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Income Taxes | 12 Months Ended
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Dec. 31, 2011
Income Taxes [Abstract] |
Income Taxes | 10. Income Taxes For income tax purposes, distributions paid to common shareholders are classified as ordinary income, capital gain, return of capital or qualified dividends. We did not pay common share distributions for the years ended December 31, 2011, 2010 and 2009. For income tax purposes, distributions paid to preferred shareholders are classified as ordinary income, capital gain, return of capital or qualified dividends. For the years ended December 31, 2011, 2010 and 2009, the preferred distributions per depositary share were classified as follows:
Series J Preferred Stock |  | 2011 |  |  | As a Percentage of Distributions |  |  | 2010 (As Amended) |  |  | As a Percentage of Distributions |  |  | 2009 |  |  | As a Percentage of Distributions |
Ordinary income |  | $ | 0.3130 |  |  |  | 23.02 | % |  | $ | 1.4652 |  |  |  | 80.84 | % |  | $ | — |  |  |  | 0.00 | %
Long-term capital gains |  |  | — |  |  |  | 0.00 | % |  |  | — |  |  |  | 0.00 | % |  |  | 1.3697 |  |  |  | 75.57 | %
Unrecaptured Section 1250 gain |  |  | — |  |  |  | 0.00 | % |  |  | 0.2423 |  |  |  | 13.37 | % |  |  | 0.4428 |  |  |  | 24.43 | %
Return of Capital |  |  | 1.0402 |  |  |  | 76.52 | % |  |  | — |  |  |  | 0.00 | % |  |  | — |  |  |  | 0.00 | %
Qualified Dividends |  |  | 0.0062 |  |  |  | 0.46 | % |  |  | 0.1050 |  |  |  | 5.79 | % |  |  | — |  |  |  | 0.00 | %
|  | $ | 1.3594 |  |  |  | 100.00 | % |  | $ | 1.8125 |  |  |  | 100.00 | % |  | $ | 1.8125 |  |  |  | 100.00 | %
Series K Preferred Stock |  | 2011 |  |  | As a Percentage of Distributions |  |  | 2010 (As Amended) |  |  | As a Percentage of Distributions |  |  | 2009 |  |  | As a Percentage of Distributions |
Ordinary income |  | $ | 0.3130 |  |  |  | 23.02 | % |  | $ | 1.4652 |  |  |  | 80.84 | % |  | $ | — |  |  |  | 0.00 | %
Long-term capital gains |  |  | — |  |  |  | 0.00 | % |  |  | — |  |  |  | 0.00 | % |  |  | 1.3697 |  |  |  | 75.57 | %
Unrecaptured Section 1250 gain |  |  | — |  |  |  | 0.00 | % |  |  | 0.2423 |  |  |  | 13.37 | % |  |  | 0.4428 |  |  |  | 24.43 | %
Return of Capital |  |  | 1.0402 |  |  |  | 76.52 | % |  |  | — |  |  |  | 0.00 | % |  |  | — |  |  |  | 0.00 | %
Qualified Dividends |  |  | 0.0062 |  |  |  | 0.46 | % |  |  | 0.1050 |  |  |  | 5.79 | % |  |  | — |  |  |  | 0.00 | %
|  | $ | 1.3594 |  |  |  | 100.00 | % |  | $ | 1.8125 |  |  |  | 100.00 | % |  | $ | 1.8125 |  |  |  | 100.00 | %
The 2010 tax characterization of preferred dividends disclosed in this footnote in the 2010 Form 10-K contained an error. The impact of the error affects the treatment of our preferred distributions for tax purposes only. The correction results in an increase in the ordinary income classification of $1.4529, an increase in the qualified dividend classification of $0.0222, an increase in the unrecaptured Section 1250 gain classification of $0.0706, and a decrease in the amount of distributions classified as return of capital of ($1.5457), all per depository share of our Series J and Series K preferred shares. The components of income tax (provision) benefit for the years ended December 31, 2011, 2010 and 2009 are comprised of the following:
|  | 2011 |  |  | 2010 |  |  | 2009 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (622 | ) |  | $ | (893 | ) |  | $ | 38,682 |
State |  |  | (502 | ) |  |  | (2,372 | ) |  |  | 1,772 |
Foreign |  |  | (41 | ) |  |  | (95 | ) |  |  | (835 | )
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal. |  |  | (284 | ) |  |  | 163 |  |  |  | (15,816 | )
State |  |  | (2 | ) |  |  | 40 |  |  |  | (616 | )
Foreign. |  |  | (697 | ) |  |  | (148 | ) |  |  | 9 |
|  | $ | (2,148 | ) |  | $ | (3,305 | ) |  | $ | 23,196 |
On August 24, 2009, we received a private letter ruling from the IRS granting favorable loss treatment under Sections 331 and 336 of the Code on the tax liquidation of one of our old taxable REIT subsidiaries. As a result, we completed a transaction on September 1, 2009 whereby approximately 75% of the assets formerly held by this taxable REIT subsidiary are now held by a limited liability company which is wholly owned by the Operating Partnership. The remaining 25% of the assets are now held by a partnership for federal income tax purposes, and is 99% owned by one of our taxable REIT subsidiaries formed in 2009. On November 6, 2009, legislation was signed that allows businesses with net operating losses for 2008 or 2009 to carry back those losses for up to five years. As a result, we received a refund from the IRS of $40,418 in the fourth quarter of 2009 due to the tax liquidation of one of our old taxable REIT subsidiaries. Deferred income taxes represent the tax effect of the temporary differences between the book and tax basis of assets and liabilities. Deferred tax assets (liabilities) include the following as of December 31, 2011 and 2010:
|  | 2011 |  |  | 2010 |
Investments in Joint Ventures |  | $ | 15 |  |  | $ | 47 |
Fixed assets |  |  | — |  |  |  | 1,863 |
Prepaid rent |  |  | 45 |  |  |  | 71 |
Restricted stock |  |  | 43 |  |  |  | 99 |
Capitalized Interest |  |  | — |  |  |  | 626 |
Impairment of Real Estate |  |  | 5,683 |  |  |  | 10,196 |
Foreign net operating loss carrying forward |  |  | 828 |  |  |  | 706 |
Valuation Allowance |  |  | (5,078 | ) |  |  | (9,301 | )
Other |  |  | 483 |  |  |  | 569 |
Total deferred tax assets, net of allowance |  | $ | 2,019 |  |  | $ | 4,876 |
Straight-line rent |  |  | (85 | ) |  |  | (510 | )
Fixed assets |  |  | (1,946 | ) |  |  | (3,397 | )
Other |  |  | (108 | ) |  |  | (106 | )
Total deferred tax liabilities |  | $ | (2,139 | ) |  | $ | (4,013 | )
Total net deferred tax (liability) asset |  | $ | (120 | ) |  | $ | 863 |
A valuation allowance is recorded if we believe it is more likely than not that all or some portion of our deferred tax assets will not be realized. We do not have projections of future taxable income in the taxable REIT subsidiaries significant enough to allow us to realize our deferred tax assets. Therefore, we have recorded a valuation allowance against our deferred tax assets. An increase or decrease in the valuation allowance that results from a change in circumstances, and which causes a change in our judgment about the realizability of the related deferred tax assets, is included in the current tax provision. As of December 31, 2011 and 2010, we had net deferred tax (liability) assets of $(120) and $863, after valuation allowances of $5,078 and $9,301, respectively. The decrease in the valuation allowance of $4,223 from December 31, 2010 to December 31, 2011 is primarily related to a decrease in net deferred tax assets and liabilities due to sales of property. As of December 31, 2010 and 2009, we had net deferred tax assets of $863 and $776, after valuation allowances of $9,301 and $1,299, respectively. The increase in the valuation allowance of $8,002 from December 31, 2009 to December 31, 2010 is primarily related to an increase in net deferred tax assets due to the impairment of real estate. The components of income tax (provision) benefit for the years ended December 31, 2011, 2010 and 2009 are as follows:
|  | 2011 |  |  | 2010 |  |  | 2009 |
Tax provision associated with income from operations on sold properties which is included in discontinued operations |  | $ | (119 | ) |  | $ | — |  |  | $ | (384 | )
Tax provision associated with gains and losses on the sale of real estate which is included in discontinued operations |  |  | (1,127 | ) |  |  | — |  |  |  | (1,462 | )
Tax provision associated with gains and losses on the sale of real estate |  |  | (452 | ) |  |  | (342 | ) |  |  | (143 | )
Income tax (provision) benefit |  |  | (450 | ) |  |  | (2,963 | ) |  |  | 25,185 |
Income tax (provision) benefit |  | $ | (2,148 | ) |  | $ | (3,305 | ) |  | $ | 23,196 |
The income tax (provision) benefit pertaining to income from continuing operations and gain on sale of real estate differs from the amounts computed by applying the applicable federal statutory rate as follows:
|  | 2011 |  |  | 2010 |  |  | 2009 |
Tax (provision) benefit at federal rate related to continuing operations |  | $ | (2,162 | ) |  | $ | 5,141 |  |  | $ | 8,574 |
State tax (provision) benefit, net of federal (provision) benefit |  |  | (521 | ) |  |  | (2,320 | ) |  |  | 1,849 |
Non-deductible permanent items, net |  |  | (54 | ) |  |  | (58 | ) |  |  | (1,652 | )
Change in valuation allowance |  |  | 1,853 |  |  |  | (6,108 | ) |  |  | 16,269 |
Foreign taxes, net |  |  | (96 | ) |  |  | (211 | ) |  |  | 342 |
Other |  |  | 78 |  |  |  | 251 |  |  |  | (340 | )
Net income tax (provision) benefit |  | $ | (902 | ) |  | $ | (3,305 | ) |  | $ | 25,042 |
Michigan Tax Issue As of December 31, 2008, we had paid approximately $1,400 (representing tax and interest for the years 1997-2000) to the State of Michigan regarding business loss carryforwards the appropriateness of which was the subject of litigation initiated by us. On December 11, 2007, the Michigan Court of Claims rendered a decision against us regarding the business loss carryforwards. Also, the court ruled against us on an alternative position involving Michigan’s Capital Acquisition Deduction. We filed an appeal to the Michigan Appeals Court in January 2008; however, as a result of the lower court’s decision, an additional approximately $800 (representing tax and interest for the year 2001) had been accrued through June 30, 2009 for both tax and financial statement purposes. On August 18, 2009, the Michigan Appeals Court issued a decision in our favor on the business loss carryforward issue. The Michigan Department of Treasury appealed the decision to the Michigan Supreme Court on September 29, 2009; however, we believed there was a very low probability that the Michigan Supreme Court would accept the case. Therefore, in September 2009 we reversed our accrual of $800 (related to the 2001 tax year) and set up a receivable of $1,400 for the amount paid in 2006 (related to the 1997-2000 tax years), resulting in an aggregate reversal of prior tax expense of approximately $2,200. On April 23, 2010, the Michigan Supreme Court reversed the decision of the Michigan Appeals Court and reinstated the decision of the Michigan Court of Claims. Based on the most recent ruling of the Michigan Supreme Court, we reversed the receivable of $1,400 and paid approximately $800, for a total of approximately $2,200 of tax expense for the year ended December 31, 2010, which is included in continuing operations.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 + Details
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