(in thousands)	Year Ended December 31,
	2018			2017			2016
U.S.	$	104,881		$	83,525		$	67,199
Foreign		(186	)		(73	)		(268	)
	$	104,695		$	83,452		$	66,931

(in thousands)	Year Ended December 31,
	2018		2017			2016
Current:
U.S. Federal	$	7,270	$	21,171		$	17,203
State		4,253		2,976			2,049
Foreign		1,731		2,016			1,683
		13,254		26,163			20,935
Deferred:
U.S. Federal		10,355		(103,518	)		4,005
State		1,637		6,948			3,039
Foreign		43		(61	)		701
		12,035		(96,631	)		7,745
Total	$	25,289	$	(70,468	)	$	28,680

The reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows:

	Year Ended December 31,
	2018			2017			2016
U.S. federal statutory rate		21.0	%		35.0	%		35.0	%
State taxes, net of federal benefit		5.0			4.1			4.2
State deferred tax rate change, net of federal benefit		0.7			0.5			2.0
Valuation allowance		(0.5	)		0.1			1.1
Share-based compensation		(1.9	)		(1.0	)		—
Enactment of the Tax Cuts and Jobs Act		(0.1	)		(122.9	)		—
Other		0.0			(0.2	)		0.6
		24.2	%		(84.4	)%		42.9	%

The following table shows the deferred income taxes related to the temporary differences between the tax bases of assets and liabilities and the respective amounts included in “Deferred income taxes, net” on the Company’s Consolidated Balance Sheets:

(in thousands)	December 31,
	2018		2017
Deferred tax liabilities:
Accelerated depreciation	$	208,539	$	195,694
Prepaid costs currently deductible		4,845		4,152
Other		4,703		4,405
Total deferred tax liabilities		218,087		204,251
Deferred tax assets:
Accrued costs not yet deductible		7,796		7,880
Allowance for doubtful accounts		486		484
Deferred revenues		1,774		213
Share-based compensation		1,367		1,045
Total deferred tax assets, net of valuation allowance of $0.2 million in 2018 and $0.8 million in 2017		11,423		9,622
Deferred income taxes, net	$	206,664	$	194,629

The Tax Cuts and Jobs Act (the “Tax Act”) was enacted in December 2017. Among other provisions, the Tax Act reduced the U.S. federal corporate tax rate from 35% to 21% in 2018, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and created new taxes on certain foreign-source earnings. As of December 31, 2018, the Company completed its accounting for the tax effects of enactment of the Tax Act without any material adjustments to its previous estimate of the one-time transition tax.

As of December 31, 2018 the Company does not have a deferred tax liability related to its foreign earnings because it does not currently have any specific plans to repatriate funds from its international subsidiaries. The Company may do so in the future if a dividend can be remitted with no material tax impact.

In December 2016, the Company decided to exit the Bangalore, India branch operations of its TRS-RenTelco electronics division. The wind down of operations in India began in 2017. As a result, a valuation allowance was recorded against the deferred tax assets that resulted primarily from accumulated net operating loss carry forwards in India as of December 31, 2018 that management estimated the benefit of which will not be realized. As of December 31, 2018, the Company’s foreign net operating losses for tax purposes were $0.6 million. If not realized, these carry forwards will begin to expire in 2023.

For income tax purposes, deductible compensation related to share-based awards is based on the value of the award when realized, which may be different than the compensation expense recognized by the company for financial statement purposes which is based on the award value on the date of grant. The difference between the value of the award upon grant, and the value of the award when ultimately realized, creates either additional tax expense or benefit. In 2018 and 2017, exercise of share-based awards by employees resulted in an excess tax benefit of $2.0 million and $0.9 million, respectively. In 2016 share-based awards by employees resulted in a tax shortfall of $1.1 million, which was recorded to equity.

The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company evaluated all of its tax positions for which the statute of limitations remained open and determined there were no material unrecognized tax benefits as of December 31, 2018 and 2017. In addition, there have been no material changes in unrecognized benefits during 2018, 2017 and 2016.

The Company is subject to income taxes in the U.S. federal jurisdiction, and various states and foreign jurisdictions. Tax regulations within each jurisdiction are subject to interpretation of the related tax laws and regulations and require the application of significant judgment. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for the years before 2014.

Our income tax returns are subject to examination by federal, state and foreign tax authorities. There may be differing interpretations of tax laws and regulations, and as a result, disputes may arise with these tax authorities involving the timing and amount of deductions and allocation of income.

The Company recognizes interest and penalties related to unrecognized tax benefits in the provision (benefit) for income taxes in the accompanying Consolidated Statements of Income for all periods presented. Such interest and penalties were not significant for the years ended December 31, 2018, 2017 and 2016.