Federal Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Reconciliation of Net Income to Taxable Income

Reconciliation of GAAP net income attributable to Acadia to taxable income is as follows:



	Year Ended December 31,
(dollars in thousands)	2016			2015			2014

Net income attributable to Acadia	$	72,776		$	65,708		$	71,064
Deferred cancellation of indebtedness income	2,050			2,050			2,050
Deferred rental and other income ^(a)	1,610			82			2,120
Book/tax difference - depreciation and amortization ^(a)	15,189			9,983			7,337
Straight-line rent and above- and below-market rent adjustments ^(a)	(7,882		)	(8,041		)	(4,917		)
Book/tax differences - equity-based compensation	10,307			5,833			4,540
Joint venture equity in earnings, net ^(a)	(2,011		)	5,776			(105		)
Impairment charges and reserves	769			(714		)	3,735
Acquisition costs ^(a)	5,116			1,190			4,505
Gains	—			(760		)	(11,663		)
Book/tax differences - miscellaneous	(4,924		)	2,573			(6,041		)
Taxable income	$	93,000		$	83,680		$	72,625
Distributions declared	$	91,053		$	84,683		$	77,194

__________


(a)	Adjustments from certain subsidiaries and affiliates, which are consolidated for financial reporting but not for tax reporting, are included in the reconciliation item "Joint venture equity in earnings, net."

Schedule of Tax Status of Dividends

The Company has determined that the cash distributed to the shareholders for the periods presented is characterized as follows for Federal income tax purposes:



	Year Ended December 31,
	2016				2015				2014
	Per Share		%		Per Share		%		Per Share		%
Ordinary income	$	0.77	66	%	$	0.83	68	%	$	0.85	69	%
Qualified dividend	—		—	%	—		—	%	—		—	%
Capital gain	0.39		34	%	0.39		32	%	0.38		31	%
Total	$	1.16	100	%	$	1.22	100	%	$	1.23	100	%

Schedule of TRS Income and Provision for Income Taxes

The Company’s TRS income and provision for income taxes associated with the TRS for the periods presented are summarized as follows (in thousands):



	Year Ended December 31,
	2016			2015			2014
TRS (loss) income before income taxes	$	(1,583	)	$	1,008		$	(36	)
Benefit (provision) for income taxes:
Federal	378			(526		)	(377		)
State and local	97			(134		)	(97		)
TRS net (loss) income before noncontrolling interests	(1,108		)	348			(510		)
Noncontrolling interests	(9		)	(208		)	(508		)
TRS net (loss) income	$	(1,117	)	$	140		$	(1,018	)

Schedule of Effective Income Tax Rate Reconciliation

The income tax provision for the Company differs from the amount computed by applying the statutory Federal income tax rate to income before income taxes as follows. Amounts are not adjusted for temporary book/tax differences. (dollars in thousands):



	Year Ended December 31,
	2016			2015			2014
Federal tax (benefit) provision at statutory tax rate	$	(538	)	$	343		$	(12	)
TRS state and local taxes, net of Federal benefit	(84		)	53			(2		)
Tax effect of:
Permanent differences, net	1,663			396			446
Prior year under-accrual, net	—			938			1
Other	(1,516		)	(131		)	41
REIT state and local income and franchise taxes	370			188			155
Total (benefit) provision for income taxes	$	(105	)	$	1,787		$	629