CASEYS GENERAL STORES INCCASY

CASEYS GENERAL STORES INC Income Taxes Disclosure

10-KFiled Jun 22, 20264 min read
INCOME TAXES
Income tax expense attributable to earnings consisted of the following components:
 Years ended April 30,
 202620252024
Current tax expense:
Federal$100,710 $85,207 $78,542 
State27,093 20,764 22,394 
Total current tax expense127,803 105,971 100,936 
Deferred tax expense
Federal85,505 56,112 52,917 
State9,267 3,846 335 
Total deferred tax expense94,772 59,958 53,252 
Total income tax expense$222,575 $165,929 $154,188 
The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows: 
 As of April 30,
 20262025
Deferred tax assets:
Accrued liabilities and reserves$12,976 $8,996 
Deferred revenue18,177 17,845 
Accrued bonus compensation15,203 10,023 
Insurance accruals14,752 13,013 
Operating and finance lease obligations150,725 144,997 
Asset retirement obligations13,506 12,921 
Deferred compensation3,617 3,151 
Share-based compensation10,177 8,944 
State net operating losses and tax credits3,842 2,500 
Other10,749 8,197 
Total gross deferred tax assets253,724 230,587 
Less valuation allowance550 550 
Total net deferred tax assets253,174 230,037 
Deferred tax liabilities:
Property and equipment and operating lease right-of-use assets(901,117)(799,404)
Goodwill(85,834)(66,754)
Other(6,066)(10,784)
Total gross deferred tax liabilities(993,017)(876,942)
Net deferred tax liability$(739,843)$(646,905)
At April 30, 2026, the Company had net operating loss carryforwards for state income tax purposes of $176,909, which are available to offset future state taxable income. The state net operating loss carryforwards begin to expire in 2031. In addition, the Company had state tax credit carryforwards of $1,945, which begin to expire in 2027.
The valuation allowance for state net operating loss and state tax credit deferred tax assets as of April 30, 2026 and 2025 was $550. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected taxable income, and tax planning strategies in making this assessment.
Total reported tax expense applicable to the Company’s continuing operations varies from the tax that would have resulted from applying the statutory U.S. federal income tax rates to income before income taxes.
 Years ended April 30,
 202620252024
AmountPercentAmountPercentAmountPercent
U.S. federal statutory tax rate$196,775 21.0 %$149,614 21.0 %$137,794 21.0 %
State and local income taxes, net of federal income tax effect
State and local income taxes, net of federal income tax effect (a)29,724 3.2 %24,496 3.4 %24,461 3.7 %
Effect of changes in tax laws or rates enacted in the current period139 — %(578)(0.1)%(6,306)(1.0)%
Other(1,139)(0.1)%(4,476)(0.6)%(199)— %
Tax credits(5,349)(0.6)%(6,966)(1.0)%(6,737)(1.0)%
Nontaxable or nondeductible items
Share-based payment awards(6,373)(0.6)%(2,442)(0.3)%(723)(0.1)%
Nondeductible executive compensation8,559 0.9 %5,847 0.8 %5,706 0.9 %
Other865 0.1 %498 0.1 %394 — %
Changes in unrecognized tax benefits(626)(0.1)%(64)— %(202)— %
Effective tax rate$222,575 23.8 %$165,929 23.3 %$154,188 23.5 %
(a) State taxes in Illinois and Minnesota made up the majority (greater than 50 percent) of the tax effect in this category in fiscal 2026, 2025 and 2024.
The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company had a total of $10,071 and $10,773 in gross unrecognized tax benefits at April 30, 2026 and 2025, respectively, which is recorded in other long-term liabilities in the consolidated balance sheets. Of this amount, $7,956 represents the amount of unrecognized tax benefits that, if recognized, would impact our effective tax rate. Unrecognized tax benefits decreased $702 during the twelve months ended April 30, 2026, due primarily to the expiration of certain statute of limitation exceeding the increase associated with income tax filing positions for the current year. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Years ended April 30,
20262025
Beginning balance$10,773 $10,747 
Additions based on tax positions related to current year2,251 2,382 
Reductions due to lapse of applicable statute of limitations(2,953)(2,356)
Ending balance$10,071 $10,773 
The total net amount of accrued interest and penalties for such unrecognized tax benefits was $195 and $266 at April 30, 2026 and 2025, respectively, and is included in other long-term liabilities. Net interest and penalties included in income tax expense for the twelve month periods ended April 30, 2026 and 2025 was a decrease in tax expense of $71 and $84, respectively.
The State of Illinois is currently examining tax years 2020 and 2021. The Company has no other ongoing federal or state income tax examinations. The federal statute of limitations remains open for the tax years 2022 and forward. Tax years 2020 and forward are subject to audit by state tax authorities depending on open statute of limitations waivers and the tax code of each state.
Cash paid for income taxes, net of refunds, for each of the three years were as follows:
 Years ended April 30,
 202620252024
Cash paid for income taxes:
Federal$115,000 $72,500 $81,500 
Illinois13,800 10,000 12,750 
Other, net9,218 7,271 10,750 
Total cash paid for income taxes, net$138,018 $89,771 $105,000 
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Historical Timeline

Fiscal YearFiled
2026Jun 22, 2026Showing above
2025Jun 23, 2025
2024Jun 24, 2024
2023Jun 23, 2023
2022Jun 24, 2022
2021Jun 25, 2021
2020Jun 26, 2020
2019Jun 28, 2019
2018Jun 29, 2018
2017Jun 29, 2017
2016Jun 27, 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.

Other Available Disclosures

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