Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.25.4
Income Taxes (Tables)
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
Income Tax Disclosure [Abstract]  
Provision for Income Taxes for Continuing Operations - Benefit (Expense)
The provision for income taxes - benefit (expense) consists of the following:
Year Ended December 31,
2025 2024 2023
(In millions)
Current tax expense:
Federal $ (73.8) $ (52.7) $ (62.6)
State and local
 (6.1) (16.5) (19.7)
Total current tax expense
 (79.9) (69.2) (82.3)
Deferred tax benefit:
Federal 24.8  23.1  17.1 
State and local 1.0  6.0  1.5 
Total deferred tax benefit 25.8  29.1  18.6 
Total provision for income taxes - expense $ (54.1) $ (40.1) $ (63.7)
Reconciliation of Statutory Federal Income Tax Rate with Federal and State Overall Effective Income Tax Rate from Continuing Operations
The reconciliation of the U.S. statutory federal income tax rate with our federal and state overall effective income tax rate in accordance with ASU 2023-09 is as follows for the year ending December 31, 2025:
Year Ended December 31, 2025
In USD (in millions)
Percent of Pre-tax Income
U.S. statutory federal income tax rate $ (36.3) 21.0  %
State and local income tax, net of federal benefit (1)
 (4.1) 2.4  %
Nontaxable or nondeductible items
Nondeductible compensation
 (7.6) 4.9  %
Share-based compensation
 3.5  (2.0) %
Other
 (2.1) 0.6  %
Changes in unrecognized tax benefits
 (0.6) 0.4  %
Other (6.9) 4.0  %
Income tax expense, effective tax rate
 $ (54.1) 31.3  %
(1) The states that constitute the majority of the tax effect in this category include California, Texas, and Florida.
For the years ending December 31, 2024 and 2023, the reconciliation of the U.S. statutory federal income tax rate with our federal and state overall effective income tax rate is as follows:
Year Ended December 31,
2024 2023
U.S. statutory federal income tax rate 21.0  % 21.0  %
Effective state income tax rate 5.2  % 6.1  %
Valuation allowance adjustments (0.1) % (0.3) %
Uncertain tax positions 0.6  % 2.2  %
Effect of goodwill impairment and indefinite lived intangible assets (12.1) % 0.0  %
Non-deductible compensation 1.9  % 1.4  %
Other (0.8) % (4.1) %
Effective income tax rate 15.7  % 26.3  %
Components of Deferred Tax Assets and Liabilities Significant components of our deferred tax assets and liabilities were as follows:
December 31, 2025 December 31, 2024
(In millions)
Deferred tax assets:
Accruals and reserves $ 39.1  $ 40.6 
State net operating loss carryforwards 6.6  6.6 
Basis difference in liabilities related to right-of-use assets 165.4  147.7 
Other 5.1  4.4 
Total deferred tax assets 216.2  199.3 
Deferred tax liabilities:
Basis difference in property and equipment (9.6) (3.8)
Basis difference in goodwill (49.3) (79.7)
Basis difference in right-of-use assets (147.9) (133.2)
Other (2.0) (2.6)
Total deferred tax liabilities (208.8) (219.3)
Valuation allowance (6.5) (6.2)
Net deferred tax asset (liability) $ 0.9  $ (26.2)
Income Taxes Paid $ 100.8