XML 31 R16.htm IDEA: XBRL DOCUMENT
v3.20.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Tax Disclosure [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,
| 2020 |  | 2019 |  | 2018
Current - Federal | $ | — |  |  | $ | 420 |  |  | $ | 66 |
State | 79 |  |  | 541 |  |  | 984 |
Foreign | 7 |  |  | 49 |  |  | 460 |
| 86 |  |  | 1,010 |  |  | 1,510 |
Deferred - Federal | (13,766) |  |  | 80 |  |  | 1,857 |
State | (4,866) |  |  | 132 |  |  | (122) |
Foreign | (32,819) |  |  | 20,806 |  |  | (444) |
Change in valuation allowance | 24,913 |  |  | — |  |  | 300 |
| (26,538) |  |  | 21,018 |  |  | 1,591 |
Income tax (benefit) provision | $ | (26,452) |  |  | $ | 22,028 |  |  | $ | 3,101 |
A reconciliation of the statutory federal tax provision to our income tax provision is as follows (in thousands):
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Statutory federal tax (benefit) provision (1) | $ | (88,733) |  |  | $ | 43,313 |  |  | $ | 19,089 |
Tax impact of REIT election | 37,394 |  |  | (14,125) |  |  | (14,439) |
State income tax (benefit) provision, net of federal tax benefit | (3,782) |  |  | 532 |  |  | 405 |
Foreign income tax expense (benefit) | 3,618 |  |  | (6,998) |  |  | (2,927) |
Change in valuation allowance | 24,913 |  |  | — |  |  | 300 |
Other | 138 |  |  | (694) |  |  | 673 |
Income tax (benefit) provision | $ | (26,452) |  |  | $ | 22,028 |  |  | $ | 3,101 |
_____________________________ (1)Beginning January 1, 2018, the U.S. federal income tax rate decreased from 35% to 21%. Frenchman's Reef 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 are party to a tax agreement with the USVI that reduces the income tax rate to approximately 4.4%. In December 2019, we were granted a modification to the tax agreement that reduces the income tax rate to approximately 2.3% beginning January 1, 2020. This agreement expires in February 2030. 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):
| 2020 |  | 2019
Federal |  |  |
Net operating loss carryforwards | $ | 13,960 |  |  | $ | — |
Deferred income | 2,799 |  |  | 2,382 |
Other | 24 |  |  | 529 |
Depreciation and amortization | (7,028) |  |  | (7,928) |
Less: Valuation allowance | (9,166) |  |  | — |
Federal - Deferred tax assets (liabilities), net | $ | 589 |  |  | $ | (5,017) |
State |  |  |
Net operating loss carryforwards | $ | 5,639 |  |  | $ | 2,572 |
Deferred income | 712 |  |  | 735 |
Alternative minimum tax credit carryforwards | 80 |  |  | 80 |
Other | 7 |  |  | 167 |
Depreciation and amortization | (1,787) |  |  | (2,446) |
Less: Valuation allowance | (4,313) |  |  | (700) |
State - Deferred tax assets, net | $ | 338 |  |  | $ | 408 |
Foreign (USVI) |  |  |
Depreciation and amortization | $ | 12,134 |  |  | $ | (21,060) |
Land basis recorded in purchase accounting | (2,617) |  |  | (2,617) |
Less: Valuation allowance | (12,134) |  |  | — |
Foreign - Deferred tax liabilities, net | $ | (2,617) |  |  | $ | (23,677) |
As of December 31, 2020, we had deferred tax assets of $19.6 million consisting of federal and state net operating loss carryforwards. The state loss carryforwards generally expire in 2022 through 2040 if not utilized by then. Certain of the federal loss carryforwards expire in 2034; the remaining federal loss carryforwards do not expire. We analyze our deferred tax assets for each jurisdiction and record a valuation allowance when we deem it more likely than not that future results will not generate sufficient taxable income to realize the deferred tax assets. As of December 31, 2020, we have a valuation allowance of $25.6 million on our deferred tax assets as we can no longer be assured that we will be able to realize most of these assets due to uncertainties regarding how long the COVID-19 pandemic will last or what the long-term impact will be on our hotels' operations.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration