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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | 17. Income Taxes The Company elected to be treated as a REIT under the Internal Revenue Code of 1986, as amended, commencing with its taxable year ended December 31, 1993. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that the Company distribute at least 90% of its taxable income (excluding net capital gains) to its shareholders. It is management’s current intention to adhere to these requirements and maintain the Company’s REIT status. As a REIT, the Company generally will not be subject to corporate level federal income tax on taxable income it distributes to its shareholders. As the Company distributed sufficient taxable income for each of the three years ended December 31, 2022, 2021 and 2020, 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 regular corporate rates and may not be able to qualify as a REIT for the four subsequent taxable years. Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain foreign, state and local taxes on its income and property and to federal income and excise taxes on its undistributed taxable income. In addition, the Company has a TRS that is subject to federal, state and local income taxes on any taxable income generated from its operational activity. In order to maintain its REIT status, the Company must meet certain income tests to ensure that its gross income consists of passive income and not income from the active conduct of a trade or business. The Company utilizes its TRS to the extent certain fee and other miscellaneous non-real estate-related income cannot be earned by the REIT. For both of the years ended December 31, 2022 and 2021, the Company made a net payment of $0.6 million and for the year ended December 31, 2020, $0.7 million related to taxes. The following represents the activity of the Company’s TRS (in thousands):
|  | For the Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Book income (loss) before income taxes |  | $ | 6,374 |  |  | $ | (3,420 | ) |  | $ | (240 | )
Current |  | $ | — |  |  | $ | — |  |  | $ | 39 |
Deferred |  |  | — |  |  |  | — |  |  |  | — |
Total income tax expense |  | $ | — |  |  | $ | — |  |  | $ | 39 |
The differences between total income tax expense and the amount computed by applying the statutory income tax rate to income before taxes with respect to its TRS activity were as follows (in thousands):
|  | For the Year Ended December 31, |
TRS |  | 2022 |  |  | 2021 |  |  | 2020 |
Statutory Rate |  |  | 21 | % |  |  | 21 | % |  |  | 21 | %
Statutory rate applied to pre-tax income (loss) |  | $ | 1,339 |  |  | $ | (718 | ) |  | $ | (50 | )
State income tax expense net of federal income tax benefit |  |  | — |  |  |  | — |  |  |  | 33 |
Deferred tax impact of contributions of assets |  |  | (7,542 | ) |  |  | (2,410 | ) |  | $ | (3,617 | )
Deferred tax impact of tax rate change |  |  | 261 |  |  |  | (366 | ) |  |  | (300 | )
Valuation allowance (decrease) increase based on impact of tax rate change |  |  | (261 | ) |  |  | 366 |  |  |  | 300 |
Valuation allowance increase (decrease) – other deferred |  |  | 6,094 |  |  |  | (1,087 | ) |  |  | 3,854 |
Expiration of capital loss carryforward |  |  | — |  |  |  | 3,584 |  |  |  | — |
Other |  |  | 109 |  |  |  | 631 |  |  |  | (181 | )
Total expense |  | $ | — |  |  | $ | — |  |  | $ | 39 |
Effective tax rate |  |  | 0.00 | % |  |  | 0.00 | % |  |  | (16.20 | %)
Deferred tax assets and liabilities of the Company’s TRS were as follows (in thousands):
| For the Year Ended December 31, |
| 2022 |  |  | 2021 |
Deferred tax assets(A) | $ | 37,735 |  |  | $ | 31,844 |
Deferred tax liabilities |  | (142 | ) |  |  | (84 | )
Valuation allowance |  | (37,593 | ) |  |  | (31,760 | )
Net deferred tax asset | $ | — |  |  | $ | — |
(A) At December 31, 2022, primarily attributable to $21.6 million of net operating losses and $10.2 million of book/tax differences in joint venture investments. At December 31, 2021, primarily attributable to $20.5 million of net operating losses, $3.8 million of book/tax differences in joint venture investments. The TRS net operating loss carryforwards will expire in varying amounts between the years 2024 and 2035, except for approximately $6.1 million that does not expire and is limited to 80% of taxable income. Reconciliation of GAAP net income attributable to SITE Centers to taxable income is as follows (in thousands):
| For the Year Ended December 31, |
| 2022 |  |  | 2021 |  |  | 2020 |
GAAP net income attributable to SITE Centers | $ | 168,719 |  |  | $ | 124,935 |  |  | $ | 35,721 |
Plus: Book depreciation and amortization(A) |  | 182,227 |  |  |  | 162,342 |  |  |  | 154,051 |
Less: Tax depreciation and amortization(A) |  | (127,506 | ) |  |  | (115,735 | ) |  |  | (105,385 | )
Book/tax differences on losses from capital transactions |  | (50,784 | ) |  |  | (28,114 | ) |  |  | (45,808 | )
Joint venture equity (earnings) loss, net(A) |  | (67,862 | ) |  |  | (15,480 | ) |  |  | 10,572 |
Deferred income |  | (3,925 | ) |  |  | (1,158 | ) |  |  | (13,197 | )
Compensation expense |  | 7,129 |  |  |  | 11,534 |  |  |  | 4,031 |
Impairment charges |  | 2,536 |  |  |  | 7,270 |  |  |  | 24,593 |
Miscellaneous book/tax differences, net |  | (2,547 | ) |  |  | (20,183 | ) |  |  | 549 |
Taxable income before adjustments |  | 107,987 |  |  |  | 125,411 |  |  |  | 65,127 |
Less: Net operating loss carryforward |  | — |  |  |  | (28,576 | ) |  |  | — |
Less: Capital gains |  | (7,664 | ) |  |  | — |  |  |  | — |
Taxable income subject to the 90% dividend requirement | $ | 100,323 |  |  | $ | 96,835 |  |  | $ | 65,127 |
(A) Depreciation expense from majority-owned subsidiaries and affiliates, which is consolidated for financial reporting purposes but not for tax reporting purposes, is included in the reconciliation item “Joint venture equity (earnings) loss, net.” For the years ended December 31, 2022, 2021 and 2020, cash dividends paid for tax purposes were equivalent to, or in excess of taxable income.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=122134291&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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=122134291&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 https://asc.fasb.org/extlink&oid=121826272&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 https://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 https://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 https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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