INCOME TAXES

Components of income tax benefit (expense) were as follows:



	Year Ended December 31,
	2016			2015			2014
	(Thousands of Dollars)
Current:
U.S. federal	$	—		$	—		$	1,123
U.S. state	(9		)	51			42
Total current	(9		)	51			1,165
Deferred:
U.S. federal	76			(940		)	415
U.S. state	(1		)	(12		)	206
Total deferred	75			(952		)	621
Total income tax benefit (expense)	$	66		$	(901	)	$	1,786

The difference between income tax expense recorded in our consolidated statements of income and income taxes computed by applying the statutory federal income tax rate (35% for all years presented) to income before income tax expense is due to the fact that the majority of our income is not subject to federal income tax based on our status as a limited liability company.

The tax effects of significant temporary differences representing deferred income tax assets and liabilities were as follows:



	December 31,
	2016			2015
	(Thousands of Dollars)
Deferred income tax assets:
Unit-based compensation	$	—		$	2,115
Pension	—			7,561
Capital loss	1,344			1,290
Net operating loss	5,239			4,346
Foreign tax credits	74			69
Other	80			14
Total deferred income tax assets	6,737			15,395
Less: Valuation allowance	(1,418		)	(1,359		)
Net deferred income tax assets	5,319			14,036

Deferred income tax liabilities:
Investment in Riverwalk Logistics, L.P. and NuStar Energy	(233		)	(249		)
Other employee benefits	—			(11,189		)
Deferred income tax liabilities	(233		)	(11,438		)

Total net deferred income tax assets	$	5,086		$	2,598

Reported on the consolidated balance sheets as:
Deferred income tax assets, net (long-term)	$	5,086		$	5,258
Deferred income tax liabilities, net (current)	—			(2,660		)
Total net deferred income tax assets	$	5,086		$	2,598

As of December 31, 2016, our U.S. corporate operations have net operating loss carryforwards and capital loss carryforwards for tax purposes totaling approximately $15.0 million and $3.8 million, respectively, which are subject to a twenty-year and a five-year carryforward limitation, respectively, and expire in 2031 and 2017, respectively.

As of December 31, 2016 and 2015, we have a valuation allowance of $1.4 million related to our deferred tax assets. We estimate the amount of valuation allowance based upon our expectations of taxable income and the period over which we can utilize those future deductions. The valuation allowance reflects uncertainties related to our ability to utilize certain capital loss carryforwards and foreign tax credits before they expire.

The realization of deferred income tax assets recorded as of December 31, 2016 is dependent upon our ability to generate future taxable income in the United States. We believe it is more likely than not that the deferred income tax assets as of December 31, 2016 will be realized, based upon expected future taxable income and potential tax planning strategies.