Basis of Presentation and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

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

The following table reconciles net (loss) income attributable to Paramount Group, Inc. to estimated taxable income for the years ended December 31, 2019, 2018 and 2017.


	For the Year Ended December 31,
(Amounts in thousands)	2019			2018			2017
Net (loss) income attributable to Paramount Group, Inc.	$	(36,899	)	$	9,147		$	86,381
Book to tax differences:
Straight-lining of rents and amortization of above and below-market leases, net		(37,244	)		(48,604	)		(44,083	)
Depreciation and amortization		79,750			92,512			96,991
Stock-based compensation		20,812			17,847			14,441
Real estate impairment loss		38,237			41,788			-
Gain on sale of real estate		12,107			(14,381	)		(95,182	)
Earnings of unconsolidated joint ventures, including real estate fund investments		4,597			179			(8,600	)
Write-off of preferred equity investment		-			(3,574	)		4,327
Unrealized gain on interest rate swaps		-			-			(860	)
Other, net		8,156			(8,240	)		398
Estimated taxable income	$	89,516		$	86,674		$	53,813

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, 2019, 2018 and 2017.

	For the Year Ended December 31,
	2019						2018						2017
	Amount			%			Amount			%			Amount			%
Ordinary income	$	0.323	⁽¹⁾		80.7	%	$	0.286	⁽¹⁾		72.4	%	$	0.195	⁽¹⁾		51.3	%
Long-term capital gain		0.062			15.5	%		0.074			18.7	%		0.034			8.9	%
Return of capital		0.015			3.8	%		0.035			8.9	%		0.151			39.8	%
Total	$	0.400	⁽²⁾		100.0	%	$	0.395	⁽²⁾		100.0	%	$	0.380	⁽²⁾		100.0	%

⁽¹⁾	^{Represents amounts treated as “qualified REIT dividends” for purposes of Internal Revenue Code Section 199A.}

⁽²⁾	^{The fourth quarter dividends for the years ended December 31, 2019, 2018 and 2017 of $0.10, $0.10 and $0.095 per share, respectively, were paid in January of the subsequent years and are allocable to the subsequent years for federal income tax purposes.}