Getty Images Holdings, Inc.GETY

Getty Images Holdings, Inc. Income Taxes Disclosure

10-KFiled Mar 17, 20255 min read
INCOME TAXES
The components of income (loss) before income taxes are as follows (in thousands):
Year Ended December 31,
202420232022
United States$20,850 $(67,496)$(95,489)
Foreign66,105 40,591 61,972 
 Income (loss) before income taxes$86,955 $(26,905)$(33,517)
The components of income tax expense (benefit) are as follows (in thousands):
Year Ended December 31,
202420232022
Current:
United States$22,965 $26,720 $20,652 
Foreign17,611 1,823 9,487 
Total current income tax expense (benefit)40,576 28,543 30,139 
Deferred:
United States3,943 (15,169)13,356 
Foreign2,964 (59,856)631 
Total deferred income tax expense (benefit)6,907 (75,025)13,987 
Total provision for income tax expense$47,483 $(46,482)$44,126 
The items accounting for the difference between income taxes computed at the U.S. federal statutory rate and the effective income tax rate are as follows (in thousands):
Year Ended December 31,
202420232022
Federal income tax expense (benefit) at the statutory rate$18,274 $(5,651)$(7,039)
Effect of:
State taxes, net of federal benefit3,369 (1,736)(3,092)
Tax impact of foreign earnings and losses16,440 11,524 11,453 
Stock-based compensation2,657 3,633 2,230 
Nondeductible net loss on fair value adjustment for warrant liabilities— — 34,659 
Valuation allowance(3,656)(49,425)12,223 
Tax credits11,449 (5,284)(6,852)
Other, net(1,050)457 544 
Income tax expense (benefit)$47,483 $(46,482)$44,126 
Uncertain Tax Positions
The Company follows the provisions of accounting for uncertainty in income taxes. This guidance clarifies the accounting for uncertainty in income taxes recognized in the consolidated financial statements and prescribes a recognition threshold of more likely than not and a measurement attribute on all tax positions taken or expected to be taken in a tax return for their recognition in the financial statements.
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):
Year Ended December 31,
202420232022
Uncertain tax benefits, beginning of year$20,155 $28,967 $33,425 
Gross increase to tax positions related to prior years— 338 31 
Gross decrease to tax positions related to prior years(1,457)(36)(1,109)
Gross increase to tax positions related to the current year2,953 2,036 675 
Gross decrease to tax positions related to the current year— — — 
Settlements— (4,636)— 
Lapse of statute of limitations(5,235)(6,514)(4,055)
Uncertain tax benefits, end of year$16,416 $20,155 $28,967 
As of December 31, 2024, the Company had $16.4 million of gross unrecognized tax benefits, of which $16.4 million, if fully recognized, would affect the Company’s effective tax rate. The timing of resolution for these liabilities is uncertain. The resolution of these items may result in additional or reduced income tax expense. Possible releases of liabilities due to expirations of statutes of limitations will have the effect of decreasing the Company’s income tax expense and the effective tax rate, if and when they occur. Although the timing of resolution and/or closure of tax audits cannot be predicted with certainty, the Company believes it is reasonably possible that approximately $3.7 million of its reserves for uncertain tax positions may be released in the next 12 months.
The Company recognizes interest and penalties related to liabilities for uncertain tax positions in income tax expense in the Consolidated Statements of Operations. Interest and penalties were $2.2 million, $3.5 million, and $0.9 million for the years ended December 31, 2024, 2023, and 2022, respectively. The Company has recognized total accrued interest and penalties of approximately $6.7 million, $8.9 million, and $12.4 million as of December 31, 2024, 2023, and 2022, respectively, relating to uncertain tax positions.
The Company conducts business globally and, as a result, the Company and its subsidiaries file income tax returns in the U.S., including various states, and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The tax years 2021 and forward are open for U.S. federal income tax matters. The tax years 2018 and forward are open for U.S. state income tax matters. With few exceptions, foreign tax filings are open for years 2012 and subsequent years. As of December 31, 2024, the Company is currently undergoing audit examinations for tax years 2018 through 2021 by the New York State Department of Taxation, for tax years 2012 through 2016 by the Canada Revenue Agency, and for tax years 2015 through 2021 by Irish Revenue.
Deferred Taxes and Valuation Allowances
The Company follows authoritative guidance for accounting for income taxes, which requires the Company to reduce deferred tax by a valuation allowance if, based on the weight of all available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. After consideration of all available evidence for the realizability of U.S. deferred tax assets, the Company provided a valuation allowance of $145.9 million and $148.9 million for the years ended December 31, 2024 and December 31, 2023, respectively. In future periods, the Company will evaluate the positive and negative evidence available at the time in order to support its analysis for a valuation allowance, and as a result the Company may release its valuation allowance in part, or in total, when it becomes more likely than not that the deferred tax assets will be realized.
Deferred tax assets, liabilities and valuation allowance are as follows (in thousands):
December 31,
20242023
Deferred tax assets
Income tax attributes$240,182 $242,234 
Accrued liabilities and reserves27,600 18,874 
Operating lease liabilities7,060 9,077 
Prepaid expenses— — 
Stock-based compensation expense5,388 5,893 
Other1,003 855 
Gross deferred tax assets281,233 276,933 
Less valuation allowance(164,322)(168,185)
Total deferred tax assets116,911 108,748 
Deferred tax liabilities
Amortization and depreciation(53,012)(44,932)
Operating lease assets(5,707)(7,598)
Prepaid expenses(2,738)(3,667)
Unrealized foreign exchange gains/losses (14,949)(3,587)
Other1
(897)(1,144)
Net deferred tax liabilities, net of valuation allowance$39,608 $47,820 
1 Prior year amount has been reclassified to conform to the current year presentation. Previously reported balance is included in the Foreign exchange gain (loss) - net line item above.
The deferred tax assets at December 31, 2024, with respect to net operating loss carryforwards and expiration periods are as follows (in thousands):
Deferred
Tax
Assets		Net Operating
Loss
Carryforwards
United States, expiring between 2024 and 2043$8,694 $124,310 
Foreign, expiring between 2024 and 204416,114 64,331 
Foreign, indefinite54,705 425,945 
Total$79,513 $614,586 
The following is information pertaining to U.S. federal tax credits at December 31, 2024, as well as the expiration periods (in thousands):
Tax
Credits
United States, federal tax credit carryforwards:
Foreign tax credits, expiring between 2024 and 2034$26,242 
Total$26,242 
The components of our net deferred taxes at the reported balance sheet dates are primarily comprised of amounts relating to net operating loss carryforwards, accrued assets and liabilities, and depreciable and amortizable assets.
Free Sentinel

Want the next Getty Images Holdings, Inc. income taxes disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment Getty Images Holdings, Inc.'s next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

About Income Taxes Disclosures

The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.

Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.

Other Available Disclosures

RevenueEarnings Per ShareFair ValuePP&ELeasesSegmentsDebtCommitmentsStock CompensationNew Standards