
	Current		Deferred		Total
Year ended December 31, 2020:
United States federal	$	6,242	$	(6,311)	$	(69)
United States state and local	5,563		(1,736)		3,827
Non-United States	146,983		(4,737)		142,246
Total	$	158,788	$	(12,784)	$	146,004
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

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, 2020, 2019, and 2018 to earnings before taxes as a result of the following:


	2020		2019		2018
Expected tax	$	157,236	$	143,092	$	136,890
United States state and local income taxes, net of federal income tax benefit	3,320		499		2,787
Net effect of Swiss tax reform (see below)	—		(15,833)		—
Net effect of U.S. tax reform (see below)	—		—		3,597
Non-United States income taxes at other than U.S. federal rate	179		18,546		12,710

Excess tax benefits from stock option exercises	(17,261)		(28,279)		(13,836)
Effect of Biotix contingent consideration settlement	—		—		(4,394)
Other, net	2,530		2,260		1,493
Total provision for taxes	$	146,004	$	120,285	$	139,247

As discussed below, the provision for income taxes included a net benefit of $15.8 million in 2019 related to Swiss tax reform and a charge of $3.6 million in 2018 related to the Tax Cuts and Jobs Act, which had the effect of reducing the Company’s effective tax rate by 2.3% in 2019 and increasing the Company’s effective tax rate by 0.6% in 2018. 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 the Swiss Parliament. Additional changes in Swiss cantonal law 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 was effective January 1, 2020 and did not have a material impact on the Company’s consolidated effective tax rate.


	2020		2019
Deferred tax assets:
Inventory	$	18,849	$	15,756
Lease liability, accrued and other liabilities	94,113		85,590
Accrued post-retirement benefit and pension costs	56,618		53,078
Net operating loss and tax credit carryforwards	27,717		30,647
Swiss tax reform intangible assets	53,080		48,062
Other	12,408		11,918
Total deferred tax assets	262,785		245,051
Less valuation allowance	(52,388)		(50,853)
Total deferred tax assets less valuation allowance	210,397		194,198
Deferred tax liabilities:
Inventory	6,029		5,952
Lease right-of-use assets and other assets	29,553		27,268
Property, plant, and equipment	60,047		51,298
Acquired intangibles amortization	62,584		63,451
Prepaid post-retirement benefit and pension costs	28,270		28,542
International earnings	16,526		24,137
Unrealized currency gains	—		1,839
Total deferred tax liabilities	203,009		202,487
Net deferred tax (liability) asset	$	7,388	$	(8,289)

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.


	2020		2019
Unrecognized tax benefits at beginning of year	$	29,934	$	25,676
Increases related to current tax positions	9,503		6,215
Decreases related to prior year tax positions	(2,900)		(116)
Decreases resulting from a lapse of the applicable statute of limitations	—		(1,748)
Impact of foreign currency	1,757		(93)
Unrecognized tax benefits at end of year	$	38,294	$	29,934

Included in the balance of unrecognized tax benefits at December 31, 2020 and 2019 were $38.3 million and $29.9 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, 2020 and 2019 was $6.2 million and $4.5 million, respectively.

The Company believes that it is reasonably possible that the unrecognized tax benefit balance could change over the next 12 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, 2020, the major jurisdictions for which the Company is subject to examinations are: Germany for years after 2015; the United States after 2016; France after 2017; Switzerland after 2016; the United Kingdom after 2017; 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.