CASEYS GENERAL STORES INCCASY
CASEYS GENERAL STORES INC Income Taxes Disclosure
INCOME TAXES
Income tax expense attributable to earnings consisted of the following components:
| Years ended April 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Current tax expense: | |||||||||||||||||
| Federal | $ | 85,207 | $ | 78,542 | $ | 95,336 | |||||||||||
| State | 20,764 | 22,394 | 22,365 | ||||||||||||||
| 105,971 | 100,936 | 117,701 | |||||||||||||||
| Deferred tax expense | 59,958 | 53,252 | 23,126 | ||||||||||||||
| Total income tax expense | $ | 165,929 | $ | 154,188 | $ | 140,827 | |||||||||||
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, | |||||||||||
| 2025 | 2024 | ||||||||||
| Deferred tax assets: | |||||||||||
| Accrued liabilities and reserves | $ | 8,996 | $ | 9,075 | |||||||
| Deferred revenue | 17,845 | 15,222 | |||||||||
| Accrued bonus compensation | 10,023 | 10,272 | |||||||||
| Workers compensation | 13,013 | 11,281 | |||||||||
| Operating and finance lease obligations | 144,997 | 55,739 | |||||||||
| Asset retirement obligations | 12,921 | 10,036 | |||||||||
| Deferred compensation | 3,151 | 2,909 | |||||||||
| Equity compensation | 8,944 | 8,018 | |||||||||
| State net operating losses and tax credits | 2,500 | 2,568 | |||||||||
| Other | 8,197 | 4,523 | |||||||||
| Total gross deferred tax assets | 230,587 | 129,643 | |||||||||
| Less valuation allowance | 550 | 550 | |||||||||
| Total net deferred tax assets | 230,037 | 129,093 | |||||||||
| Deferred tax liabilities: | |||||||||||
| Property and equipment depreciation | (799,404) | (667,680) | |||||||||
| Goodwill | (66,754) | (52,900) | |||||||||
| Other | (10,784) | (5,363) | |||||||||
| Total gross deferred tax liabilities | (876,942) | (725,943) | |||||||||
| Net deferred tax liability | $ | (646,905) | $ | (596,850) | |||||||
At April 30, 2025, the Company had net operating loss carryforwards for state income tax purposes of $236,448, 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 $2,133, 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, 2025 and 2024 was $550. In assessing the realizability of deferred tax assets, management 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. Management 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, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Income taxes at the statutory rates | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
| Federal tax credits | (1.0) | % | (1.0) | % | (1.3) | % | |||||||||||
| State income taxes, net of federal tax benefit | 3.4 | % | 3.7 | % | 4.0 | % | |||||||||||
| Impact of phased-in state law changes, net of federal benefit | (0.1) | % | (1.0) | % | (0.4) | % | |||||||||||
| ASU 2016-09 benefit (share-based compensation) | (0.4) | % | (0.1) | % | (0.3) | % | |||||||||||
| Nondeductible executive compensation | 0.8 | % | 0.9 | % | 1.1 | % | |||||||||||
| Other | (0.4) | % | — | % | (0.1) | % | |||||||||||
| 23.3 | % | 23.5 | % | 24.0 | % | ||||||||||||
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 $10,773 and $10,747 in gross unrecognized tax benefits at April 30, 2025 and 2024, respectively, which is recorded in other long-term liabilities in the consolidated balance sheets. Of this amount, $8,510 represents the amount of unrecognized tax bene
fits that, if recognized, would impact our effective tax rate. Unrecognized tax benefits increased $26 during the twelve months ended April 30, 2025, due primarily to the increase associated with income tax filing positions for the current year exceeding the decrease related to the expiration of certain statute of limitations. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| 2025 | 2024 | ||||||||||
| Beginning balance | $ | 10,747 | $ | 10,957 | |||||||
| Additions based on tax positions related to current year | 2,382 | 2,570 | |||||||||
| Reductions due to lapse of applicable statute of limitations | (2,356) | (2,780) | |||||||||
| Ending balance | $ | 10,773 | $ | 10,747 | |||||||
The total net amount of accrued interest and penalties for such unrecognized tax benefits was $266 and $350 at April 30, 2025 and 2024, 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, 2025 and 2024 was a decrease in tax expense of $84 and a decrease in tax expense of $36, respectively.
A number of years may elapse before an uncertain tax position is audited and ultimately settled. It is difficult to predict the ultimate outcome or the timing of resolution for uncertain tax positions. It is reasonably possible that the amount of unrecognized tax benefits could significantly increase or decrease within the next twelve months. These changes could result from the expiration of the statute of limitations, examinations or other unforeseen circumstances. The State of Illinois is currently examining tax years 2020 and 2021. The Company has no other ongoing federal or state income tax examinations.
At this time, the Company’s best estimate of the reasonably possible change in the amount of the gross unrecognized tax benefits is a decrease of $2,500 during the next twelve months mainly due to the expiration of certain statute of limitations. The federal statute of limitations remains open for the tax years 2021 and forward. Tax years 2019 and forward are subject to audit by state tax authorities depending on open statute of limitations waivers and the tax code of each state.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jun 23, 2025 | Showing above |
| 2024 | Jun 24, 2024 | |
| 2023 | Jun 23, 2023 | |
| 2022 | Jun 24, 2022 | |
| 2021 | Jun 25, 2021 | |
| 2020 | Jun 26, 2020 | |
| 2019 | Jun 28, 2019 | |
| 2018 | Jun 29, 2018 | |
| 2017 | Jun 29, 2017 | |
| 2016 | Jun 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.