Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of cash distributions for federal income tax purposes

For federal income tax purposes, the cash distributions to shareholders are characterized as follows:



	For the Years Ended December 31,
	2017		2016
Common distributions:
Ordinary income	73.0	%	87.0	%
Return of capital	27.0	%	—
Capital gains	—		13.0	%
	100.0	%	100.0	%

Preferred distributions:
Ordinary income	100.0	%	—
Return of capital	—		—
Capital gains	—		—
	100.0	%	—

Schedule of components of the income tax provision from continuing operations

The components of the income tax provision from continuing operations are as follows (in thousands):



	For the Years Ended December 31,
	2017			2016			2015
Current:
Federal	$	(67	)	$	(76	)	$	(287	)
State	(2,304		)	(1,113		)	(1,145		)
Deferred:
Federal	(43,181		)	(6,141		)	36,359
State	3,434			(860		)	4,199
Total net tax (expense) benefit	$	(42,118	)	$	(8,190	)	$	39,126

Schedule of differences between provision for income taxes from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pretax income from continuing operations

The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pretax income from continuing operations as a result of the following differences (in thousands):



	For the Years Ended December 31,
	2017			2016			2015
Expected federal tax expense at statutory rate	$	(41,593	)	$	(73,327	)	$	(63,240	)
Tax impact of REIT election	33,236			68,477			62,391
Expected tax expense at TRS	(8,357		)	(4,850		)	(849		)
Change in valuation allowance	366			(1,254		)	41,147
State income tax expense, net of federal	(1,388		)	(1,520		)	(1,111		)
Impact of rate change	(31,667		)	20			46
Other permanent items	(513		)	(382		)	(416		)
Impact of provision to return/deferred adjustments	(559		)	(204		)	309
Income tax (expense) benefit	$	(42,118	)	$	(8,190	)	$	39,126

A reconciliation of the Company's effective tax rate and the U.S. federal statutory income tax rate is as follows:



	For the Years Ended December 31,
	2017		2016		2015
Statutory U.S. federal income tax rate	35.0	%	35.0	%	35.0	%
Impact of REIT election	(28.0	)%	(32.7	)%	(34.5	)%
State and local income taxes	1.2	%	0.7	%	0.6	%
Change in valuation allowance	(0.3	)%	0.6	%	(22.8	)%
Impact of rate change	26.6	%	—	%	—	%
Other	0.9	%	0.3	%	—	%
Effective tax rate	35.4	%	3.9	%	(21.7	)%

Schedule of deferred tax assets (liabilities)

Deferred income taxes represent the tax effect from continuing operations of the differences between the book and tax basis of the assets and liabilities. The deferred tax assets (liabilities) include the following (in thousands):



	December 31,
	2017			2016
Deferred tax liabilities:
Property and equipment	$	—		$	(8,557	)
Prepaid expenses	(1,501		)	(2,349		)
Intangible assets	(3,597		)	—
Deposits	(449		)	—
Other	—			(524		)
Deferred tax liabilities	$	(5,547	)	$	(11,430	)

Deferred tax assets:
Property and equipment	$	5,427		$	1,082
Incentive and vacation accrual	4,576			2,640
Deferred revenue - key money	1,095			1,703
Allowance for doubtful accounts	128			72
Partnership basis	918			—
Contingent liability	301			—
Other	357			605
Other carryforwards	184			155
Net operating loss carryforwards	64,546			49,787
Federal historic tax credit	824			—
Valuation allowance	(21,595		)	(11,430		)
Deferred tax assets	$	56,761		$	44,614