Income taxes have been based on the following components of (loss) income before income taxes for the years ended December 31, 2019, 2018 and 2017:

	2019			2018			2017
U.S.	$	(151.8	)	$	(56.4	)	$	(12.1	)
Foreign		115.7			84.7			87.6
Total	$	(36.1	)	$	28.3		$	75.5

The components of income tax expense (benefit) for the years ended December 31, 2019, 2018 and 2017 were as follows:

	2019		2018			2017
Federal:
Current	$	10.4	$	15.8		$	60.9
Deferred		5.4		6.9			31.0
State:
Current		0.3		(5.1	)		0.2
Deferred		7.6		(7.4	)		(6.0	)
Foreign:
Current		24.4		24.5			26.4
Deferred		8.5		3.2			(3.8	)
Total	$	56.6	$	37.9		$	108.7

The Tax Act was signed into law on December 22, 2017 and represents the most significant change to U.S. tax law since 1986. Key changes of the Tax Act are not limited to, but include the following: reduces the U.S. federal statutory rate from 35% to 21%; creates a territorial tax system rather than a worldwide system, generally allowing companies to repatriate future foreign-sourced earnings without incurring additional U.S. taxes; subjects certain foreign earnings on which U.S. income tax is currently deferred to a one-time transition tax; provides for new anti-deferral provisions to tax certain foreign earnings and a new base erosion tax; limits the deduction for net interest expense incurred by U.S. Companies; and eliminates or reduces certain other deductions.

Also on December 22, 2017, the SEC issued Staff Accounting Bulletin 118 (SAB 118) which provided guidance for companies analyzing their accounting for the income tax effects of the Tax Act. SAB 118 provides that a company may report provisional amounts based on reasonable estimates. The provisional estimates were then subject to adjustment during a measurement period up to one year and were accounted for as a prospective change.

During 2017, we recorded provisional estimates of the impact of the Tax Act within our income tax expense. To determine the amount of the transition tax, we were required to quantify, among other factors, the amount of post-1986 earnings and profits of applicable foreign subsidiaries, the amount of non-U.S. tax paid on those earnings, as well as limitations of foreign tax credits. During 2018, we continued to analyze and interpret new guidance and clarifications of the Tax Act, and as a result recorded adjustments to the provisional estimates. During the fourth quarter of 2018, we finalized our accounting analysis for the income tax effects of the Tax Act. However, in the future, we may be subject to additional taxes as required under the Tax Act, based upon new regulations and guidance which may adversely affect our results of operations, financial position and cash flows.

The following table outlines the reconciliation of differences between the Federal statutory tax rate and our effective income tax rate:

	2019			2018			2017
Federal statutory tax rate		(21.0	%)		21.0	%		35.0	%
Change in valuation allowances		22.4			29.5			2.8
Interest limitation valuation allowance		74.7			84.6			—
State and local income taxes, net of U.S. federal income tax benefit		(20.2	)		(14.4	)		(2.9	)
Impairment charges		70.3			—			6.6
Foreign tax		14.2			16.4			4.2
Adjustment of uncertain tax positions and interest		(1.8	)		(19.2	)		(3.2	)
Foreign tax rate differential		(1.4	)		(13.1	)		(21.2	)
Impact of the Tax Act		—			19.4			146.2
Tax impact of net gain on sale of Donnelley Financial and LSC shares		1.3			—			(21.6	)
Tax impact on GILTI		14.8			15.3			—
Tax impact on sale of Print Logistics		—			(9.3	)		—
Other		3.5			3.7			(1.9	)
Effective income tax rate		156.8	%		133.9	%		144.0	%

Included in 2019 is the impact associated with limitations on our interest expense deduction as a result of the Tax Act. Non-deductible interest expense will be carried forward; however it is more likely than not that the benefit of such deferred tax asset will not be fully realized and a full valuation allowance was recorded in 2019. The income tax expense also reflects a non-deductible goodwill impairment charge.

Included in 2018 is the impact associated with limitations on our interest expense deduction as a result of the Tax Act. Non-deductible interest expense will be carried forward; however, it is more likely than not that the benefit of such deferred tax asset will not be fully realized and a valuation allowance of $23.9 million was recorded in 2018. The income tax expense also reflects final adjustments associated with the enactment of the Tax Act of $4.2 million to the one-time transition tax on foreign earnings, as well as $1.5 million to net deferred tax assets for the reduced corporate income tax rate. Additionally, the 2018 rate includes the inability to recognize a tax benefit on certain losses.

Included in 2017 is the impact associated with the enactment of the Tax Act which included a provisional estimate for the one-time transition tax on foreign earnings of $103.5 million, net of current year tax benefit on U.S. operations, as well as a provisional adjustment to net deferred tax assets for the reduced corporate income tax rate of $6.8 million. The income tax expense also reflects non-deductible goodwill impairment charges, the inability to recognize a tax benefit on certain losses and the impact of the non-taxable gain on the sale of the Donnelley Financial retained shares. The sale of the LSC retained shares generated a pre-tax capital loss of $51.6 million. The related tax capital loss will be carried forward; however, it is more likely than not that the benefit of such deferred tax asset will not be fully realized and a valuation allowance was recorded.

The significant deferred tax assets and liabilities at December 31, 2019 and 2018 were as follows:

	2019			2018
Deferred tax assets:
Pension and OPEB plan liabilities	$	38.9		$	43.9
Net operating losses and other tax carryforwards		255.2			280.0
Accrued liabilities		53.9			48.7
Foreign depreciation		30.6			36.4
Operating lease liabilities		48.7			—
Other		9.4			9.8
Total deferred tax assets		436.7			418.8
Valuation allowances		(237.5	)		(255.9	)
Net deferred tax assets	$	199.2		$	162.9

Deferred tax liabilities:
Accelerated depreciation	$	(70.3	)	$	(64.3	)
Other intangible assets		(9.4	)		(11.8	)
Inventories		(10.0	)		(5.8	)
Operating lease assets		(47.4	)		—
Other		(16.4	)		(18.9	)
Total deferred tax liabilities		(153.5	)		(100.8	)

Net deferred tax assets	$	45.7		$	62.1

Transactions affecting the valuation allowances on deferred tax assets during the years ended December 31, 2019, 2018 and 2017 were as follows:

	2019			2018			2017
Balance, beginning of year	$	255.9		$	238.3		$	154.1
Current year expense-net		34.5			29.1			84.5
Write-offs		(50.1	)		(0.2	)		(6.8	)
Foreign exchange and other		(2.8	)		(11.3	)		6.5
Balance, end of year		237.5			255.9		$	238.3

As of December 31, 2019, we had domestic and foreign net operating loss and other tax carryforwards of approximately $190.6 million and $64.4 million ($166.4 million and $113.6 million, respectively, at December 31, 2018), of which $123.9 million expires between 2020 and 2029. Limitations on the utilization of these tax assets may apply. We have provided valuation allowances to reduce the carrying value of certain deferred tax assets, as we have concluded that, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be fully realized.

As a result of the Tax Act, we now have the opportunity to repatriate foreign cash, primarily generated from current year earnings, in a tax efficient manner. The previously taxed earnings from the transition tax and annual GILTI inclusion, as well as certain foreign earnings that receive a one hundred percent dividends received deduction may be repatriated with minimal additional tax consequences. As such, we are no longer permanently reinvested on certain foreign earnings yet remain permanently reinvested on all other foreign earnings and other outside basis differences. We record foreign withholding tax liabilities related to the certain foreign earnings for repatriation. We have recognized deferred tax liabilities of $6.7 million and $6.5 million as of December 31, 2019 and December 31, 2018, respectively, related to local taxes on certain foreign earnings which are not considered to be permanently reinvested.

Cash payments for income taxes were $73.1 million, $37.2 million and $46.1 million during the years ended December 31, 2019, 2018 and 2017, respectively. Cash refunds for income taxes were $12.2 million, $52.4 million and $43.3 million during the years ended December 31, 2019, 2018 and 2017, respectively.

Our income taxes payable for federal and state purposes has been reduced by the tax benefits associated with the exercise of employee stock options and the vesting of restricted stock units. We adopted ASU No. 2016-09 "Compensation--Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" on January 1, 2017. Under this guidance, when awards vest or are settled, the excess tax benefits and tax deficiencies are recorded as income tax expense or benefit in the income statement instead of within additional paid-in-capital. The impact to our consolidated financial statements for the years ended December 31, 2018 was $1.7 million.

See Note 14, Other Comprehensive Loss, for details of the income tax expense or benefit allocated to each component of other comprehensive loss.

Changes in unrecognized tax benefits at December 31, 2019, 2018 and 2017 were as follows:

	2019			2018			2017
Balance at beginning of year	$	25.0		$	30.9		$	41.9
Additions for tax positions of the current year		0.1			0.2			0.2
Reductions for tax positions of prior years		—			(2.8	)		(9.0	)
Settlements during the year		(0.4	)		(0.1	)		(0.1	)
Lapses of applicable statutes of limitations		(1.6	)		(3.2	)		(2.1	)
Balance at end of year	$	23.1		$	25.0		$	30.9

As of December 31, 2019, 2018 and 2017, we had $23.1 million, $25.0 million and $30.9 million, respectively, of unrecognized tax benefits. Unrecognized tax benefits of $12.8 million as of December 31, 2019, if recognized, would have decreased income taxes and the corresponding effective income tax rate and increased net income. This potential impact on net income reflects the reduction of these unrecognized tax benefits, net of certain deferred tax assets and the federal tax benefit of state income tax items.

As of December 31, 2019, it is reasonably possible that the total amount of unrecognized tax benefits will decrease within twelve months by as much as $2.3 million due to the resolution of audits or expirations of statutes of limitations related to U.S. federal, state and international tax positions.

We classify interest expense and any related penalties related to income tax uncertainties as a component of income tax expense. The total interest (benefit) expense related to tax uncertainties recognized in the Consolidated Statements of Operations were $(0.3) million, $(1.1) million and $0.2 million for the years ended December 31, 2019, 2018 and 2017, respectively. There were no benefits from the reversal of accrued penalties for the years ended December 31, 2019, 2018 and 2017. Accrued interest of $3.6 million and $2.9 million related to income tax uncertainties were reported as a component of Other noncurrent liabilities in the Consolidated Balance Sheets at December 31, 2019 and 2018, respectively. There were no accrued penalties related to income tax uncertainties for the years ended December 31, 2019 and 2018.

We have tax years from 2010 and thereafter that remain open and subject to examination by the IRS, certain state taxing authorities or certain foreign tax jurisdictions.