Company: DRH-PA
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001298946-25-000015
Chunk: 144

Company: DiamondRock Hospitality Co
Filing Date: 2025-02-28
Form: 10-K
Item: Item 16
Chunk 144
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1,541 $317 $2,607 A reconciliation of the statutory federal tax provision to our income tax provision is as follows (in thousands): Year Ended December 31,202420232022Statutory federal tax provision$10,521 $18,226 $23,620 Tax impact of REIT election(10,194)(17,281)(21,110)State income tax provision, net of federal tax benefit1,717 890 4,531 Change in valuation allowance(202)(981)(3,915)Permanent differences(316)(349)(495)Other15 (188)(24)Income tax provision$1,541 $317 $2,607 Deferred income taxes are recognized for temporary differences between the financial reporting bases of assets and liabilities and their respective tax bases and for operating loss and tax credit carryforwards based on enacted tax rates expected to be in effect when such amounts are paid. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realizable based on consideration of available evidence, including future reversals of existing taxable temporary differences, projected future taxable income and tax planning strategies. Deferred tax assets are included in prepaid and other assets and deferred tax liabilities are included in accounts payable and accrued expenses on the accompanying consolidated balance sheets. The total deferred tax assets and liabilities are as follows (in thousands):

F-30

20242023FederalNet operating loss carryforwards$1,398 $2,585 Deferred income1,952 2,049 Other440 407 Depreciation and amortization(570)(2,074)Less: Valuation allowance(1,653)(1,766)Federal - Deferred tax assets, net$1,567 $1,201 StateNet operating loss carryforwards$8,525 $8,921 Deferred income528 553 Alternative minimum tax credit carryforwards231 231 Other130 120 Depreciation and amortization(154)(559)Less: Valuation allowance(8,164)(8,253)State - Deferred tax assets, net$1,096 $1,013 As of December 31, 2024, we had deferred tax assets of $9.9 million consisting of federal and state net operating loss carryforwards. The state loss carryforwards generally expire in 2032 through 2041 if not utilized by then; however, for certain states