| Schedule of Taxable Income and To Total Distributions Declared to Common Stock Reconciliation |
Listed below is a reconciliation of “Net increase in net assets resulting from operations” to taxable income and to total distributions declared to common stockholders for the nine months ended September 30, 2022 and 2021.
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Nine Months Ended September 30, |
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2022 |
|
2021 |
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(estimated, dollars in thousands) |
| Net increase in net assets resulting from operations |
$ |
135,287 |
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|
$ |
236,413 |
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| Book-tax difference from share-based compensation expense |
(3,456) |
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|
(5,436) |
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| Net unrealized (appreciation) depreciation |
19,922 |
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|
(117,072) |
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| Income tax provision |
17,477 |
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|
22,691 |
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| Pre-tax book income not consolidated for tax purposes |
(28,333) |
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|
(35,701) |
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| Book income and tax income differences, including debt origination, structuring fees, dividends, realized gains and changes in estimates |
24,026 |
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|
6,027 |
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| Estimated taxable income (1) |
164,923 |
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|
106,922 |
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| Taxable income earned in prior year and carried forward for distribution in current year |
50,834 |
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|
24,350 |
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| Taxable income earned prior to period end and carried forward for distribution next period |
(71,128) |
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|
(18,959) |
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| Dividend payable as of period end and paid in the following period |
16,789 |
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14,553 |
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| Total distributions accrued or paid to common stockholders |
$ |
161,418 |
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$ |
126,866 |
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____________________
(1)Main Street’s taxable income for each period is an estimate and will not be finally determined until the company files its tax return for each year. Therefore, the final taxable income, and the taxable income earned in each period and carried forward for distribution in the following period, may be different than this estimate.
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| Schedule of Components of Income Tax Expense (Benefit) |
Main Street’s provision for income taxes was comprised of the following for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands):
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2022 |
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2021 |
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2022 |
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2021 |
| Current tax expense (benefit): |
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| Federal |
$ |
66 |
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|
$ |
(239) |
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$ |
182 |
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$ |
(99) |
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| State |
496 |
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|
1,056 |
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|
1,110 |
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|
1,712 |
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| Excise |
978 |
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|
136 |
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|
2,366 |
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|
629 |
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| Total current tax expense |
1,540 |
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|
953 |
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|
3,658 |
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|
2,242 |
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| Deferred tax expense (benefit): |
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| Federal |
125 |
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|
7,989 |
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|
10,098 |
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|
15,284 |
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| State |
395 |
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|
3,342 |
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|
3,721 |
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|
5,165 |
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| Total deferred tax expense |
520 |
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|
11,331 |
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13,819 |
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20,449 |
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| Total income tax provision |
$ |
2,060 |
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$ |
12,284 |
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$ |
17,477 |
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$ |
22,691 |
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