XML 39 R25.htm IDEA: XBRL DOCUMENT
v3.25.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The provision for income taxes is comprised of the following (in millions):
| Years ended December 31,
| 2025 |  | 2024 |  | 2023
Current: |  |  |  |  |
Federal | $ | 69.1 |  |  | $ | 69.4 |  |  | $ | 66.2 |
State and local | 18.8 |  |  | 18.8 |  |  | 22.6 |
| 87.9 |  |  | 88.2 |  |  | 88.8 |
Deferred: |  |  |  |  |
Federal | 3.6 |  |  | 1.3 |  |  | 0.5 |
State and local | 0.1 |  |  | 0.3 |  |  | 0.1 |
| 3.7 |  |  | 1.6 |  |  | 0.6 |
Total tax expense | $ | 91.6 |  |  | $ | 89.8 |  |  | $ | 89.4 |
We have chosen to apply the requirements of ASU 2023-09 prospectively, so enhanced disclosures reflected in the below table only apply to the year ended December 31, 2025. See Note 2, Significant Accounting Policies, for additional information on this accounting standards update. The reconciliation between our effective tax rate on net income and the federal statutory rate is as follows (in millions):
| Years ended December 31,
| 2025 |  | 2024 |  | 2023
Income tax at federal statutory rate | $ | 75.0 |  |  | 21.0 | % |  | $ | 72.7 |  |  | 21.0 | % |  | $ | 70.0 |  |  | 21.0 | %
State and local income taxes, net of federal benefit (1) | 14.8 |  |  | 4.2 | % |  | 15.4 |  |  | 4.4 | % |  | 17.9 |  |  | 5.4 | %
Tax credits | (0.5) |  |  | (0.2) | % |  | — |  |  | — | % |  | — |  |  | — | %
Stock compensation | 0.5 |  |  | 0.1 | % |  | (1.1) |  |  | (0.3) | % |  | (0.5) |  |  | (0.2) | %
Other permanent items | — |  |  | — | % |  | 2.3 |  |  | 0.7 | % |  | 1.8 |  |  | 0.5 | %
Nontaxable or deductible items | 1.4 |  |  | 0.4 | % |  | — |  |  | — | % |  | — |  |  | — | %
Change in unrecognized tax benefits | 0.4 |  |  | 0.1 | % |  | 0.5 |  |  | 0.1 | % |  | 0.2 |  |  | 0.1 | %
Total tax expense | $ | 91.6 |  |  | 25.6 | % |  | $ | 89.8 |  |  | 25.9 | % |  | $ | 89.4 |  |  | 26.8 | %
(1) During the year ended December 31, 2025, states that make up the majority (greater than 50%) of the effect of the state and local income tax expenses are California, Minnesota, Florida, Wisconsin, Indiana, Texas, Virginia, North Carolina and Colorado. Components of the net deferred tax asset or liability are as follows (in millions):
| As of December 31,
| 2025 |  | 2024
Deferred Tax Assets |  |  |
Long-term |  |  |
Accrued liabilities and allowances | $ | 11.6 |  |  | $ | 13.0 |
Allowance for doubtful accounts | 2.5 |  |  | 1.9 |
Inventories | 1.7 |  |  | 1.5 |
Property and equipment | 0.3 |  |  | 0.3 |
Intangibles | 12.3 |  |  | 10.6 |
Other | 0.1 |  |  | — |
Long-term deferred tax assets | 28.5 |  |  | 27.3 |
Deferred Tax Liabilities |  |  |
Long-term |  |  |
Accrued liabilities and allowances | (2.9) |  |  | (2.7) |
Property and equipment | (9.9) |  |  | (9.9) |
Intangibles | (20.3) |  |  | (15.7) |
Investment in partnership | (18.8) |  |  | (23.4) |
Other | (1.0) |  |  | (1.5) |
Long-term deferred tax liabilities | (52.9) |  |  | (53.2) |
Net deferred tax liabilities | $ | (24.4) |  |  | $ | (25.9) |
The above amounts are included in our Consolidated Balance Sheets as follows: |  |  |
Other non-current assets | 0.3 |  |  | 0.4 |
Long-term deferred income tax liabilities | (24.7) |  |  | (26.3) |
Net deferred tax liabilities | $ | (24.4) |  |  | $ | (25.9) |
Valuation Allowance We assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets on a jurisdiction and by tax filing entity basis. A significant piece of objective negative evidence evaluated is cumulative losses incurred over the most recent three-year period. Such objective evidence limits our ability to consider other subjective positive evidence such as our projections for future growth. Based on this evaluation, no valuation allowance has been recorded as of December 31, 2025 or 2024. Income Taxes Paid Income taxes paid, net of refunds received, by jurisdiction is as follows (in millions):
|  | Year ended December 31,
|  | 2025
US federal (1) |  | $ | 64.0 |
State and local |  | 18.1 |
Total income taxes paid |  | $ | 82.1 |
(1) Includes cash payments of $7.5 million to acquire transferrable tax credits, which were applied to our federal income tax obligations. During the year ended December 31, 2025, no individual jurisdiction's income taxes paid (net of refunds received) exceeds five percent of total income taxes paid (net of refunds received). Unrecognized Tax Benefits We are subject to taxation in the United States and various state jurisdictions. As of December 31, 2025, our tax years for 2021 through 2024 are subject to examination by the tax authorities. A rollforward of the gross unrecognized tax benefits is as follows (in millions):
Unrecognized tax benefit, December 31, 2022 | $ | 4.9 |
Increase as a result of tax positions taken during the period | 7.5 |
Decrease as a result of tax positions taken during the period | (5.5) |
Increase as a result of expiring statutes | 0.1 |
Unrecognized tax benefit, December 31, 2023 | $ | 7.0 |
Increase as a result of tax positions taken during the period | 7.7 |
Decrease as a result of tax positions taken during the period | (7.0) |
Decrease as a result of expiring statutes | (0.1) |
Unrecognized tax benefit, December 31, 2024 | $ | 7.6 |
Increase as a result of tax positions taken during the period | 7.5 |
Decrease as a result of tax positions taken during the period | (7.6) |
Increase as a result of expiring statutes | 0.4 |
Unrecognized tax benefit, December 31, 2025 | $ | 7.9 |
We had no unrecognized tax benefits at December 31, 2025 that would unfavorably affect the effective tax rate. Interest expense and penalties accrued related to uncertain tax positions as of December 31, 2025 and 2024 are $1.4 million and $1.2 million, respectively. In July 2025, the One Big Beautiful Bill Act (the "OBBB Act") was enacted in the United States. The OBBB Act made permanent certain key provisions from the 2017 Tax Cuts and Jobs Act, with other provisions becoming effective through 2027. We are still assessing the new provisions under the OBBB Act to determine what impact it will have on future effective tax rates as a result of its enactment.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477617/942-740-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478822/944-740-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration