JANUS HENDERSON GROUP PLC Income Taxes Disclosure

Note 12 — Income Taxes

 

In December 2023, the FASB issued amended guidance related to income tax disclosures. We have adopted the guidance prospectively effective January 1, 2025. 

 

The components of our provision for income taxes for the years ended December 31, 2025, 2024 and 2023, are as follows (in millions):

 ​

		Year ended December 31,
		2025				2024				2023
Current income taxes:
UK		$	11.5			$	14.3			$	15.2
U.S., including state and local			182.9				143.2				88.1
International			2.9				6.4				3.0
Total current income taxes			197.3				163.9				106.3
Deferred income taxes:
UK			4.6				2.2				(4.0	)
U.S., including state and local			44.2				1.0				(2.0	)
International			(0.4	)			(0.8	)			—
Total deferred income benefits			48.4				2.4				(6.0	)
Total income tax expense		$	245.7			$	166.3			$	100.3

 

The components of our total income before taxes for the years ended December 31, 2025, 2024 and 2023, are as follows (in millions):

 ​

		Year ended December 31,
		2025				2024				2023
UK		$	174.1			$	57.4			$	86.4
U.S.			969.3				595.6				423.4
International			9.9				(41.1	)			17.2
Total income before taxes		$	1,153.3			$	611.9			$	527.0

 

We are a tax resident in the UK and a reconciliation is required from the UK statutory rate to the effective tax rate. The following is a reconciliation between the UK statutory corporation tax rate and the effective tax rate on our income from operations for the year ended  December 31, 2025 (amounts in millions): 

 ​

		Year ended December 31, 2025
		Amount				Rate
UK federal statutory income tax amount and rate		$	288.3				25.0	%
Foreign tax effects:
United States
Statutory rate difference between foreign and UK			(40.0	)			(3.5	)
State and local income taxes(1)			17.9				1.5
Other, net			(2.5	)			(0.2	)
Other foreign jurisdictions			0.4				—
Effects of cross-border tax laws			0.6				0.1
Change in valuation allowances			(1.4	)			(0.1	)
Nontaxable or nondeductible items:
Seed investment in non-controlling interest			(22.4	)			(1.9	)
Other, net			(4.6	)			(0.4	)
Changes in unrecognized tax benefits:
U.S.			9.2				0.8
Other adjustments			0.2				—
Total effective income tax amount and rate		$	245.7				21.3	%

 

(1)	State and local taxes in California, Minnesota, New York and New York City comprise the majority of the state and local income taxes, net of federal benefit as of  December 31, 2025.

 

Below is a tabular rate reconciliation previously disclosed for the years ended December 31, 2024 and 2023:

 

​		Year ended December 31,
​		2024				2023
UK statutory corporation tax rate			25.0	%			23.5	%
Effect of foreign tax rates			(1.7	)			0.1
Equity-based compensation			0.4				0.3
Tax adjustments			0.9				0.5
Impact of changes in statutory tax rates on deferred taxes			—				(1.9	)
Foreign currency translation reserves reclassification			5.6				1.6
Taxes applicable to prior years			(1.2	)			(1.9	)
Other, net			(1.7	)			(3.4	)
Effective income tax rate, controlling interest			27.3	%			18.8	%
Net loss (income) attributable to noncontrolling interests			(0.1	)			0.2
Total effective income tax rate			27.2	%			19.0	%

 

Income tax payments, net of refunds, for the year ended  December 31, 2025, are as follows (in millions):

 

		Year ended December 31,
		2025
UK		$	10.3
Foreign - U.S. Federal			138.2
Foreign - U.S. State			16.5
Foreign - Other jurisdictions			6.0
Total net income taxes paid		$	171.0

 

We operate in several tax jurisdictions around the world, each with its own statutory tax rate and set of tax laws and regulations. As a result, our future blended average statutory tax rate will be influenced by any changes to such laws and regulations and the mix of profits and losses of our subsidiaries.

 

Tax Legislation

 ​

Any legislative changes and new or proposed tax regulations may result in additional income tax impacts, which could be material in the period any such changes are enacted.

 ​

Deferred Taxes

 ​

The significant components of our deferred tax assets and liabilities as of December 31, 2025 and 2024, are as follows (in millions):

 ​

		December 31,
		2025				2024
Deferred tax assets:
Compensation and staff benefits		$	65.9			$	64.5
Loss carryforwards(1)			121.4				127.6
Accrued liabilities			11.2				8.0
Lease liabilities			22.9				18.7
Other			(37.7	)			(2.1	)
Gross deferred tax assets			183.7				216.7
Valuation allowance			(118.6	)			(119.4	)
Deferred tax assets, net of valuation allowance		$	65.1			$	97.3
Deferred tax liabilities:
Retirement benefits		$	(18.6	)		$	(17.4	)
Goodwill and acquired intangible assets			(641.2	)			(628.9	)
Lease ROU assets			(21.7	)			(18.0	)
Other			(7.6	)			(1.3	)
Gross deferred tax liabilities			(689.1	)			(665.6	)
Total deferred tax liabilities(2)		$	(624.0	)		$	(568.3	)

 

(1)

The majority of the 2025 loss carryforward relates to the UK capital loss of $294.8 million and U.S. capital loss of $125.3 million, before tax effects. UK capital losses may be carried forward indefinitely, whereas U.S. capital losses begin to expire in 2029. A full valuation allowance has been recorded against the UK and the U.S. capital losses.

(2)	The change in the net deferred tax liabilities does not equal the deferred tax expense due to the foreign currency translation adjustment on deferred tax liabilities booked through equity.

 ​

Deferred tax assets and liabilities that relate to the same jurisdiction are recorded net in our Consolidated Balance Sheets as non-current balances and as of December 31, 2025 and 2024, are as follows (in millions):

 ​

		December 31,
		2025				2024
Deferred tax assets, net (included in other non-current assets)		$	0.8			$	1.0
Deferred tax liabilities, net			(624.8	)			(569.3	)
Total deferred tax liabilities		$	(624.0	)		$	(568.3	)

 ​

A valuation allowance has been established against the deferred tax assets related to our tax loss carryforward where a history of losses in the respective tax jurisdiction makes it unlikely that the deferred tax asset will be realized or where it is unlikely that we would generate sufficient taxable income of the appropriate character to realize the full benefit of the deferred tax asset. The valuation allowance for deferred tax assets decreased by $0.8 million in 2025. The decrease was primarily due to the utilization of capital losses. However, the reduction was partially offset by an increase in the valuation allowance resulting from foreign currency translation adjustments during the current year.

 

Unrecognized Tax Benefits

 ​

We operate in several tax jurisdictions and a number of years may elapse before an uncertain tax position, for which we have unrecognized tax benefits, is finally resolved. A reconciliation of the beginning and ending liability for the years ended December 31, 2025, 2024 and 2023, is as follows (in millions):

 

		Year ended December 31,
		2025				2024				2023
Beginning balance		$	28.9			$	28.4			$	26.7
Additions for tax positions of current year			7.2				5.7				6.9
Additions for tax positions of prior years			0.3				—				—
Reduction due to settlement with taxing authorities			(1.1	)			(0.8	)			(0.3	)
Reduction due to statute expirations			(0.3	)			(4.3	)			(4.6	)
Total change due to true up			—				—				(0.1	)
Total removed due to audit payment			—				—				(0.4	)
Foreign currency translation			—				(0.1	)			0.2
Ending balance		$	35.0			$	28.9			$	28.4

 ​

If the balance in the table above is recognized, the balance would favorably affect our effective tax rate in future periods.

 

We recognize interest and penalties on uncertain tax positions as a component of the income tax provision. At December 31, 2025, 2024 and 2023, the total accrued interest balance relating to uncertain tax positions was $10.5 million, $7.4 million and $5.8 million, respectively. Potential penalties at December 31, 2025, 2024 and 2023, were insignificant and have not been accrued.

 

We are subject to U.S. federal, state, and local income tax, UK income tax, and income tax in several other jurisdictions. All these can be examined by the relevant taxing authorities. Significant tax jurisdictions that remain open for examination include: U.S. federal and state tax authorities for tax years starting with 2022 and 2013, respectively, and for UK tax authorities for tax years starting with 2021.