
	Year Ended December 31,
	2020		2019		2018
	(In thousands)
Current:
US federal	$	(249)	$	1,378	$	22,353
US state	(406)		909		847
Non US	10,681		12,861		15,212
	10,026		15,148		38,412
Deferred:
US federal	(1,220)		(3,781)		5,617
US state	(657)		(3,107)		(1,031)
Non US	(2,819)		(8,040)		(10,497)
	(4,696)		(14,928)		(5,911)

Total	$	5,330	$	220	$	32,501


	Year Ended December 31,
	2020		2019		2018
Statutory US federal income tax rate	21.0	%	21.0	%	21.0	%
US state income taxes, net of federal benefit	(0.9)	%	(2.3)	%	(0.3)	%
Non-US tax rate differential	(12.2)	%	(13.6)	%	(15.2)	%
GILTI Related	12.5	%	18.6	%	15.1	%
SubPart F	—	%	—	%	0.7	%
Tax holidays	(4.0)	%	(6.0)	%	(3.4)	%
Tax Credits	(10.0)	%	(15.0)	%	(10.6)	%
Passive income exemption	(0.4)	%	(1.2)	%	(0.9)	%
Acquisition contingent earnout liability adjustments	(0.7)	%	(4.0)	%	(0.2)	%

Nondeductible items	2.0	%	1.0	%	(0.1)	%
Effect of valuation allowance	(1.2)	%	1.2	%	(0.1)	%

Prior year Transition Tax and related true-ups	0.5	%	0.7	%	19.5	%
Uncertain tax positions	(1.0)	%	(0.1)	%	0.1	%

Other	—	%	(0.1)	%	0.3	%
Effective income tax rate	5.7	%	0.2	%	25.9	%

The Company's effective tax rate increased to 5.7% in 2020, compared with 0.2% in 2019. The increase in effective tax rate in 2020 is due to a decrease in the availability of tax credits as well as lower tax holiday benefit available in 2020 compared to 2019 and lower benefits from the state taxes deduction.


	December 31, 2020				December 31, 2019
	Deferred				Deferred
	Assets		Liabilities		Assets		Liabilities
	(In thousands)
Depreciation and amortization	$	—	$	3,450	$	—	$	3,562
Share-based compensation	451		—		959		—
Accruals and prepaids	6,586		—		6,806		—
Bad debts	2,727		—		2,594		—
Acquired intangible assets	—		13,071		—		13,335
Net operating loss carryforwards	33,247		—		27,607		—
Tax credit carryforwards (primarily Minimum Alternative Tax ("MAT") in India)	48,669		—		50,210		—
	91,680		16,521		88,176		16,897
Valuation allowance	(2,160)		—		(3,288)		—
Total deferred taxes	$	89,520	$	16,521	$	84,888	$	16,897


	Year Ended December 31,
	2020		2019
	(In thousands)
US Federal loss carryforwards	$	55,029	$	48,623
US state loss carryforwards	79,907		65,412
Foreign loss carryforwards	73,922		58,660

US Federal credit carryforwards	1,818		3,359
Foreign credit carryforwards	46,851		46,851

The US federal and state operating loss carryforwards expire at varying dates through 2025. The federal credits begin to expire in 2026. We also have non-U.S. tax credits (primarily MAT paid in India) carried forward of approximately $46.9 million as of December 31, 2020, which is available for set-off against the future tax liability of certain Indian operations on a staggered basis over a period up-to fifteen years.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in the United States. The CARES Act provides numerous tax provisions and other stimulus measures, including temporary changes regarding the prior and future utilization of net operating losses, temporary suspension of certain payment requirements for the employer portion of Social Security taxes, technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property, and the creation of certain refundable employee retention credits. The Company evaluated the provisions of the CARES Act and does not anticipate the associated impacts, if any, will have a material effect on the Company’s provision for income taxes for the year ended December 31, 2020.

The Company has not recognized a deferred U.S. tax liability and associated income tax expense for the undistributed earnings of its foreign subsidiaries which we consider indefinitely invested because those foreign earnings will remain permanently reinvested in those subsidiaries to fund ongoing operations and growth. Upon distribution of those earnings in the form of dividends or otherwise, we may be subject to income taxes and withholding taxes payable in various jurisdictions, which could potentially be partially offset by foreign tax credits. At December 31, 2020 the cumulative amount of the Company’s undistributed foreign earnings was approximately $767.4 million, inclusive of income previously taxed in the United States.


	Year Ended December 31,
	2020		2019		2018
	(In thousands)
Beginning Balance	$	9,199	$	9,294	$	9,144
Additions for tax positions related to current year	—		—		150
Additions for tax positions of prior years	966		195		—
Reductions for tax position of prior years	(1,874)		(290)		—
Ending Balance	$	8,291	$	9,199	$	9,294

The Company recognizes estimated interest accrued and penalties related to uncertain tax positions as part of the income tax expense provided for such positions. The Company accrued as of December 31, 2020 and 2019 approximately $3.0 million and $1.0 million, respectively, of estimated interest and penalties. These amounts are included in the December 31, 2020 and 2019 balances in the preceding table of $8.3 million and $9.2 million, respectively, which is included in other long term liabilities in the accompanying Consolidated Balance Sheet.

We file income tax returns in the US federal, many US state and local jurisdictions, and certain foreign jurisdictions. We have substantially resolved all US federal income tax matters for tax years prior to 2015. Our state and foreign tax matters may remain open from 2008 forward.