Investcorp Credit Management BDC, Inc. Income Taxes Disclosure
Note 14. Tax Information
As of December 31, 2025, December 31, 2024 and June 30, 2024, the Company’s aggregate investment unrealized appreciation and depreciation based on cost for U.S. federal income tax purposes were as follows:
|
|
December 31, 2025 |
|
December 31, 2024 |
|
June 30, 2024 |
Tax cost |
|
$190,879,654 |
|
$200,405,331 |
|
$204,297,727 |
Gross unrealized appreciation |
|
11,023,462 |
|
15,986,982 |
|
9,137,901 |
Gross unrealized depreciation |
|
(29,244,252) |
|
(24,775,355) |
|
(28,865,596) |
Net unrealized investment depreciation |
|
$(18,220,790) |
|
$(8,788,373) |
|
$(19,727,695) |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Sep 25, 2024 | |
| 2023 | Sep 21, 2023 | |
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.