Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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


thousands	2021		2020		2019
Current	$	4,797	$	826	$	1,427
Deferred	10,356		10,827		27,818
Total	$	15,153	$	11,653	$	29,245

Schedule of reconciliation of income tax expense (benefit) computed by applying the Federal corporate tax rate to the provision (benefit) 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	2021			2020			2019
Income (loss) before income taxes	$	64,077		$	8,480		$	103,540
U.S. federal statutory tax rate	21.0		%	21.0		%	21.0		%
Tax computed at the U.S. federal statutory rate	$	13,456		$	1,781		$	21,743
Increase (decrease) in valuation allowance, net	2,378			11,822			4,419
State income taxes, net of federal income tax expense (benefit)	(3,182)			(2,608)			417

Tax expense (benefit) from other change in rates, prior period adjustments and other permanent differences	(181)			2,271			(138)

Tax expense on compensation disallowance	1,570			1,553			2,804
Net (income) loss attributable to noncontrolling interests (a)	1,507			(4,826)			—
Tax expense (benefit) on tax credits	(395)			1,660			—



Income tax expense (benefit)	$	15,153		$	11,653		$	29,245
Effective tax rate	23.6		%	137.4		%	28.2		%

(a)The Company deconsolidated 110 North Wacker in the third quarter of 2020. Refer to Note 2 - Investments in 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, 2021, the amounts and expiration dates of operating loss, capital loss and charitable contribution carryforwards for tax purposes are as follows:


thousands	Amount		Expiration Date

Net operating loss carryforwards - Federal	$	384,813	n/a
Net operating loss carryforwards - State (a)	346,139		2022-2041
Net operating loss carryforwards - State (a)	252,222		n/a
Capital loss carryforwards - Federal	6,042		2025
Charitable contribution carryforwards - Federal	1,956		2025

(a)A valuation allowance has been recorded against the deferred tax benefit related to 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 as of December 31:


thousands	2021		2020
Deferred tax assets:
Operating and Strategic Developments properties, primarily differences in basis of assets and liabilities	$	60,933	$	51,580

Operating loss and tax carryforwards	119,884		161,701
Total deferred tax assets	180,817		213,281
Valuation allowance	(40,477)		(38,065)
Total net deferred tax assets	$	140,340	$	175,216
Deferred tax liabilities:
Property associated with MPCs, primarily differences in the tax basis of land assets and treatment of interest and other costs	$	(176,904)	$	(163,836)
Operating and Strategic Developments properties, primarily differences in basis of assets and liabilities	(88,297)		(100,564)
Deferred income	(79,976)		(98,455)
Total deferred tax liabilities	(345,177)		(362,855)
Total net deferred tax liabilities	$	(204,837)	$	(187,639)