NIQ Global Intelligence plcNIQ
NIQ Global Intelligence plc Income Taxes Disclosure
13. INCOME TAXES
The following table sets forth the components of loss from continuing operations before income taxes by jurisdiction:
| Year Ended December 31, | |||||||||||||||||
(in millions) | 2025 | 2024 | 2023 | ||||||||||||||
Ireland (2025), Netherlands (2024-2023) | $ | 0.3 | $ | (258.7) | $ | (199.3) | |||||||||||
Non-Ireland (2025), Non-Netherlands (2024-2023) | (210.1) | (431.8) | (313.5) | ||||||||||||||
Loss from continuing operations before income taxes | $ | (209.8) | $ | (690.5) | $ | (512.8) | |||||||||||
The following table sets forth the components of income tax expense from continuing operations:
| Year Ended December 31, | |||||||||||||||||
(in millions) | 2025 | 2024 | 2023 | ||||||||||||||
Current taxes: | |||||||||||||||||
Ireland (2025), Netherlands (2024-2023) | $ | 0.4 | $ | 2.7 | $ | 0.9 | |||||||||||
Non-Ireland (2025), Non-Netherlands (2024-2023) | 141.2 | 146.6 | 89.6 | ||||||||||||||
Total | 141.6 | 149.3 | 90.5 | ||||||||||||||
Deferred taxes: | |||||||||||||||||
Ireland (2025), Netherlands (2024-2023) | — | (0.1) | (5.2) | ||||||||||||||
Non-Ireland (2025), Non-Netherlands (2024-2023) | (6.1) | (35.5) | (33.5) | ||||||||||||||
Total | (6.1) | (35.6) | (38.7) | ||||||||||||||
Income tax expense from continuing operations | $ | 135.5 | $ | 113.7 | $ | 51.8 | |||||||||||
The Company’s income tax expense from continuing operations was different from the amount computed by applying the Ireland (2025) and the Netherlands (2024-2023) statutory tax rate to the underlying loss from continuing operations before income taxes as a result of the following:
| Year Ended December 31, 2025 | |||||||||||
| (in millions) | $ | % | |||||||||
| Income taxes at Ireland statutory tax rate | $ | (26.2) | 12.5 | % | |||||||
| Ireland reconciling items | |||||||||||
| Valuation allowance | 0.5 | (0.2) | % | ||||||||
| Other | (0.2) | 0.1 | % | ||||||||
| Foreign reconciling items | |||||||||||
| Brazil | |||||||||||
| Withholding tax | 9.1 | (4.3) | % | ||||||||
| Other | 0.8 | (0.4) | % | ||||||||
| Germany | |||||||||||
| Changes in valuation allowance | (42.5) | 20.3 | % | ||||||||
| Interest carryforward | 54.4 | (25.9) | % | ||||||||
| Other | (2.6) | 1.2 | % | ||||||||
| Netherlands | |||||||||||
| Warrant | 10.3 | (4.9) | % | ||||||||
| Other | (5.0) | 2.4 | % | ||||||||
| Switzerland | |||||||||||
| Changes in valuation allowance | 11.9 | (5.7) | % | ||||||||
| Other | (1.3) | 0.6 | % | ||||||||
| United States | |||||||||||
| Tax rate differential | (17.9) | 8.5 | % | ||||||||
| Nontaxable and nondeductible items, net | 11.7 | (5.6) | % | ||||||||
| Changes in valuation allowance | 24.5 | (11.7) | % | ||||||||
| Stock compensation | 8.3 | (4.0) | % | ||||||||
| Other | 3.6 | (1.7) | % | ||||||||
| Mexico | 10.2 | (4.9) | % | ||||||||
| India | 10.7 | (5.1) | % | ||||||||
| Other jurisdictions | 61.5 | (29.3) | % | ||||||||
| Changes in unrecognized tax benefits | 13.7 | (6.5) | % | ||||||||
| Global effective tax rate | $ | 135.5 | (64.6) | % | |||||||
| Year Ended December 31, | |||||||||||
(in millions) | 2024 | 2023 | |||||||||
Loss from continuing operations before income taxes | $ | (690.5) | $ | (512.8) | |||||||
Netherlands statutory tax rate | 25.8 | % | 25.8 | % | |||||||
Benefit for income taxes at the Netherlands statutory rate | $ | (178.1) | $ | (132.6) | |||||||
Foreign tax rate differential | 24.4 | 20.2 | |||||||||
U.S. state and local taxation | 0.5 | 0.9 | |||||||||
Changes in valuation allowance | 180.7 | 92.4 | |||||||||
Withholding taxes | 32.5 | 38.4 | |||||||||
Non-deductible transaction costs | 4.1 | 6.8 | |||||||||
| Gain on equity interest remeasurement | — | (3.4) | |||||||||
| Russian deconsolidation | 9.0 | — | |||||||||
Change in unrecognized tax benefits | 30.7 | (4.8) | |||||||||
Return to provision adjustment | (1.2) | 4.8 | |||||||||
Tax credits | (5.2) | (3.3) | |||||||||
| Warrant | 19.4 | 26.1 | |||||||||
| Other, net | (3.1) | 6.3 | |||||||||
Income tax expense from continuing operations | $ | 113.7 | $ | 51.8 | |||||||
Effective tax rate | (16.5) | % | (10.1) | % | |||||||
The following table sets forth deferred income tax assets and liabilities:
| December 31, | |||||||||||
(in millions) | 2025 | 2024 | |||||||||
Deferred tax assets: | |||||||||||
Net operating loss carryforwards | $ | 326.2 | $ | 285.6 | |||||||
Interest | 183.4 | 236.7 | |||||||||
Accrued expenses | 39.7 | 42.0 | |||||||||
Employee benefits | 33.3 | 42.9 | |||||||||
Tax credit carryforward | 17.7 | 13.9 | |||||||||
Lease liabilities | 64.8 | 64.5 | |||||||||
Other assets | 48.7 | 37.6 | |||||||||
Total deferred tax asset | 713.8 | 723.2 | |||||||||
Valuation allowances | (527.8) | (530.8) | |||||||||
Deferred tax assets, net of valuation allowances | 186.0 | 192.4 | |||||||||
Deferred tax liabilities: | |||||||||||
Intangible assets | (161.4) | (161.7) | |||||||||
| Right-of-use assets | (64.6) | (59.1) | |||||||||
Accrued withholding taxes | (15.0) | (13.5) | |||||||||
Deferred gains | (34.4) | (42.8) | |||||||||
Other | (6.2) | (2.2) | |||||||||
Total deferred tax liability | (281.6) | (279.3) | |||||||||
Net deferred tax liability | $ | (95.6) | $ | (86.9) | |||||||
Realization of deferred tax assets is based, in part, on the Company’s judgment and various factors including reversal of deferred tax liabilities, the Company’s ability to generate future taxable income in jurisdictions where such assets have arisen and potential tax planning strategies. Valuation allowances are recorded in order to reduce the deferred tax assets to the amount expected to be realized in the future.
At December 31, 2025 and 2024, the Company had gross net operating loss carryforwards of approximately $1.6 billion and $1.3 billion, respectively. Additionally, the Company had net operating loss carryforwards of approximately $326.2 million and $285.6 million at December 31, 2025 and 2024, respectively. Approximately three-fifths of the net operating loss carryforwards are indefinite, while the remainder expire over varying periods. In addition, the Company had tax credit carryforwards of approximately $17.7 million and $13.9 million at December 31, 2025 and 2024, respectively, which begin to expire in 2026.
In certain jurisdictions, the Company has operating losses and other tax attributes that, due to the uncertainty of achieving sufficient profits to utilize these operating loss carryforwards and tax credit carryforwards, the Company currently believes it is more likely than not that a portion of these losses will not be realized. Therefore, the Company has a valuation allowance of approximately $527.8 million and $530.8 million at December 31, 2025 and 2024, respectively, related to net operating loss carryforwards, tax credit carryforwards and deferred tax assets related to other temporary differences. For the year ended December 31, 2025, the valuation allowance decreased by $3.0 million, of which, $34.1 million through tax expense and the remainder through changes in other comprehensive loss or foreign currency exchange rates. For the year ended December 31, 2024, the valuation allowance increased by $154.1 million, of which, $166.2 million through tax expense, and the remainder through changes in other comprehensive loss or foreign currency exchange rates.
With respect to the outside basis differences of “domestic” subsidiaries, in each taxing jurisdiction where a tiered ownership structure exists, the Company has confirmed that one or more viable tax planning strategies exists in each separate taxing jurisdiction that it could, and would—if required—employ to eliminate any income tax liability on such outside basis differences. In addition, the Company does not assert that all foreign undistributed earnings will be permanently reinvested, but rather the Company will, periodically, remit foreign earnings and has provided for withholding taxes of $15.0 million and $13.5 million at December 31, 2025 and 2024, respectively, related to those earnings.
A reconciliation of the beginning and ending amount of gross uncertain tax positions is as follows:
| Year Ended December 31, | |||||||||||
(in millions) | 2025 | 2024 | |||||||||
Balance as of the beginning of period | $ | 69.0 | $ | 64.4 | |||||||
Additions for current year positions | 4.1 | 4.1 | |||||||||
Additions for prior year positions | 7.0 | 24.6 | |||||||||
Reductions for prior year positions | (0.6) | (9.1) | |||||||||
| Reductions for expiration of statute of limitations | (0.1) | — | |||||||||
| Settlements | (12.1) | (11.6) | |||||||||
Foreign currency exchange rate changes | 5.7 | (3.4) | |||||||||
Balance as of the end of the period | $ | 73.0 | $ | 69.0 | |||||||
At December 31, 2025 and 2024, the Company had gross uncertain tax positions of $73.0 million and $69.0 million, respectively. The amount of unrecognized tax benefits that would affect the effective tax rate if recognized in the consolidated financial statements as of December 31, 2025 and 2024 was $73.0 million and $64.9 million, respectively. Amounts relating to years prior to 2021 are covered under an indemnification agreement with Nielsen as a result of the Advent Acquisition and, therefore, the Company has recorded a corresponding indemnification asset of $20.8 million and $12.1 million as of December 31, 2025 and 2024, respectively.
Estimated interest and penalties related to unrecognized tax benefits is classified as a component of provision for income taxes in the consolidated statement of operations. For the years ended December 31, 2025, 2024 and 2023, the Company recognized interest expense/(income) on unrecognized tax benefits of $3.5 million, $(8.3) million and $3.5 million, respectively, which primarily related to the expiration of a position’s statute of limitations during the period. As of December 31, 2025 and 2024, the Company had a liability of $16.4 million and $12.4 million, respectively, for interest expense related to unrecognized tax benefits. Penalties recorded in the provision for income taxes were a benefit of $0.1 million and $0.1 million for the years ended December 31, 2025 and 2024, respectively. Amounts relating to years prior to 2021 are covered under an indemnification agreement with Nielsen as a result of the Advent Acquisition and, therefore, the Company has recorded a corresponding indemnification asset of $13.3 million and $10.9 million as of December 31, 2025 and 2024, respectively.
The NIQ business files numerous consolidated and separate income tax returns in the U.S. federal jurisdiction and in many state and foreign jurisdictions. The Company is periodically audited by various foreign taxing authorities. The Company will not be subject to any U.S. federal or state income tax examinations for years prior to 2021 due to the acquisition by Advent. The Company has subsidiaries in Canada, China, Indonesia and other various jurisdictions that are currently under audit for years ranging from 2007 through 2022. As of December 31, 2025, the Company does not believe it is more likely than not that these audits will result in tax liabilities exceeding the amounts already recognized. However, the ultimate resolutions of tax audits are inherently unpredictable. As such, the Company's financial condition and results of operations could be adversely affected in any particular period by the unfavorable resolution of one or more of these audits.
The following table sets forth total tax payments by jurisdiction:
| Year Ended December 31, | |||||
| (in millions) | 2025 | ||||
| Ireland | $ | 0.4 | |||
| Brazil | 18.0 | ||||
| China | 5.8 | ||||
| Colombia | 5.2 | ||||
| France | 4.5 | ||||
| India | 10.9 | ||||
| Indonesia | 12.5 | ||||
| Italy | 4.1 | ||||
| Mexico | 6.7 | ||||
| Other jurisdictions | 63.4 | ||||
| Total tax payments | $ | 131.5 | |||
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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.