Federal Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of 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,
(in thousands)	2018			2017			2016
Net income attributable to Acadia	$	31,439		$	61,470		$	72,776
Deferred cancellation of indebtedness income		2,050			2,050			2,050
Deferred rental and other income ^(a)		1,222			(934	)		1,610
Book/tax difference - depreciation and amortization ^(a)		23,166			21,334			15,189
Straight-line rent and above- and below-market rent adjustments ^(a)		(12,129	)		(10,559	)		(7,882	)
Book/tax differences - equity-based compensation		6,042			5,325			10,307
Joint venture equity in earnings, net ^(a)		13,905			9,114			(2,011	)
Impairment charges and reserves		—			—			769
Acquisition costs ^(a)		326			1,135			5,116
Gains		—			(5,181	)		—
Book/tax differences - miscellaneous		(2,821	)		930			(4,924	)
Taxable income	$	63,200		$	84,684		$	93,000
Distributions declared	$	89,122		$	87,848		$	91,053

(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.”

Schedule of Tax Status of Dividends

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,
	2018					2017					2016
	Per Share		%			Per Share		%			Per Share		%
Ordinary income - Non-Section 199A		—		—	%	$	0.82		78	%	$	0.77		66	%
Ordinary income - Section 199A	$	0.87		100	%		—		—	%		—		—	%
Qualified dividend		—		—	%		—		—	%		—		—	%
Capital gain		—		—	%		0.23		22	%		0.39		34	%
Total ^(b)	$	0.87		100	%	$	1.05		100	%	$	1.16		100	%

(b)	The fourth quarter 2018 regular dividend was $0.28 per common share of which approximately $0.06 was allocable to 2018 and approximately $0.22 is allocable to 2019.

Schedule of TRS Income and Provision for Income Taxes

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,
	2018			2017			2016
TRS loss before income taxes	$	(2,609	)	$	(3,604	)	$	(1,583	)
(Provision) benefit for income taxes:
Federal		(377	)		(982	)		378
State and local		26			423			97
TRS net loss before noncontrolling interests		(2,960	)		(4,163	)		(1,108	)
Noncontrolling interests		4			8			(9	)
TRS net loss	$	(2,956	)	$	(4,155	)	$	(1,117	)

Schedule of Effective Income Tax Rate Reconciliation

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 (in thousands):

	Year Ended December 31,
	2018			2017			2016
Federal tax benefit at statutory tax rate	$	(548	)	$	(1,225	)	$	(538	)
TRS state and local taxes, net of Federal benefit		(165	)		(190	)		(84	)
Tax effect of:
Permanent differences, net		951			1,131			1,663
Prior year over-accrual, net		—			(1,541	)		—
Effect of Tax Cuts and Jobs Act		—			1,982			—
Other		172			404			(1,516	)
REIT state and local income and franchise taxes		524			443			370
Total provision (benefit) for income taxes	$	934		$	1,004		$	(105	)