Four Corners Property Trust, Inc. Income Taxes Disclosure
NOTE 9 – INCOME TAXES
The income tax expense was composed as follows:
|
|
Year Ended December 31, |
|
|||||||||
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Current: |
|
|
|
|
|
|
|
|
|
|||
Federal |
|
$ |
30 |
|
|
$ |
31 |
|
|
$ |
— |
|
Current state and local |
|
|
504 |
|
|
|
477 |
|
|
|
389 |
|
Total current |
|
|
534 |
|
|
|
508 |
|
|
|
389 |
|
Deferred: |
|
|
|
|
|
|
|
|
|
|||
Federal deferred |
|
|
(231 |
) |
|
|
(200 |
) |
|
|
(259 |
) |
State deferred |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total deferred |
|
|
(231 |
) |
|
|
(200 |
) |
|
|
(259 |
) |
Total Income Tax Expense |
|
$ |
303 |
|
|
$ |
308 |
|
|
$ |
130 |
|
The following table is a reconciliation of the U.S. statutory income tax rate to the effective income tax rate included in the accompanying Consolidated Income Statements:
|
|
Year Ended December 31, |
|
||||||||||||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
||||||||||||
|
|
Amount |
|
Percent |
|
|
Amount |
|
Percent |
|
|
Amount |
|
Percent |
|
||||||
U.S. statutory rate |
|
$ |
23,686 |
|
|
21.0 |
% |
|
$ |
21,190 |
|
|
21.0 |
% |
|
$ |
20,085 |
|
|
21.0 |
% |
Current benefit |
|
|
(23,547 |
) |
|
(20.9 |
) |
|
|
(21,071 |
) |
|
(20.9 |
) |
|
|
(19,939 |
) |
|
(20.9 |
) |
State and local income taxes, net of federal tax benefits |
|
|
467 |
|
|
0.4 |
|
|
|
442 |
|
|
0.4 |
|
|
|
355 |
|
|
0.4 |
|
Benefit of federal income tax credits |
|
|
(275 |
) |
|
(0.2 |
) |
|
|
(252 |
) |
|
(0.2 |
) |
|
|
(239 |
) |
|
(0.3 |
) |
Other |
|
|
(29 |
) |
|
— |
|
|
|
(2 |
) |
|
— |
|
|
|
(132 |
) |
|
(0.1 |
) |
Valuation allowance |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Permanent differences |
|
|
1 |
|
|
— |
|
|
|
1 |
|
|
— |
|
|
|
— |
|
|
— |
|
Effective Income Tax Rate |
|
$ |
303 |
|
|
0.3 |
% |
|
$ |
308 |
|
|
0.3 |
% |
|
$ |
130 |
|
|
0.1 |
% |
The following table presents cash paid for federal, state, and local income taxes:
|
|
Year Ended December 31, |
|
|||||||||
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Federal: |
|
|
|
|
|
|
|
|
|
|||
US Federal |
|
$ |
20 |
|
|
$ |
11 |
|
|
$ |
— |
|
Total federal |
|
|
20 |
|
|
|
11 |
|
|
|
— |
|
State and local: |
|
|
|
|
|
|
|
|
|
|||
Texas |
|
|
300 |
|
|
|
270 |
|
|
|
260 |
|
New Hampshire |
|
|
60 |
|
|
|
61 |
|
|
|
22 |
|
Ohio Regional Income Tax Authority |
|
|
41 |
|
|
|
40 |
|
|
|
34 |
|
Other |
|
|
143 |
|
|
|
67 |
|
|
|
53 |
|
Total state and local |
|
|
544 |
|
|
|
438 |
|
|
|
369 |
|
Total US Federal, State and Local Taxes Paid |
|
$ |
564 |
|
|
$ |
449 |
|
|
$ |
369 |
|
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts for income tax purposes, as well as operating loss and tax credit carryforwards. The Company evaluates the realizability of its deferred tax assets and recognizes a valuation allowance if, based on the available evidence, both positive and negative, it is more likely than not that some portion or all of its deferred tax assets will not be realized. When evaluating the realizability of its deferred tax assets, the Company considers, among other matters, estimates of expected future taxable income, nature of current and cumulative losses, existing and projected book/tax differences, tax planning strategies available, and the general and industry specific economic outlook. This realizability analysis is inherently subjective, as it requires the Company to forecast its business and general economic environment in future periods.
The tax effects of temporary differences that gave rise to deferred tax assets and liabilities were as follows:
|
|
December 31, |
|
|||||||||
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Charitable contribution and credit carryforwards |
|
$ |
2,126 |
|
|
$ |
1,877 |
|
|
$ |
1,704 |
|
Compensation and employee benefits |
|
|
33 |
|
|
|
35 |
|
|
|
33 |
|
Net operating losses |
|
|
— |
|
|
|
— |
|
|
|
15 |
|
Lease payable |
|
|
150 |
|
|
|
147 |
|
|
|
144 |
|
UNICAP |
|
|
14 |
|
|
|
13 |
|
|
|
14 |
|
Gross deferred tax assets |
|
|
2,323 |
|
|
|
2,072 |
|
|
|
1,910 |
|
Prepaid expenses |
|
|
(16 |
) |
|
|
(13 |
) |
|
|
— |
|
Buildings and equipment (1) |
|
|
(629 |
) |
|
|
(611 |
) |
|
|
(662 |
) |
Gross deferred tax liabilities |
|
|
(645 |
) |
|
|
(624 |
) |
|
|
(662 |
) |
Net Deferred Tax Assets |
|
$ |
1,678 |
|
|
$ |
1,448 |
|
|
$ |
1,248 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 20, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Mar 22, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.