Income Taxes

As a REIT, the General Partner generally is not subject to federal income tax on taxable income that it distributes to its shareholders as long as it distributes at least 90% of its annual taxable income (computed without regard to the deduction for dividends paid and excluding net capital gains), with the exception of its TRS entities. However, the General Partner, including its TRS entities, and the Operating Partnership are still subject to certain state and local income and franchise taxes in the various jurisdictions in which they operate.

Cole Capital Income Taxes

Based on the above, Cole Capital’s business, substantially all of which is conducted through a TRS, recognized a benefit from income taxes of $9.8 million, $39.9 million and $40.6 million for the years ended December 31, 2016, 2015 and 2014, respectively, which are included in benefit from income taxes in the accompanying consolidated statements of operations.

REI Income Taxes

The REI segment recognized a provision for income taxes of $6.1 million, $3.6 million and $7.3 million for the years ended December 31, 2016, 2015 and 2014, respectively, which are included in benefit from income taxes in the accompanying consolidated statements of operations.

The following table presents the reconciliation of the benefit from income taxes with the amount computed by applying the statutory federal income tax rate to loss before income taxes for the years ended December 31, 2016, 2015 and 2014 (in thousands):



	Year Ended December 31,
	2016					2015					2014
Consolidated loss before taxes	$	(204,525	)			$	(359,795	)			$	(1,044,176	)
Loss from non-taxable entities	64,081					128,545					714,508
Loss attributable to taxable subsidiaries before income taxes	(140,444		)			(231,250		)			(329,668		)
Federal provision at statutory rate	(49,155		)	35.0	%	(80,938		)	35.0	%	(115,384		)	35.0	%
State income taxes and other	(2,982		)	2.1	%	(7,813		)	3.4	%	(3,266		)	1.0	%
Impairment of goodwill	42,326			(30.1	)%	48,879			(21.1	)%	78,073			(23.7	)%
Total benefit from Cole Capital income taxes	$	(9,811	)	7.0	%	$	(39,872	)	17.3	%	$	(40,577	)	12.3	%
REI state income taxes	6,110					3,569					7,313
Total benefit from income taxes	$	(3,701	)			$	(36,303	)			$	(33,264	)

The following table presents the components of the benefit from income taxes for the years ended December 31, 2016, 2015 and 2014 (in thousands):



	Year Ended December 31,
	2016			2015			2014
Current
Federal	$	3,225		$	10,122		$	(6,306	)
State	(2,900		)	2,248			(947		)
Total current provision (benefit)	325			12,370			(7,253		)
Deferred
Federal	(8,871		)	(45,416		)	(28,968		)
State	(1,265		)	(6,826		)	(4,356		)
Total deferred benefit	(10,136		)	(52,242		)	(33,324		)

REI state income taxes	6,110			3,569			7,313

Total benefit from income taxes	$	(3,701	)	$	(36,303	)	$	(33,264	)

The components of the net deferred tax assets as of December 31, 2016 and 2015, which are included in the accompanying consolidated balance sheet, are as follows (in thousands):



	December 31, 2016			December 31, 2015
Intangible assets	$	(7,858	)	$	(17,943	)
Accrued compensation	6,163			6,251
Fixed assets	(3,155		)	(5,192		)
Program development costs	11,668			13,310
Equity-based compensation	4,249			4,700
Other	1,228			1,030
Total net deferred tax asset	$	12,295		$	2,156

The Company had no unrecognized tax benefits as of or during the years ended December 31, 2016, 2015 or 2014. Any interest and penalties related to unrecognized tax benefits would be recognized in provision for income taxes in the accompanying consolidated statements of operations. The Company files income tax returns in the U.S. federal jurisdiction, Canadian federal jurisdiction and various state and local 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 2012.