Post Holdings, Inc.POST
Post Holdings, Inc. Income Taxes Disclosure
INCOME TAXES
The components of “Earnings before Income Taxes and Equity Method (Earnings) Loss” in the Consolidated Statements of Operations and other summary information is presented in the following table.
| Year Ended September 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Domestic | $ | 441.0 | $ | 436.4 | $ | 397.2 | |||||||||||
| Foreign | 3.0 | 35.7 | 15.7 | ||||||||||||||
| Earnings before Income Taxes and Equity Method (Earnings) Loss | $ | 444.0 | $ | 472.1 | $ | 412.9 | |||||||||||
| Income tax expense | $ | 108.7 | $ | 105.1 | $ | 99.7 | |||||||||||
| Effective income tax rate | 24.5 | % | 22.3 | % | 24.1 | % | |||||||||||
Income tax expense consisted of the following:
| Year Ended September 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Current: | |||||||||||||||||
| Federal | $ | 77.0 | $ | 111.2 | $ | 96.4 | |||||||||||
| State | 20.3 | 22.9 | 21.0 | ||||||||||||||
| Foreign | 6.8 | 6.5 | 5.2 | ||||||||||||||
| 104.1 | 140.6 | 122.6 | |||||||||||||||
| Deferred: | |||||||||||||||||
| Federal | 18.9 | (22.8) | (10.7) | ||||||||||||||
| State | 4.3 | (12.6) | (11.8) | ||||||||||||||
| Foreign | (18.6) | (0.1) | (0.4) | ||||||||||||||
| 4.6 | (35.5) | (22.9) | |||||||||||||||
| Income tax expense | $ | 108.7 | $ | 105.1 | $ | 99.7 | |||||||||||
The following table presents the reconciliation of income tax expense with amounts computed at the U.S. federal statutory tax rate.
| Year Ended September 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Computed tax at federal statutory rate (21%) | $ | 93.3 | $ | 99.1 | $ | 86.7 | |||||||||||
| State income tax, net of effect on federal tax | 13.7 | 12.9 | 12.2 | ||||||||||||||
| Non-deductible compensation | 8.8 | 7.9 | 7.0 | ||||||||||||||
| Rate differential on foreign income | 3.0 | 1.9 | (0.2) | ||||||||||||||
| Return-to-provision | (1.2) | 1.3 | (0.1) | ||||||||||||||
Enacted tax law and changes in deferred tax rates | 2.9 | 0.9 | (5.8) | ||||||||||||||
Valuation allowances | (15.5) | (8.4) | 1.0 | ||||||||||||||
| Excess tax benefits for share-based payments | (4.8) | (5.6) | (5.7) | ||||||||||||||
| Income tax credits | (3.3) | (2.9) | (2.4) | ||||||||||||||
Enhanced deduction for food donations | (1.0) | (1.6) | (1.6) | ||||||||||||||
Non-deductible goodwill impairment charge | 6.2 | — | 8.9 | ||||||||||||||
Basis differences attributable to equity method investment | 4.7 | — | — | ||||||||||||||
Other, net (none in excess of 5% of statutory tax) | 1.9 | (0.4) | (0.3) | ||||||||||||||
| Income tax expense | $ | 108.7 | $ | 105.1 | $ | 99.7 | |||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Non-current deferred tax assets (liabilities) were as follows:
| September 30, 2025 | September 30, 2024 | ||||||||||||||||||||||||||||||||||
| Assets | Liabilities | Net | Assets | Liabilities | Net | ||||||||||||||||||||||||||||||
Lease liabilities | $ | 69.1 | $ | — | $ | 69.1 | $ | 61.9 | $ | — | $ | 61.9 | |||||||||||||||||||||||
| Disallowed interest carryforwards | 129.0 | — | 129.0 | 56.0 | — | 56.0 | |||||||||||||||||||||||||||||
Derivative and equity security investment adjustments | 37.6 | — | 37.6 | 40.6 | — | 40.6 | |||||||||||||||||||||||||||||
Net operating loss and credit carryforwards | 46.2 | — | 46.2 | 27.6 | — | 27.6 | |||||||||||||||||||||||||||||
| Inventory | 22.8 | — | 22.8 | 26.8 | — | 26.8 | |||||||||||||||||||||||||||||
| Accrued vacation, incentive and severance | 24.6 | — | 24.6 | 24.6 | — | 24.6 | |||||||||||||||||||||||||||||
Stock-based and deferred compensation | 22.2 | — | 22.2 | 23.7 | — | 23.7 | |||||||||||||||||||||||||||||
| Capitalized research and development | 27.1 | — | 27.1 | 18.3 | — | 18.3 | |||||||||||||||||||||||||||||
| Accrued liabilities | 13.6 | — | 13.6 | 10.9 | — | 10.9 | |||||||||||||||||||||||||||||
| Basis difference attributable to equity method investment | — | — | — | 4.7 | — | 4.7 | |||||||||||||||||||||||||||||
| Intangible assets | — | (577.9) | (577.9) | — | (585.5) | (585.5) | |||||||||||||||||||||||||||||
| Property | — | (312.0) | (312.0) | — | (239.9) | (239.9) | |||||||||||||||||||||||||||||
| ROU assets | — | (66.8) | (66.8) | — | (58.9) | (58.9) | |||||||||||||||||||||||||||||
| Pension and other postretirement benefits | — | (25.5) | (25.5) | — | (23.8) | (23.8) | |||||||||||||||||||||||||||||
| Other items | 7.8 | (2.4) | 5.4 | 6.5 | (2.8) | 3.7 | |||||||||||||||||||||||||||||
| Total gross deferred income taxes | 400.0 | (984.6) | (584.6) | 301.6 | (910.9) | (609.3) | |||||||||||||||||||||||||||||
| Valuation allowance | (38.3) | — | (38.3) | (43.7) | — | (43.7) | |||||||||||||||||||||||||||||
| Total deferred income taxes | $ | 361.7 | $ | (984.6) | $ | (622.9) | $ | 257.9 | $ | (910.9) | $ | (653.0) | |||||||||||||||||||||||
As of September 30, 2025, the Company’s $46.2 deferred tax asset for net operating loss (“NOL”) and credit carryforwards is comprised of state NOL carryforwards of $14.6, foreign tax loss carryforwards of $16.3, state credit carryforwards of $2.1 and U.S. federal NOL carryforwards of $13.2. The expiration for the majority of these carryforwards is either greater than 10 years or is able to be carried forward indefinitely. The Company has offset approximately $7.4 of the $14.6 of state NOL carryforwards and $11.9 of the $16.3 of foreign tax loss carryforwards by a valuation allowance based on management’s judgment that it is more likely than not that the benefits of those deferred tax assets will not be realized in the future. In addition, as of September 30, 2025, the Company had a deferred tax asset for disallowed U.S. interest expense of $129.0 subject to Internal Revenue Code Section 163(j) limitations, which may be carried forward indefinitely. Based on management’s
judgment, with the exception of a $10.2 valuation allowance recorded for state-related disallowed interest carryforwards, it is more likely than not that the Company will recognize the benefit of this deferred tax asset in the future.
As of September 30, 2025 and 2024, the Company had a valuation allowance of $38.3 and $43.7, respectively, based on management’s judgment that it is more likely than not that the benefits of its deferred tax assets will not be realized in the future. Valuation allowance activity is presented in the following table.
| As of and for the Year Ended September 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Balance, beginning of year | $ | 43.7 | $ | 36.4 | $ | 35.5 | |||||||||||
| Acquisitions | 7.4 | 20.4 | — | ||||||||||||||
State carryforwards, including NOLs, Section 163(j) and credits | 1.8 | (11.8) | (0.1) | ||||||||||||||
Release attributable to foreign operation | (15.6) | — | — | ||||||||||||||
Other foreign-related changes | 1.0 | (1.3) | 1.0 | ||||||||||||||
| Balance, end of year | $ | 38.3 | $ | 43.7 | $ | 36.4 | |||||||||||
The Company generally repatriates a portion of current year earnings from select non-U.S. subsidiaries only if the economic cost of the repatriation is not considered material. No provision has been made for income taxes on the Company’s undistributed earnings of consolidated foreign subsidiaries of $146.8 as of September 30, 2025, as it is the Company’s intention to indefinitely reinvest undistributed earnings of its foreign subsidiaries to, amongst other things, fund local operations, fund debt service payments, fund pension and other post-retirement obligations, fund capital projects and support foreign growth initiatives, including potential acquisitions. If the Company repatriated any of the earnings, it could be subject to withholding tax and the impact of foreign currency movements. It is not practicable to estimate the additional income taxes and applicable foreign withholding taxes that would be payable on the remittance of such undistributed earnings. Applicable income and withholding taxes will be provided on these earnings in the periods in which they are no longer considered reinvested.
Unrecognized Tax Benefits
The Company recognizes the tax benefit from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The tax benefits recognized from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. To the extent the Company’s assessment of such tax positions changes, the change in estimate will be recorded in the period in which the determination is made.
Unrecognized tax benefits activity is presented in the following table.
| As of and for the Year Ended September 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Balance, beginning of year | $ | 9.8 | $ | 12.8 | $ | 11.7 | |||||||||||
| Additions for tax positions taken in current year and acquisitions | 1.3 | 1.5 | 0.8 | ||||||||||||||
(Adjustments) additions for tax positions taken in prior years | (0.2) | 0.7 | 0.4 | ||||||||||||||
| Settlements with tax authorities/statute expirations | (0.3) | (5.2) | (0.1) | ||||||||||||||
| Balance, end of year | $ | 10.6 | $ | 9.8 | $ | 12.8 | |||||||||||
The amount of the net unrecognized tax benefits that, if recognized, would directly affect the effective income tax rate was $10.6 at September 30, 2025. The Company believes that, due to expiring statutes of limitations and settlements with tax authorities, it is reasonably possible that the total unrecognized tax benefits may decrease up to approximately $1.6 within twelve months of the reporting date.
The Company computes tax-related interest and penalties as the difference between the tax position recognized for financial reporting purposes and the amount previously taken on the Company’s tax returns and classifies these amounts as components of income tax expense. The Company recorded income tax expense of $0.9, $0.4 and $0.5 related to interest and penalties in the years ended September 30, 2025, 2024 and 2023, respectively. The Company had accrued interest and penalties of $2.4 and $1.5 at September 30, 2025 and 2024, respectively. The accrued interest and penalties are not included in the table above.
U.S. federal, U.S. state and foreign jurisdiction income tax returns for the tax years ended September 30, 2022 through September 30, 2024 are generally open and subject to examination by the tax authorities in each respective jurisdiction.
Tax Legislation
On July 4, 2025, the H.R.1 tax law was enacted in the U.S. (the “H.R.1 Tax Act”). The H.R.1 Tax Act includes the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act of 2017, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions, such as changes to the timing of certain tax deductions for qualifying depreciable assets, costs of research and development performed in the U.S. and interest expense. The H.R.1 Tax Act has multiple effective dates, beginning in calendar year 2025 and extending through calendar year 2027. The H.R.1 Tax Act did not have a material impact on the Company’s income tax expense for the year ended September 30, 2025, but did reduce cash income tax payments during fiscal 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 21, 2025 | Showing above |
| 2024 | Nov 15, 2024 | |
| 2023 | Nov 17, 2023 | |
| 2022 | Nov 17, 2022 | |
| 2021 | Nov 19, 2021 | |
| 2020 | Nov 20, 2020 | |
| 2019 | Nov 22, 2019 | |
| 2018 | Nov 16, 2018 | |
| 2016 | Nov 18, 2016 | |
| 2015 | Nov 25, 2015 | |
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.