Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Components of Income Tax Expense

The components of income tax expense from continuing operations for the years ended December 31, are comprised of the following:


(in thousands)	2024		2023		2022
Current
Federal	$	29,518	$	—	$	—
State	17,457		12,250		11,327
Foreign	6,823		7,382		6,204
Deferred
Federal	(23,990)		80,698		63,585
State	(19,197)		27,276		8,917
Foreign	(2,136)		(1,031)		(1,170)
Total income tax expense from continuing operations	$	8,475	$	126,575	$	88,863

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense from continuing operations differed from the amount computed by applying the US statutory income tax rate of 21% to the income from continuing operations before income taxes as follows for the years ended December 31:


(in thousands)	2024			2023			2022
Income from continuing operations before income tax
US	$	18,686		$	444,557		$	341,412
Foreign	17,918			23,862			23,792
Total income from continuing operations before income tax	$	36,604		$	468,419		$	365,204

US Federal statutory income tax expense	$	7,687		$	98,368		$	76,693
Effect of tax rates in foreign jurisdictions	1,175			1,434			1,085
State income tax expense, net of federal benefit	784			25,412			17,078
Valuation allowances	2,776			(815)			(6,907)
Non-deductible (non-taxable) items	677			775			1,147
Non-deductible executive compensation	1,813			2,014			1,258

Tax credits	(6,988)			(396)			(161)
Uncertain tax positions	(791)			(523)			(804)
Tax law changes (excluding valuation allowance) (a)	(166)			(50)			(94)
Other	1,508			356			(432)
Income tax expense from continuing operations	$	8,475		$	126,575		$	88,863
Effective income tax rate	23.15		%	27.02		%	24.33		%

(a) Tax law changes primarily represent changes in tax law in foreign jurisdictions.

Schedule of Deferred Income Taxes

Significant components of the Company’s deferred tax assets and liabilities as of December 31 are as follows:


(in thousands)	2024		2023
Deferred tax assets
Deferred interest expense	$	118,228	$	116,982
Employee benefit plans	10,408		9,079
Accrued liabilities	5,011		5,996
Allowance for credit losses	25,828		21,964
Deferred revenue	60,907		57,494
Operating lease liability	66,925		61,849
Other	12,397		5,006
Tax loss carryforwards	75,312		99,676
Deferred tax assets, gross	375,016		378,046
Valuation allowance	(4,206)		(1,430)
Net deferred income tax asset	$	370,810	$	376,616

Deferred tax liabilities
Rental equipment and other property, plant and equipment	$	(791,853)	$	(808,873)
Intangible assets	(18,106)		(60,358)
Right of use asset	(66,508)		(61,653)

Deferred tax liability	(876,467)		(930,884)
Net deferred income tax liability	$	(505,657)	$	(554,268)

Schedule of Tax Loss Carryforwards

The Company’s tax loss carryforwards are as follows at December 31, 2024:


(in thousands)	Loss Carryforward		Deferred Tax		Expiration
Jurisdiction:
US - Federal	$	105,115	$	22,074	2031, Indefinite
US - Capital Loss	180,000		44,742		2029
US - State	190,330		8,496		2025 – 2043, Indefinite
Total	$	475,445	$	75,312

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


(in thousands)	2024		2023		2022
Unrecognized tax benefits – January 1,	$	43,134	$	43,627	$	44,314



Decrease from expiration of statute of limitations(a)	(16,624)		(493)		(687)
Unrecognized tax benefits – December 31,	$	26,510	$	43,134	$	43,627

(a) Includes $15.8 of presentational adjustments with no effect on amounts presented in the consolidated balance sheet or the annual effective tax rate for the year ended December 31, 2024.