Distributions
Earnings and profits, which determine the taxability of distributions to shareholders, will differ from income reported for financial reporting purposes due to the differences for federal income tax purposes including the treatment of loss on extinguishment of debt, revenue recognition, compensation expense and in the basis of depreciable assets and estimated useful lives used to compute depreciation.
The following table reconciles the distributions declared per common share to the distributions paid per common share during the years ended December 31, 2013, 2012 and 2011:
|
| | | | | | | | | | | |
| 2013 | | 2012 | | 2011 |
Distributions declared per common share | $ | 0.551 |
| | $ | 0.600 |
| | $ | 0.600 |
|
Less: Distributions declared in the current period, and paid in the subsequent period | (0.042 | ) | | (0.150 | ) | | (0.150 | ) |
Add: Distributions declared in the prior year, and paid in the current year | 0.150 |
| | 0.150 |
| | 0.150 |
|
Distributions paid per common share | $ | 0.659 |
| | $ | 0.600 |
| | $ | 0.600 |
|
Distributions to shareholders during the years ended December 31, 2013, 2012 and 2011, totaled approximately $159.6 million, $144.3 million and $106.4 million, respectively.
The income tax treatment for distributions declared for the years ended December 31, 2013, 2012 and 2011 as identified above, were as follows:
|
| | | | | | | | | | | | | | | | | | | | | |
| 2013 | | 2012 | | 2011 | |
Ordinary Income | $ | 0.2903 |
| | 44.1 | % | | $ | 0.087 |
| | 14.5 | % | | $ | 0.239 |
| | 39.9 | % | |
Return of Capital | 0.3614 |
| | 54.8 | % | | 0.513 |
| | 85.5 | % | | 0.361 |
| | 60.1 | % | (1) |
Capital Gain (2) | 0.0073 |
| | 1.1 | % | | — |
| | — | % | | — |
| | — | % | |
| $ | 0.659 |
| | 100.0 | % | | $ | 0.600 |
| | 100.0 | % | | $ | 0.600 |
| | 100.0 | % | |
__________
| |
(1) | This percentage is comprised of return of capital at 59.6% and qualified dividend income at 0.5%. |
| |
(2) | Capital gains are comprised entirely of unrecaptured Section 1250 gains. |
