Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes [Line Items]

Summary of Combined Activity and Taxable Activity

The following represents the combined activity of the Company’s TRS and its taxable activity in Puerto Rico (in thousands):

	For the Year Ended December 31,
	2016		2015			2014
Book income (loss) before income taxes – TRS	$	9,953	$	(1,446	)	$	12,104
Book loss before income taxes – Puerto Rico	$	—	$	—		$	(11,040	)
Current – TRS and Puerto Rico	$	17	$	—		$	—
Deferred – TRS and Puerto Rico		—		—			—
Total expense – TRS	$	17	$	—		$	—
Total expense – Puerto Rico	$	—	$	—		$	—

Summary of Differences Between Total Income Tax Expense Statutory Federal Income Tax Rate

	For the Year Ended December 31,
TRS	2016			2015			2014
Statutory rate of 34% applied to pre-tax income (loss)	$	3,384		$	(492	)	$	4,115
Effect of state and local income taxes, net of federal tax benefit		498			(72	)		605
Valuation allowance decrease		(4,039	)		(1,169	)		(6,144	)
Other		174			1,733			1,424
Total expense	$	17		$	—		$	—
Effective tax rate		0.17	%		0.00	%		0.00	%

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,
	2016			2015
Deferred tax assets(A)	$	61,742		$	65,891
Deferred tax liabilities		(404	)		(514	)
Valuation allowance		(61,338	)		(65,377	)
Net deferred tax asset	$	—		$	—

(A) Primarily attributable to net operating losses, aggregating $37.8 million at December 31, 2016, and interest expense, subject to limitations and basis differentials in assets due to purchase price accounting.  The TRS net operating loss carryforwards will expire in varying amounts between the years 2022 through 2035.  

Reconciliation of GAAP Net income (Loss) Attributable to Taxable Income

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

	For the Year Ended December 31,
	2016			2015			2014
GAAP net income (loss) attributable to DDR	$	60,012		$	(72,168	)	$	117,282
Plus: Book depreciation and amortization(A)		376,493			385,696			341,391
Less: Tax depreciation and amortization(A)		(224,766	)		(228,882	)		(210,850	)
Book/tax differences on losses from capital transactions		(155,170	)		(149,507	)		(313,855	)
Joint venture equity in earnings, net(A)		(3,802	)		8,491			97,323
Deferred income		(8,352	)		(4,293	)		(12,545	)
Compensation expense		(5,237	)		(18,879	)		(6,103	)
Impairment charges		110,906			280,930			68,703
Senior convertible notes – accretion adjustment		—			9,954			11,377
Senior convertible notes – repurchase premium		—			(52,390	)		—
Puerto Rico tax prepayment		—			(16,812	)		—
Miscellaneous book/tax differences, net		(2,625	)		(10,204	)		(14,745	)
Taxable income before adjustments		147,459			131,936			77,978
Less: Capital gains		—			—			(48,015	)
Taxable income subject to the 90% dividend requirement	$	147,459		$	131,936		$	29,963

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

Reconciliation Between Cash Dividends Paid and Dividends Paid Deduction

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

	For the Year Ended December 31,
	2016			2015			2014
Dividends paid	$	293,031		$	264,243		$	239,294
Plus: Deemed dividends on convertible debt		—			14,159			12,026
Less: Dividends designated to prior year		(5,594	)		(5,594	)		(6,608	)
Plus: Dividends designated from the following year		5,594			5,594			5,594
Less: Return of capital		(145,572	)		(146,466	)		(172,328	)
Dividends paid deduction	$	147,459		$	131,936		$	77,978

Puerto Rico [Member]

Income Taxes [Line Items]

Summary of Differences Between Total Income Tax Expense Statutory Federal Income Tax Rate

The differences between total income tax expense and the amount computed by applying the statutory income tax rate to income before taxes with respect to its TRS activity and its Puerto Rico activity were as follows (in thousands):

	For the Year Ended December 31,
Puerto Rico	2014
Statutory rate of 39% applied to pre-tax loss	$	(4,306	)
Valuation allowance increase		4,194
Other		112
Total expense	$	—
Effective tax rate		0.00	%