15. Quarterly Financial Information (Unaudited)

The following is selected unaudited quarterly financial data for the fiscal years ended December 31, 2013 and 2012 (amounts in thousands, except per share data).

The sum of the quarterly per share amounts may not equal the annual totals due to rounding.


	2013
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Revenues	$	222,113		$	245,183		$	221,196		$	266,070
Depreciation and amortization		32,009			29,054			27,916			27,549
Operating income (loss)		(2,244	)		28,903			19,803			29,726
Income (loss) before income taxes and discontinued operations		(12,522	)		14,584			5,783			17,970
Benefit for income taxes		66,292			1,784			12,450			12,136
Income from continuing operations		53,770			16,368			18,233			30,106
Income (loss) from discontinued operations, net of taxes		10			11			(202	)		56
Net income		53,780			16,379			18,031			30,162
Net income available to common stockholders		53,780			11,510			18,031			30,162
Net income per share		1.03			0.22			0.36			0.60
Net income per share—assuming dilution		0.81			0.18			0.30			0.48

	2012
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Revenues	$	238,915		$	253,229		$	228,129		$	266,321
Depreciation and amortization		32,434			30,254			30,701			37,302
Operating income (loss)		21,684			31,608			(33,449	)		(24,597	)
Income (loss) before income taxes and discontinued operations		10,476			20,287			(43,253	)		(16,179	)
(Provision) benefit for income taxes		(4,469	)		(11,314	)		16,581			1,236
Income (loss) from continuing operations		6,007			8,973			(26,672	)		(14,943	)
Income (loss) from discontinued operations, net of taxes		21			(19	)		(2	)		(9	)
Net income (loss)		6,028			8,954			(26,674	)		(14,952	)
Net income (loss) available to common stockholders		6,028			8,954			(26,674	)		(14,952	)
Net income (loss) per share		0.12			0.18			(0.57	)		(0.32	)
Net income (loss) per share — assuming dilution		0.12			0.17			(0.57	)		(0.32	)

During the first quarter of 2013, the Company recorded a net income tax benefit of $61.3 million related to the reversal of certain net deferred tax liabilities that are no longer applicable as a result of the Company’s REIT conversion, partially offset by a valuation allowance on the net deferred tax assets of the Company’s TRSs.

During the first quarter of 2013, in conjunction with its reorganization as a REIT, the Company recognized $15.0 million in REIT conversion costs.

During the second quarter of 2013, in conjunction with its reorganization as a REIT, the Company recognized $5.4 million in REIT conversion costs.

During the second quarter of 2013, the Company entered into agreements with its note hedge counterparties to proportionately reduce the number of Purchased Options and the warrants as described in Note 5. These agreements were considered modifications to the Purchased Options and the warrants, and based on the terms of the agreements, the Company recognized a charge of $4.9 million in 2013, which is recorded as an increase to accumulated deficit and additional paid-in-capital in the accompanying consolidated balance sheets. This charge also represents a deduction from net income in calculating net income available to common stockholders and earnings per share available to common stockholders.

During the third quarter of 2013, the Company recorded a loss on extinguishment of debt of approximately $4.2 million related to the repurchase and conversion of a portion of its outstanding Convertible Notes.

During the first quarter of 2012, in conjunction with its exploration of opportunities to unlock shareholder value, the Company recognized $3.1 million in selling, general and administrative expenses, which were reclassified as REIT conversion costs in the third quarter of 2012.

During the second quarter of 2012, in conjunction with its exploration of opportunities to unlock shareholder value, the Company recognized $3.4 million in selling, general and administrative expenses, which were reclassified as REIT conversion costs in the third quarter of 2012.

During the third quarter of 2012, in conjunction with its decision to reorganize as a REIT, the Company recognized $51.4 million in REIT conversion costs.

During the fourth quarter of 2012, in conjunction with its decision to reorganize as a REIT, the Company recognized $44.2 million in REIT conversion costs.

During the fourth quarter of 2012, the Company recognized $20.0 million in income recognized on the sale of the IP Rights to Marriott, which was recorded as other gains and (losses).

During the fourth quarter of 2012, the Company adjusted the useful lives of certain assets that were disposed of at various points as the Company continued its conversion to a REIT and recognized a pre-tax charge of $8.0 million in depreciation and amortization expense.