Income Taxes

12 Months Ended

Dec. 31, 2025

We file a consolidated federal income tax return, consolidated unitary returns in certain states, other separate state income tax returns for certain of our subsidiary companies, and applicable foreign returns.

The components of income (loss) for operations before income taxes consisted of the following:


	For the years ended December 31,
(in thousands)	2025		2024		2023

Domestic	$	(121,691)	$	207,784	$	(962,902)
Foreign	2,189		2,197		(4,609)
Total	$	(119,502)	$	209,981	$	(967,511)

The provision for income taxes from operations consisted of the following:


	For the years ended December 31,
(in thousands)	2025		2024		2023

Current:
Federal	$	4,580	$	64,533	$	34,205
State and local	5,363		11,644		8,010
Foreign	263		1,053		—
Total current income tax provision	10,206		77,230		42,215
Deferred:
Federal	(24,151)		(14,663)		(53,476)
State and local	(4,527)		1,222		(7,278)
Foreign	(153)		(26)		(1,188)
Total deferred income tax provision	(28,831)		(13,467)		(61,942)
Provision (benefit) for income taxes	$	(18,625)	$	63,763	$	(19,727)

The difference between the statutory rate for federal income tax and the effective income tax rate was as follows:


	For the years ended December 31,
(in thousands)	2025				2024				2023

U.S. federal statutory rate	$	(25,095)	21.0	%	$	44,096	21.0	%	$	(203,177)	21.0	%

State and local income taxes, net of federal income tax effect *	(389)		0.3		9,025		4.2		(1,258)		0.1
Foreign tax effects	(350)		0.3		565		0.3		(220)		—
Nontaxable or non-deductible items:
Non-deductible goodwill impairment	—		—		—		—		179,630		(18.6)

Equity compensation tax windfall/shortfall deduction	2,614		(2.2)		3,157		1.5		1,507		(0.2)
Non-deductible executive compensation	761		(0.6)		2,373		1.1		995		(0.1)
Other non-deductible expenses	1,106		(0.9)		755		0.4		771		—
Changes in unrecognized tax benefits	251		(0.2)		2,016		1.0		334		—
Other adjustments:
Federal accrued interest on deferred gain	1,700		(1.4)		1,802		0.9		1,514		(0.2)
Other	777		(0.7)		(26)		—		177		—
Effective income tax rate	$	(18,625)	15.6	%	$	63,763	30.4	%	$	(19,727)	2.0	%

* The states that contribute to the majority (greater than 50%) of the tax effect in this category include Michigan for 2025, California, Michigan, Florida, Texas, Montana and Arizona for 2024 and Georgia, Michigan, Texas, Cincinnati, Ohio, Arizona, Indiana, Colorado, Wisconsin, Tennessee, New York, Connecticut, Louisiana, Kentucky, Montana, California, Oklahoma and Philadelphia, Pennsylvania for 2023.

In 2023, a non-deductible expense of $855 million was recorded related to book impairment of goodwill.

The components of cash paid for income taxes, net of refunds received, was as follows:


	For the years ended December 31,
(in thousands)	2025		2024		2023

Federal	$	10,000	$	62,991	$	31,200
State:
Florida	—		—		(5,421)
Other	3,323		8,820		5,342
Foreign	—		—		—
Income taxes paid, net of refunds received	$	13,323	$	71,811	$	31,121

The approximate effect of the temporary differences giving rise to deferred income tax assets (liabilities) were as follows:


	As of December 31,
(in thousands)	2025		2024

Temporary differences:
Property and equipment	$	(40,219)	$	(38,383)
Goodwill and other intangible assets	(381,863)		(377,291)
Investments, primarily gains and losses not yet recognized for tax purposes	2,381		4,980
Accrued expenses not deductible until paid	10,494		11,912
Deferred compensation and retiree benefits not deductible until paid	26,526		29,013
Operating lease right-of-use assets	(31,107)		(29,829)
Operating lease liabilities	35,170		32,888
Interest limitation carryforward	79,251		59,070
Other temporary differences, net	15,846		12,599
Total temporary differences	(283,521)		(295,041)
Federal and state net operating loss carryforwards	27,359		12,332
Valuation allowance for state deferred tax assets	(12,067)		(10,880)
Net deferred tax liability	$	(268,229)	$	(293,589)

The Company has a federal operating loss carryforward of $62 million and state operating loss carryforwards of $322 million at December 31, 2025. Our state tax loss carryforwards expire through 2044. Because we file separate state income tax returns for certain of our subsidiary companies, we are not able to use state tax losses of a subsidiary company to offset state taxable income of another subsidiary company.

The Company recognizes federal and state net operating loss carryforwards as deferred tax assets, subject to valuation allowances. At each balance sheet date, we estimate the amount of carryforwards that are not expected to be used prior to expiration of the carryforward period. The tax effect of the carryforwards that are not expected to be used prior to their expiration is included in the valuation allowance.

The Company has not provided for income taxes, including withholding tax, U.S. state taxes, or tax on foreign exchange rate changes, associated with the undistributed earnings of our non-U.S. subsidiaries because we plan to indefinitely reinvest the unremitted earnings in these entities.

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:


	For the years ended December 31,
(in thousands)	2025		2024		2023

Gross unrecognized tax benefits at beginning of year	$	28,099	$	15,030	$	12,124
Increases in tax positions for prior years	1,184		6,055		3,321
Decreases in tax positions for prior years	(788)		(217)		(2)
Increases in tax positions for current year	7,152		7,483		257

Decreases from lapse in statute of limitations	(1,992)		(252)		(670)
Decreases due to settlements with taxing authorities	(26)		—		—
Gross unrecognized tax benefits at end of year	$	33,629	$	28,099	$	15,030

The total amount of net unrecognized tax benefits that, if recognized, would affect the effective tax rate was $12.4 million at December 31, 2025. We accrue interest and penalties related to unrecognized tax benefits in our provision for income taxes. At December 31, 2025 and 2024, we had accrued interest related to unrecognized tax benefits of $4.9 million and $3.4 million, respectively, and penalties of $1.7 million and $1.3 million, respectively.

We file income tax returns in the U.S., Canada and in various state and local jurisdictions. We are routinely examined by tax authorities in these jurisdictions. At December 31, 2025, we are no longer subject to federal income tax examinations for years prior to 2022. For state and local jurisdictions, we are generally no longer subject to income tax examinations for years prior to 2021.

- Definition

The entire disclosure for income tax.

+ References

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+ Details

E.W. SCRIPPS Co 10-K