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INCOME TAXES

12 Months Ended

Dec. 31, 2022

INCOME TAXES

J.INCOME TAXES

Income tax provisions for the years ended December 31, 2022, December 25, 2021, and December 26, 2020 are summarized as follows (in thousands):

​	​	​	​	​	​	​	​	​	​
​		2022		​	2021			2020
Currently Payable:		​			​			​
Federal	​	$	181,029	​	$	115,077	​	$	59,055
State and local	​		44,646	​		30,441	​		16,709
Foreign	​		17,336	​		21,095	​		8,601
​	​		243,011	​		166,613	​		84,365
Net Deferred:	​			​			​
Federal	​		(8,561)	​		6,242	​		2,292
State and local	​		(3,657)	​		118	​		(1,518)
Foreign	​		(941)	​		999	​		1,962
​	​		(13,159)	​		7,359	​		2,736
Total income tax expense	​	$	229,852	​	$	173,972	​	$	87,101

​

The components of earnings before income taxes consist of the following:

​

​	​	​	​	​	​	​	​	​	​
​		2022			2021			2020
U.S.	​	$	876,071	​	$	645,316	​	$	308,167
Foreign	​		58,745	​		81,020	​		32,816
Total	​	$	934,816	​	$	726,336	​	$	340,983

​

The effective income tax rates are different from the statutory federal income tax rates for the following reasons:

​

​	​	​	​	​	​	​	​
​		2022		2021		2020
Statutory federal income tax rate		21.0	%	21.0	%	21.0	%
State and local taxes (net of  federal benefits)		3.4		3.3		3.4	​
Effect of noncontrolling owned interest in earnings of partnerships		n/a		n/a		n/a	​
Tax credits, including foreign tax credit		(0.8)		(0.6)		(0.9)	​
Change in uncertain tax positions reserve		(0.1)		(0.1)		(0.1)	​
Other permanent differences		0.1		(0.4)		0.6	​
Other, net		1.0		0.7		1.5	​
Effective income tax rate		24.6	%	23.9	%	25.5	%

​

Temporary differences which give rise to deferred income tax assets and (liabilities) on December 31, 2022 and December 25, 2021 are as follows (in thousands):

​	​	​	​	​	​	​
​		2022			2021
Employee benefits	​	$	37,893	​	$	27,543
Lease liability	​	​	28,746	​	​	24,627
Net operating loss carryforwards	​		6,891	​		5,502
Foreign subsidiary capital loss carryforward	​		500	​		527
Other tax credits	​		102	​		450
Inventory	​		3,732	​		2,007
Reserves on receivables	​		3,273	​		1,446
Accrued expenses	​		6,791	​		5,735
Other, net	​		10,378	​		5,233
Gross deferred income tax assets	​		98,306	​		73,070
Valuation allowance	​		(4,618)	​		(3,952)
Deferred income tax assets	​		93,688	​		69,118
Depreciation	​		(69,711)	​		(64,387)
Intangibles	​		(43,643)	​		(38,367)
Right of use assets	​	​	(27,849)	​	​	(23,866)
Deferred income tax liabilities	​		(141,203)	​		(126,620)
Net deferred income tax liability	​	$	(47,515)	​	$	(57,502)

​

As of December 31, 2022, we had federal, state and foreign net operating loss carryforwards of $6.9 million and state tax credit carryforwards of $0.1 million, which will expire at various dates.

The NOL and credit carryforwards expire as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net Operating Losses

​

Tax Credits

​

U.S.

State

Foreign

U.S.

State

2023 - 2027

​

$

—

​

$

42

​

$

363

​

$

—

​

$

—

2028 - 2032

​

—

​

​

230

​

​

1,406

​

—

​

—

2033 - 2037

​

—

​

​

1,696

​

​

255

​

—

​

102

2038 - 2042

​

499

​

​

1,804

​

​

—

​

—

​

—

Thereafter

​

—

​

​

—

​

​

594

​

—

​

—

Total

​

$

499

​

$

3,772

​

$

2,618

​

$

—

​

$

102

​

As of December 31, 2022, we believe that it is more likely than not that the benefit from certain state and foreign NOL carryforwards will not be realized. In recognition of this risk, we have provided a valuation allowance of $4.1 million against the various NOLs. Furthermore, there is a valuation allowance of $0.5 million against a capital loss carryforward we have for a wholly-owned subsidiary, UFP Canada, Inc. Based upon the business activity and the nature of the assets of this subsidiary, our ability to realize a future benefit from this carryforward is doubtful. The capital loss has an unlimited carryforward and therefore will not expire unless there is a change in control of the subsidiary.

X

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
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-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

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