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Income Taxes | 12 Months Ended
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Dec. 31, 2011
Income Tax Expense (Benefit) [Abstract] |
Income Taxes | Income Taxes We have elected to be treated as a REIT under the provisions of the Internal Revenue Code, which requires that we distribute at least 90% of our taxable income annually to our stockholders and comply with certain other requirements. In addition to paying federal and state taxes on any retained income, we may be subject to taxes on “built in gains” on sales of certain assets. Our taxable REIT subsidiaries are subject to federal, state, local and/or foreign income taxes. Our provision (benefit) for income taxes consists of the following (in thousands):
| Year Ended December 31,
| 2011 |  | 2010 |  | 2009
Current - Federal | $ | — |  |  | $ | — |  |  | $ | — |
State | 846 |  |  | 279 |  |  | 309 |
Foreign | — |  |  | 106 |  |  | — |
| 846 |  |  | 385 |  |  | 309 |
Deferred - Federal | 3,996 |  |  | 393 |  |  | (16,468 | )
State | 78 |  |  | 152 |  |  | (3,882 | )
Foreign | (1,265 | ) |  | 1,065 |  |  | (385 | )
| 2,809 |  |  | 1,610 |  |  | (20,735 | )
Income tax provision (benefit) from continuing operations | $ | 3,655 |  |  | $ | 1,995 |  |  | $ | (20,426 | )
Income tax provision (benefit) from discontinued operations | $ | (1,031 | ) |  | $ | 647 |  |  | $ | (605 | )
A reconciliation of the statutory federal tax provision to our income tax (benefit) provision is as follows (in thousands):
| Year Ended December 31,
| 2011 |  | 2010 |  | 2009
Statutory federal tax provision (35)% | $ | (1,430 | ) |  | $ | (2,976 | ) |  | $ | (10,532 | )
Tax impact of REIT election | 2,853 |  |  | 4,720 |  |  | (7,717 | )
State income tax provision (benefit), net of federal tax benefit | 601 |  |  | 280 |  |  | (2,322 | )
Foreign income tax provision (benefit) | 1,550 |  |  | (736 | ) |  | (126 | )
Foreign tax rate adjustment | — |  |  | 770 |  |  | — |
Other | 81 |  |  | (63 | ) |  | 271 |
Income tax provision (benefit) from continuing operations | $ | 3,655 |  |  | $ | 1,995 |  |  | $ | (20,426 | )
We are required to pay franchise taxes in certain jurisdictions. We expensed approximately $0.3 million, $0.2 million and $0.1 million of franchise taxes during the years ended December 31, 2011, 2010 and 2009, respectively, which are classified as corporate expenses in the accompanying consolidated statements of operations. Deferred income taxes are recognized for temporary differences between the financial reporting bases of assets and liabilities and their respective tax bases and for operating loss and tax credit carryforwards based on enacted tax rates expected to be in effect when such amounts are paid. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realizable based on consideration of available evidence, including future reversals of existing taxable temporary differences, projected future taxable income and tax planning strategies. Deferred tax assets are included in prepaid and other assets and deferred tax liabilities are included in accounts payable and accrued expenses on the accompanying consolidated balance sheets. The total deferred tax assets and liabilities are as follows (in thousands):
| 2011 |  | 2010
Deferred income related to key money | $ | 9,644 |  |  | $ | 7,620 |
Net operating loss carryforwards | 29,803 |  |  | 36,187 |
Alternative minimum tax credit carryforwards | 43 |  |  | 117 |
Other | 533 |  |  | 422 |
Deferred tax assets | 40,023 |  |  | 44,346 |
Land basis difference recorded in purchase accounting | (4,260 | ) |  | (4,260 | )
Depreciation and amortization | (14,080 | ) |  | (16,854 | )
Deferred tax liabilities | (18,340 | ) |  | (21,114 | )
Deferred tax asset, net | $ | 21,683 |  |  | $ | 23,232 |
We believe that we will have sufficient future taxable income, including future reversals of existing taxable temporary differences, projected future taxable income and tax planning strategies to realize existing deferred tax assets. Deferred tax assets of $10.2 million are expected to be recovered against reversing existing taxable temporary differences. The remaining deferred tax assets of $29.8 million are dependent upon future taxable earnings of the TRS. The Frenchman's Reef & Morning Star Marriott Beach Resort is owned by a subsidiary that has elected to be treated as a TRS, and is subject to U.S. Virgin Islands (USVI) income taxes. We were party to a tax agreement with the USVI that reduced the income tax rate to approximately 7%. This agreement expires in February 2015. If the agreement is not extended, the Company will be subject to an income tax rate of 37.4%.

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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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