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Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Taxes [Abstract]  
Income Taxes (14) Income Taxes:

The following is a reconciliation of the provision for income taxes computed at the federal statutory rate to income taxes computed at the effective rates:

For the three months ended

September 30,

For the nine months ended

September 30,

2025

2024

2025

2024

Consolidated tax provision at federal statutory rate

21.0 

%

21.0 

%

21.0 

%

21.0 

%

State income tax provisions, net of federal

income tax benefit

(2.7)

(8.4)

(5.7)

(9.6)

Federal tax refund adjustment

-

-

-

(0.5)

Sec. 162(f) - nondeductible penalties

-

-

(0.1)

-

Tax reserve adjustment

(0.6)

(0.3)

(0.4)

(0.3)

Tax Credit

1.2

0.6

0.8

0.7 

Share based payments

0.2

-

0.7

-

Sec.162(m) - nondeductible Executive Compensation

(2.9)

(2.3)

(2.1)

(2.6)

Split Life Insurance Settlement

-

-

-

(1.1)

Transaction costs

(0.8)

(3.2)

(0.5)

(1.3)

All other, net

(0.2)

-

(0.2)

(0.1)

Effective tax rate

15.2

%

7.4

%

13.5

%

6.2

%

Frontier considered positive and negative evidence in regard to evaluating certain state deferred tax assets during the second quarter of 2025, including the development of recent years of pre-tax book losses. The state tax rate includes state valuation allowances. On the basis of this evaluation, a valuation allowance of $365 million ($288 million net of federal benefit) was recorded as of September 30, 2025.

On July 4, 2025, the reconciliation bill, commonly referred to as the One Big Beautiful Bill Act (OBBBA), was signed into law, which includes a broad range of tax reform provisions. Beginning in 2025, the OBBBA provides an elective deduction for domestic research and development expenses, a reinstatement of elective 100% first-year bonus depreciation and modification of the Section 163j Adjusted Taxable Income calculation. Due to the

nature of the tax law changes, the company does not believe there will be a material impact to the effective tax rate however we will continue to monitor the impact of the OBBBA on our financial statements.