Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Taxes

Schedule of income tax benefit (provision)

The income tax benefit (provision) for the Company is included in the consolidated financial statements as follows (in thousands):

	2017		2016		2015
Current:
Federal	$	(298)	$	1,379	$	(655)
State		(1,162)		(763)		(779)
Current income tax benefit (provision), net		(1,460)		616		(1,434)
Deferred:
Federal		(5,591)		3,797		4,856
State		(442)		1,638		1,254
Change in valuation allowance		15,268		(5,435)		(6,110)
Deferred income tax benefit (provision), net		9,235		—		—
Income tax benefit (provision), net	$	7,775	$	616	$	(1,434)

Schedule of effective income tax rate reconciliation

Reconciliations of the Company’s tax provision at the U.S. statutory rate to the benefit (provision) for income taxes, net were as follows (in thousands):

	2017		2016		2015
Expected federal tax expense at statutory rate	$	(44,930)	$	(47,621)	$	(115,960)
Tax impact of REIT election		41,169		44,320		113,278
Expected tax expense of TRS		(3,761)		(3,301)		(2,682)
State income tax expense, net of federal benefit		(318)		(1,081)		(483)
Change in valuation allowance		14,340		6,556		2,832
Other permanent items		(381)		(1,558)		(1,101)
Alternative minimum tax credit		1,421		—		—
Effect of rate change		(3,526)		—		—
Income tax benefit (provision), net	$	7,775	$	616	$	(1,434)

Schedule of deferred tax assets (liabilities)

The significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

	December 31,
	2017		2016
Deferred Tax Assets:
Net operating loss carryover	$	4,427	$	10,270
Other reserves		1,301		1,945
State taxes and other		3,232		2,716
Depreciation		532		702
Total deferred tax assets		9,492		15,633
Deferred Tax Liabilities:
Amortization		(63)		(119)
Deferred revenue		(157)		(192)
Other		(37)		(54)
Total deferred tax liabilities		(257)		(365)
Total net deferred tax asset before valuation allowance		9,235		15,268
Valuation allowance		—		(15,268)
Deferred tax asset net of valuation allowance	$	9,235	$	—

Schedule of characterization of distributions

For income tax purposes, distributions paid consist of ordinary income, capital gains, return of capital or a combination thereof. For the years ended December 31, 2017, 2016 and 2015, distributions paid per share were characterized as follows (unaudited):

	2017				2016				2015
	Amount		%		Amount		%		Amount		%
Common Stock:
Ordinary income	$	0.554	75.95	%	$	0.609	89.62	%	$	0.661	46.86	%
Capital gain		0.176	24.05			0.071	10.38			0.749	53.14
Return of capital		—	—			—	—			—	—
Total	$	0.730	100	%	$	0.680	100	%	$	1.410	100	%
Preferred Stock — Series D
Ordinary income	$	—	—	%	$	0.473	89.62	%	$	0.937	46.86	%
Capital gain		—	—			0.055	10.38			1.063	53.14
Return of capital		—	—			—	—			—	—
Total	$	—	—	%	$	0.528	100	%	$	2.000	100	%
Preferred Stock — Series E
Ordinary income	$	1.320	75.95	%	$	1.259	89.62	%	$	—	—	%
Capital gain		0.418	24.05			0.146	10.38			—	—
Return of capital		—	—			—	—			—	—
Total	$	1.738	100	%	$	1.405	100	%	$	—	—	%
Preferred Stock — Series F
Ordinary income	$	1.225	75.95	%	$	0.903	89.62	%	$	—	—	%
Capital gain		0.388	24.05			0.105	10.38			—	—
Return of capital		—	—			—	—			—	—
Total	$	1.613	100	%	$	1.008	100	%	$	—	—	%