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Income Taxes
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6 Months Ended |
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Jun. 30, 2014
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| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The total income tax expense of $926 and $3,115 for the six month periods ended June 30, 2014 and 2013, respectively, is reflected as a component of (loss) income from continuing operations. For the period ended June 30, 2014, the Company’s effective tax rate on income from continuing operations, adjusted for the net loss attributable to the VIE subordinated noteholders, is equal to 33.6%, which does not bear a customary relationship to statutory income tax rates. The tax rate for the period ended June 30, 2014 is lower than the U.S. statutory income tax rate of 35% primarily due to the partnership income not subject to tax partially offset by state income taxes. Prior periods do not have comparable effective tax rates as the Company, prior to June 30, 2013, was treated as a Real Estate Investment Trust (“REIT”) for tax purposes and was not subject to income taxes. On September 13, 2013, the Internal Revenue Service issued final Tangible Property Regulations (TPR) under Internal Revenue Code (IRC) Section 162 and IRC Section 263(a), which prescribe the capitalization treatment of certain repair costs, asset betterments and other costs which could affect temporary deferred taxes. Although the regulations are not effective until tax years beginning on or after January 1, 2014, certain portions may require an accounting method change on a retroactive basis, thus requiring an IRC Section 481(a) adjustment related to fixed and real asset deferred taxes. Pursuant to U.S. GAAP, as of the date of the issuance, the release of the regulations is treated as a change in tax law. Therefore, we were required to determine whether there was an impact on our financial statements as of December 31, 2013. We analyzed the expected impact of the new regulations on our financial position and determined that such impact is not significant. We will continue to monitor any future changes in the TPR prospectively. |