Tanger Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Payroll and related costs and interest costs capitalized for the years ended December 31, 2017, 2016 and 2015 were as follows (in thousands):



	2017		2016		2015
Payroll and related costs capitalized	$	2,345	$	2,095	$	2,989
Interest costs capitalized	$	2,289	$	2,259	$	3,448

Schedule of depreciation expense

Depreciation expense related to rental property included in net income for each of the years ended December 31, 2017, 2016 and 2015 was as follows (in thousands):



	2017		2016		2015
Depreciation expense related to rental property	$	107,845	$	96,813	$	85,872

Schedule of Deferred Charges

Of the amounts capitalized during 2017, 2016 and 2015 the following were related to payroll and related costs (in thousands):



	2017		2016		2015
Deferred lease costs capitalized- payroll and related costs	$	6,098	$	6,210	$	6,236

Deferred lease costs capitalized, including amounts paid to third-party brokers and payroll and related costs of employees directly involved in originating leases for the years ended December 31, 2017, 2016 and 2015 were as follows (in thousands):



	2017		2016		2015
Deferred lease costs capitalized	$	6,584	$	7,013	$	7,803

Tax Treatment of Common Dividends Per Share for Federal Tax Purposes

For income tax purposes, distributions paid to the Company's common shareholders consist of ordinary income, capital gains, return of capital or a combination thereof. Dividends per share for the years ended December 31, 2017, 2016 and 2015 were taxable as follows:



Common dividends per share:	2017		2016		2015
Ordinary income	$	1.1660	$	1.2459	$	1.2846
Capital gain	—		0.0141		0.0204
Return of capital	0.1865		—		—
	$	1.3525	$	1.2600	$	1.3050

GAAP Reconciliation of Net Income to Taxable Income

The following reconciles net income available to the Company's shareholders to taxable income available to common shareholders for the years ended December 31, 2017, 2016 and 2015 (in thousands):



	2017			2016			2015
Net income available to the Company's shareholders	$	68,002		$	193,744		$	211,200
Book/tax difference on:
Depreciation and amortization	10,685			1,666			12,446
Sale of assets and interests in unconsolidated entities	(8,718		)	(8,688		)	(110,248		)
Equity in earnings from unconsolidated joint ventures	15,662			4,305			6,772
Share-based payment compensation	221			4,596			4,751
Gain on previously held interest in acquired joint venture	—			(91,467		)	—
Other differences	(1,089		)	6,294			(2,831		)
Taxable income available to common shareholders	$	84,763		$	110,450		$	122,090

Schedule of Supplemental Cash Flow Disclosures

Interest paid, net of interest capitalized was as follows for the years ended December 31, 2017, 2016 and 2015 (in thousands):



	2017		2016		2015
Interest paid, net of interest capitalized	$	56,730	$	50,270	$	49,542

Expenditures included in accounts payable and accrued expenses were as follows for the years ended December 31, 2017, 2016 and 2015 (in thousands):



	2017		2016		2015
Costs relating to construction included in accounts payable and accrued expenses	$	32,060	$	22,908	$	28,665