KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued Characterization of Distributions: The following characterizes distributions paid for the years ended December 31, 2011, 2010 and 2009, (in thousands): 2011
2010
2009
Preferred F Dividends Ordinary income ............................ $
11,638
100%
$
11,638
100%
$
11,638
100%
Preferred G Dividends Ordinary income ............................ $
35,650
100%
$
35,650
100%
$
35,650
100%
Preferred H Dividends Ordinary income ................................. $
13,584
100%
$
-
-%
$
-
-%
Common Dividends Ordinary income ............................ $ Return of capital ............................. $ Total dividends distributed........... $
208,832 84,060 292,892 353,764
71% 29% 100%
$ 181,773 77,903 $ 259,676 $ 306,964
70% 30% 100%
$ 204,291 79,445 $ 283,736 $ 331,024
72% 28% 100%
Taxable REIT Subsidiaries and Taxable Entities: The Company is subject to federal, state and local income taxes on income earned from activities in taxable REIT subsidiaries (“TRS”). TRS activities include Kimco Realty Services ("KRS"), a wholly-owned subsidiary of the Company and its subsidiaries, and the consolidated entities of FNC Corporation (“FNC”), and Blue Ridge Real Estate Company/Big Boulder Corporation. The Company is also subject to taxes on its activities in Canada, Mexico, Brazil, Chile, and Peru. Dividends paid to the Company from its subsidiaries and joint ventures in Canada, Mexico and Brazil are generally not subject to withholding taxes under the applicable tax treaty with the United States. Chile and Peru impose a 10% and 4.1% withholding tax, respectively, on dividend distributions. Brazil levies a 0.38% transaction tax on return of capital distributions. During 2011, less than $0.1 million of withholding and transaction taxes were withheld from distributions related to foreign activities. Income taxes have been provided for on the asset and liability method as required by the FASB’s Income Tax guidance. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and the tax basis of taxable assets and liabilities. The Company’s pre-tax book income and provision for income taxes relating to the Company’s TRS and taxable entities which have been consolidated for accounting reporting purposes, for the years ended December 31, 2011, 2010, and 2009, are summarized as follows (in thousands): Income/(loss) before income taxes – U.S......................................... $ (Provision)/benefit for income taxes, net: Federal : Current ............................................................................................. Deferred ........................................................................................... Federal tax (provision)/benefit....................................... State and local: Current ............................................................................................ Deferred.......................................................................................... State tax (provision)/benefit........................................... Total tax (provision)/benefit – U.S........................... Net income/(loss) from U.S. taxable REIT subsidiaries ............. $ Income before taxes – Non-U.S. ........................................................... $ (Provision)/benefit for Non-U.S. income taxes: Current ............................................................................................ $ Deferred.......................................................................................... Non-U.S. tax provision .............................................................................. $
88
2011 36,077
$
2010 (23,658)
$
2009 (104,231)
(2,463) (10,635) (13,098)
1,482 7,136 8,618
24,225 11,029 35,254
(1,343) (2,064) (3,407) (16,505) 19,572
$
(265) 1,385 1,120 9,738 (13,920)
$
(1,007) 2,140 1,133 36,387 (67,844)
63,154
$
102,426
$
106,269
(4,484) 2,784 (1,700)
$
(13,671) 430 (13,241)
$
(6,380) (95) (6,475)
$
$