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Federal Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Federal Income Taxes | Federal Income Taxes The Company has elected to qualify as a REIT in accordance with Sections 856 through 860 of the Code, and intends at all times to qualify as a REIT under the Code. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that it currently distribute at least 90% of its annual REIT taxable income to its shareholders. As a REIT, the Company generally will not be subject to corporate Federal income tax, provided that distributions to its shareholders equal at least the amount of its REIT taxable income as defined under the Code. As the Company distributed sufficient taxable income for the years ended December 31, 2016, 2015 and 2014, no U.S. Federal income or excise taxes were incurred. If the Company fails to qualify as a REIT in any taxable year, it will be subject to Federal income taxes at the regular corporate rates (including any applicable alternative minimum tax) and may not be able to qualify as a REIT for the four subsequent taxable years. Even though the Company qualifies for taxation as a REIT, the Company is subject to certain state and local taxes on its income and property and Federal income and excise taxes on any undistributed taxable income. In addition, taxable income from non-REIT activities managed through the Company’s TRS's is subject to Federal, state and local income taxes. For taxable years beginning after 2017, no more than 20% of the value of our total assets may consist of the securities of one or more taxable REIT subsidiaries. In the normal course of business, the Company or one or more of its subsidiaries is subject to examination by Federal, state and local jurisdictions as well as certain jurisdictions outside the United States, in which it operates, where applicable. The Company expects to recognize interest and penalties related to uncertain tax positions, if any, as income tax expense. For the three years ended December 31, 2016, the Company recognized no material adjustments regarding its tax accounting treatment for uncertain tax provisions. As of December 31, 2016, the tax years that remain subject to examination by the major tax jurisdictions under applicable statutes of limitations are generally the year 2013 and forward. Reconciliation of Net Income to Taxable Income Reconciliation of GAAP net income attributable to Acadia to taxable income is as follows:
|  | Year Ended December 31,
(dollars in thousands) |  | 2016 |  | 2015 |  | 2014
Net income attributable to Acadia |  | $ | 72,776 |  |  | $ | 65,708 |  |  | $ | 71,064 |
Deferred cancellation of indebtedness income |  | 2,050 |  |  | 2,050 |  |  | 2,050 |
Deferred rental and other income (a) |  | 1,610 |  |  | 82 |  |  | 2,120 |
Book/tax difference - depreciation and amortization (a) |  | 15,189 |  |  | 9,983 |  |  | 7,337 |
Straight-line rent and above- and below-market rent adjustments (a) |  | (7,882 | ) |  | (8,041 | ) |  | (4,917 | )
Book/tax differences - equity-based compensation |  | 10,307 |  |  | 5,833 |  |  | 4,540 |
Joint venture equity in earnings, net (a) |  | (2,011 | ) |  | 5,776 |  |  | (105 | )
Impairment charges and reserves |  | 769 |  |  | (714 | ) |  | 3,735 |
Acquisition costs (a) |  | 5,116 |  |  | 1,190 |  |  | 4,505 |
Gains |  | — |  |  | (760 | ) |  | (11,663 | )
Book/tax differences - miscellaneous |  | (4,924 | ) |  | 2,573 |  |  | (6,041 | )
Taxable income |  | $ | 93,000 |  |  | $ | 83,680 |  |  | $ | 72,625 |
Distributions declared |  | $ | 91,053 |  |  | $ | 84,683 |  |  | $ | 77,194 |
__________
(a) | Adjustments from certain subsidiaries and affiliates, which are consolidated for financial reporting but not for tax reporting, are included in the reconciliation item "Joint venture equity in earnings, net."
Characterization of Distributions The Company has determined that the cash distributed to the shareholders for the periods presented is characterized as follows for Federal income tax purposes:
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
| Per Share |  | % |  | Per Share |  | % |  | Per Share |  | %
Ordinary income | $ | 0.77 |  |  | 66 | % |  | $ | 0.83 |  |  | 68 | % |  | $ | 0.85 |  |  | 69 | %
Qualified dividend | — |  |  | — | % |  | — |  |  | — | % |  | — |  |  | — | %
Capital gain | 0.39 |  |  | 34 | % |  | 0.39 |  |  | 32 | % |  | 0.38 |  |  | 31 | %
Total | $ | 1.16 |  |  | 100 | % |  | $ | 1.22 |  |  | 100 | % |  | $ | 1.23 |  |  | 100 | %
Taxable REIT Subsidiaries Income taxes have been provided for using the liability method as required by ASC Topic 740, "Income Taxes." The Company’s TRS income and provision for income taxes associated with the TRS for the periods presented are summarized as follows (in thousands):
|  | Year Ended December 31,
|  | 2016 |  | 2015 |  | 2014
TRS (loss) income before income taxes |  | $ | (1,583 | ) |  | $ | 1,008 |  |  | $ | (36 | )
Benefit (provision) for income taxes: |  |  |  |  |  |
Federal |  | 378 |  |  | (526 | ) |  | (377 | )
State and local |  | 97 |  |  | (134 | ) |  | (97 | )
TRS net (loss) income before noncontrolling interests |  | (1,108 | ) |  | 348 |  |  | (510 | )
Noncontrolling interests |  | (9 | ) |  | (208 | ) |  | (508 | )
TRS net (loss) income |  | $ | (1,117 | ) |  | $ | 140 |  |  | $ | (1,018 | )
The income tax provision for the Company differs from the amount computed by applying the statutory Federal income tax rate to income before income taxes as follows. Amounts are not adjusted for temporary book/tax differences. (dollars in thousands):
|  | Year Ended December 31,
|  | 2016 |  | 2015 |  | 2014
Federal tax (benefit) provision at statutory tax rate |  | $ | (538 | ) |  | $ | 343 |  |  | $ | (12 | )
TRS state and local taxes, net of Federal benefit |  | (84 | ) |  | 53 |  |  | (2 | )
Tax effect of: |  |  |  |  |  |
Permanent differences, net |  | 1,663 |  |  | 396 |  |  | 446 |
Prior year under-accrual, net |  | — |  |  | 938 |  |  | 1 |
Other |  | (1,516 | ) |  | (131 | ) |  | 41 |
REIT state and local income and franchise taxes |  | 370 |  |  | 188 |  |  | 155 |
Total (benefit) provision for income taxes |  | $ | (105 | ) |  | $ | 1,787 |  |  | $ | 629 |

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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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