Company: MTCH
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000891103-25-000027
Chunk: 26

Company: Match Group, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 26
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 provision (14,952)26,612 (29,953)      Income tax provision$152,743 $125,309 $15,361 On December 15, 2022, the European Union (“EU”) Member State formally adopted the EU’s Pillar Two Directive, which generally provides for a minimum effective tax rate of 15% as established by the Organization for Economic Cooperation and Development Pillar Two Framework (“OECD Pillar Two Framework”). The EU effective dates are January 1, 2024 and January 1, 2025, for different aspects of the directive. A significant number of other countries have enacted or are currently drafting legislation to implement the OECD Pillar Two 

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Table of ContentsMATCH GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Framework. The Company analyzed the impact of enacted legislation and determined it does not have a material impact to the tax provision. The tax effects of cumulative temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below. The valuation allowance is primarily related to deferred tax assets for foreign net operating losses. December 31, 20242023 (In thousands)Deferred tax assets:  Net operating loss carryforwards$165,959 $177,740 Tax credit carryforwards71,222 89,737 Capitalized research expenses127,428 89,979 Disallowed interest carryforwards6,837 31,531 Stock-based compensation30,671 27,448 Accrued expenses19,963 21,382 Exchangeable notes28,821 36,891 Other30,295 34,822 Total deferred tax assets481,196 509,530 Less valuation allowance(156,710)(159,675)Deferred tax assets, net of valuation allowance324,486 349,855 Deferred tax liabilities:  Intangible assets(45,769)(65,349)Right-of-use assets(19,981)(22,657)Property and equipment(4,403)(22,738)Other(3,546)(5,610)Total deferred tax liabilities(73,699)(116,354)Net deferred tax assets$250,787 $233,501 Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases and are stated at enacted tax rates