Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

The following summarizes the tax status of dividends paid on our common shares during the respective years:



		2012		2011		2010
Dividend per share	$	1.85		1.85		1.85
Ordinary income		71	%	33	%	40	%
Capital gain		1	%	1	%	2	%
Return of capital		28	%	66	%	58	%

Components of Income Tax Expense (Benefit)

Income tax expense consists of the following for the years ended December 31, 2012, 2011, and 2010 (in thousands):



		2012	2011	2010
Income tax expense (benefit):
Current	$	97	283	(639	)
Deferred		13,727	2,422	(860	)
Total income tax expense (benefit)	$	13,824	2,705	(1,499	)

Schedule of Income Tax Expense (Benefit), Intraperiod Tax Allocation

Income tax expense (benefit) is included in either income tax expense (benefit) of taxable REIT subsidiaries, if the related income is from continuing operations, or is included in operating income from discontinued operations, if from discontinued operations, on the Consolidated Statements of Operations as follows for the years ended December 31, 2012, 2011, and 2010 (in thousands):



		2012	2011		2010
Income tax expense (benefit) from:
Continuing operations	$	13,224	2,994		(1,333	)
Discontinued operations		600	(289	)	(166	)
Total income tax expense (benefit)	$	13,824	2,705		(1,499	)

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense (benefit) differed from the amounts computed by applying the U.S. Federal income tax rate of 34% to pretax income from continuing operations of RRG for the years ended December 31, 2012, 2011, and 2010, respectively as follows (in thousands):



		2012		2011		2010
Computed expected tax (benefit) expense	$	(2,099	)	1,089		(3,368	)
(Decrease) increase in income tax resulting from state taxes		(122	)	126		(392	)
Valuation allowance		15,635		1,438		286
All other items		410		52		1,975
Total income tax expense (benefit)		13,824		2,705		(1,499	)
Amounts attributable to discontinued operations		600		(289	)	(166	)
Amounts attributable to continuing operations	$	13,224		2,994		(1,333	)

Schedule of Deferred Tax Assets and Liabilities

The following table represents the Company's net deferred tax assets as of December 31, 2012 and 2011 recorded in other assets in the accompanying Consolidated Balance Sheets (in thousands):



		2012		2011
Deferred tax assets
Investments in real estate partnerships	$	8,116		8,124
Provision for impairment		5,667		4,047
Deferred interest expense		4,507		4,507
Capitalized costs under Section 263A		2,637		3,828
Net operating loss carryforward		1,033		280
Employee benefits		838		683
Other		435		791
Deferred tax assets		23,233		22,260
Valuation allowance		(22,114	)	(6,479	)
Deferred tax assets, net		1,119		15,781
Deferred tax liabilities
Straight line rent		519		1,916
Depreciation		600		138
Deferred tax liabilities		1,119		2,054
Net deferred tax assets	$	—		13,727