DIVIDENDS, DISTRIBUTIONS AND TAXABLE INCOME (Tables)
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12 Months Ended |
Dec. 31, 2024 |
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| Income Tax Disclosure [Abstract] |
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| Schedule of Distribution To Shareholder |
The tax character of distributions paid for the years ended December 31, 2024, 2023 and 2022 was as follows:
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Year Ended December 31, |
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2024 |
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2023 |
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2022 |
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(dollars in thousands) |
| Ordinary income (1) |
$ |
245,845 |
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$ |
278,165 |
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$ |
195,238 |
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| Qualified dividends |
110,281 |
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24,100 |
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22,991 |
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| Distributions on tax basis |
$ |
356,126 |
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$ |
302,265 |
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$ |
218,229 |
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___________________________
(1)The years ended December 31, 2024, 2023 and 2022 include $4.2 million, $3.3 million and $2.3 million, respectively, that was reported for tax purposes as compensation for services in accordance with Section 83 of the Code.
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| Schedule Of Distributable Earnings On Tax Basis |
As of December 31, 2024, 2023 and 2022, the components of distributable earnings on a tax basis or “Undistributed ordinary income,” differ from the amount of “Total undistributed earnings” reflected in the Consolidated Balance Sheets by temporary book or tax differences as shown in the table below.
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Year Ended December 31, |
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2024 |
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2023 |
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2022 |
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(dollars in thousands) |
| Undistributed ordinary income |
$ |
142,588 |
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$ |
76,510 |
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$ |
66,892 |
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| Unrealized appreciation (depreciation), net of tax |
583,720 |
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454,792 |
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248,977 |
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| Cumulative book/ tax differences on realized gain/ loss, including capital loss carryforward |
(189,782) |
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(187,218) |
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(142,507) |
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| Accumulated net impact of Taxable Subsidiaries (1) |
(83,246) |
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(72,442) |
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(49,813) |
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| Other temporary differences (2) |
(50,818) |
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(65,640) |
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(46,278) |
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| Components of Total undistributed earnings |
$ |
402,462 |
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$ |
206,002 |
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$ |
77,271 |
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___________________________
(1)Accumulated net impact of earnings, intercompany dividends and book tax differences of the Taxable Subsidiaries
(2)Book income and tax income differences, including equity and deferred compensation, debt origination, structuring fees and changes in estimates
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| 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 years ended December 31, 2024, 2023 and 2022.
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Year Ended December 31, |
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2024 |
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2023 |
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2022 |
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(estimated, dollars in thousands) |
| Net increase in net assets resulting from operations |
$ |
508,080 |
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$ |
428,447 |
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$ |
241,606 |
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| Book-tax difference from share-based compensation expense |
(317) |
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962 |
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142 |
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| Net unrealized appreciation |
(137,656) |
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(232,577) |
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(24,816) |
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| Income tax provision |
30,633 |
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22,642 |
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23,325 |
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| Pre-tax book (income) loss not consolidated for tax purposes |
(105,122) |
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20,726 |
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(37,630) |
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| Book income and tax income differences, including debt origination, structuring fees, dividends, realized gains and changes in estimates |
127,304 |
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72,389 |
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17,043 |
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| Estimated taxable income (1) |
422,922 |
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312,589 |
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219,670 |
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| Taxable income earned in prior year and carried forward for distribution in current year |
56,142 |
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49,216 |
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50,834 |
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| Taxable income earned prior to period end and carried forward for distribution next period |
(142,588) |
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(76,510) |
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(66,892) |
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| Dividend payable as of period end and paid in the following period |
22,100 |
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20,368 |
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17,676 |
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| Total distributions accrued or paid to common stockholders |
$ |
358,576 |
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$ |
305,663 |
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$ |
221,288 |
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___________________________
(1)MSCC’s taxable income for each period is an estimate and will not be finally determined until MSCC 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 Provision |
Main Street’s Consolidated Statements of Operations. Main Street’s provision for income taxes was comprised of the following for the years ended December 31, 2024, 2023 and 2022:
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Year Ended December 31, |
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2024 |
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2023 |
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2022 |
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(dollars in thousands) |
| Current tax expense: |
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| Federal |
$ |
540 |
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$ |
1,198 |
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$ |
516 |
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| State |
1,989 |
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2,245 |
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1,845 |
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| Excise |
5,851 |
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3,190 |
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2,838 |
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| Total current tax expense |
8,380 |
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6,633 |
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5,199 |
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| Deferred tax expense (benefit): |
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| Federal |
25,849 |
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14,181 |
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13,176 |
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| State |
(3,596) |
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1,828 |
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4,950 |
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| Total deferred tax expense |
22,253 |
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16,009 |
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18,126 |
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| Total income tax provision |
$ |
30,633 |
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$ |
22,642 |
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$ |
23,325 |
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| Schedule of Deferred Tax Assets and Liabilities |
The following table sets forth the significant components of net deferred tax assets and liabilities as of December 31, 2024 and 2023:
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Year Ended December 31, |
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2024 |
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2023 |
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(dollars in thousands) |
| Deferred tax assets: |
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| Net operating loss carryforwards |
$ |
6,336 |
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$ |
39,079 |
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| Interest expense carryforwards |
19,920 |
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20,126 |
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| Other |
261 |
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4,190 |
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| Total deferred tax assets |
26,517 |
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63,395 |
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| Deferred tax liabilities: |
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| Net unrealized appreciation of portfolio investments |
(99,708) |
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(90,981) |
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| Net basis differences in portfolio investments |
(12,920) |
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(36,272) |
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| Total deferred tax liabilities |
(112,628) |
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(127,253) |
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| Total deferred tax liabilities, net |
$ |
(86,111) |
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$ |
(63,858) |
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