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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Taxable income differs from net increase (decrease) in net assets resulting from operations primarily due to: (1) unrealized appreciation (depreciation) on investments, as gains and losses are generally not included in taxable income until they are realized; (2) income or loss recognition on exited investments; (3) non-deductible U.S federal excise taxes; and (4) other non-deductible expenses.
The Company makes certain adjustments to the classification of net assets as a result of permanent book-to-tax differences, which include differences in the book and tax basis of certain assets and liabilities, and non-deductible federal taxes or losses among other items. To the extent these differences are permanent, they are charged or credited to additional paid in capital, undistributed net investment income or undistributed net realized gains on investments, as appropriate. For the years ended December 31, 2023, 2022 and 2021, permanent differences were as follows:
For The Year Ended December 31,
 202320222021
Undistributed net investment income (loss)$32,895 $60,532 $(17,556)
Accumulated net realized gain (loss)$(15,911)$(58,963)$19,994 
Paid In Capital$(16,984)$1,569 $(2,438)
During the years ended December 31, 2023, 2022 and 2021, permanent differences were principally related to $16.8 million, $1.4 million and $2.4 million, respectively, of U.S. federal excise taxes and $0.2 million, $0.2 million and $0.0 million, respectively, of non-deductible offering costs.
For tax purposes, the Company may elect to defer any portion of a post-October capital loss or late-year ordinary loss to the first day of the following fiscal year. As of December 31, 2023, 2022 and 2021, there were none.
The following reconciles the increase in net assets resulting from operations to taxable income for the years ended December 31, 2023, 2022 and 2021:
For The Year Ended December 31,
 
2023 (1)
20222021
Net increase (decrease) in net assets resulting from operations$611,951 $404,556 $460,422 
Net change in unrealized (appreciation) depreciation54,573 122,149 (104,178)
Realized gains (losses) for tax not included in book income(917)(60)310 
Non-deductible capital gains incentive fees(5,506)(11,883)16,312 
Other non-deductible expenses and excise taxes16,984 1,542 2,412 
Net post-October capital loss deferral (reversal)— — (4,293)
Taxable/distributable income$677,085 $516,304 $370,985 
(1)Tax information for the fiscal year ended December 31, 2023 is estimated and is not considered final until the Company files its tax return.
The components of accumulated gains (losses) as calculated on a tax basis for the years ended December 31, 2023, 2022 and 2021 were as follows:
For The Year Ended December 31,
 202320222021
Distributable ordinary income$281,140 $104,577 $104,080 
Distributable capital gains26,953 37,000 3,229 
Other temporary book/tax differences— (5,506)(17,389)
Net change in unrealized appreciation/(depreciation) on investments(58,065)(10,194)109,941 
Total accumulated under-distributed (over-distributed) earnings$250,028 $125,877 $199,861 
The cost and unrealized gain (loss) of the Company’s investments, as calculated on a tax basis, at December 31, 2023, December 31, 2022 and December 31, 2021 were as follows:
For The Year Ended December 31,
 202320222021
Gross unrealized appreciation$86,757 $88,353 $132,173 
Gross unrealized depreciation(146,095)(129,296)(22,232)
Net change in unrealized appreciation (depreciation)$(59,338)$(40,943)$109,941 
Tax cost of investments$9,927,777 $9,658,192 $9,855,692 

During the year ended December 31, 2023, $456.8 million and $47.9 million of the dividends declared were derived from ordinary income and capital gains, respectively, as determined on a tax basis.

During the year ended December 31, 2022, $470.0 million and $12.4 million of the dividends declared were derived from ordinary income and capital gains, respectively, as determined on a tax basis.

All of the dividends declared during the year ended December 31, 2021 were derived from ordinary income, as determined on a tax basis.
BGSL Investments, a wholly-owned subsidiary that was formed in 2019, is a Delaware LLC which has elected to be treated as a corporation for U.S. tax purposes. As such, BGSL Investments is subject to U.S. Federal, state and local taxes. For the Company's tax year ended December 31, 2023, BGSL Investments activity did not result in a material provision for income taxes.

Management has analyzed the Company’s tax positions taken, or to be taken, on federal income tax returns for all open tax years, and has concluded that no provision for income tax is required in the Company’s financial statements. The Company’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three fiscal years after they are filed.