Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Summary of combined activity TRS

The following represents the combined activity of the Company’s TRS (in thousands):

	For the Year Ended December 31,
	2011		2010			2009
Book income (loss) before income taxes	$	4,738	$	(22,843	)	$	(19,104	)

Summary of components of income tax (benefit) expense

Components of income tax expense (benefit) are as follows:

Current:
Federal	$	351	$	(1,775	)	$	(1,614	)
State and local		—		—			—
		351		(1,775	)		(1,614	)
Deferred:
Federal		—		45,311			(5,810	)
State and local		—		6,663			(855	)
		—		51,974			(6,665	)
Total expense (benefit)	$	351	$	50,199		$	(8,279	)

Summary of differences between total income tax expense statutory federal income tax rate

The differences between total income tax expense or benefit and the amount computed by applying the statutory federal income tax rate to income before taxes were as follows (in thousands):

	For the Year Ended December 31,
	2011			2010			2009
Statutory rate of 34% applied to pre-tax income (loss)	$	1,611		$	(7,767	)	$	(6,495	)
Effect of state and local income taxes, net of federal tax benefit		237			(1,142	)		(955	)
Valuation allowance (decrease) increase		(715	)		58,322			—
Other		(782	)		786			(829	)
Total expense (benefit)	$	351		$	50,199		$	(8,279	)
Effective tax rate		7.40	%		(219.76	)%(A)		43.34	%

(A) The 2010 effective tax rate includes the impact from the recording of the valuation allowance in the fourth quarter 2010. Without this impact, the effective tax rate was approximately 37.59%.

Summary of deferred tax assets and liabilities

Deferred tax assets and liabilities of the Company’s TRS were as follows (in thousands):

	For the Year Ended December 31,
	2011			2010			2009
Deferred tax assets	$	58,297		$	58,923		$	52,671
Deferred tax liabilities		(690	)		(601	)		(775	)
Valuation allowance		(57,607	)		(58,322	)		—
Net deferred tax asset (A)	$	—		$	—		$	51,896

(A) The components of the net deferred tax assets are primarily attributable to net operating losses, interest expense, subject to limitations and basis differentials in assets due to purchase price accounting.

Reconciliation of GAAP net loss attributable to taxable income

Reconciliation of GAAP net loss attributable to DDR to taxable income is as follows (in thousands):

	For the Year Ended December 31,
	2011			2010			2009
GAAP net loss attributable to DDR	$	(15,854	)	$	(209,358	)	$	(356,593	)
Plus: Book depreciation and amortization (A)		222,751			217,035			221,119
Less: Tax depreciation and amortization (A)		(181,935	)		(179,377	)		(171,684	)
Book/tax differences on gains/losses from capital transactions		(116,395	)		(103,331	)		(131,909	)
Joint venture equity in earnings (loss), net (A)		19,190			(28,659	)		(4,194	)
Dividends from subsidiary REIT investments		954			1,609			2,833
Deferred income		(4,327	)		1,937			(2,734	)
Compensation expense		(17,614	)		1,199			19,122
Impairment charges		128,765			172,127			339,303
Equity derivative instrument valuation		(21,926	)		40,157			199,797
Senior Convertible Notes interest expense		14,914			8,204			12,238
Miscellaneous book/tax differences, net		(12,131	)		(12,007	)		(24,838	)
Taxable income (loss) before adjustments		16,392			(90,464	)		102,460
Less: Taxable loss carried forward (B)		—			90,464			—
Taxable income subject to the 90% dividend requirement	$	16,392		$	—		$	102,460

(A) Depreciation expense from majority-owned subsidiaries and affiliates, which are consolidated for financial reporting purposes but not for tax reporting purposes, is included in the reconciliation item “Joint venture equity in earnings (loss), net.”

(B) The Company has net operating loss carryforwards expiring in 2030 of approximately $90.5 million that can offset future undistributed taxable income.

Reconciliation between cash dividends paid and the dividends paid deduction

Reconciliation between cash dividends paid and the dividends paid deduction is as follows (in thousands):

	For the Year Ended December 31,
	2011			2010			2009
Dividends paid (A)	$	75,253		$	61,204		$	102,460
Less: Dividends designated to prior year		(6,967	)		(6,967	)		(6,967	)
Plus: Dividends designated from the following year		6,967			6,967			6,967
Less: Return of capital		(58,861	)		(61,204	)		—
Dividends paid deduction	$	16,392		$	—		$	102,460

(A) Dividends paid in 2009 include stock dividends distributed under IRS Revenue Procedure 2009-15.

Summary of tax characterization of common share dividends per share as reported to shareholders

2011 Dividends	Date Paid		Gross Ordinary Income		Capital Gain Distributions		Return of Capital		Total Dividends
4th quarter 2010		01/05/11	$	—	$	—	$	0.0200	$	0.0200
1st quarter		04/05/11		—		—		0.0400		0.0400
2nd quarter		07/06/11		—		—		0.0400		0.0400
3rd quarter		10/11/11		—		—		0.0600		0.0600
4th quarter		01/06/12		—		—		—		—
			$	—	$	—	$	0.1600	$	0.1600
2010 Dividends	Date Paid		Gross Ordinary Income		Capital Gain Distributions		Return of Capital		Total Dividends
4th quarter 2009		01/06/10	$	—	$	—	$	0.0200	$	0.0200
1st quarter		04/06/10		—		—		0.0200		0.0200
2nd quarter		07/07/10		—		—		0.0200		0.0200
3rd quarter		10/05/10		—		—		0.0200		0.0200
4th quarter		01/05/11		—		—		—		—
			$	—	$	—	$	0.0800	$	0.0800
2009 Dividends	Date Paid		Gross Ordinary Income		Capital Gain Distributions		Return of Capital		Total Dividends
1st quarter		04/21/09	$	0.2000	$	—	$	—	$	0.2000
2nd quarter		07/21/09		0.2000		—		—		0.2000
3rd quarter		10/15/09		0.0200		—		—		0.0200
4th quarter		01/06/10		—		—		—		—
			$	0.4200	$	—	$	—	$	0.4200