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Income and Partnership Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income and Partnership Taxes Income and Partnership Taxes:
Federal and state tax legislation in 1997 provided a permanent income tax exemption to existing publicly traded partnerships (PTP), such as Cedar Fair, L.P., with a PTP tax levied on partnership gross income (net revenues less cost of food, merchandise and games revenues) beginning in 1998. In addition, income taxes are recognized for the amount of income taxes payable by Cedar Fair, L.P. and its corporate subsidiaries for the current year and for the impact of deferred tax assets and liabilities that represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. As such, the "Provision for taxes" includes amounts for both the PTP tax and for federal, state, local and foreign income taxes.

The 2023 tax provision totaled $48.0 million, which consisted of a $14.2 million provision for the PTP tax and a $33.8 million provision for income taxes. This compared with a 2022 tax provision of $64.0 million, which consisted of a $14.4 million provision for the PTP tax and a $49.6 million provision for income taxes, and a 2021 tax provision of $20.0 million, which consisted of a $10.3 million provision for the PTP tax and a $9.7 million provision for income taxes. The calculation of the tax provision involves significant estimates and assumptions. Actual results could differ from those estimates.

Significant components of income (loss) before taxes for the years ended December 31, 2023, 2022 and 2021 were as follows:
(In thousands)202320222021
Domestic$114,878 $327,897 $(3,603)
Foreign57,724 43,760 (24,880)
Total income (loss) before taxes$172,602 $371,657 $(28,483)
The provision for income taxes was comprised of the following for the years ended December 31, 2023, 2022 and 2021:
(In thousands)202320222021
Current federal$21,401 $22,912 $(21,438)
Current state and local3,754 2,799 1,395 
Current foreign15,390 19,456 2,896 
Total current40,545 45,167 (17,147)
Deferred federal, state and local(8,710)6,113 17,870 
Deferred foreign1,953 (1,728)9,018 
Total deferred(6,757)4,385 26,888 
Total provision for income taxes$33,788 $49,552 $9,741 

The provision for income taxes for the corporate subsidiaries differed from the amount computed by applying the U.S. federal statutory income tax rate of 21% to income (loss) before taxes. The sources and tax effects of the differences were as follows:    
(In thousands)202320222021
Income tax provision based on the U.S. federal statutory tax rate$36,246 $78,048 $(5,981)
Partnership (income) loss not subject to corporate income tax(14,624)(38,556)257 
State and local taxes, net4,157 8,154 776 
Valuation allowance9,703 9 14,619 
Expired foreign tax credits— — 888 
Tax credits(1,392)(1,483)(901)
Change in U.S. tax law332 (107)(1,326)
Foreign currency translation (gains) losses(1,220)4,754 1,143 
Nondeductible expenses and other586 (1,267)266 
Total provision for income taxes$33,788 $49,552 $9,741 
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
Significant components of deferred tax assets and liabilities as of December 31, 2023 and December 31, 2022 were as follows:    
(In thousands)20232022
Deferred tax assets:
Compensation$15,615 $14,817 
Accrued expenses4,704 4,135 
Foreign tax credits17,991 11,467 
Tax attribute carryforwards13,570 13,823 
Foreign currency translation3,776 5,313 
Deferred revenue1,557 1,911 
Lease liability16,856 19,037 
Deferred tax assets74,069 70,503 
Valuation allowance(32,143)(24,228)
Net deferred tax assets41,926 46,275 
Deferred tax liabilities:
Property(69,143)(76,871)
Intangibles(20,495)(20,170)
Right-of-use asset(15,691)(18,646)
Deferred tax liabilities(105,329)(115,687)
Net deferred tax liability$(63,403)$(69,412)

We record a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. The need for this allowance is based on several factors including the carryforward periods for net operating losses and tax credits, prior experience of tax credit limitations, and management's long-term estimates of domestic and foreign source income.

As of December 31, 2023, we recorded a $32.1 million valuation allowance consisting of $18.0 million related to foreign tax credits, $10.3 million of state net operating loss carryforwards, $2.4 million related to Canadian capital loss carryforwards and $1.4 million related to other state deferred tax assets. The following table presents the changes to the valuation allowance for the periods presented.
(In thousands)202320222021
Beginning Valuation Allowance$(24,228)$(24,374)$(9,755)
Change in Foreign Tax Credit Carryforward Allowance(6,524)(3,075)(6,807)
Change in State Net Operating Loss Carryforward Allowance(1,310)2,660 (5,946)
Change in Canadian Capital Loss Carryforward Allowance(189)156 (2,437)
Change in Other State Deferred Tax Asset Allowance108 405 571 
Ending Valuation Allowance$(32,143)$(24,228)$(24,374)

The CARES Act resulted in various changes to the U.S. tax law, including, among other things, allowing net operating losses arising in tax years 2018 through 2020 to be carried back to the preceding five taxable years and removing the limitation that such losses only offset 80% of taxable income. As a result of these changes, we received U.S. tax refunds attributable to the net operating loss in tax year 2020 being carried back to prior years. We received refunds of $77.1 million during the second quarter of 2022 and an additional $2.5 million during the fourth quarter of 2022. We also received $11.1 million in tax refunds attributable to the net operating loss of our Canadian corporate subsidiary being carried back to prior years in Canada during the first quarter of 2022.

We have recorded a deferred tax liability of $1.9 million and $1.2 million as of December 31, 2023 and December 31, 2022, respectively, to account for foreign currency translation adjustments in other comprehensive income.

Our unrecognized tax benefits, including accrued interest and penalties, were not material in any year presented. We recognize accrued interest and penalties related to unrecognized tax benefits as income tax expense.

The Inflation Reduction Act was signed into law on August 16, 2022 and created a new 15% corporate alternative minimum tax ("CMAT") based on adjusted financial statement income. The effective date of the provision was January 1, 2023. We will not be subject to the CMAT as our reported earnings for each of the past three years did not exceed $1 billion.

The Canadian government has issued draft Pillar Two legislation (Global Minimum Tax Act), which it intends to enact in 2024, that includes the Income Inclusion Rule and Qualified Domestic Minimum Top-Up Tax. The Canadian legislation is expected to be effective for our fiscal year beginning January 1, 2024. We have performed an assessment of the potential exposure to Pillar Two income taxes. This assessment is based on the most recent information available regarding the financial performance of the
constituent entities in the Partnership. Based on the assessment performed, the Pillar Two effective tax rates in all jurisdictions in which we operate are above the 15% minimum tax rate. We continue to evaluate the legislation and do not expect an exposure to Pillar Two taxes for 2024.

We are subject to taxation in the U.S., Canada and various state and local jurisdictions. Our tax returns are subject to examination by state and federal tax authorities. With few exceptions, we are no longer subject to examination by the major taxing authorities for tax years before 2019.