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

INCOME TAXES (Tables)

v3.25.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Significant Components of the Provision for Income Tax Expense (Benefit)
Significant components of the provision for income tax expense (benefit) are as follows:
Year Ended December 31,
2025 2024 2023
(in thousands)
Current:
  Federal $ (6,176) $ 39,122  $ 1,250 
  Foreign 345,460  253,442  229,073 
  State 21,005  24,308  23,171 
Total current 360,289  316,872  253,494 
Deferred:
  Federal 55,229  (557,399) 5,982 
  Foreign (68,207) (126,423) (51,209)
  State (7,524) (24,748) 1,209 
Total deferred (20,502) (708,570) (44,018)
Income tax expense (benefit) $ 339,787  $ (391,698) $ 209,476 
Significant Components of Deferred Tax Liabilities and Assets
Significant components of our deferred tax liabilities and assets are as follows:
December 31,
2025 2024
(in thousands)
Deferred tax liabilities:
          Intangible and fixed assets $ 396,428  $ 282,200 
          Leases 233,421  210,904 
Mark to market 50,780  49,691 
          Prepaid expenses 10,023  3,802 
          Other 9,023  779 
Total deferred tax liabilities 699,675  547,376 
Deferred tax assets:
          Net operating loss carryforwards 851,765  763,205 
          Leases 277,872  244,476 
          Accrued expenses 209,327  251,416 
          Capitalized research and development 107,585  90,477 
          Interest limitation 73,037  69,128 
          Foreign tax and other credit carryforwards 59,294  51,153 
          Other 45,270  61,555 
          Intangible and fixed assets 16,358  12,411 
          Equity compensation 14,111  10,831 
Total gross deferred tax assets 1,654,619  1,554,652 
          Valuation allowance 587,285  569,495 
Total net deferred tax assets 1,067,334  985,157 
Net deferred tax assets $ 367,659  $ 437,781 
Reconciliation of Income Taxes at the United States Statutory Rate to Income Tax Expense
Year Ended December 31,
2025
Total %
(in thousands)
U.S. federal statutory tax rate $ 216,411  21.0  %
State and local income taxes, net of federal income tax effect (2)
11,158  1.1  %
Foreign tax effects
Australia
Deferred taxes (12,374) (1.2) %
Other 8,070  (1) 0.8  %
Canada
Deferred taxes 20,892  2.0  %
Other 7,244  (1) 0.7  %
Mexico
Nontaxable or nondeductible items 25,001  2.4  %
Tax rate differential 16,819  1.6  %
Other (352) (1) —  %
Other foreign jurisdictions (3)
25,851  2.5  %
Effect of cross-border tax laws
Foreign income inclusion 27,656  2.7  %
Other 61  (1) —  %
Changes in valuation allowances 2,136  (1) 0.2  %
Nontaxable or nondeductible items
Executive compensation in excess of $1 million 35,771  3.5  %
Minority interest - nondeductible (9,856) (1) (1.0) %
Nontaxable income (15,061) (1.5) %
Other (7,237) (1) (0.7) %
Changes in unrecognized tax benefits 2,528  (1) 0.2  %
Return to provision (14,931) (1.3) %
Effective tax rate $ 339,787  33.0  %
(1) The impact of the individual reconciling item in this period is below the threshold and is not material to the users of the financial statements considering the nature and relative significance of the reconciling item.
(2)
 State taxes in Illinois, New York, Pennsylvania, Tennessee and Texas made up the majority (greater than 50%) of the tax effect in this category.
(3)
 All other foreign jurisdictions do not exceed the 5% threshold at the jurisdiction level in total or for individual reconciling items of the same nature within each jurisdiction.
Income tax expense is principally attributable to operational results in tax paying jurisdictions.
Amounts included in Foreign Tax Effects are impacted by changes in the mix of international earnings subject to various tax rates which can differ greatly in their proximity to the United States statutory rate and current and deferred adjustments related to payable and deferred tax assets.
Amounts included in the Effect of Cross-border Tax Laws include unfavorable inclusions for Subpart F.
Nondeductible items for all years presented include the impact of increased nondeductible expenses pursuant to the provisions of the Tax Cuts and Jobs Act (“TCJA”) including nondeductible executive compensation.
The following table reconciles the United States federal statutory income tax rate to our effective income tax rates for the years ended December 31, 2024 and 2023 prior to our adoption of ASU 2023-09:
Year Ended December 31,
2024 2023
(in thousands)
Income tax expense at United States statutory rate of 21%
 $ 155,280  $ 187,854 
Differences between foreign and United States statutory rates
 70,469  86,537 
State income taxes, net of federal tax benefits 27,844  22,889 
Nondeductible items 23,898  25,959 
United States income inclusions and exclusions (10,332) 28,450 
Non-United States income inclusions and exclusions (9,466) (63,691)
Tax contingencies 674  6,191 
Tax expense from acquired goodwill —  7,953 
Other, net 166  784 
Change in valuation allowance (650,231) (93,450)
$ (391,698) $ 209,476 
Summary of Activity Related to Unrecognized Tax Benefits
The following table summarizes the activity related to our unrecognized tax benefits:
Year Ended December 31,
2025 2024 2023
(in thousands)
Balance at January 1 $ 29,692  $ 30,466  $ 22,996 
Additions:
          Increase for current year positions —  1,451  2,333 
          Increase for prior year positions 1,505  1,001  4,453 
          Interest and penalties for prior years 1,027  255  1,063 
Reductions:
          Statute lapse for prior year positions —  (3) — 
          Settlements for prior year positions (878) (3,166) (379)
Foreign exchange 187  (312) — 
Balance at December 31 $ 31,533  $ 29,692  $ 30,466 
Schedule of Cash Flow, Supplemental Disclosures for Cash Paid for Income Taxes, Net of Refunds Received [Table Text Block]
Cash paid during the year for income taxes, net of refunds, are as follows:
Year Ended December 31,
2025
(in thousands)
State $ 33,366 
Foreign
Mexico 102,806 
United Kingdom 24,312 
Canada 22,298 
Other foreign 130,256 
Total $ 313,038 
There was no cash paid for United States federal income taxes as we generated a taxable loss for the year ended December 31, 2025 due to the provisions allowed within the One Big Beautiful Bill Act (the “Act”) discussed below.