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Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income before income taxes and income from equity method investments consisted solely of U.S. domestic income.
Income tax expense on the consolidated statements of income was as follows:
Year ended December 31,
202520242023
(In thousands)
Current:
Federal$49,658 $36,964 $39,468 
State and local
16,312 10,933 8,923 
Total current
65,970 47,897 48,391 
Deferred:
Federal4,891 1,214 (2,629)
State and local
1,450 412 (476)
Total deferred
6,341 1,626 (3,105)
Total income tax expense
$72,311 $49,523 $45,286 
Total income tax expense differs from the amount computed by applying the statutory federal income tax rate to income before taxes and income from equity method investments. The reasons for this difference were as follows:
Year ended December 31,
202520242023
Amount
%
Amount
%
Amount
%
(In thousands, except percentages)
U.S. federal statutory tax rate
$57,557 21.0 %$40,518 21.0 %$38,328 21.0 %
Increases (reductions) resulting from:
State and local income taxes, net of federal income tax effect*
14,664 5.4 8,939 4.6 6,535 3.6 
Nondeductible expenses
1,550 0.6 1,254 0.7 1,605 0.9 
Tax credits
(1,509)(0.6)(1,185)(0.6)(1,084)(0.6)
Changes in unrecognized tax benefits
49 — (3)— (98)(0.1)
Effective tax rate
$72,311 26.4 %$49,523 25.7 %$45,286 24.8 %
__________________
*State taxes in Oregon and California constitute the majority (greater than 50%) of the tax effects in this category.
Components of deferred tax assets and deferred tax liabilities as of December 31 were as follows:
20252024
(In thousands)
Deferred tax assets:
Operating lease liabilities
$22,643 $16,808 
Compensation-related18,927 13,573 
Employee benefit plans costs
2,181 1,614 
Workers’ compensation reserve
1,862 1,878 
Allowance for expected credit losses
1,121 1,437 
Capital investment overhead on contracts
347 535 
Research and development costs
— 5,596 
Other3,251 2,764 
Total deferred tax assets
$50,332 $44,205 
Deferred tax liabilities:
Operating lease right-of-use-assets
$(22,163)$(16,672)
Basis differences on property, plant and equipment
(21,278)(17,664)
Intangible assets
(11,897)(10,912)
Prepaid expenses
(7,802)(6,597)
Other(1,540)— 
Total deferred tax liabilities
(64,680)(51,845)
Valuation allowance
(521)(521)
Net deferred income tax liabilities
$(14,869)$(8,161)
As of both December 31, 2025 and 2024, the Company had various state income tax net operating loss carryforwards of $16.5 million. The state income tax net operating loss carryforwards are due to expire beginning in 2031. It is likely that a portion of the benefit from certain carryforwards will not be realized; therefore, valuation allowances have been provided. As of both December 31, 2025 and 2024, the total valuation allowance on deferred tax assets, related to the state income tax net operating loss carryforwards, was approximately $0.5 million. Changes in tax regulations or assumptions regarding current and future taxable income could require an adjustment to the valuation allowance in the future.
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. The Company is no longer subject to U.S. federal tax examinations by tax authorities for years ending prior to 2022. With few exceptions, as of December 31, 2025, the Company is no longer subject to state and local income tax examinations by tax authorities for years ending prior to 2022.
Reconciliations of unrecognized tax benefits were as follows as of December 31:
202520242023
(In thousands)
Balance at beginning of year
$732 $656 $570 
Additions based on tax positions related to current year
170 145 145 
Additions for tax positions of prior years
118 78 279 
Reductions for tax positions of prior years
(55)— (60)
Reductions resulting from a lapse of the applicable statute of limitations periods
(136)(147)(278)
Balance at end of year
$829 $732 $656 
As of December 31, 2025, 2024 and 2023, there were $0.8 million, $0.7 million and $0.7 million of unrecognized tax benefits that if recognized would affect the annual effective tax rate.
The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in Selling, general and administrative expenses. During the years ended December 31, 2025, 2024, and 2023, the Company recognized an immaterial amount of interest and penalties. The Company recognizes the liability for all unrecognized tax benefits in Taxes
payable and accrued interest and penalties in Other accrued liabilities on the consolidated balance sheets. The Company had an immaterial amount for payment of interest and penalties accrued as of both December 31, 2025 and 2024.
Income taxes paid, net of refunds, was as follows:
Year ended December 31,
202520242023
(In thousands)
Federal$56,836 $39,420 $40,105 
State20,983 10,787 12,217 
Total income taxes paid, net of refunds
$77,819 $50,207 $52,322 
Income taxes paid, net of refunds, exceeded 5% of total income taxes paid, net of refunds, in the following jurisdictions:
State
Oregon
$9,395 $4,362 $5,859