v3.25.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Components of Income (Loss) Before Income Taxes
The components of income before income taxes were as follows (in thousands):
 Year Ended December 31,
 202520242023
Income before income taxes:   
Domestic$1,238,190 $1,052,185 $823,691 
Foreign151,315 159,845 146,265 
Total$1,389,505 $1,212,030 $969,956 
Provision for Income Taxes
The components of the provision for income taxes were as follows (in thousands):
 Year Ended December 31,
 202520242023
Current:   
Federal$184,159 $185,357 $132,727 
State58,955 55,691 42,783 
Foreign66,871 52,024 39,941 
Total current tax provision309,985 293,072 215,451 
Deferred:
Federal62,992 34,498 16,055 
State6,201 14,556 (556)
Foreign(31,590)(57,379)(11,683)
Total deferred tax provision (benefit)
37,603 (8,325)3,816 
Total provision for income taxes$347,588 $284,747 $219,267 
Effective Income Tax Rate Reconciliation
The actual income tax provision differed from the income tax provision computed by applying the U.S. federal statutory corporate rate to income before provision for income taxes as follows (in thousands, except percentages):
Year Ended
December 31, 2025
AmountPercentage of Pre-Tax Income
U.S. federal statutory tax rate$291,796 21.0 %
State and local income tax, net of federal (national) income tax effect (1)
53,215 3.8 
Foreign tax effects(2,973)(0.2)
Effect of cross-border tax laws14,163 1.0 
Tax credits(11,408)(0.8)
Changes in valuation allowances51 — 
Nontaxable or nondeductible items:
 Employee per diems, meals and entertainment35,710 2.6 
 Share-based payment awards
(23,662)(1.7)
 Other(10,977)(0.8)
Changes in unrecognized tax benefits3,030 0.2 
Other adjustments
(1,357)(0.1)
Total provision for income taxes and effective tax rate$347,588 25.0 %
(1)     State taxes in California, Florida, Illinois, Indiana, Iowa, New Mexico, New York, Texas and Wisconsin made up the majority (greater than 50 percent) of the tax effect in this category.
Year Ended December 31,
20242023
Provision at the statutory rate$254,526 $203,691 
Increases (decreases) resulting from:
State taxes51,575 41,920 
Employee per diems, meals and entertainment31,768 27,039 
Tax contingency reserves, net15,046 6,882 
Valuation allowance on deferred tax assets4,868 (20,177)
Company-owned life insurance(2,430)(2,262)
Foreign taxes(2,861)2,927 
Entity restructuring efforts
(10,195)— 
Taxes on certain equity method investments and non-controlling interests(14,007)(9,519)
Stock-based compensation (1)
(55,068)(35,007)
Other11,525 3,773 
Total provision for income taxes$284,747 $219,267 
(1)     Stock-based compensation for the years ended December 31, 2024 and 2023, include state tax benefits of $7.2 million and $5.4 million.
Deferred Tax Assets and Liabilities and Net Deferred Income Tax Assets and Liabilities
Deferred income taxes result from temporary differences in the recognition of income and expenses for financial reporting purposes and tax purposes. The tax effects of these temporary differences, representing deferred tax assets and liabilities, result principally from the following (in thousands):
December 31,
20252024
Deferred income tax liabilities:
Property and equipment$(460,786)$(370,703)
Goodwill(261,272)(212,724)
Leased assets(177,259)(135,361)
Retainage(17,805)(14,059)
Other
(11,408)(13,502)
Total deferred income tax liabilities(928,530)(746,349)
Deferred income tax assets:  
Net operating loss carryforwards122,860 179,276 
Lease liabilities167,739 129,623 
Stock and incentive compensation102,099 78,396 
Accruals and reserves98,374 64,449 
Tax credits21,536 14,644 
Deferred tax benefits on unrecognized tax positions6,896 7,726 
Equity method investments and non-controlling interests11,423 6,751 
Other intangible assets17,971 3,118 
Other4,220 14,777 
Subtotal553,118 498,760 
Valuation allowance(34,766)(42,576)
Total deferred income tax assets518,352 456,184 
Total net deferred income tax liabilities$(410,178)$(290,165)
The net deferred income tax assets and liabilities comprised the following in the accompanying consolidated balance sheets (in thousands):
 December 31,
 20252024
Deferred income taxes:  
Assets$92,448 $63,103 
Liabilities(502,626)(353,268)
Total net deferred income tax liabilities$(410,178)$(290,165)
Reconciliation of Unrecognized Tax Benefits
A reconciliation of unrecognized tax benefit balances is as follows (in thousands):
 December 31,
 202520242023
Balance at beginning of year$74,118 $45,136 $41,639 
Additions based on tax positions related to the current year12,492 19,155 10,304 
Additions for tax positions of prior years from business combinations
734 12,461 — 
Additions for tax positions of prior years— 2,924 — 
Reductions resulting from a lapse of the applicable statute of limitations periods
(12,929)(5,558)(6,807)
Balance at end of year$74,415 $74,118 $45,136 
Schedule of Unrecognized Tax Benefits, Amounts Related to Interest and Penalties, and Range of Reasonably Possible Changes in the Next 12 Months
The balances of unrecognized tax benefits, the amount of related interest and penalties are as follows (in thousands):
 December 31, 2025
Unrecognized tax benefits$74,415 
Portion that, if recognized, would reduce tax expense and effective tax rate
$71,055 
Accrued interest on unrecognized tax benefits$9,294 
Accrued penalties on unrecognized tax benefits$2,285