INCOME AND EXCISE TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Dividends Paid per Common Share

Dividends paid per common share for the years ended December 31, 2022, 2021 and 2020 were taxable as follows (unaudited):


	For the Years Ended December 31,
	2022		2021		2020
Ordinary income(1)	$	1.80	$	1.62	$	1.60
Capital gains	0.07		—		—
Total(2)	$	1.87	$	1.62	$	1.60

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(1)For the years ended December 31, 2022, 2021 and 2020, ordinary income included dividend income of approximately $0.0582, $0.0461 and $0.0157 per share, respectively, that qualified to be taxed at the maximum capital gains rate and, in the case of certain eligible corporate shareholders, dividends that were eligible for the dividends received deduction.

(2)For the years ended December 31, 2022, 2021 and 2020, the percentage of total dividends paid that constituted interest-related dividends were 76.6%, 84.6% and 88.4%, respectively.

Schedules of Income Taxes

The following reconciles net increase in stockholders’ equity resulting from operations to taxable income for the years ended December 31, 2022, 2021 and 2020:


	For the Years Ended December 31,
	2022		2021		2020
	(Estimated)(1)
Net increase in stockholders’ equity resulting from operations	$	600	$	1,567	$	484
Adjustments:
Net unrealized losses (gains) on investments, foreign currency and other transactions	525		(586)		144
Income not currently taxable(2)	(232)		(223)		(147)
Income for tax but not book	90		162		133
Expenses not currently deductible	56		165		19
Expenses for tax but not book	—		—		(59)
Realized gain/loss differences(3)	(101)		(199)		149
Taxable income	$	938	$	886	$	723

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(1)The calculation of estimated 2022 U.S. federal taxable income is based on certain estimated amounts, including information received from third parties and, as a result, actual 2022 U.S. federal taxable income will not be finally determined until the Company’s 2022 U.S. federal tax return is filed in 2023 (and, therefore, such estimate is subject to change).

(2)Includes a reduction for dividend income from preferred equity that is not taxable until collected totaling $175, $91 and $67, respectively, net of dividend income collected of $71, $122 and $1, respectively, for the years ended December 31, 2022, 2021 and 2020, respectively.

(3)Certain realized gain/loss differences are the result of the realization of certain tax only capital losses on the investments and liabilities acquired in the acquisition of Allied Capital Corporation in April 2010 (the “Allied Acquisition”). Because the Allied Acquisition was a “tax-free” reorganization under the Code, realized losses for tax purposes can differ from GAAP. Note that unlike the Allied Acquisition, the American Capital Acquisition was treated as a taxable purchase of the American Capital assets for purposes of the Company’s taxable income calculations; therefore, realized gains or losses for tax purposes are generally consistent with realized gains or losses under GAAP.