Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes

Income Taxes

Note 8. Income Taxes

        Our provision for income taxes consists of the following:

	Year Ended December 31,
	2011		2010			2009
Current:
State	$	542	$	520		$	735
Foreign		465		102			—
		1,007		622			735
Deferred:
State		—		—			—
Foreign		340		(72	)		—
		340		(72	)		—
Income tax provision	$	1,347	$	550		$	735

        A reconciliation of our effective tax rate and the U.S. Federal statutory income tax rate is as follows:

	Year Ended December 31,
	2011			2010			2009
Taxes at statutory U.S. federal income tax rate		35.00	%		35.00	%		35.00	%
Dividends paid deduction		(35.00	)%		(35.00	)%		(35.00	)%
State, local, and foreign income taxes, net of federal tax benefit		1.22	%		0.40	%		0.40	%
Effective tax rate		1.22	%		0.40	%		0.40	%

        Deferred income tax assets and liabilities represent the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes, and are determined using tax rates expected to be in effect when the deferred income tax assets and liabilities are anticipated to be paid or recovered. At December 31, 2011 and 2010, we had deferred tax assets of $1,992 and $1,270, respectively, of which $1,414 and $1,178, respectively, related to different carrying amounts for financial reporting and for Australian income tax purposes of our properties in Australia. At December 31, 2011 and 2010, we had deferred tax liabilities of $1,214 and $20, respectively. Because we are uncertain of our ability to realize the future benefit of certain Australian loss carry forwards, we have reduced our net deferred income tax assets by a valuation allowance of $165 and $160 as of December 31, 2011 and 2010, respectively.