TopBuild Corp. Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024


(In thousands)	2024		2023		2022
Income before income taxes:
U.S.	$	810,616	$	808,217	$	724,231
Foreign		30,172		17,266		17,904
Total	$	840,788	$	825,483	$	742,135
Income tax expense (benefit):
Current:
U.S. Federal	$	163,889	$	166,175	$	136,013
State and local		45,674		46,631		39,978
Foreign		10,415		7,193		3,406
Deferred:
U.S. Federal		22		(5,307)		7,016
State and local		166		(1,253)		(510)
Foreign		(1,980)		(2,210)		243
	$	218,186	$	211,229	$	186,146
Deferred tax assets at December 31:
Receivables, net	$	4,786	$	6,089
Inventories		8,036		6,558
Other assets, principally share-based compensation		1,659		2,362
Accrued liabilities		17,038		21,073
Lease liability		17,488		16,887
Long-term liabilities		11,394		11,925
Long-term lease liability		32,873		37,515
Net operating loss carryforward		999		1,254
		94,273		103,663
Deferred tax liabilities at December 31:
Right of use assets		48,057		52,441
Property and equipment, net		43,842		46,350
Intangibles, net		240,280		246,343
Other		2,437		2,459
		334,616		347,593
Net deferred tax liability at December 31	$	240,343	$	243,930

A reconciliation of the U.S. Federal statutory tax rate to the income tax expense (benefit) on income was as follows:


	Year Ended December 31,
	2024		2023		2022
U.S. Federal statutory tax rate	21.0	%	21.0	%	21.0	%
State and local taxes, net of U.S. Federal tax benefit	4.3		4.3		4.2
Share based compensation	0.2		(0.1)		(0.2)
Effect of rates different than statutory	0.1		0.1		0.1
Non-deductible/non-taxable items (a)	0.2		0.2		0.1
Other, net (a)	0.2		0.1		(0.1)
Effective tax rate	26.0	%	25.6	%	25.1	%

(a) Certain prior year amounts have been reclassified to conform to current year presentation.