

	Current			Deferred			Total
Year ended December 31, 2019:
United States federal	$	3,033		$	(2,622	)	$	411
United States state and local	(996		)	(1,950		)	(2,946		)
Non-United States	122,878			(58		)	122,820
Total	$	124,915		$	(4,630	)	$	120,285
Year ended December 31, 2018:
United States federal	$	3,422		$	(4,699	)	$	(1,277	)
United States state and local	5,073			(161		)	4,912
Non-United States	128,450			7,162			135,612
Total	$	136,945		$	2,302		$	139,247
Year ended December 31, 2017:
United States federal	$	55,660		$	10,173		$	65,833
United States state and local	361			3,471			3,832
Non-United States	144,974			(16,389		)	128,585
Total	$	200,995		$	(2,745	)	$	198,250

The provision for tax expense differed from the amounts computed by applying the United States federal income tax rate of 21% for the years ended December 31, 2019 and 2018 and 35% for the year ended December 31, 2017 to earnings before taxes as a result of the following:



	2019			2018			2017
Expected tax	$	143,092		$	136,890		$	200,978
United States state and local income taxes, net of federal income tax benefit	499			2,787			376
Net effect of Swiss tax reform (see below)	(15,833		)	—			—
Net effect of U.S. tax reform (see below)	—			3,597			71,982
Non-United States income taxes at other than U.S. federal rate	18,546			12,710			(43,691		)
Excess tax benefits from stock option exercises	(28,279		)	(13,836		)	(35,171		)
Effect of Biotix contingent consideration settlement	—			(4,394		)	—
Other, net	2,260			1,493			3,776
Total provision for taxes	$	120,285		$	139,247		$	198,250

As discussed below, the provision for income taxes included a net benefit of $15.8 million in 2019 related to Swiss tax reform, and charges of $3.6 million in 2018 and $72 million in 2017 related to the Tax Cuts and Jobs Act (the "Act"), which had the effect of reducing the Company's effective tax rate by 2.3% in 2019, and increased the Company's effective rate by 0.6% and 12.5% in 2018 and 2017, respectively. The 2018 effective tax rate also included a benefit of 0.7% associated with the one-time gain related to the settlement of the Biotix contingent consideration.

In May 2019, a public referendum was held in Switzerland that approved Swiss federal tax reform proposals previously approved by Swiss Parliament. Additional changes in Swiss cantonal law, changes were enacted in October 2019 (collectively "Swiss Tax Reform"). The changes in Swiss federal tax had an immaterial effect on our financial statements. As a result of the enactment of the cantonal law the Company recognized a deferred tax asset of $48.1 million less a valuation allowance of $31.9 million in the fourth quarter of 2019. The amount primarily related to deferred benefits associated with an allowed step-up of intangible assets for tax purposes. The rate impact of Swiss Tax Reform is effective January 1, 2020 and is not expected to have a material impact on the Company's consolidated effective tax rate.

On December 22, 2017, the Act significantly revised U.S. corporate income tax law. The Act included, among other things, a reduction in the U.S. federal corporate income tax rate from 35% to 21% effective for taxable years beginning after December 31, 2017, and the implementation of a modified territorial tax system that included a one-time transition tax on deemed repatriated earnings of foreign subsidiaries ("Transition Tax") that is payable over a period of up to eight years.

The Company recorded charges of $3.6 million in 2018 and $72 million in 2017 relating to the Act. Of these amounts, $62 million is expected to be payable over a period of up to eight years of which $46 million is included as a component of other non-current liabilities, $8 million is included in deferred tax liabilities, $4 million is included in taxes payable, and approximately $8 million has been paid. The components of the Company's charges included:

The Company's accounting for the above items was based upon reasonable estimates of the tax effects of the Act, and its evaluation of regulatory guidance. During the fourth quarter of 2018, additional regulatory guidance was issued which clarified, among other things, the definition of cash equivalents used in the computation of the transition tax. As a result, the Company recorded a charge of $3.6 million during the year ended December 31, 2018 that primarily related to an increase in the Transition Tax obligation. The increased Transition Tax is payable over a period of eight years beginning in 2018.



	2019			2018
Deferred tax assets:
Inventory	$	15,756		$	15,078
Lease liability, accrued and other liabilities	85,590			65,879
Accrued post-retirement benefit and pension costs	53,078			50,496
Net operating loss and tax credit carryforwards	30,647			30,696
Swiss tax reform intangible assets	48,062			—
Other	11,918			17,397
Total deferred tax assets	245,051			179,546
Less valuation allowance	(50,853		)	(15,084		)
Total deferred tax assets less valuation allowance	194,198			164,462
Deferred tax liabilities:
Inventory	5,952			4,890
Lease right-of-use assets and other assets	27,268			—
Property, plant, and equipment	51,298			47,451
Acquired intangibles amortization	63,451			66,386
Prepaid post-retirement benefit and pension costs	28,542			31,473
International earnings	24,137			18,680
Unrealized currency gains	1,839			9,334
Total deferred tax liabilities	202,487			178,214
Net deferred tax (liability) asset	$	(8,289	)	$	(13,752	)

The Company continues to record valuation allowances related to certain of its deferred income tax assets due to the uncertainty of the ultimate realization of future benefits from such assets. The potential decrease or increase of the valuation allowance in the near term is dependent on the future ability of the Company to realize the deferred tax assets that are affected by the future profitability of operations in the respective/relevant jurisdictions.



	2019			2018
Unrecognized tax benefits at beginning of year	$	25,676		$	24,090
Increases related to current tax positions	6,215			7,638
Decreases related to prior year tax positions	(116		)	(605		)
Decreases relating to taxing authority settlements	—			(4,454		)
Decreases resulting from a lapse of the applicable statute of limitations	(1,748		)	(505		)
Other, net	(93		)	(488		)
Unrecognized tax benefits at end of year	$	29,934		$	25,676

Included in the balance of unrecognized tax benefits at December 31, 2019 and 2018 were $29.9 million and $25.7 million, respectively, of tax benefits that if recognized would reduce the Company’s effective tax rate. The Company recognizes accrued amounts of interest and penalties related to its uncertain tax positions as part of its income tax expense within its consolidated statement of operations. The amount of accrued interest and penalties included within other non-current liabilities within the Company’s consolidated balance sheet as of December 31, 2019 and 2018 was $4.5 million and $3.7 million, respectively.

The Company believes that it is reasonably possible that the unrecognized tax benefit balance could change over the next twelve months, primarily related to potential disputes raised by the taxing authorities over income and expense recognition. The Company does not expect a change would have a material impact on its financial position, results of operations, or cash flows.

The Company plans to repatriate earnings from China, Switzerland, Germany, the United Kingdom, and certain other countries in future years and believes that there will be no additional tax costs associated with the repatriation of such foreign earnings other than non-U.S. withholding taxes, certain state taxes, and U.S. taxes on currency gains, if any, for which a deferred tax liability has been recognized. All other undistributed earnings and any additional outside basis difference inherent in these entities and the contributed capital of our foreign subsidiaries are considered to be permanently reinvested on which no U.S. deferred income taxes or foreign withholding taxes have been provided. It is not practicable to estimate the amount of deferred tax liability related to these undistributed earnings and additional outside basis differences in these entities due to the complexity of the calculation and the uncertainty regarding assumptions necessary to compute the tax.

As of December 31, 2019, the major jurisdictions for which the Company is subject to examinations are: Germany for years after 2014; the United States after 2015; France after 2017; Switzerland after 2016; the United Kingdom after 2016; and China after 2017. Additionally, the Company is currently under examination in various taxing jurisdictions in which it conducts business operations. While the Company has not yet received any material assessments from these taxing authorities, the Company believes that adequate amounts of taxes and related interest and penalties have been provided for any adverse adjustments as a result of these examinations and that the ultimate outcome of these examinations will not result in a material impact on the Company’s consolidated results of operations or financial position.