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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Taxes  
Income Taxes

10. Income Taxes

The Company has elected to be taxed as a REIT effective January 1, 2013, pursuant to the U.S. Internal Revenue Code of 1986, as amended. As a REIT, the Company generally will not be subject to federal corporate income taxes on ordinary taxable income and capital gains income from real estate investments that it distributes to its stockholders. The Company pays federal and state corporate income taxes on earnings of its taxable REIT subsidiaries (“TRSs”).

The income tax (provision) benefit for continuing operations consists of the following (amounts in thousands):

​

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

    

2022

CURRENT:

 

​

  

 

​

  

 

​

  

Federal

​

$

(359)

​

$

797

​

$

(21,936)

State

​

 

(3,281)

​

 

(2,920)

​

 

(8,595)

Total current provision

​

 

(3,640)

​

 

(2,123)

​

 

(30,531)

DEFERRED:

​

 

  

​

 

  

​

 

  

Federal

​

 

(9,233)

​

 

79,710

​

 

(9,115)

State

​

 

(963)

​

 

16,115

​

 

871

Total deferred (provision) benefit

​

 

(10,196)

​

 

95,825

​

 

(8,244)

Total (provision) benefit for income taxes

​

$

(13,836)

​

$

93,702

​

$

(38,775)

​

The Company evaluates its deferred tax assets each reporting period to determine if it is more likely than not that those assets will be realized or if a valuation allowance is needed. In the fourth quarter of 2023, due to continued improvement in the Company’s financial results coming out of the COVID-19 pandemic and the projected future taxable income of its TRSs, the Company determined that the release of a significant portion of its federal and state valuation allowance was

appropriate. This release of valuation allowance of $112.5 million was the primary factor in the income tax benefit for 2023.

The Company is required to distribute at least 90% of its annual taxable income, excluding net capital gains, to its stockholders in order to maintain its qualification as a REIT. The taxability of distributions to stockholders is determined by the Company’s earnings and profits, which differs from net income reported for financial reporting purposes. The estimated taxability of cash distributions to common stockholders is shown in the table below (per common share) (unaudited):

​

​

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

    

2022

Ordinary income

​

$

4.28

​

$

3.75

​

$

0.28

Capital gains

​

 

0.07

​

 

0.10

​

 

0.07

Return of capital

​

 

—

​

 

—

​

 

—

​

​

$

4.35

​

$

3.85

​

$

0.35

​

The differences between the income tax provision calculated at the statutory U.S. federal income tax rate of 21% and the actual income tax (provision) benefit recorded for continuing operations are as follows (amounts in thousands):

​

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

    

2022

Statutory federal income tax provision

​

$

(61,746)

​

$

(52,101)

​

$

(36,482)

Adjustment for nontaxable income of the REIT

​

 

49,043

​

 

44,968

​

 

3,565

State tax provision (net of federal taxes)

​

 

(4,215)

​

 

(11,934)

​

 

(13,597)

Permanent share-based compensation adjustment

​

 

2,723

​

 

34

​

 

440

Other permanent items

​

 

(594)

​

 

(531)

​

 

(365)

Change in federal valuation allowance

​

 

—

​

 

87,330

​

 

1,914

Change in state valuation allowance (net of federal taxes)

​

 

(29)

​

 

25,128

​

 

5,873

Other

​

 

982

​

 

808

​

 

(123)

​

​

$

(13,836)

​

$

93,702

​

$

(38,775)

​

Significant components of the Company’s deferred tax assets and liabilities at December 31 are as follows (amounts in thousands):

​

​

​

​

​

​

​

​

    

2024

    

2023

DEFERRED TAX ASSETS:

 

​

  

 

​

  

Accounting reserves and accruals

​

$

21,023

​

$

22,340

Pension plans

​

 

3,091

​

 

4,249

Deferred management rights proceeds

​

 

39,763

​

 

40,280

Federal and State net operating loss carryforwards

​

 

125,692

​

 

102,032

Tax credits and other carryforwards

​

 

17,181

​

 

8,881

Other assets

​

 

3,993

​

 

6,205

Total deferred tax assets

​

 

210,743

​

 

183,987

Valuation allowance

​

 

(5,595)

​

 

(5,557)

Total deferred tax assets, net of valuation allowance

​

 

205,148

​

 

178,430

DEFERRED TAX LIABILITIES:

​

 

  

​

 

  

Property and equipment, net

​

 

125,025

​

 

90,792

Other liabilities

​

 

9,612

​

 

6,014

Total deferred tax liabilities

​

 

134,637

​

 

96,806

Net deferred tax assets

​

$

70,511

​

$

81,624

​

TRS federal net operating loss carryforwards at December 31, 2024 totaled $488.7 million, resulting in a deferred tax asset of $102.6 million, and do not expire. The REIT has no federal net operating losses as of December 31, 2024. The TRS federal interest limitation carryforward at December 31, 2024 totaled $70.0 million, resulting in a deferred tax asset of $14.7 million that does not expire. The use of certain federal net operating losses, credits and other deferred tax assets is limited to the Company’s future taxable earnings. As a result, a valuation allowance was provided for certain federal

deferred tax assets in 2022 and was fully released in 2023. The valuation allowance related to federal deferred tax assets increased (decreased) $0, $(87.3) million and $(1.6) million in 2024, 2023 and 2022, respectively.

State net operating loss carryforwards at December 31, 2024 totaled $612.1 million, resulting in a deferred tax benefit of $23.1 million, which will expire between 2025 and 2044. The use of certain state net operating losses, credits and other state deferred tax assets is limited to the future taxable earnings of separate legal entities. As a result, a valuation allowance has been provided for certain state deferred tax assets, including loss carryforwards. The valuation allowance related to state deferred tax assets increased (decreased) $0, $(25.1) million and $(5.8) million in 2024, 2023 and 2022, respectively.

The Company has concluded IRS examinations of the TRS through the 2015 tax year. For federal income tax purposes and substantially all the states with which the Company has nexus, the statute of limitations has expired through 2020. However, the Company has federal and state net operating loss carryforwards from closed years, which could be adjusted upon audit. The Company is routinely subject to other various jurisdictional income tax audits; however, there were no outstanding state or local audits at December 31, 2024. In addition, the Company has evaluated the effects of the Inflation Reduction Act signed into law in 2022 and believes that it has no material effect on the Company’s financial statements.

At December 31, 2024 and 2023, the Company had no accruals for unrecognized tax benefits. The Company recognizes interest and penalties related to uncertain tax positions, if any, in income tax expense. At December 31, 2024 and 2023, the Company has accrued no interest or penalties related to uncertain tax positions.