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Income Taxes
 12 Months Ended
Dec. 31, 2011
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

Piedmont’s income tax basis net income for the years ended December 31, 2011, 2010, and 2009, is calculated as follows (in thousands):

 
2011
 
2010
 
2009
 
GAAP basis financial statement net income
$
225,041

 
$
120,379

  
$
74,700

 
Increase (decrease) in net income resulting from:
 
 
 
 
 
 
Depreciation and amortization expense for financial reporting purposes in excess of amounts for income tax purposes
47,346

 
29,892

  
43,172

 
Rental income accrued for income tax purposes less than amounts for financial reporting purposes
(9,380
)
 
(528
)
 
(624
)
 
Net amortization of above/below-market lease intangibles for financial reporting purposes in excess of amounts for income tax purposes
(6,605
)
 
(5,573
)
 
(5,134
)
 
Gain on disposal of property for financial reporting purposes in excess of amounts for income tax purposes
(66,410
)
 
(9,254
)
  
—

 
Taxable income of Piedmont Washington Properties, Inc., in excess of amount for financial reporting purposes
4,515

 
5,096

  
5,991

 
Other expenses for financial reporting purposes in excess of amounts for income tax purposes
(2,072
)
 
9,570

 
44,077

(1) 
Income tax basis net income, prior to dividends paid deduction
$
192,435

 
$
149,582

  
$
162,182

 

(1) 
Includes approximately $35.1 million of recorded impairment loss on real estate assets for the year ended December 31, 2009.

For income tax purposes, dividends to common stockholders are characterized as ordinary income, capital gains, or as a return of a stockholder’s invested capital. The composition of Piedmont’s distributions per common share is presented below:

 
2011
 
2010
 
2009
Ordinary income
61
%
 
69
%
 
81
%
Capital gains
27
%
 
—

 
—

Return of capital
12
%
 
31
%
 
19
%
 
100
%
 
100
%
 
100
%


At December 31, 2011, the tax basis carrying value of Piedmont’s total assets was approximately $4.3 billion.

Accrued interest and penalties related to uncertain tax positions are included in accounts payable, accrued expenses, and accrued capital expenditures in the accompanying consolidated balance sheets and represented approximately $6.7 million as of December 31, 2011 and 2010. Piedmont recorded no additional expense during the years ended December 31, 2011, 2010, and 2009, respectively, related to such positions. The tax years 2008 to 2011 remain open to examination by various federal and state taxing authorities.