company has no net operating loss carryforwards in any federal, state, or foreign jurisdictions. The Company has state tax credit carryforwards of $0.4 million which will begin to expire in 2035 if not fully utilized.

As of December 31, 2025, we assert that foreign cash earnings in excess of working capital and cash needed for strategic investments and acquisitions are not intended to be indefinitely reinvested offshore and we have included the tax effects of such current and/or future repatriations, including applicable state taxes and foreign withholding tax of such cash earnings in these financial statements. Any non-cash unremitted earnings in our foreign subsidiaries are considered permanently reinvested and deferred taxes have not been provided on these earnings.

The total amount of unrecognized tax benefits as of December 31, 2025 that, if recognized, would affect the effective tax rate is $0.1 million. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

(in thousands)	2025		2024		2023
Unrecognized tax benefits at beginning of year	$	1,584	$	1,784	$	1,394
Additions for tax positions of prior years	—		—		653
Reductions for tax positions of prior years	(844)		(39)		(263)
Settlements with taxing authorities	(614)		(161)		—
Unrecognized tax benefits at end of year	$	126	$	1,584	$	1,784

The Company’s policy is to record interest and penalties related to income tax matters in income tax expense. Accrued interest and penalties were $0.6 million and $0.6 million as of December 31, 2024 and 2023, respectively. The Company had no interest and penalties related to income tax matters during the year ended December 31, 2025.

The Company files U.S. federal income tax returns, as well as separate and combined income tax returns in numerous state and foreign jurisdictions. The Company is under examination in certain state jurisdictions for years ranging from 2019 through 2023. The Company regularly assesses the outcomes of both ongoing and future examinations for the current or prior years to determine whether the Company’s provision for income taxes is sufficient. The Company recognizes liabilities based on estimates of whether additional taxes will be due and believes its reserves are adequate in relation to any potential assessments. The outcome of any one examination, some of which may conclude during the next 12 months, is not expected to have a material impact on the Company’s financial position or results of operations.

For the years ended December 31, income taxes paid consisted of the following:

(in thousands)	2025		2024		2023
Federal (1)	$	111,662	$	93,748	$	109,568
State	35,718		36,635		39,426
Foreign	15,520		15,255		10,160
Total income taxes paid (net of refunds)	$	162,900	$	145,638	$	159,154

(1) 2025 amount includes $56.2 million paid to third parties to purchase federal investment tax credits.

For the years ended December 31, income taxes paid (net of refunds) exceeded 5 percent of total income taxes paid (net of refunds) in the following jurisdictions:

(in thousands)	2025		2024		2023
State
California	$	8,489	$	8,642	$	11,862
Foreign
Canada	$	11,149	$	11,397	*

*Jurisdiction below the threshold for the period presented