XML 49 R13.htm IDEA: XBRL DOCUMENT
v3.22.4

TAXES | 12 Months Ended
--- | ---
Dec. 31, 2022
TAXES |
TAXES | NOTE 7. TAXES ​ Income Taxes ​ The Company’s income tax provision (benefit) consists of the following (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Years ended December 31, | ​
​ |  | 2022 |  | 2021 |  | 2020 |
Federal |  | $ | 16,379 |  | $ | 10,091 |  | $ | (24,576) | ​
State | ​ |  | 1,765 | ​ |  | 265 | ​ |  | 123 | ​
Current tax provision (benefit) | ​ |  | 18,144 | ​ |  | 10,356 | ​ |  | (24,453) | ​
Federal | ​ |  | 3,009 | ​ |  | 4,836 | ​ |  | 15,096 | ​
State | ​ |  | 390 | ​ |  | 1,691 | ​ |  | 677 | ​
Deferred tax provision (benefit) | ​ |  | 3,399 | ​ |  | 6,527 | ​ |  | 15,773 | ​
Total tax provision (benefit) |  | $ | 21,543 |  | $ | 16,883 |  | $ | (8,680) | ​
​ In conformity with the ASC Topic 718, Compensation-Stock Compensation: Improvements to Employee Share-based Payment Accounting (ASU 2016-09), all excess tax benefits and deficiencies are recognized as income tax expense (income tax benefit) in the Company’s Consolidated Statement of Income. This may result in increased volatility in the Company’s effective tax rate. ​ The income tax provision differs from that computed at the federal statutory rate as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Years ended December 31, | ​ | ​
​ |  | 2022 |  | 2021 |  | 2020 | ​ | ​
Federal tax at the statutory rate |  | 21.00 | % | 21.00 | % | 21.00 | % | ​
State tax (net of federal benefit) |  | 1.58 | % | 1.47 | % | 1.11 | % | ​
Permanent items |  | 1.47 | % | 0.38 | % | 3.52 | % | ​
Tax credits |  | (0.36) | % | (0.25) | % | (2.82) | % | ​
Excess tax benefits on stock-based compensation | ​ | (4.31) | % | (3.14) | % | (17.89) | % | ​
Impact of CARES Act | ​ | — | % | — | % | (65.55) | % | ​
Change in Tax Rate and Apportionment | ​ | (0.02) | % | 0.34 | % | 4.31 | % | ​
Other |  | 0.40 | % | (0.02) | % | (1.56) | % | ​
​ |  | 19.76 | % | 19.78 | % | (57.88) | % | ​
​ In 2022 and 2021, the effective tax rate is below the statutory rates due primarily to excess tax benefits on stock compensation. The negative effective tax rate in 2020 is a result of the CARES Act granting the ability to carry back the net operating loss generated as a result of recognizing accelerated tax depreciation of some assets put in service in 2020 back to prior years with higher income tax rates, and the increase in excess tax benefits on stock-based compensation. In 2020, the Company completed and opened to the public a substantial part of the new hotel and casino expansion project at Monarch Black Hawk. This decrease was partially offset by the increase in nondeductible “permanent items” which consisted primarily of the $1.4 million in Colorado legislation lobbying expenses. In 2022, 2021 and 2020, the Company recorded against the tax expense $4.7 million, $2.7 million and $2.7 million tax benefit for employee stock-based compensation, respectively. ​ The components of the deferred income tax assets and liabilities at December 31, 2022 and 2021, as presented in the consolidated balance sheets, are as follows (in thousands): ​
​ ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2022 |  | 2021 |
DEFERRED TAX ASSETS | ​ | ​ | ​ | ​ | ​ | ​ | ​
Stock-based compensation |  | $ | 2,613 |  | $ | 3,231 | ​
Compensation and benefits | ​ |  | 817 | ​ |  | 751 | ​
Accrued expenses | ​ |  | 472 | ​ |  | 288 | ​
Right of use lease liability | ​ | ​ | 3,247 | ​ | ​ | 3,350 | ​
Federal deduction on state taxes | ​ | ​ | 410 | ​ | ​ | 155 | ​
Bad debt reserves | ​ |  | 13 | ​ |  | 16 | ​
Other reserves | ​ | ​ | 67 | ​ | ​ | 40 | ​
NOLs & credit carry-forwards | ​ |  | 636 | ​ |  | 1,014 | ​
Deferred income tax asset |  | $ | 8,275 |  | $ | 8,845 | ​
DEFERRED TAX LIABILITIES | ​ | ​ | ​ | ​ | ​ | ​ | ​
Prepaid expenses | ​ | $ | (1,811) | ​ | $ | (1,547) | ​
Fixed assets and depreciation | ​ |  | (26,173) | ​ |  | (23,504) | ​
Right of use asset | ​ | ​ | (3,249) | ​ | ​ | (3,351) | ​
Base stock | ​ |  | (58) | ​ |  | (60) | ​
Deferred income tax liability |  | $ | (31,291) |  | $ | (28,462) | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
NET DEFERRED INCOME TAX (LIABILITY) ASSET |  | $ | (23,016) |  | $ | (19,617) | ​
​ As of December 31, 2022, the Company has general business credit (“GBC”) carryforwards of $0.1 million and state net operating loss (“NOL”) carryforwards of $12.6 million. The Company has utilized all federal NOL carryforwards. The federal GBC carryforwards expire in 2031 through 2032. The state NOL carryforwards expire in 2030 through 2040. ​ The state NOL of $12.6 million and federal GBC carryforwards of $0.1 million, acquired as part of the Monarch Black Hawk acquisition, are subject to Internal Revenue Code change of ownership limitations. Accordingly, future utilization of the carryforwards is subject to an annual base limitation of $1.25 million that can be applied against future taxable income. ​ The Company acquired NOLs of Monarch Black Hawk generated in tax years 2000 through 2012. The statute of limitation for assessment for these NOL years is determined by reference to the year the NOL is used to reduce taxable income. Consequently, the separate returns that included Monarch Black Hawk for 2002 through 2012 remain subject to examination by taxing authorities. The Company’s income tax returns from 2019 forward are subject to examination by the taxing authorities. ​ Accounting standards require that tax positions be assessed for recognition using a two-step process. A tax position is recognized if it meets a “more likely than not” threshold, and is measured at the largest amount of benefit that is greater than 50 percent likely of being realized. Uncertain tax positions must be reviewed at each balance sheet date. Liabilities recorded as a result of this analysis must generally be recorded separately from any current or deferred income tax accounts. The Company’s policy regarding interest and penalties associated with uncertain tax positions is to classify such amounts as income tax expense. ​ No uncertain tax positions were recorded as of December 31, 2022, 2021 and 2020. No change in uncertain tax positions is anticipated over the next twelve months. ​ No interest expense or penalties for uncertain tax positions were recorded for years ended December 31, 2022, 2021 and 2020. ​

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration