SAIA INC Income Taxes Disclosure
10. Income Taxes
The income tax provision consists of the following (in thousands):
|
|
2025 |
|
|
|
2024 |
|
|
|
2023 |
|
|||
Current: |
|
|
|
|
|
|
|
|
|
|
|
|||
U.S. federal |
|
$ |
12,214 |
|
|
|
$ |
37,563 |
|
|
|
$ |
82,802 |
|
State |
|
|
4,831 |
|
|
|
|
13,159 |
|
|
|
|
18,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total current income tax provision |
|
|
17,045 |
|
|
|
|
50,722 |
|
|
|
|
101,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Deferred: |
|
|
|
|
|
|
|
|
|
|
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|||
U.S. federal |
|
|
63,004 |
|
|
|
|
61,583 |
|
|
|
|
10,345 |
|
State |
|
|
2,304 |
|
|
|
|
1,638 |
|
|
|
|
(275 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total deferred income tax provision |
|
|
65,308 |
|
|
|
|
63,221 |
|
|
|
|
10,070 |
|
|
|
|
|
|
|
|
|
|
|
|
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|||
Total income tax provision |
|
$ |
82,353 |
|
|
|
$ |
113,943 |
|
|
|
$ |
111,370 |
|
A reconciliation between income taxes at the federal statutory rate (21 percent) and the actual income tax provision is as follows (in thousands):
|
|
2025 |
|
|
|
2024 |
|
|
|
2023 |
|
||||||||||||||||||
|
|
Amount |
|
|
|
Percent |
|
|
|
Amount |
|
|
|
Percent |
|
|
|
Amount |
|
|
|
Percent |
|
||||||
Provision at federal statutory rate |
|
$ |
70,852 |
|
|
|
|
21.0 |
% |
|
|
$ |
99,962 |
|
|
|
|
21.0 |
% |
|
|
$ |
97,908 |
|
|
|
|
21.0 |
% |
State income taxes, net of federal benefit* |
|
|
11,167 |
|
|
|
|
3.3 |
% |
|
|
|
16,606 |
|
|
|
|
3.5 |
% |
|
|
|
15,580 |
|
|
|
|
3.3 |
% |
Tax credits |
|
|
(198 |
) |
|
|
|
-0.1 |
% |
|
|
|
(1,095 |
) |
|
|
|
-0.2 |
% |
|
|
|
(1,181 |
) |
|
|
|
-0.3 |
% |
Excess tax benefit on stock compensation |
|
|
(121 |
) |
|
|
|
0.0 |
% |
|
|
|
(923 |
) |
|
|
|
-0.2 |
% |
|
|
|
(1,004 |
) |
|
|
|
-0.2 |
% |
Other, net |
|
|
653 |
|
|
|
|
0.2 |
% |
|
|
|
(606 |
) |
|
|
|
-0.1 |
% |
|
|
|
67 |
|
|
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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||||||
Total provision |
|
$ |
82,353 |
|
|
|
|
24.4 |
% |
|
|
$ |
113,943 |
|
|
|
|
23.9 |
% |
|
|
$ |
111,370 |
|
|
|
|
23.9 |
% |
* State taxes in California, Illinois, Pennsylvania, Georgia, Tennessee, Arizona, North Carolina, Kansas and Indiana made up the majority (greater than 50 percent) of the tax effect in this category for 2025, 2024, and 2023.
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. Deferred tax (liabilities) assets are comprised of the following at December 31 (in thousands):
|
|
|
|
|
2025 |
|
|
|
2024 |
|
||
Depreciation |
|
|
|
|
$ |
(325,806 |
) |
|
|
$ |
(258,528 |
) |
Leases |
|
|
|
|
|
(37,158 |
) |
|
|
|
(31,473 |
) |
Other |
|
|
|
|
|
(7,267 |
) |
|
|
|
(6,855 |
) |
|
|
|
|
|
|
|
|
|
|
|
||
Gross deferred tax liabilities |
|
|
|
|
|
(370,231 |
) |
|
|
|
(296,856 |
) |
Allowance for credit losses |
|
|
|
|
|
1,259 |
|
|
|
|
1,047 |
|
Equity-based compensation |
|
|
|
|
|
5,912 |
|
|
|
|
5,531 |
|
Employee benefits |
|
|
|
|
|
7,717 |
|
|
|
|
7,958 |
|
Leases |
|
|
|
|
|
34,863 |
|
|
|
|
30,815 |
|
Claims and insurance |
|
|
|
|
|
26,332 |
|
|
|
|
22,564 |
|
Other |
|
|
|
|
|
9,830 |
|
|
|
|
10,032 |
|
Gross deferred tax assets |
|
|
|
|
|
85,913 |
|
|
|
|
77,947 |
|
Valuation Allowance |
|
|
|
|
|
(52 |
) |
|
|
|
(153 |
) |
|
|
|
|
|
|
|
|
|
|
|
||
Net deferred tax assets |
|
|
|
|
|
85,861 |
|
|
|
|
77,794 |
|
|
|
|
|
|
|
|
|
|
|
|
||
Net deferred tax liability |
|
|
|
|
|
(284,370 |
) |
|
|
$ |
(219,062 |
) |
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. For the U.S. federal jurisdiction, tax years 2022-2025 remain open to examination. The expiration of the statute of limitations related to the various state income tax returns that the Company files varies by state. In general, tax years 2016-2025 remain open to examination by the various state and local jurisdictions.
A reconciliation of the beginning and ending total amounts of gross unrecognized tax benefits is as follows (in thousands):
|
|
|
|
|
2025 |
|
|
|
2024 |
|
||
Gross unrecognized tax benefits at beginning of year |
|
|
|
|
$ |
3,206 |
|
|
|
$ |
4,692 |
|
Gross (decreases) increases in tax positions for prior years |
|
|
|
|
|
(7 |
) |
|
|
|
(1 |
) |
Gross increases in tax positions for current year |
|
|
|
|
|
344 |
|
|
|
|
764 |
|
Settlements |
|
|
|
|
|
— |
|
|
|
|
(731 |
) |
Lapse of statute of limitations |
|
|
|
|
|
(593 |
) |
|
|
|
(1,518 |
) |
|
|
|
|
|
|
|
|
|
|
|
||
Gross unrecognized tax benefits at end of year |
|
|
|
|
$ |
2,950 |
|
|
|
$ |
3,206 |
|
The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. The total amount of unrecognized tax benefits, which is recorded within claims, insurance and other liabilities on the consolidated balance sheets, that would affect the Company’s effective tax rate if recognized is $3.0 million and $3.2 million as of December 31, 2025 and 2024, respectively.
The Company paid cash for income taxes of $6.1 million, $101.2 million, and $72.8 million in 2025, 2024 and 2023, respectively. The following table presents cash paid for income taxes, by jurisdictions (in thousands):
|
|
2025 |
|
|
|
2024 |
|
|
|
2023 |
|
|||
U.S. federal |
|
$ |
- |
|
|
|
$ |
81,400 |
|
|
|
$ |
57,500 |
|
State and local |
|
|
6,100 |
|
|
|
|
19,800 |
|
|
|
|
15,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total income tax cash paid |
|
$ |
6,100 |
|
|
|
$ |
101,200 |
|
|
|
$ |
72,800 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Feb 23, 2024 | |
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.