Basis of Presentation and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Reconciliation Net Income (Loss) Attributable to Estimated Taxable Income

The following table reconciles net income (loss) attributable to Paramount Group, Inc. to estimated taxable income for the years ended December 31, 2017, 2016 and 2015.


	For the Year Ended December 31,
(Amounts in thousands)	2017			2016			2015
Net income (loss) attributable to Paramount Group, Inc.	$	86,381		$	(9,934	)	$	(4,419	)
Book to tax differences:
Straight-lining of rents and amortization of above and below-market leases, net		(44,083	)		(51,880	)		(36,131	)
Depreciation and amortization		96,991			95,489			104,399
Stock-based compensation		14,441			9,673			5,794
Gain on sale of real estate		(95,182	)		-			-
Swap breakage costs		(1,487	)		(25,367	)		(27,147	)
Unrealized gain on interest rate swaps		(860	)		(4,651	)		(29,586	)
Valuation allowance on preferred equity investment		4,327			-			-
Earnings of unconsolidated joint ventures, including real estate investments		(8,600	)		(3,513	)		(12,909	)
Other, net		1,885			13,295			7,356
Estimated taxable income	$	53,813		$	23,112		$	7,357

Summary of Characterization of Dividend Distributions for Federal Income Tax Purposes

The following table sets forth the characterization of dividend distributions for federal income tax purposes for the years ended December 31, 2017, 2016 and 2015.

	For the Year Ended December 31,
	2017						2016						2015
	Amount			%			Amount			%			Amount			%
Return of capital	$	0.185			48.7	%	$	0.273			71.8	%	$	0.289			89.2	%
Ordinary income		0.195			51.3	%		0.107			28.2	%		0.035			10.8	%
Total	$	0.380	⁽¹⁾		100.0	%	$	0.380	⁽²⁾		100.0	%	$	0.324	⁽³⁾		100.0	%

⁽¹⁾	Excludes the fourth quarter 2017 dividend of $0.095 per share, which was paid on January 12, 2018 and is allocable to 2018 for federal income tax purposes.

⁽²⁾	Excludes the fourth quarter 2016 dividend of $0.095 per share, which was paid on January 13, 2017 and is allocable to 2017 for federal income tax purposes.

⁽³⁾

Excludes the fourth quarter 2015 dividend of $0.095 per share, which was paid on January 15, 2016 and is allocable to 2016 for federal income tax purposes and includes a dividend of $0.039 per share, which was for the 38-day period following the completion of our initial public offering and ending on December 31, 2014.