Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Income before Income Tax, Domestic and Foreign

Income (loss) from continuing operations before income taxes consists of the following components:


(In thousands)	Years Ended December 31,
	2025		2024		2023
Domestic	$	182,190	$	(119,422)	$	239,061
Foreign	(34,192)		(55,075)		56,945
Total	$	147,998	$	(174,497)	$	296,006

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) attributable to continuing operations consists of the following components:


(In thousands)	Years Ended December 31,
	2025		2024		2023
Current expense (benefit):
U.S. federal	$	27,671	$	43,284	$	9,260
U.S. state and local	20,698		41,990		12,624
Foreign	11,887		20,441		23,517
Total current tax expense (benefit)	60,256		105,715		45,401
Deferred expense (benefit):
U.S. federal	(11,329)		(53,109)		46,831
U.S. state and local	(1,397)		(6,631)		1,034
Foreign	(4,552)		(3,323)		1,871
Total deferred tax expense (benefit)	(17,278)		(63,063)		49,736
Total income tax expense (benefit):
U.S. federal	16,342		(9,825)		56,091
U.S. state and local	19,301		35,359		13,658
Foreign	7,335		17,118		25,388
Total income tax expense (benefit)	42,978		42,652		95,137
Tax expense (benefit) relating to uncertain tax positions, including accrued interest	3,248		838		(531)
Income tax expense (benefit)	$	46,226	$	43,490	$	94,606

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the federal statutory income tax rate to the effective income tax rate for the year ended December 31, 2025 is as follows:


(in thousands)	Amount		Percent
U.S. federal statutory income tax rate	$	31,080	21.0	%
Domestic federal




Tax credits
Foreign tax credits	(14,642)		(9.9)	%




Nontaxable or nondeductible items
Nondeductible goodwill impairment	6,807		4.6	%
Nondeductible compensation expense	5,133		3.5	%

Other	208		0.1	%
Effect of cross-border tax laws	(2,511)		(1.7)	%
Changes in valuation allowances	4,544		3.1	%
Other
Deferred tax outside basis adjustment (a)	(17,837)		(12.1)	%
Share-based payment awards	2,833		1.9	%
Other	(1,651)		(1.1)	%
Domestic state and local income taxes, net of federal effect (b)	19,285		13.0	%
Changes in unrecognized tax benefits	2,523		1.7	%
Foreign tax effects



Canada
Withholding taxes	7,726		5.2	%
United Kingdom
Tax incentive adjustment	(11,301)		(7.6)	%
Changes in valuation allowances	11,269		7.6	%
Nontaxable income attributable to noncontrolling interests	(2,374)		(1.6)	%
Other	667		0.5	%
Spain
Tax incentive adjustment	(5,944)		(4.0)	%
Nondeductible goodwill impairment	4,112		2.8	%
Changes in valuation allowances	2,718		1.8	%

Other	(984)		(0.7)	%





Other jurisdictions

Withholding taxes	4,174		2.8	%
Other	391		0.3	%

Total income tax expense/(benefit)	$	46,226	31.2	%

(a) This amount relates to a reversal of a deferred tax liability resulting from an ownership interest change of RLJ Entertainment.

(b) This amount includes an $11.4 million adjustment primarily related to a write-down of a state investment tax credit receivable. During the year ended December 31, 2025, state taxes in California, New York and Pennsylvania compromised greater than 50% of the tax effect in this category after adjusting for the $11.4 million above.

A reconciliation of the federal statutory income tax rate to the effective income tax rate for the years ended December 31, 2024 and 2023 is as follows:


(In thousands)	Years Ended December 31,
	2024		2023
U.S. federal statutory income tax rate	21	%	21	%
State and local income taxes, net of federal benefit	(1)		4
Effect of foreign operations (a)	(11)		1
Nondeductible compensation expenses	(3)		2
Excess tax deficiencies related to share-based compensation	(1)		1
Changes in the valuation allowance (b)	1		3


Investment tax credit benefit/expense (c)	(19)		—
Nondeductible goodwill impairment charges	(9)		—
Expiration of foreign tax credits	(4)		—

Other	1		—
Effective income tax rate	(25)	%	32	%

(a)In the years ended December 31, 2024 and 2023, the effect of foreign operations relates to the income tax benefit or expense as a result of certain entities operating in foreign jurisdictions (inclusive of the nondeductible goodwill impairment charges at AMCNI).

(b)In the year ended December 31, 2024, the decrease in the valuation allowance relates primarily to the expiration of foreign tax credits and utilization of foreign deferred tax assets offset by the generation of excess foreign tax credits.

(c)In the year ended December 31, 2024, the increase in the investment tax credit benefit/expense relates primarily to a write-down of a state investment tax credit receivable.

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant components of deferred tax assets or liabilities at December 31, 2025 and 2024 are as follows:


(In thousands)	December 31,
	2025		2024
Deferred Tax Asset (Liability)
NOLs and tax credit carryforwards	$	122,916	$	96,968
Compensation and benefit plans	19,695		20,128
Allowance for doubtful accounts	1,440		1,729
Fixed assets and intangible assets	21,527		23,411
Accrued interest expense	6,049		28,148
Unused capital losses	13,116		19,148
Accrued liabilities and other	22,402		23,927
Deferred tax asset	207,145		213,459
Valuation allowance	(142,368)		(127,563)
Net deferred tax asset	64,777		85,896
Prepaid liabilities	(770)		(664)
Fixed assets and intangible assets	(61,270)		(69,203)
Investments in partnerships	(86,408)		(99,864)
Other	(6,712)		(24,284)
Deferred tax liability	(155,160)		(194,015)
Total net deferred tax liability	$	(90,383)	$	(108,119)

Schedule of Deferred Tax Assets Valuation Allowance

Deferred Tax Assets - Valuation Allowance


(In thousands)	2025		2024
Balance at beginning of year	$	127,563	$	135,742
Charged (credited) to expense	11,048		(8,160)
Other (a)	3,757		(19)
Balance at end of year	$	142,368	$	127,563

(a)Includes currency translation adjustments and other miscellaneous items.

Schedule of Unrecognized Tax Benefits Reconciliation

A reconciliation of the beginning to ending amount of the liability for uncertain tax positions (excluding related accrued interest and deferred tax benefit) is as follows:


(In thousands)
Balance at December 31, 2024	$	5,949
Increases related to current year tax positions	478
Increases related to prior year tax positions	1,678

Decreases related to prior year tax positions	(45)
Decreases due to settlements/payments	(834)
Decreases due to lapse of statute of limitations	(561)

Balance at December 31, 2025	$	6,665

Schedule of Income Taxes Paid, Net

The following table summarizes income taxes paid, net, for the year ended December 31, 2025:



(In thousands)

U.S. Federal	$	28,000
U.S State and local	6,637
Foreign	11,753





Total income taxes paid, net	$	46,390

The following table details the Company's non-cash investing and financing activities and other supplemental data:


(In thousands)	Years Ended December 31,
	2025		2024		2023
Non-Cash Investing and Financing Activities:

Operating lease additions	$	33,056	$	8,272	$	7,647
Finance lease additions	2,625		2,991		—

Capital expenditures incurred but not yet paid	1,310		1,765		974

Supplemental Data:
Cash interest paid	156,563		129,164		149,535