Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The components of our provision for income taxes attributable to continuing operations for the periods presented are as follows (in thousands):

	Years Ended December 31,
	2016			2015			2014
Federal
Current	$	6,412		$	10,551		$	19,545
Deferred	(1,608		)	1,901			(7,609		)
	4,804			12,452			11,936
State and Local
Current	7,014			9,075			13,422
Deferred	(2,026		)	1,158			(4,693		)
	4,988			10,233			8,729
Foreign
Current	10,727			16,656			6,869
Deferred	(17,231		)	(1,720		)	(9,925		)
	(6,504		)	14,936			(3,056		)
Total Provision	$	3,288		$	37,621		$	17,609

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of effective income tax for the periods presented is as follows (in thousands):

	Years Ended December 31,
	2016			2015
Pre-tax (loss) income attributable to taxable subsidiaries (a)	$	(15,374	)	$	72,343
Federal (benefit) provision at statutory tax rate (35%)	$	(5,380	)	$	25,244
Change in valuation allowance	6,477			9,074
Non-taxable income	(5,399		)	(5,475		)
Non-deductible expense	3,111			6,982
State and local taxes, net of federal benefit	2,749			6,151
Rate differential	892			(10,589		)
Other	838			6,234
Total provision	$	3,288		$	37,621

	Year Ended December 31,
	2014
Pre-tax income attributable to taxable subsidiaries	$	21,131
Federal provision at statutory tax rate (35%)	$	7,396
Recognition of taxable income as a result of the CPA®:16 Merger (b)	4,833
State and local taxes, net of federal benefit	2,296
Interest	2,111
Dividend income from Managed REITs	939
Other	893
Tax provision — taxable subsidiaries	18,468
Deferred foreign tax benefit (c)	(9,925		)
Current foreign taxes	6,869
Other state and local taxes	2,197
Total provision	$	17,609

__________

(a) Pre-tax loss attributable to taxable subsidiaries for 2016 was primarily driven by the impairment charges we recognized on international properties during the year (Note 9).

(b) Represents income tax expense due to a permanent difference from the recognition of deferred revenue as a result of the accelerated vesting of shares previously issued by CPA^®:16 – Global for asset management and performance fees and the payment of deferred acquisition fees in connection with the CPA^®:16 Merger.

(c) Represents deferred tax benefit associated with basis differences on certain foreign properties acquired.

Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes at December 31, 2016 and 2015 consist of the following (in thousands):

	At December 31,
	2016			2015
Deferred Tax Assets
Unearned and deferred compensation	$	33,100		$	35,525
Net operating loss and other tax credit carryforwards	31,381			19,553
Basis differences — foreign investments	28,324			6,975
Other	5,560			3,788
Total deferred tax assets	98,365			65,841
Valuation allowance	(27,350		)	(29,746		)
Net deferred tax assets	71,015			36,095
Deferred Tax Liabilities
Basis differences — foreign investments	(123,269		)	(81,058		)
Basis differences — equity investees	(17,282		)	(19,925		)
Deferred revenue	(7,318		)	(8,654		)
Total deferred tax liabilities	(147,869		)	(109,637		)
Net Deferred Tax Liability	$	(76,854	)	$	(73,542	)

Unrecognized Tax Benefits

The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits (in thousands):

	Years Ended December 31,
	2016			2015
Beginning balance	$	4,304		$	2,055
Addition based on tax positions related to prior years	1,264			1,447
Addition based on tax positions related to the current year	137			1,510
Decrease due to lapse in statute of limitations	(97		)	(572		)
Foreign currency translation adjustments	(22		)	(136		)
Ending balance	$	5,586		$	4,304