INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of income tax expense (benefit)

The following summarizes income tax expense (benefit) for the years ended December 31:


thousands	2020		2019		2018
Current	$	826	$	1,427	$	(703)
Deferred	10,827		27,818		16,195
Total	$	11,653	$	29,245	$	15,492

Schedule of reconciliation of income tax expense computed by applying the Federal corporate tax rate to the provision for income taxes

Reconciliation of the Income tax expense (benefit) if computed at the U.S. federal statutory income tax rate to the Company’s reported Income tax expense (benefit) for the years ended December 31 is as follows:


thousands except percentages	2020			2019			2018
Income (loss) before income taxes	$	8,480		$	103,540		$	73,218
U.S. federal statutory tax rate	21.0		%	21.0		%	21.0		%
Tax computed at the U.S. federal statutory rate	$	1,781		$	21,743		$	15,376
Increase (decrease) in valuation allowance, net	11,822			4,419			8,033
State income taxes, net of federal income tax expense (benefit)	(2,608)			417			(3,713)

Tax expense (benefit) from other change in rates, prior period adjustments and other permanent differences	2,079			179			(1,442)
Tax expense (benefit) on equity compensation	192			(317)			(1,490)
Tax expense on compensation disallowance	1,553			2,804			1,168
Deconsolidation of 110 North Wacker (a)	(4,826)			—			—
Tax expense (benefit) on historic tax credit	1,660			—			(2,440)



Income tax expense (benefit)	$	11,653		$	29,245		$	15,492
Effective tax rate	137.4		%	28.2		%	21.2		%

(a)The Company deconsolidated 110 North Wacker in the third quarter of 2020. Refer to Note 2 - Real Estate and Other Affiliates for additional information.

Schedule of amounts and expiration dates of operating loss, charitable contribution and tax credit carryforwards

As of December 31, 2020, the amounts and expiration dates of operating loss, charitable contribution and tax credit carryforwards for tax purposes are as follows:


thousands	Amount		Expiration Date
Net operating loss carryforwards - Federal	$	119,167	2033-2037
Net operating loss carryforwards - Federal	461,245		n/a
Net operating loss carryforwards - State (a)	348,027		2021-2040
Net operating loss carryforwards - State (a)	176,197		n/a
Capital loss carryforwards - Federal (a)	22,866		2025
Charitable contribution carryforwards - Federal	9,759		2022-2025

Tax credit carryforwards - Historic Tax Credit	630		2038

(a)A valuation allowance has been recorded against the deferred tax benefit related to the capital loss carryforwards and a majority of the state net operating loss carryforwards.

Summary of tax effects of temporary differences and carryforwards included in net deferred tax liabilities

The following summarizes tax effects of temporary differences and carryforwards included in the net deferred tax liabilities at December 31:


thousands	2020		2019
Deferred tax assets:
Operating and Strategic Developments properties, primarily differences in basis of assets and liabilities	$	51,580	$	65,590

Operating loss and tax carryforwards	161,701		132,277
Total deferred tax assets	213,281		197,867
Valuation allowance	(38,065)		(29,723)
Total net deferred tax assets	$	175,216	$	168,144
Deferred tax liabilities:
Property associated with MPCs, primarily differences in the tax basis of land assets and treatment of interest and other costs	$	(163,836)	$	(163,024)
Operating and Strategic Developments properties, primarily differences in basis of assets and liabilities	(100,564)		(67,125)
Deferred income	(98,455)		(118,743)
Total deferred tax liabilities	(362,855)		(348,892)
Total net deferred tax liabilities	$	(187,639)	$	(180,748)