Company: TROW
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0001113169-25-000007
Chunk: 115

Company: PRICE T ROWE GROUP INC
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 115
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 expenses reflected in net operating income$(9.8)$(11.1)$(8.2)$1.3 $(2.9)Net investment income (loss) reflected in non-operating income130.3 164.6 (203.5)(34.3)368.1 Impact on income before taxes$120.5 $153.5 $(211.7)$(33.0)$365.2 Net income (loss) attributable to our interest in the consolidated investment products$84.8 $106.5 $(103.4)$(21.7)$209.9 Net income (loss) attributable to redeemable non-controlling interests (unrelated third-party investors)35.7 47.0 (108.3)(11.3)155.3 Impact on income before taxes$120.5 $153.5 $(211.7)$(33.0)$365.2 

Provision for income taxes

The following table reconciles the statutory federal income tax rate to our effective tax rate for the years ended December 31, 2024, 2023, and 2022:

202420232022Statutory U.S. federal income tax rate21.0 %21.0 %21.0 %State income taxes for current year, net of federal income tax benefits(1)2.9 2.3 3.4 Net income attributable to redeemable non-controlling interests(2) (0.3)(0.5)1.3 Net excess tax benefits from stock-based compensation plans activity(0.2)0.1 (0.4)Valuation allowance0.2 3.4 — Other items0.7 — 0.3 Effective income tax rate24.3 %26.3 %25.6 %

(1) State income tax benefits are reflected in the total benefits for net income attributable to redeemable non-controlling interests and stock-based compensation plans activity.

(2)    Net income attributable to redeemable non-controlling interests represents the portion of earnings held in the firm's consolidated investment products, which are not taxable to the firm despite being included in pre-tax income.

Our effective tax rate for 2024 was 24.3%, compared to 26.3% for 2023 and 25.6% for 2022. The decrease in our effective tax rate