v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income taxes
The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.
Income before income taxes from continuing operations consisted of the following: 
 Year ended December 31,
 202520242023
Domestic$1,224,860 $1,374,571 $1,100,420 
International121,963 155,822 76,674 
$1,346,823 $1,530,393 $1,177,094 
Income tax expense for continuing operations consisted of the following:
Year ended December 31,
202520242023
Current:
Federal$134,287 $253,504 $200,070 
State26,913 52,410 38,370 
International45,338 31,532 21,008 
Total current income tax206,538 337,446 259,448 
Deferred:
Federal76,506 (47,715)(40,234)
State11,225 (2,855)367 
International(1,162)(7,220)535 
Total deferred income tax86,569 (57,790)(39,332)
 $293,107 $279,656 $220,116 
Income taxes are allocated between continuing and discontinued operations as follows:
Year ended December 31,
202520242023
Continuing operations$293,107 $279,656 $220,116 
Discontinued operations— — — 
$293,107 $279,656 $220,116 
The reconciliation between the Company’s effective tax rate from continuing operations and the U.S. federal income tax rate is as follows:
 Year ended December 31,
 202520242023
U.S. Federal income tax$282,833 21.0 %$321,383 21.0 %$247,190 21.0 %
Tax credits(12,804)(1.0)(14,195)(0.9)(12,823)(1.1)
Nontaxable/Nondeductible items:
Impact of noncontrolling interests(69,029)(5.1)(66,186)(4.3)(55,245)(4.7)
Nondeductible executive compensation15,703 1.2 6,738 0.4 9,112 0.8 
Other954 0.1 (8,210)(0.6)634 — 
Valuation allowances13,346 1.0 9,159 0.6 5,634 0.5 
Cross-border tax impacts99 — 1,500 0.1 (102)— 
State and local income taxes, net of federal benefit(1)
32,895 2.4 44,218 2.9 29,072 2.5 
Foreign tax effects(2)
19,706 1.5 (4,836)(0.3)9,114 0.8 
Unrecognized tax benefits9,404 0.7 (9,915)(0.6)(12,470)(1.1)
Effective tax rate$293,107 21.8 %$279,656 18.3 %$220,116 18.7 %
(1)The majority (greater than 50%) of state tax expense comprises income taxes in California, Illinois, Pennsylvania, New York and New Jersey for the years presented.
(2)The majority (greater than 50%) of foreign tax expense comprises income taxes in Saudi Arabia, Ecuador, Colombia, Netherlands, Poland and Brazil for the years presented.
Deferred tax assets and liabilities arising from temporary differences for continuing operations were as follows:
December 31,
20252024
Receivables$25,685 $37,630 
Accrued liabilities81,112 74,419 
Operating lease liabilities490,562 508,729 
Net operating loss carryforwards163,156 161,371 
Investments in partnerships— 4,108 
Other61,972 54,600 
Deferred tax assets822,487 840,857 
Valuation allowance(124,013)(107,952)
Net deferred tax assets698,474 732,905 
Intangible assets(770,691)(757,797)
Property and equipment(105,338)(63,726)
Operating lease assets(444,515)(464,455)
Investments in partnerships(5,080)— 
Other(59,977)(66,035)
Deferred tax liabilities(1,385,601)(1,352,013)
Net deferred tax liabilities$(687,127)$(619,108)
Reported as:
Deferred tax liabilities$(756,869)$(665,361)
Deferred tax assets (included in other long-term assets)69,742 46,253 
$(687,127)$(619,108)
At December 31, 2025, the Company had federal net operating loss carryforwards of approximately $30,848 that expire through 2036, although a substantial amount expire by 2030. The Company also had state net operating loss carryforwards of $511,886, some of which have an indefinite life, while a substantial amount expire by 2044. Additionally, the Company had international net operating loss carryforwards of $430,286, some of which will begin to expire in 2026, though the majority have an indefinite life. The utilization of a portion of these losses may be limited in future years based on the profitability of certain entities and, as such, the related deferred tax assets have been offset with a valuation allowance in the table above. The net increase of $16,061 in the valuation allowance is primarily from losses generated by equity investments that the Company does not anticipate being able to benefit from.
The Company remains indefinitely reinvested in several of the foreign jurisdictions in which it operates as of December 31, 2025. As a result of the passage of the Tax Cuts and Jobs Act (2017 Tax Act), the Company does not expect any significant taxes to be incurred if such earnings were remitted.
Unrecognized tax benefits
A reconciliation of the beginning and ending liability for unrecognized tax benefits that do not meet the more-likely-than-not threshold is as follows:
Year ended December 31,
20252024
Beginning balance$41,484 $47,379 
Additions for tax positions related to current year3,029 3,866 
Adjustments for tax positions related to prior years(12,183)(1,452)
Reductions related to lapse of applicable statute(4,803)(8,309)
Reductions related to settlements with taxing authorities(10,000)— 
Ending balance$17,527 $41,484 
Of the 2025 ending balance, $16,720 would impact the Company’s effective tax rate if recognized. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in its income tax expense. As of December 31,
2025 and 2024, the Company had approximately $2,994 and $5,846, respectively, accrued for interest and penalties related to unrecognized tax benefits, net of federal tax benefit.
The Company and its subsidiaries are under examination in various state, local and foreign tax jurisdictions. In certain jurisdictions we have statutes open as of 2014 but the majority are no longer subject to examination for periods before 2022. For federal tax purposes the Company is no longer subject to examinations for periods prior to 2022.