Income Taxes

As a REIT, the General Partner generally is not subject to federal income tax, with the exception of its TRS. However, the General Partner, including its TRS, and the Operating Partnership are still subject to certain state and local income taxes in the various jurisdictions in which they operate.

Based on the above, Cole Capital’s business, substantially all of which is conducted through a TRS, recognized a benefit of $40.6 million for the year ended December 31, 2014, which is included in other income, net in the accompanying consolidated statement of operations. No provision or benefit for income taxes was recognized for the year ended December 31, 2013 as the Company did not commence operations for Cole Capital until the Cole Acquisition Date. The difference in the benefit from income taxes reflected in the consolidated statements of operations as compared to the benefit calculated at the statutory federal income tax rate is primarily attributable to various permanent differences and state and local income taxes.

The components of the benefit from income taxes for the year ended December 31, 2014 are as follows:



Current
Federal	$	6,305
State	948
Total	7,253

Deferred
Federal	28,968
State	4,356
Total	33,324

Total benefit from income taxes	$	40,577

The components of the net deferred tax assets (liabilities) as of December 31, 2014, which are included in the accompanying consolidated balance sheet as follows:



Intangible assets	$	(55,910	)
Accrued compensation	4,038
Fixed assets	(5,513		)
Program development costs	5,014
Equity-based compensation	1,965
Deferred lease liability	146
Accrued rent	174
Total net deferred tax liability	$	(50,086	)

The REI segment recognized state income and franchise tax expense during the years ended December 31, 2014 and 2013 of $7.3 million and $2.2 million, respectively.

The Company had no unrecognized tax benefits as of or during the year ended December 31, 2014 and 2013. Any interest and penalties related to unrecognized tax benefits would be recognized within the provision for income taxes in the accompanying consolidated statements of operations. The Company files income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and various Canadian jurisdictions, and is subject to routine examinations by the respective tax authorities. With few exceptions, the Company is no longer subject to federal or state examinations by tax authorities for years before 2010.