BOISE CASCADE CoBCC
BOISE CASCADE Co Income Taxes Disclosure
Income Taxes
Income Tax Provision
Income before income taxes includes the following components:
| Year Ended December 31 | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| (thousands) | ||||||||||||||||||||
| Domestic | $ | 176,559 | $ | 500,270 | $ | 643,060 | ||||||||||||||
| Foreign | 3,394 | 1,489 | 1,989 | |||||||||||||||||
| Income before income taxes | $ | 179,953 | $ | 501,759 | $ | 645,049 | ||||||||||||||
The income tax provision shown in the Consolidated Statements of Operations includes the following:
| Year Ended December 31 | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| (thousands) | ||||||||||||||||||||
| Current income tax provision | ||||||||||||||||||||
| Federal | $ | 16,028 | $ | 101,542 | $ | 133,323 | ||||||||||||||
| State | 3,540 | 26,279 | 28,250 | |||||||||||||||||
| Foreign | — | — | — | |||||||||||||||||
| Total current | 19,568 | 127,821 | 161,573 | |||||||||||||||||
| Deferred income tax provision (benefit) | ||||||||||||||||||||
| Federal | 24,125 | (2,915) | (629) | |||||||||||||||||
| State | 2,583 | (269) | (68) | |||||||||||||||||
| Foreign | 841 | 768 | 517 | |||||||||||||||||
| Total deferred | 27,549 | (2,416) | (180) | |||||||||||||||||
| Income tax provision | ||||||||||||||||||||
| Federal | 40,153 | 98,627 | 132,694 | |||||||||||||||||
| State | 6,123 | 26,010 | 28,182 | |||||||||||||||||
| Foreign | 841 | 768 | 517 | |||||||||||||||||
| Total income tax provision | $ | 47,117 | $ | 125,405 | $ | 161,393 | ||||||||||||||
The effective tax rate varies from the U.S. Federal statutory income tax rate principally due to the following:
| Year Ended December 31 | |||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||
| (thousands, except percentages) | |||||||||||||||||||||||||||||
| U.S. Federal statutory income tax rate | $ | 37,790 | 21.0 | % | $ | 105,369 | 21.0 | % | $ | 135,460 | 21.0 | % | |||||||||||||||||
| State and local income taxes, net of federal income tax effect (a) | 5,380 | 3.0 | % | 20,491 | 4.1 | % | 22,249 | 3.4 | % | ||||||||||||||||||||
| Nondeductible executive compensation | 2,738 | 1.5 | % | 4,672 | 0.9 | % | 3,174 | 0.5 | % | ||||||||||||||||||||
| Other | 1,209 | 0.7 | % | (5,127) | (1.0) | % | 510 | 0.1 | % | ||||||||||||||||||||
| Effective income tax rate | $ | 47,117 | 26.2 | % | $ | 125,405 | 25.0 | % | $ | 161,393 | 25.0 | % | |||||||||||||||||
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(a)For 2025, state taxes in California made up the majority (greater than 50%) of the tax effect of this category. For 2024, state taxes in California, Florida, Oregon, Massachusetts, Georgia, Minnesota, and Tennessee made up the majority (greater than 50%) of the tax effect of this category. For 2023, state taxes in California, Oregon, Florida, Utah, Georgia, Colorado, and New Jersey made up the majority (greater than 50%) of the tax effect of this category.
During the years ended December 31, 2025, 2024, and 2023, cash paid for taxes, net of refunds received, was as follows:
| Year Ended December 31 | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| (thousands) | ||||||||||||||||||||
| Federal | $ | 26,501 | $ | 108,242 | $ | 107,785 | ||||||||||||||
| State | 10,061 | 22,309 | 25,206 | |||||||||||||||||
| Foreign | — | — | — | |||||||||||||||||
| $ | 36,562 | $ | 130,551 | $ | 132,991 | |||||||||||||||
During the years ended December 31, 2025, 2024, and 2023, there were no individual jurisdictions with cash paid for taxes, net of refunds received, that equaled or exceeded 5% of the total income taxes paid.
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. The components of our net deferred tax assets and liabilities at December 31, 2025 and 2024, are summarized as follows:
| December 31, 2025 | December 31, 2024 | |||||||||||||
| (thousands) | ||||||||||||||
| Deferred tax assets | ||||||||||||||
| Employee benefits | $ | 24,396 | $ | 29,141 | ||||||||||
| Lease liabilities | 19,932 | 21,136 | ||||||||||||
| Inventories | 8,650 | 8,142 | ||||||||||||
| Foreign net operating loss carryforward | 806 | 274 | ||||||||||||
| Other | 9,541 | 12,152 | ||||||||||||
| Deferred tax assets | $ | 63,325 | $ | 70,845 | ||||||||||
| Deferred tax liabilities | ||||||||||||||
| Property and equipment | $ | (126,512) | $ | (105,735) | ||||||||||
| Right-of-use assets | (17,673) | (18,556) | ||||||||||||
| Intangible assets and other | (19,698) | (19,480) | ||||||||||||
| Other | (1,952) | (2,218) | ||||||||||||
| Deferred tax liabilities | $ | (165,835) | $ | (145,989) | ||||||||||
| Total deferred tax assets (liabilities), net | $ | (102,510) | $ | (75,144) | ||||||||||
As of December 31, 2025, we have foreign net operating loss carryforwards of $7.7 million, which if unused, will expire in years 2036 through 2044. We have state income tax credits totaling $2.1 million as of December 31, 2025, which if unused, will expire in years 2034 through 2040. The foreign net operating loss and state credit carryforwards in the income tax returns filed included unrecognized tax benefits. The deferred tax assets recognized for those net operating losses and state credit carryforwards are presented net of these unrecognized tax benefits.
Income Tax Uncertainties
The following table summarizes the changes related to our gross unrecognized tax benefits excluding interest and penalties:
| 2025 | 2024 | 2023 | ||||||||||||||||||
| (thousands) | ||||||||||||||||||||
| Balance as of January 1 | $ | 1,556 | $ | 1,559 | $ | 1,734 | ||||||||||||||
| Increases related to prior years' tax positions | 157 | — | 4 | |||||||||||||||||
| Increases related to current years' tax positions | 211 | 103 | — | |||||||||||||||||
| Lapse of statute of limitations | (50) | (106) | (179) | |||||||||||||||||
| Balance as of December 31 | $ | 1,874 | $ | 1,556 | $ | 1,559 | ||||||||||||||
As of December 31, 2025, 2024, and 2023, we had $1.9 million, $1.6 million, and $1.6 million, respectively, of unrecognized tax benefits recorded on our Consolidated Balance Sheets, excluding interest and penalties. Of the total unrecognized tax benefits recorded, $1.9 million, $1.5 million, and $1.5 million (net of the federal benefit for state taxes), respectively, would impact the effective tax rate if recognized.
We recognize interest and penalties related to uncertain tax positions as income tax expense in our Consolidated Statements of Operations. For the years ended December 31, 2025, 2024, and 2023, we recognized an insignificant amount of interest and penalties related to taxes. We recognize tax liabilities and adjust these liabilities when our judgment changes as a
result of the evaluation of new information not previously available or as new uncertainties arise. We do not expect the unrecognized tax benefits to change significantly over the next twelve months.
We file income tax returns in the U.S. and various state and foreign jurisdictions. Tax years 2022 to present remain open to examination in the U.S. and tax years 2021 to present remain open to examination in Canada and various states. We recorded net operating losses in Canada beginning in 2006 that are subject to examinations and adjustments up to four years following the year in which they are utilized.
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted into law in the United States. The OBBBA includes numerous provisions that affect corporate taxation, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, changes to bonus depreciation, and modifications to the international tax framework. The OBBBA will not have a material impact on our effective tax rate or total provision for income taxes.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 22, 2021 | |
| 2019 | Feb 24, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 25, 2016 | |
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.