Print Page  Close Window

SEC Filings



10-K
MACERICH CO filed this Form 10-K on 02/23/2018
Entire Document
 
THE MACERICH COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts)
21. Income Taxes: (Continued)

The income tax provision of the TRSs for the years ended December 31, 2017, 2016 and 2015 are as follows:
 
2017
 
2016
 
2015
Current
$
185

 
$
(176
)
 
$

Deferred
(15,779
)
 
(546
)
 
3,223

Income tax (expense) benefit
$
(15,594
)
 
$
(722
)
 
$
3,223


The income tax provision of the TRSs for the years ended December 31, 2017, 2016 and 2015 are reconciled to the amount computed by applying the Federal Corporate tax rate as follows:
 
2017
 
2016
 
2015
Book loss for TRSs
$
2,094

 
$
5,254

 
$
10,681

Tax at statutory rate on earnings from continuing operations before income taxes
$
712

 
$
1,786

 
$
3,632

Change in tax rates
(14,189
)
 

 

State taxes
109

 
160

 
420

Other
(2,226
)
 
(2,668
)
 
(829
)
Income tax (expense) benefit
$
(15,594
)
 
$
(722
)
 
$
3,223


The Tax Cuts and Jobs Act of 2017 (“TCJA”), signed into law on December 22, 2017, adjusted the federal corporate tax income rate to 21%.  FASB Accounting Standards Codification Topic 740 requires deferred tax assets and liabilities to be measured at the enacted rate expected to apply when temporary differences are to be realized or settled. Accordingly, the Company has remeasured its ending deferred tax asset and reduced the value by $14,189. Additionally, GAAP requires that all adjustments resulting from tax rate changes be recorded to the income statement. Therefore, the Company recorded a $14,189 deferred tax expense in the fourth quarter related to the revaluation of its deferred tax assets and liabilities.  
The net operating loss carryforwards are currently scheduled to expire through 2035, beginning in 2025.
The tax effects of temporary differences and carryforwards of the TRSs included in the net deferred tax assets at December 31, 2017 and 2016 are summarized as follows:
 
2017
 
2016
Net operating loss carryforwards
$
21,398

 
$
22,335

Property, primarily differences in depreciation and amortization, the tax basis of land assets and treatment of certain other costs
5,077

 
12,720

Other
2,531

 
3,246

Net deferred tax assets
$
29,006

 
$
38,301

For the years ended December 31, 2017, 2016 and 2015 there were no unrecognized tax benefits.
The tax years 2014 through 2016 remain open to examination by the taxing jurisdictions to which the Company is subject. The Company does not expect that the total amount of unrecognized tax benefit will materially change within the next 12 months.

105