Income Taxes (Notes)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Income Tax Disclosure

INCOME TAXES

Beginning with our inception in 1991, we have elected to be taxed as a REIT under the Internal Revenue Code (the "Code"). We have elected that our subsidiary established on September 30, 2012 in connection with the Bickford arrangement (which holds our ownership interest in an operating company) be taxed as a taxable REIT subsidiary ("TRS") under provisions of the Code. The TRS is subject to federal and state income taxes like those applicable to regular corporations. Aside from such income taxes which may be applicable to the taxable income in the TRS, we will not be subject to federal income tax provided that we continue to qualify as a REIT and make distributions to stockholders equal to or in excess of our taxable income.

Per share dividend payments to common stockholders for the last three years are characterized for tax purposes as follows:

(Unaudited)	2012		2011		2010
Ordinary income	$	2.62870	$	2.32042	$	2.32601
Capital gain	0.01130		0.32494		0.01887
Return of capital	—		0.06964		0.01512
Dividends declared per common share	$	2.64	$	2.715	$	2.36

Our consolidated provision for state and federal income tax for the years ended 2012, 2011, and 2010 was $137,000, $96,000, and $82,000, respectively. For the years ended 2012, 2011, and 2010 we had no deferred state or federal income tax.

Current taxes for 2012 of $20,000 relates to our equity interest in the unconsolidated operating company whose interest is owned by our TRS described above, plus $117,000 from a franchise tax levied by the state of Texas that has attributes of an income tax. The tax expense for 2011 and 2010 relates entirely to such tax levied in Texas. Our income taxes described above are combined in franchise, excise and other taxes in our Consolidated Statements of Income.

A reconciliation of our income tax expense for financial statement purposes, which is computed by applying the applicable state and federal corporate tax rates for the year ended December 31, 2012, is as follows:

	2012			2011			2010
Tax at statutory rate on earnings from continuing operations before unconsolidated entities, noncontrolling interest and income taxes	$	25,248		$	24,900		$	21,199
State income taxes, net of federal benefit	3,431			3,383			2,881
Tax attributable to non-controlling interest	(70		)	—			—
Tax at statutory rates on earnings not subject to federal and state income taxes	(28,572		)	(28,283		)	(24,080		)
Other differences	100			96			82
Income tax expense	$	137		$	96		$	82

We made state income tax payments of $96,000, $82,000, and $52,000 for the years ended December 31, 2012, 2011 and 2010, respectively.