Income Taxes

6 Months Ended

Jun. 30, 2025

Income Taxes [Abstract]

Income Taxes

(13) Income Taxes:

The following is a reconciliation of the provision for income taxes computed at the federal statutory rate to income taxes computed at the effective rates:

	For the three months ended ‎June 30,				For the six months ended ‎June 30,
	2025		2024		2025		2024
Consolidated tax provision at federal statutory rate	21.0	%	21.0	%	21.0	%	21.0	%
State income tax provisions, net of federal
income tax benefit	(7.6)		(9.9)		(7.0)		(10.5)
Federal tax refund adjustment	-		-		-		(0.8)
Sec. 162(f) - nondeductible penalties	(0.3)		-		(0.2)		-
Tax reserve adjustment	(0.3)		(0.4)		(0.3)		(0.4)
Tax Credit	0.6		0.7		0.6		0.7
Share based payments	0.2		-		1.0		-
Sec.162(m) - nondeductible Executive Compensation	(1.9)		(2.8)		(1.8)		(2.8)
Split Life Insurance Settlement	-		(1.8)		-		(1.9)
Transaction costs	0.2		-		(0.3)		-
All other, net	(0.3)		(0.1)		(0.2)		-
Effective tax rate	11.6	%	6.7	%	12.8	%	5.3	%

Frontier considered positive and negative evidence in regard to evaluating certain state deferred tax assets during the second quarter of 2025, including the development of recent years of pre-tax book losses. The state tax rate includes state valuation allowances. On the basis of this evaluation, a valuation allowance of $374 million ($295 million net of federal benefit) was recorded as of June 30, 2025.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBB”) was enacted into law—legislation that makes many of the 2017 Tax Cuts and Jobs Act (“TCJA”) provisions permanent. The company will be evaluating the effects of the bill and will be reporting the effects of the bill in the third quarter.