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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | 11. Income Taxes The Company has elected to be taxed as a REIT effective January 1, 2013, pursuant to the U.S. Internal Revenue Code of 1986, as amended. As a REIT, generally the Company will not be subject to federal corporate income taxes on ordinary taxable income and capital gains income from real estate investments that it distributes to its stockholders. The Company will, however, be subject to corporate income taxes on built-in gains (the excess of fair market value over tax basis at January 1, 2013) that result from gains on the sale of certain assets prior to January 1, 2018. In addition, the Company will continue to be required to pay federal and state corporate income taxes on earnings of its TRSs. The income tax (provision) benefit for continuing operations consists of the following (amounts in thousands):
|  | 2016 |  |  | 2015 |  |  | 2014 |
CURRENT: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (1,788 | ) |  | $ | (763 | ) |  | $ | (2,071 | )
State |  |  | (1,291 | ) |  |  | (1,229 | ) |  |  | (2,339 | )
Total current provision |  |  | (3,079 | ) |  |  | (1,992 | ) |  |  | (4,410 | )
DEFERRED: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 321 |  |  |  | 8,866 |  |  |  | 2,588 |
State |  |  | (642 | ) |  |  | (248 | ) |  |  | 3,289 |
Effect of federal tax law change |  |  | — |  |  |  | 5,229 |  |  |  | — |
Total deferred (provision) benefit |  |  | (321 | ) |  |  | 13,847 |  |  |  | 5,877 |
Total (provision) benefit for income taxes |  | $ | (3,400 | ) |  | $ | 11,855 |  |  | $ | 1,467 |
In December 2015, the Protecting Americans from Tax Hikes Act of 2015 (the “PATH Act”) was passed. The PATH Act made permanent several key tax provisions including lowering the recognition period related to built-in gains from ten years to five years. As a result, the Company recorded a one-time, non-cash tax benefit of $5.2 million during the fourth quarter of 2015 to reflect this change. The Company is required to distribute at least 90% of its annual taxable income, excluding net capital gains, to its stockholders in order to maintain its qualification as a REIT. The taxability of distributions to stockholders is determined by the Company’s earnings and profits, which differs from net income reported for financial reporting purposes. The estimated taxability of cash distributions to common shareholders is as follows (per common share):
|  | 2016 |  |  | 2015 |  |  | 2014 |
Ordinary income |  | $ | 2.98 |  |  | $ | 2.50 |  |  | $ | 2.30 |
Capital gains |  |  | 0.17 |  |  |  | 0.23 |  |  |  | 0.17 |
|  | $ | 3.15 |  |  | $ | 2.73 |  |  | $ | 2.47 |
The differences between the income tax provision calculated at the statutory U.S. federal income tax rate of 35% and the actual income tax (provision) benefit recorded for continuing operations are as follows (amounts in thousands):
|  | 2016 |  |  | 2015 |  |  | 2014 |
Statutory federal income tax provision |  | $ | (56,914 | ) |  | $ | (34,774 | ) |  | $ | (43,750 | )
Adjustment for nontaxable income of the REIT |  |  | 48,680 |  |  |  | 34,904 |  |  |  | 44,701 |
State taxes (net of federal tax benefit and change in state valuation allowance) |  |  | (1,933 | ) |  |  | (1,477 | ) |  |  | 950 |
Permanent share-based compensation adjustment |  |  | 1,571 |  |  |  | — |  |  |  | — |
Other permanent items |  |  | (200 | ) |  |  | (165 | ) |  |  | (160 | )
Federal tax credits |  |  | — |  |  |  | — |  |  |  | 112 |
Federal valuation allowance |  |  | 5,519 |  |  |  | 8,271 |  |  |  | (853 | )
Effect of federal tax law change |  |  | — |  |  |  | 5,229 |  |  |  | — |
Other |  |  | (123 | ) |  |  | (133 | ) |  |  | 467 |
|  | $ | (3,400 | ) |  | $ | 11,855 |  |  | $ | 1,467 |
As discussed in Note 1, in 2016, the Company adopted ASU 2016-09. Upon adoption, the Company recorded an immaterial one-time adjustment to retained earnings for prior unrecognized excess tax benefits, net of allowance, as shown in the accompanying consolidated statement of stockholders’ equity for the year ended December 31, 2016. Beginning in 2016, any excess tax benefit or tax deficiency from share-based payment vesting or settlement will be recorded as part of a permanent share-based compensation adjustment. Significant components of the Company’s deferred tax assets and liabilities at December 31 are as follows (amounts in thousands):
|  | 2016 |  |  | 2015 |
DEFERRED TAX ASSETS: |  |  |  |  |  |  |  |
Accounting reserves and accruals |  | $ | 20,979 |  |  | $ | 21,174 |
Defined benefit plan |  |  | 7,665 |  |  |  | 8,389 |
Deferred management rights proceeds |  |  | 69,317 |  |  |  | 70,483 |
Federal and State net operating loss carryforwards |  |  | 51,615 |  |  |  | 44,932 |
Tax credits and other carryforwards |  |  | 819 |  |  |  | 569 |
Investment in joint ventures |  |  | 584 |  |  |  | — |
Other assets |  |  | 6,171 |  |  |  | 7,917 |
Total deferred tax assets |  |  | 157,150 |  |  |  | 153,464 |
Valuation allowance |  |  | (88,653 | ) |  |  | (88,309 | )
Total deferred tax assets, net of valuation allowance |  |  | 68,497 |  |  |  | 65,155 |
DEFERRED TAX LIABILITIES: |  |  |  |  |  |  |  |
Property and equipment, net |  |  | 67,168 |  |  |  | 63,289 |
Goodwill and other intangibles |  |  | 1,201 |  |  |  | 1,236 |
Other liabilities |  |  | 1,597 |  |  |  | 1,793 |
Total deferred tax liabilities |  |  | 69,966 |  |  |  | 66,318 |
Net deferred tax liabilities |  | $ | 1,469 |  |  | $ | 1,163 |
Federal net operating loss carryforwards at December 31, 2016 totaled $83.8 million, resulting in a deferred tax benefit of $29.3 million, which will begin to expire in 2033. Charitable contribution carryforwards at December 31, 2016 totaled $2.2 million, resulting in a deferred tax benefit of $0.8 million, which will begin to expire in 2017. The use of certain federal net operating losses, credits and other deferred tax assets are limited to the Company’s future taxable earnings. As a result, a valuation allowance has been provided for certain federal deferred tax assets. The valuation allowance related to federal deferred tax assets increased (decreased) $0.6 million, $(8.3) million and $4.3 million in 2016, 2015 and 2014, respectively. State net operating loss carryforwards at December 31, 2016 totaled $431.3 million, resulting in a deferred tax benefit of $22.3 million, which will expire between 2017 and 2036. The use of certain state net operating losses, credits and other state deferred tax assets are limited to the future taxable earnings of separate legal entities. As a result, a valuation allowance has been provided for certain state deferred tax assets, including loss carryforwards. The valuation allowance related to state deferred tax assets decreased $0.2 million, $1.8 million and $3.5 million in 2016, 2015 and 2014, respectively. Management believes that it is more likely than not that the results of operations will generate sufficient taxable income to realize the deferred tax assets after giving consideration to the valuation allowance. The Company has concluded IRS examinations through the 2010 tax year. For federal income tax purposes and substantially all the states with which the Company has nexus, the statute of limitations has expired through 2012. However, the Company has state net operating loss carryforwards from closed years, which could be adjusted upon audit. The Company is routinely subject to other various jurisdictional income tax audits; however, there were no outstanding state or local audits at December 31, 2016. The Company has been notified that the 2015 consolidated TRS return has been selected for federal examination. At December 31, 2016 and 2015, the Company had no unrecognized tax benefits. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. At December 31, 2016 and 2015, the Company has accrued no interest or penalties related to uncertain tax positions.

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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 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: 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=65882285&loc=d3e32559-109319 Reference 3: 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=65882285&loc=d3e32718-109319 Reference 4: 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=65882285&loc=d3e32639-109319 Reference 5: 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=65882285&loc=d3e32537-109319 + Details
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