UNITED STATES LIME & MINERALS INC Income Taxes Disclosure
(4) Income Taxes
On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was signed into law. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act of 2017, including 100% bonus depreciation. The OBBBA did not have a material impact on the Company’s effective income tax rate for 2025, but it did reduce the Company’s cash tax outflows in 2025 from what they would have been under the previous federal tax law.
Income tax expense for the years ended December 31 was as follows:
| 2025 | | 2024 | | 2023 |
| ||||
Current income tax expense | ||||||||||
Federal | $ | 34,540 | 27,099 | 18,734 | ||||||
State | 2,862 | 1,445 | 1,002 | |||||||
Deferred income tax (benefit) expense | ||||||||||
Federal | (817) | (1,173) | (1,385) | |||||||
State | 157 | 173 | 462 | |||||||
Income tax expense | $ | 36,742 | $ | 27,544 | $ | 18,813 | ||||
The Company pays United States federal and state taxes. Federal and state income taxes paid, net of refunds, for the years ended December 31 were as follows:
2025 | | 2024 | | 2023 | |||||
Federal | $ | 34,750 | $ | 29,550 | $ | 17,300 | |||
State | 2,920 | 507 | 694 | ||||||
Total | $ | 37,670 | $ | 30,057 | $ | 17,994 | |||
A reconciliation of income taxes computed at the federal statutory rate to income tax expense for the years ended December 31 is as follows:
2025 | 2024 | 2023 |
| |||||||||||||
Percent of | Percent of | Percent of |
| |||||||||||||
Pretax | Pretax | Pretax |
| |||||||||||||
| Amount | | Income | | Amount | | Income | | Amount | | Income |
| ||||
Income taxes computed at the federal statutory rate | | $ | 35,914 | | 21.0 | % | $ | 28,640 | | 21.0 | % | $ | 19,606 | | 21.0 | % |
(Reduction) increase in taxes resulting from: | ||||||||||||||||
State income taxes, net of federal income tax benefit |
| 2,577 |
| 1.5 |
| 682 |
| 0.5 |
| 1,144 |
| 1.2 | ||||
Nontaxable or nondeductible items: | ||||||||||||||||
Statutory depletion in excess of basis |
| (2,738) |
| (1.6) |
| (2,701) |
| (2.0) |
| (2,172) |
| (2.3) | ||||
Disallowed executive compensation | 1,301 | 0.8 | 2,040 | 1.5 | 818 | 0.9 | ||||||||||
Stock-based compensation | (168) | (0.1) | (1,105) | (0.8) | (218) | (0.2) | ||||||||||
Other |
| (144) |
| (0.1) |
| (12) |
| 0.0 |
| (365) |
| (0.4) | ||||
$ | 36,742 |
| 21.5 | % | $ | 27,544 |
| 20.2 | % | $ | 18,813 |
| 20.2 | % | ||
The majority of the Company's state income taxes (greater than 50%) were paid in Texas, Arkansas, and Oklahoma for all years presented. | ||||||||||||||||
Components of the Company’s deferred tax liabilities and assets are as follows:
| December 31, | | December 31, |
| |||
2025 | 2024 |
| |||||
Deferred tax liabilities | |||||||
Property, plant and equipment | $ | 23,644 | $ | 24,187 | |||
Operating lease right-of-use assets | 860 | 1,095 | |||||
| 24,504 |
| 25,282 | ||||
Deferred tax assets | |||||||
Operating lease liabilities | 893 | 1,136 | |||||
Other |
| 613 |
| 487 | |||
| 1,506 |
| 1,623 | ||||
Deferred tax liabilities, net | $ | 22,998 | $ | 23,659 | |||
Current income taxes are classified on the Company’s Consolidated Balance Sheets as follows:
December 31, | December 31, | |||||
2025 | 2024 | |||||
Accrued expenses | $ | 201 | $ | 466 | ||
The Company had no federal net operating loss carry forwards at December 31, 2025. The Company reduces deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is “more likely than not” that some portion or all of the deferred tax assets will not be realized. Deferred tax assets are considered fully recognizable because of the Company’s recent income history and expectations of income in the future. The Company’s federal income tax returns for the year ended December 31, 2022 and subsequent years remain subject to examination. The Company’s income tax returns in certain state income tax jurisdictions remain subject to examination for various periods for the year ended December 31, 2021 and subsequent years.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2017 | Mar 2, 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.