WEIS MARKETS INC Income Taxes Disclosure
Note 10 Income Taxes
2024 | 2023 | ||||||||
(amounts in thousands) | | 2025 | | (As restated) | | (As restated) | |||
Current: | |||||||||
Federal | $ | 6,414 | $ | 33,979 | $ | 28,392 | |||
State | 5,083 | 11,699 | 9,521 | ||||||
Deferred: | |||||||||
Federal | 16,966 | (7,058) | 106 | ||||||
State | 1,794 | 303 | 3,778 | ||||||
Total | $ | 30,256 | $ | 38,923 | $ | 41,797 | |||
The following table presents the effective income tax rate reconciliation for the year ended December 27, 2025:
(amounts in thousands) | | 2025 | |||
US federal statutory tax rate | $ | 26,029 | 21.0 | % | |
State and local income tax, net of federal income tax effect (1) | 5,252 | 4.2 | |||
Nontaxable or nondeductible items | |||||
Limitations on executive compensation | 1,246 | 1.0 | |||
Other | (1,217) | (1.0) | |||
Tax credits | (1,682) | (1.4) | |||
Changes in unrecognized tax benefits | (58) | ||||
Other | 687 | 0.6 | |||
$ | 30,256 | 24.4 | % | ||
| (1) | The state that contributes to the majority () of the tax effect in this category is Pennsylvania for 2025. |
Note 10 Income Taxes (continued)
The reconciliation of income taxes has been computed at the federal statutory rate of 21% in 2025, 2024 and 2023.
The following table presents the effective income tax reconciliation for the years ended December 28, 2024, and December 30, 2023:
2024 | 2023 | |||||
(amounts in thousands) | (As restated) | (As restated) | ||||
Income taxes at federal statutory rate | $ | 30,452 | $ | 29,957 | ||
State income taxes, net of federal income tax benefit | 8,594 | 9,579 | ||||
Nondeductible employee-related expenses | 2,137 | 2,709 | ||||
Tax credits | (1,450) | - | ||||
Other | (810) | (448) | ||||
Provision for income taxes | $ | 38,923 | $ | 41,797 | ||
The effective income tax rate was 24.4%, 26.9% and 29.3% in 2025, 2024, and 2023, respectively. The effective income tax rate differs from the federal statutory rate of 21% primarily due to state taxes, federal and state tax credits, and nondeductible employee-related expenses. Pennsylvania House Bill 1342 made significant changes to the Commonwealth’s corporate income tax laws which included lowering the tax rate gradually from 9.99% in 2022 to 4.99% in 2031, offset by taxable income changes, inclusive of, updating market sourcing rules, and codifying the economic nexus standard. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law. This legislation includes provisions that permanently extend the expiring elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation on qualifying property placed in service after January 19, 2025, and full expensing of domestic research and development expenditures. As a result, the 2025 cash taxes decreased with no material impact to its effective tax rate.
Cash paid for federal income taxes was $13.8 million, $34.4 million and $23.0 million in 2025, 2024 and 2023, respectively. Cash paid for state income taxes was $7.0 million, $8.7 million and $20.8 million in 2025, 2024 and 2023, respectively.
The following table presents the income taxes paid by jurisdiction for the year ended December 27, 2025:
(amounts in thousands) | ||||
Jurisdiction | Cash Payments (Refunds) | Percentage of Total | ||
Federal | $ | 13,800 | 66.2 | % |
Pennsylvania | 4,016 | 19.3 | ||
Maryland | 2,224 | 10.7 | ||
All other states | 805 | 3.8 | ||
Total taxes paid | $ | 20,845 | 100.0 | % |
Note 10 Income Taxes (continued)
The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities at December 27, 2025, and December 28, 2024, are:
2024 | ||||||
(amounts in thousands) | | 2025 | | (As restated) | ||
Deferred tax assets: | ||||||
Accounts receivable | $ | 869 | $ | 794 | ||
Employment incentives | 3,412 | 4,300 | ||||
Self-insurance liability | 9,107 | 9,283 | ||||
Postretirement benefit obligations | 7,000 | 6,454 | ||||
Net operating loss and credit carryforwards | 1,849 | 1,533 | ||||
Unrecognized tax benefits | - | 549 | ||||
174 R&D capitalization | 1,422 | 6,411 | ||||
Unrealized (gains) or losses on marketable securities | 626 | - | ||||
Other | - | 116 | ||||
Total deferred tax assets | 24,285 | 29,440 | ||||
Deferred tax liabilities: | ||||||
Inventories | (13,451) | (7,348) | ||||
Unrealized (gains) or losses on marketable securities | - | (223) | ||||
Prepaids | (10,765) | (9,895) | ||||
Nondeductible accruals and other | (380) | 382 | ||||
Depreciation | (126,539) | (120,042) | ||||
Total deferred tax liabilities | (151,135) | (137,126) | ||||
Net deferred tax liability | $ | (126,850) | $ | (107,686) | ||
The following table summarizes the activity related to the Company’s unrecognized tax benefits:
(amounts in thousands) | | 2025 | | 2024 | ||
Unrecognized tax benefits at beginning of year | $ | 2,616 | $ | 6,384 | ||
Reductions for tax positions of prior years | (74) | (1,042) | ||||
Settlements | (2,542) | (2,726) | ||||
Unrecognized tax benefits at end of year | $ | — | $ | 2,616 | ||
The Company or one of its subsidiaries files tax returns in the United States and various state jurisdictions. The tax years subject to examination in the United States and in Pennsylvania, where the majority of the Company’s revenues are generated, are .
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 10, 2022 | |
| 2020 | Mar 11, 2021 | |
| 2019 | Mar 12, 2020 | |
| 2018 | Mar 14, 2019 | |
| 2017 | Mar 15, 2018 | |
| 2016 | Mar 16, 2017 | |
| 2015 | Mar 18, 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.