Company: MTCH
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000891103-25-000027
Chunk: 28

Company: Match Group, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 28
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 evidence, including, to the extent applicable, the nature, frequency, and severity of prior cumulative losses, forecasts of future taxable income, tax filing status, the duration of statutory carryforward periods, available tax planning and historical experience.During the year ended December 31, 2024, we recorded a $3.0 million net decrease to the valuation allowance, primarily related to a reduction in the deferred tax rate applied in certain jurisdictions, which was partially offset by an increase related to foreign disallowed interest carryforwards, net operating losses, and other deferred tax assets for which we do not believe a tax benefit is more likely than not to be realized. At December 31, 2024, the Company had a valuation allowance of $156.7 million related to the portion of NOLs, credits, and other deferred tax assets for which it is more likely than not that the tax benefit will not be realized.A reconciliation of the income tax provision to the amounts computed by applying the statutory federal income tax rate to earnings before income taxes is shown as follows: Years Ended December 31, 202420232022 (In thousands)Income tax provision at the federal statutory rate of 21%$147,852 $163,124 $79,273 State income taxes, net of effect of federal tax benefit16,466 15,689 14,454 Stock-based compensation29,248 32,270 (27,941)Research credits(17,194)(10,373)(12,611)Foreign-derived intangible income deduction(41,730)(40,296)(12,646)Change in valuation allowance8,860 (39,015)(22,621)Foreign income taxed at a different statutory rate4,637 6,680 (4,104)Withholding taxes302 891 8,922 Change in uncertain tax positions(1,376)(5,804)(10,694)Other, net5,678 2,143 3,329 Income tax provision$152,743 $125,309 $15,361 The 2024 income tax provision was impacted by nondeductible stock-based compensation and state income taxes partially offset by benefits from a lower tax rate on U.S. income derived from foreign sources and research credits.The 2023 income tax provision benefited primarily from (i) the release of a valuation allowance associated with U.S. foreign tax credits that we now expect to utilize, (ii)