XML 136 R25.htm IDEA: XBRL DOCUMENT
v3.25.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income tax expense on the Consolidated Statements of Operations for the years ended December 31 was as follows:
| 2025 |  | 2024 |  | 2023
| (In thousands)
Current: |  |  |  |  |
Federal | $ | 21,690 |  |  | $ | 51,899 |  |  | $ | 45,746 |
State | 8,955 |  |  | 17,767 |  |  | 18,296 |
| 30,645 |  |  | 69,666 |  |  | 64,042 |
Deferred: |  |  |  |  |
Income taxes: |  |  |  |  |
Federal | 19,032 |  |  | (1,082) |  |  | 263 |
State | 6,459 |  |  | 732 |  |  | (1,869) |
| 25,491 |  |  | (350) |  |  | (1,606) |
Total income tax expense | $ | 56,136 |  |  | $ | 69,316 |  |  | $ | 62,436 |
Components of deferred tax assets and deferred tax liabilities at December 31 were as follows:
| 2025 |  | 2024
| (In thousands)
Deferred tax assets: |  |  |
Deferred compensation/compensation related | $ | 20,750 |  |  | $ | 23,751 |
Asset retirement obligations | 20,506 |  |  | 15,420 |
Operating lease liabilities | 13,317 |  |  | 12,725 |
Accrued pension costs | 9,958 |  |  | 9,528 |
Capitalized inventory overheads | 9,951 |  |  | 8,359 |
Net operating loss | 3,318 |  |  | 5,528 |
Section 174 costs | — |  |  | 4,051 |
Other | 7,053 |  |  | 4,645 |
Total deferred tax assets | $ | 84,853 |  |  | $ | 84,007 |
| 2025 |  | 2024
| (In thousands)
Deferred tax liabilities: |  |  |
Basis differences on property, plant and equipment | $ | 317,809 |  |  | $ | 209,488 |
Intangible assets | 17,347 |  |  | 13,574 |
Operating lease right-of-use-assets | 13,317 |  |  | 12,725 |
Other | 21,269 |  |  | 17,419 |
Total deferred tax liabilities | 369,742 |  |  | 253,206 |
Valuation allowance | 3,028 |  |  | 5,528 |
Net deferred income tax liability | $ | (287,917) |  |  | $ | (174,727) |
As of December 31, 2025 and 2024, we had various state income tax net operating loss carryforwards of $62.5 million and $98.6 million, respectively. The state income tax net operating loss carryforwards are due to expire between 2026 and 2044. Changes in tax regulations or assumptions regarding current and future taxable income could require additional valuation allowances in the future. The following table reconciles the change in the net deferred income tax liability from December 31, 2024, to December 31, 2025, to deferred income tax expense:
| 2025 |  | 2024
| (In thousands)
Change in net deferred income tax liability from the preceding table | $ | 113,190 |  |  | $ | 185 |
Deferred taxes established due to acquisition | (88,031) |  |  | — |
Deferred taxes associated with other comprehensive loss | 332 |  |  | (670) |
Other | — |  |  | 135 |
Deferred income tax expense for the period | $ | 25,491 |  |  | $ | (350) |
Total income tax expense differs from the amount computed by applying the statutory federal income tax rate to income before taxes. The reasons for this difference were as follows:
Years ended December 31, |  | 2025 |  | 2024 |  | 2023
|  | Amount |  | % |  | Amount |  | % |  | Amount |  | %
|  | (Dollars in thousands)
Computed tax at federal statutory rate |  | $ | 44,770 |  |  | 21.0 |  |  | $ | 56,909 |  |  | 21.0 |  |  | $ | 51,515 |  |  | 21.0 |
Increases (reductions) resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal income tax* |  | 12,189 |  |  | 5.7 |  |  | 14,559 |  |  | 5.4 |  |  | 12,977 |  |  | 5.3 |
Depletion allowance |  | (2,359) |  |  | (1.1) |  |  | (2,767) |  |  | (1.0) |  |  | (2,808) |  |  | (1.1) |
Nondeductible expenses |  | 2,041 |  |  | 1.0 |  |  | 1,258 |  |  | 0.5 |  |  | 2,299 |  |  | 0.9 |
Tax credits |  | (549) |  |  | (0.3) |  |  | (720) |  |  | (0.3) |  |  | (1,722) |  |  | (0.7) |
Unrecognized tax benefits |  | 44 |  |  | — |  |  | 77 |  |  | — |  |  | 175 |  |  | 0.1 |
Total income tax expense |  | $ | 56,136 |  |  | 26.3 |  |  | $ | 69,316 |  |  | 25.6 |  |  | $ | 62,436 |  |  | 25.5 |
__________________ *State taxes in Oregon and California for 2025; and Oregon, Minnesota, and California for 2024 and 2023 constitute the majority (greater than 50%) of the tax effect within this category. The following table provides cash taxes paid (net of refunds) for the year end December 31 were as follows:
Jurisdiction |  | 2025 |  | 2024
|  | (In thousands)
Federal |  | $ | 26,500 |  |  | $ | 40,736 |
Oregon |  | 6,350 |  |  | 7,229 |
Minnesota |  | 1,300 |  |  | 4,396 |
Other States/Cities |  | 7,615 |  |  | 9,820 |
Total |  | $ | 41,765 |  |  | $ | 62,181 |
Knife River and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and local jurisdictions. We are no longer subject to U.S. federal or non-U.S. income tax examinations by tax authorities for years ending prior to 2022. With few exceptions, as of December 31, 2025, we are no longer subject to state and local income tax examinations by tax authorities for years ending prior to 2022. Total reserves for uncertain tax positions were not material. We recognize interest and penalties accrued relative to unrecognized tax benefits in income tax expense.

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