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Income Taxes Level 1 (Notes)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block] Income Taxes
The provision or benefit for income taxes includes U.S. federal income taxes (determined on a consolidated return basis), foreign income taxes, and state income taxes.
We participate in tax equity investments in renewable energy projects that qualify for federal investment tax credits. These investments are accounted for under the proportional amortization method. Tax credits and other related tax benefits are recognized as a reduction of income tax expense as they are realized, with corresponding amortization of the investment in proportion to the tax benefits received. During 2025, we recognized $5.3 million of investment tax credits and other tax benefits and recorded $5.2 million of amortization related to these investments. The tax credits and related amortization are presented net within the Provision for income taxes in the Consolidated Statement of Operations. As of December 31, 2025, the unamortized balance of renewable energy tax credit investments was $51.1 million, and unfunded commitments related to these investments totaled $40.8 million. These amounts are included in Deferred charges and other assets and Accounts payable and accrued liabilities, respectively, on the Consolidated Balance Sheet.
Income before income taxes was composed of the following components:
Years Ended December 31,
202520242023
 (In thousands)
United States$689,745 $631,159 $664,745 
Foreign40,038 44,259 43,861 
Total income before income taxes
$729,783 $675,418 $708,606 
Income tax provision consisted of the following:
Years Ended December 31,
202520242023
(In thousands)
Current:   
United States104,582 113,379 (30,832)
Foreign13,268 13,069 14,989 
State28,071 22,676 (4,728)
Total current income taxes145,921 149,124 (20,571)
Deferred:   
United States$36,764 $5,971 $155,677 
Foreign(1,561)(32)(1,999)
State5,814 1,602 37,838 
Total deferred income taxes41,017 7,541 191,516 
Total income taxes$186,938 $156,665 $170,945 
In December 2023, the FASB amended income tax disclosure guidance to require enhanced transparency in the effective tax rate reconciliation and additional disclosures related to income taxes paid. We adopted this guidance for the year ended December 31, 2025 and applied the disclosure requirements retrospectively to all prior periods presented.
The table below reflects those disclosures for the years ended December 31, 2025, 2024 and 2023.
Year Ended December 31,
202520242023
(In thousands)
AmountRateAmountRateAmountRate
Federal Statutory Tax Rate153,255 21.0 %141,838 21.0 %148,807 21.0 %
State and Local Income Taxes, net of federal tax effect(1)
27,298 3.7 %20,224 3.0 %26,047 3.7 %
Foreign Tax Effects3,501 0.5 %3,651 0.5 %4,156 0.5 %
Tax Credits(737)(0.1)%178 — %(1,001)(0.1)%
Nontaxable or Nondeductible Items4,019 0.6 %(8,126)(1.2)%(6,991)(1.0)%
    Excess tax benefits from stock-based compensation(1,060)(0.1)%(10,561)(1.6)%(7,412)(1.0)%
    Other5,079 0.7 %2,435 0.4 %421 — %
Changes in Unrecognized Tax Benefits(551)(0.1)%$(1,084)(0.1)%110 — %
Other Adjustments153 — %(16)— %(183)— %
Effective Tax Rate$186,938 25.6 %$156,665 23.2 %$170,945 24.1 %
(1) In 2025, state tax in California, Maryland, and Illinois comprise the majority of the tax effect in this category. In 2024, state tax in California, Texas, and Illinois comprise the majority of the tax effect in this category. In 2023, state tax in California and Texas comprise the majority of the tax effect in this category.
The higher effective tax rate in 2025 was primarily due to a decrease in excess tax benefits recognized on the settlement of employee share-based awards. The effective tax rate for the year ended December 31, 2025 was higher than the federal statutory tax rate of 21% primarily due to state and foreign income taxes.
The table below presents the income taxes paid, net of refunds received, by jurisdiction for the years ended December 31, 2025, 2024 and 2023.
Year Ended December 31,
202520242023
(In thousands)
US Federal$95,956 $— $57,000 
US State and Local:
California(1)
13,385 — — 
All Others15,875 8,417 9,606 
Total US Domestic$29,260 $8,417 $9,606 
Foreign:
Canada13,528 10,975 14,399 
All Others1,321 1,428 2,724 
Total Foreign$14,849 $12,403 $17,123 
Total Income Tax Paid$140,065 $20,820 $83,729 
(1) The blank cells indicate that the amount of income tax paid during the year is either immaterial or does not meet the 5% disaggregation threshold.
Deferred taxes are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates. The tax effects of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities consisted of the following:
Years Ended December 31,
20252024
 (In thousands)
Inventories and cemetery property$(191,122)$(195,851)
Deferred incremental direct selling costs(114,032)(110,305)
Property and equipment(186,055)(146,121)
Intangibles(217,144)(213,641)
Deferred revenue on preneed funeral and cemetery contracts(71,128)(100,095)
Other(7,167)(6,085)
Deferred tax liabilities(786,648)(772,098)
Loss and tax credit carryforwards106,657 113,603 
Accrued liabilities92,319 115,515 
Deferred tax assets198,976 229,118 
Less: valuation allowance(95,464)(99,325)
Net deferred income tax liability$(683,136)$(642,305)
Deferred tax assets and deferred income tax liabilities are recognized in our Consolidated Balance Sheet as follows:
Years Ended December 31,
20252024
(In thousands)
Non-current deferred tax assets - included in Deferred charges and other assets, net
$7,897 $6,890 
Non-current deferred tax liabilities - included in Deferred tax liability
(691,033)(649,195)
Net deferred income tax liability$(683,136)$(642,305)
As of December 31, 2025, foreign withholding taxes have not been provided on the estimated $306.5 million of undistributed earnings and profits (E&P) of our foreign subsidiaries as we intend to permanently reinvest these foreign E&P in the respective businesses outside the U.S. However, if we were to repatriate such foreign E&P, the foreign withholding tax liability is estimated to be $15.8 million. Additionally, if we were to repatriate E&P in excess of our previously taxed income under the Tax Cuts and Jobs Act of 2017, such excess repatriation may cause us to incur an additional U.S. federal income tax of approximately $7.7 million related to our hybrid debt structure between Canada and the United States that was eliminated in 2022.
The following table summarizes the activity related to our gross unrecognized tax benefits from January 1, 2023 to December 31, 2025 (in thousands):
 Federal, State, and Foreign Tax
 (In thousands)
Balance at December 31, 2022$1,348 
Reduction to tax positions related to prior years— 
Balance at December 31, 2023$1,348 
Reductions to tax positions due to lapse of statutes of limitations(1,348)
Additions to tax positions related to prior years834 
Balance at December 31, 2024$834 
Reductions to tax positions due to lapse of statutes of limitations(400)
Balance at December 31, 2025$434 
Our total unrecognized tax benefits that, if recognized, would affect our effective tax rates were $0.4 million, $0.8 million and $1.3 million as of December 31, 2025, 2024 and 2023, respectively.
We include potential accrued interest and penalties related to unrecognized tax benefits within our income tax provision account. We have accrued $0.3 million, $0.4 million and $1.0 million for the payment of interest, net of tax benefits, and penalties as of December 31, 2025, 2024 and 2023, respectively. We recorded a decrease of interest and penalties of $0.1 million, $0.6 million and an increase of $0.1 million for years ended December 31, 2025, 2024 and 2023, respectively. To the extent interest and penalties are not assessed with respect to uncertain tax positions or the uncertainty of deductions in the future, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision.
We file income tax returns, including tax returns for our subsidiaries, with federal, state, local, and foreign jurisdictions. We consider the United States to be our most significant jurisdiction; however, all tax returns are subject to routine compliance review by the taxing authorities in the jurisdictions in which we file tax returns in the ordinary course of business.
The federal statutes of limitations have expired for all tax years prior to 2022. Our 2022 federal income tax return is currently under audit by the IRS. Various state and foreign jurisdictions are auditing years 2020 through 2023. The outcome of each of these audits cannot be predicted at this time.
Following the enactment of the new U.S. tax legislation, Public Law No. 119-21, on July 4, 2025, we adopted the relevant provisions during the third quarter of 2025, including those pertaining to bonus depreciation and interest expense. Consistent with our expectations, the adoption of these provisions did not have a material effect on our consolidated financial statements.
Various subsidiaries have federal, state, and foreign loss carryforwards totaling $2.2 billion with expiration dates ranging through 2043. Such loss carryforwards will expire as follows:
FederalStateForeignTotal
 (In thousands)
2026$— $340,129 $942 $341,071 
2027— 189,417 966 190,383 
2028— 234,006 1,705 235,711 
2029— 190,895 661 191,556 
Thereafter— 1,253,180 615 1,253,795 
Total loss carryforwards$— $2,207,627 $4,889 $2,212,516 
In addition to the above loss carryforwards, we have $1.0 million of federal net operating loss carryforwards and $2.1 million of foreign alternative minimum tax credits, both of which can be carried forward indefinitely.
In assessing the usefulness of deferred tax assets, we consider whether it is more likely than not that some portion or all of the net deferred tax assets will not be realized. The future realization of net deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. During 2025, we recorded a net $3.9 million decrease in our valuation allowance primarily driven by utilization and expiration of state net operating losses, along with legislative changes in certain states. The valuation allowances can be affected in future periods by changes to tax laws, changes to statutory tax rates, and changes in estimates of future taxable income.
At December 31, 2025, our loss and tax credit carryforward deferred tax assets and valuation allowances by jurisdiction are as follows (presented net of federal benefit).
FederalState ForeignTotal
  (In thousands) 
Loss and tax credit carryforwards$214 $102,515 $3,928 $106,657 
Valuation allowance$— $80,711 $14,753 $95,464