Schneider National, Inc.SNDR
Schneider National, Inc. Income Taxes Disclosure
INCOME TAXES
The table below provides the updated requirements of ASU 2023-09 for 2025.
The provision for income taxes for the year ended December 31, 2025 differed from the amounts computed using the federal statutory rate in effect as follows:
(1) State taxes in California, Connecticut, and Illinois made up the majority of the tax effect in this category.
| Year Ended December 31, 2025 | |||||||||||
| (in millions, except percentages) | Dollar Impact | Percent | |||||||||
| Provision for income taxes at U.S. federal statutory rate | $ | 29.0 | 21.0 | % | |||||||
State and local income taxes, net of federal benefit(1) | 3.8 | 2.7 | |||||||||
| Foreign tax effects | 0.2 | 0.1 | |||||||||
| Effect of changes in tax laws or rates enacted in the current period | (0.7) | (0.5) | |||||||||
| Tax credits | |||||||||||
| Transferable tax credits | (2.0) | (1.4) | |||||||||
| Other credits | (1.2) | (0.8) | |||||||||
| Nontaxable or nondeductible items | |||||||||||
| Nondeductible per diem payments | 3.0 | 2.2 | |||||||||
| Nondeductible compensation | 2.1 | 1.5 | |||||||||
| Other | 0.8 | 0.6 | |||||||||
| Changes in unrecognized tax benefits | (0.6) | (0.5) | |||||||||
| Total tax provision and effective tax rate | $ | 34.4 | 24.9 | % | |||||||
As previously disclosed, the provision for income taxes for the years ended December 31, 2024 and 2023 differed from the amounts computed using the federal statutory rate in effect as follows:
| 2024 | 2023 | |||||||||||||||||||||||||
| (in millions, except percentages) | Dollar Impact | Percent | Dollar Impact | Percent | ||||||||||||||||||||||
| Income tax at federal statutory rate | $ | 32.0 | 21.0 | % | $ | 64.3 | 21.0 | % | ||||||||||||||||||
| State tax—net of federal effect | 3.0 | 2.0 | 13.8 | 4.5 | ||||||||||||||||||||||
| Change in valuation allowance | — | — | (10.7) | (3.5) | ||||||||||||||||||||||
| Other—net | 0.2 | 0.1 | 0.2 | 0.1 | ||||||||||||||||||||||
| Total tax provision and effective tax rate | $ | 35.2 | 23.1 | % | $ | 67.6 | 22.1 | % | ||||||||||||||||||
The components of the provision for income taxes for the years ended December 31, 2025, 2024, and 2023 were as follows:
| (in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Current: | ||||||||||||||||||||
| Federal | $ | 32.9 | $ | 27.3 | $ | 15.2 | ||||||||||||||
| Foreign | 0.3 | 0.5 | (10.1) | |||||||||||||||||
| State | 4.4 | 3.5 | 6.7 | |||||||||||||||||
| 37.6 | 31.3 | 11.8 | ||||||||||||||||||
| Deferred: | ||||||||||||||||||||
| Federal | (3.0) | 3.6 | 47.7 | |||||||||||||||||
| State and other | (0.2) | 0.3 | 8.1 | |||||||||||||||||
| (3.2) | 3.9 | 55.8 | ||||||||||||||||||
| Total provision for income taxes | $ | 34.4 | $ | 35.2 | $ | 67.6 | ||||||||||||||
For all years presented, the pretax income associated with foreign entities is insignificant. For the years ended December 31, 2025, and 2024, the foreign provision for income taxes is insignificant to our overall position. For the year ended December 31, 2023, the foreign benefit for income taxes is primarily related to the tax impact on the sale of our Canadian facility.
The following is a supplemental schedule of cash paid for income taxes:
| (in millions) | 2025 | |||||||
| Cash paid during the year for income taxes, net of refunds | ||||||||
| U.S. Federal | $ | (1.2) | ||||||
| U.S. State and Local: | ||||||||
| Pennsylvania | 0.8 | |||||||
| Ohio | 0.7 | |||||||
| Tennessee | 0.6 | |||||||
| Alabama | 0.4 | |||||||
| Texas | 0.4 | |||||||
| Louisiana | 0.2 | |||||||
| Other | 2.0 | |||||||
| Foreign: | ||||||||
| Mexico | 0.4 | |||||||
| Canada | 0.1 | |||||||
| Total cash paid during the year for income taxes | $ | 4.4 | ||||||
The following table represents the cash (refunded) paid for income taxes prior to the adoption of ASU 2023-09
| (in millions) | 2024 | 2023 | ||||||||||||
| Cash (refunded) paid during the year for income taxes | $ | (0.2) | $ | 67.6 | ||||||||||
The components of the net deferred tax liability included in deferred income taxes in the consolidated balance sheets as of December 31, 2025 and 2024 were as follows:
| (in millions) | 2025 | 2024 | ||||||||||||
| Deferred tax assets: | ||||||||||||||
| Compensation and employee benefits | $ | 8.6 | $ | 8.3 | ||||||||||
| Insurance and claims accruals | 11.5 | 3.9 | ||||||||||||
| Operating lease liabilities | 23.3 | 20.5 | ||||||||||||
| Federal credit carryforward | — | 34.8 | ||||||||||||
| State net operating losses and credit carryforwards | 19.5 | 15.0 | ||||||||||||
| Other | 10.2 | 8.5 | ||||||||||||
| Total gross deferred tax assets | 73.1 | 91.0 | ||||||||||||
| Valuation allowance | (1.0) | (1.0) | ||||||||||||
| Total deferred tax assets—net of valuation allowance | 72.1 | 90.0 | ||||||||||||
| Deferred tax liabilities: | ||||||||||||||
| Property and equipment | 593.9 | 595.9 | ||||||||||||
| Prepaid expenses | 9.6 | 7.5 | ||||||||||||
| Intangible assets | 21.5 | 14.8 | ||||||||||||
| Operating lease right-of-use assets | 21.8 | 19.0 | ||||||||||||
| Other | 19.1 | 18.4 | ||||||||||||
| Total gross deferred tax liabilities | 665.9 | 655.6 | ||||||||||||
| Net deferred tax liability | $ | 593.8 | $ | 565.6 | ||||||||||
Unrecognized Tax Benefits
Our unrecognized tax benefits as of December 31, 2025 would reduce the provision for income taxes if subsequently recognized. Accrued interest and penalties for such unrecognized tax benefits as of December 31, 2025 and 2024 were $2.4 million and $2.6 million, respectively.
As of December 31, 2025, 2024, and 2023, a reconciliation of the beginning and ending unrecognized tax benefits, which is recorded as other noncurrent liabilities in the consolidated balance sheets, is as follows:
| (in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Gross unrecognized tax benefits—beginning of year | $ | 4.0 | $ | 4.4 | $ | 6.0 | ||||||||||||||
| Gross decreases—tax positions taken in prior years | (0.5) | (0.4) | (0.5) | |||||||||||||||||
| Settlements | — | — | (1.1) | |||||||||||||||||
| Gross unrecognized tax benefits—end of year | $ | 3.5 | $ | 4.0 | $ | 4.4 | ||||||||||||||
Tax Examinations
We file a U.S. federal income tax return, as well as income tax returns in a majority of state tax jurisdictions. We also file returns in foreign jurisdictions. The years 2022, 2023, and 2024 are open for examination by the IRS, and various years are open for examination by state and foreign tax authorities. In October 2025, the statute for 2021 expired. State and foreign jurisdictional statutes of limitations generally range from three to four years.
Carryovers
As of December 31, 2025, we had $354.1 million of state net operating loss carryforwards which are subject to expiration from 2026 to 2046; $2.6 million of state credit carryforwards, which are subject to expiration from 2027 to 2041; and $5.1 million of capital loss carryovers. There is the ability to carryback the full amount of the capital losses to refund taxes paid in 2022. We did not have any federal credit carryforwards. The deferred tax assets related to carryforwards as of December 31, 2025 were $17.4 million for state net operating loss carryforwards, $2.1 million for state credit carryforwards, and $1.1 million for capital loss carryovers. Carryovers are reviewed for recoverability based on historical taxable income, the expected reversals of existing temporary differences, tax-planning strategies, and projections of future taxable income. As of December 31, 2025, we carried a total valuation allowance of $1.0 million, which was against state deferred tax assets.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 19, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 27, 2018 | |
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.