Boot Barn Holdings, Inc. Income Taxes Disclosure

14. Income Taxes

Income tax expense consisted of the following:

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The reconciliation between the Company’s effective tax rate on income from operations and the statutory tax rate is as follows:

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2026: California, Texas, Tennessee, and Arizona

2025: California, Kansas, and Texas

2024: California, Tennessee, and Texas

Differences between the effective tax rate and the statutory rate relate primarily to excess tax benefits due to income tax accounting for stock-based compensation, IRC Section 162(m) and state taxes.

The amount of cash paid for income taxes by the Company, net of refunds, is as follows:

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Deferred taxes reflect the net tax effects of the temporary differences between the carrying amount of assets and liabilities for financial reporting and the amount used for income tax purposes. Significant components of the Company’s net deferred tax liabilities as of March 28, 2026 and March 29, 2025 consisted of the following (in thousands):

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As of March 28, 2026, the Company had no net operating loss carryforwards for federal and state tax purposes.

Valuation allowances are established, when necessary, to reduce deferred income tax assets to the amounts expected to be realized. To this end, the Company has considered and evaluated its sources of taxable income, including forecasted future taxable income, and the Company has concluded that a valuation allowance is not necessary as of March 28, 2026 and March 29, 2025.

The Company applies ASC 740, which contains a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments. At March 28, 2026 and March 29, 2025, no material amounts were recorded for any uncertain tax positions.

The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. To the extent that accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period that such determination is made. The Company does not have any accrued interest or penalties associated with any unrecognized tax benefits as of March 28, 2026 and March 29, 2025.

The Company does not anticipate a significant change in its uncertain tax benefits over the next 12 months.

The major jurisdictions in which the Company files income tax returns include the U.S. federal jurisdiction, as well as various state jurisdictions within the U.S. The Company’s fiscal years 2021 through 2025 returns are subject to examination by the U.S. federal and various state tax authorities.

As of March 28, 2026, the Company was not aware of any ongoing state tax examinations. As of March 28, 2026, the Company was subject to an Internal Revenue Service examination for the fiscal 2023 tax year. Such examination was closed without any additional tax liability on May 4, 2026.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law, which enacts significant changes to U.S. tax and related laws. The most significant provision of the OBBBA affecting the Company is the one hundred percent bonus depreciation on eligible property acquired after January 19, 2025. The Company has reflected the impact of the OBBBA on its consolidated financial statements as of and for the fiscal year ended March 28, 2026.