Entity information:
INCOME TAXES
Stratus’ (provision for) benefit from income taxes consists of the following (in thousands):
 
Years Ended December 31,
 
2017
 
2016
 
2015
Current
$
(7,998
)
 
$
806

 
$
(3,458
)
Deferred
(5,906
)
 
1,973

 
(2,118
)
(Provision for) benefit from income taxes
$
(13,904
)
 
$
2,779

 
$
(5,576
)


Excess tax benefits related to option exercises and vesting of RSUs are required to be recognized as an income tax benefit and expense on the Consolidated Statements of Operations. During 2017, Stratus realized tax benefits of $0.2 million related to excess tax benefits on stock option exercises and RSUs vested.

The components of deferred income taxes follow (in thousands):
 
December 31,
 
2017
 
2016
Deferred tax assets and liabilities:
 
 
 
Real estate, commercial leasing assets and facilities
$
10,179

 
$
13,995

Alternative minimum tax credits (no expiration)
—

 
1,169

Employee benefit accruals
464

 
563

Accrued liabilities
53

 
80

Deferred income
81

 
5

Charitable contribution carryforward
—

 
185

Other assets
711

 
496

Net operating loss credit carryforwards
5

 
1,225

Other liabilities
(32
)
 
(495
)
Deferred tax assets, net
$
11,461

 
$
17,223



Stratus’ future results of operations may be negatively impacted by an inability to realize a tax benefit for future tax losses or for items that will generate additional deferred tax assets. The realization of the deferred tax assets recorded as of December 31, 2017, is primarily dependent upon Stratus' ability to generate future taxable income.

A reconciliation of the U.S. federal statutory tax rate to Stratus' effective income tax rate for the years ended December 31 follows (dollars in thousands):
 
Years Ended December 31,
 
 
2017
 
2016
 
2015
 
 
Amount
 
Percent
 
Amount
 
Percent
 
Amount
 
Percent
 
Income tax (expense) benefit computed at the
 
 
 
 
 
 
 
 
 
 
 
 
federal statutory income tax rate
$
(6,220
)
 
(35
)%
 
$
3,072

 
(35
)%
 
$
(6,983
)
 
(35
)%
 
Adjustments attributable to:
 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling interests
(2
)
 
—

 
—

 
—

 
1,896

 
9

 
Change in statutory rate
(7,580
)
 
(42
)
 
—

 
—

 
—

 
—

 
State taxes and other, net
(102
)
 
(1
)
 
(293
)
 
3

 
(489
)
 
(2
)
 
(Provision for) benefit from income taxes
$
(13,904
)
 
(78
)
 
$
2,779

 
(32
)
 
$
(5,576
)
 
(28
)
 


Stratus paid federal income taxes and state margin taxes totaling $6.9 million in 2017, $1.7 million in 2016 and $2.0 million in 2015. Stratus received income tax refunds of $2.3 million in 2017, and less than $0.1 million in each of 2016 and 2015.

Uncertain Tax Positions. During the three years ended December 31, 2017, Stratus recorded unrecognized tax benefits related to state margin tax filing positions. A summary of the changes in unrecognized tax benefits follows (in thousands):
 
Years Ended December 31,
 
2017
 
2016
 
2015
Balance at January 1
$
773

 
$
1,105

 
$
1,160

Subtractions for tax positions related to prior years
(266
)
 
(332
)
 
(55
)
Balance at December 31
$
507

 
$
773

 
$
1,105



As of December 31, 2017, Stratus had $0.5 million of unrecognized tax benefits that if recognized would affect its annual effective tax rate. During 2018, approximately $0.3 million of unrecognized tax benefits could be recognized as a result of the expiration of statutes of limitations.

Stratus records liabilities offsetting the tax provision benefits of uncertain tax positions to the extent it estimates that a tax position is more likely than not to not be sustained upon examination by the taxing authorities. Stratus has elected to classify any interest and penalties related to income taxes within income tax expense in its
Consolidated Statements of Operations. As of December 31, 2017, less than $0.1 million of interest costs have been accrued.

Stratus files both U.S. federal income tax and state margin tax returns. With limited exceptions, Stratus is no longer subject to U.S. federal income tax examinations by tax authorities for the years prior to 2014, and state margin tax examinations for the years prior to 2013.

Tax Reform. The Tax Cuts and Jobs Act (the Act) enacted on December 22, 2017, includes significant changes to the U.S. Internal Revenue Code of 1986, as amended (the Code). The Act reduces the corporate income tax rate to 21 percent, eliminates the corporate alternative minimum tax, allows for immediate expensing of capital investments, and limits deductions of interest expense and executive compensation. While the Act is generally applicable for years after December 31, 2017, existing U.S. GAAP requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted.

Due to the significant and complex changes to the Code from the the Act, the U.S. Securities and Exchange Commission (SEC) issued staff Accounting Bulletin No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act,” (SAB 118). SAB 118 provides a measurement period for up to one year for adjustments to be made to account for the effects of the Act. Stratus reflected the income tax effects of those aspects of the Act for which the accounting is complete. To the extent Stratus' accounting for certain income tax effects of the Act is incomplete but Stratus is able to determine a reasonable estimate, Stratus has recorded a provisional estimate in the financial statements.

The primary impact of the Act on Stratus relates to the re-measurement of deferred tax assets and liabilities resulting from the change in the U.S. corporate tax rate from 35 percent to 21 percent. In fourth-quarter 2017, Stratus recognized the change in the federal statutory rate and recorded a tax provision of approximately $7.6 million to reflect the impact on its deferred tax assets.