Company: IHETW
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001400891-25-000009
Chunk: 159

Company: iHeartMedia, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 159
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 common stock will rise to levels sufficient to realize the entire deferred tax benefit currently reflected in its balance sheet.The reconciliations of income tax on income (loss) computed at the U.S. federal statutory tax rates to the recorded income tax benefit (expense) for the Company are:Year Ended December 31,(In thousands)202420232022AmountPercentAmountPercentAmountPercentIncome tax benefit at statutory rates$245,258 21.0 %$244,162 21.0 %$54,170 21.0 %State income taxes, net of federal tax effect55,874 4.8 %16,349 1.4 %(3,548)(1.4)%Foreign income taxes(1,982)(0.2)%(583)(0.1)%(1,615)(0.6)%Nondeductible items(10,885)(0.9)%(10,425)(0.9)%(7,497)(2.9)%Changes in valuation allowance and other estimates(2,639)(0.2)%(69,722)(6.0)%(52,293)(20.3)%Impairment charges(129,378)(11.0)%(125,047)(10.7)%— — %Tax credits4,048 0.3 %4,592 0.4 %3,848 1.5 %Other, net(1,894)(0.2)%3,012 0.3 %2,216 0.9 %Income tax benefit (expense)$158,402 13.6 %$62,338 5.4 %$(4,719)(1.8)%The Company’s effective tax rates for the years ended December 31, 2024 and 2023 were 13.6% and 5.4%, respectively. The effective tax rates for both years were primarily impacted by the valuation allowance adjustments recorded during the years against certain federal and state deferred tax assets for disallowed interest carryforwards and state net operating losses due to the uncertainty of the ability to realize those assets in future periods. The 2024 valuation change was also impacted by the excluded CODI and attribute reduction from the debt exchange transaction described above. In addition, in both the 2024 and 2023 tax years, the Company recorded a GAAP impairment charge to its non-deductible goodwill as discussed in Note 4,