
	2020		2019		2018
Current:
U.S. federal	$	1,294	$	(135)	$	(5,882)
State	451		801		286
Foreign	5,645		7,220		10,621
Total	7,390		7,886		5,025

Deferred:
U.S. federal	67		(1,008)		(322)
State	—		—		3
Foreign	(1,273)		(2,346)		(2,671)
Total	(1,206)		(3,354)		(2,990)
Total income tax provision	$	6,184	$	4,532	$	2,035


	% of Pretax Loss
	2020		2019		2018
Tax provision based on the federal statutory rate	21.0	%	21.0	%	21.0	%
Increase in valuation allowances	(8.5)		(21.3)		(34.8)
Dividends Not Taxable	9.5		—		—
Net Operating Loss Carryback Claim	6.2		—		—
Change in Carryforward Attributes	(3.2)		—		—
Global intangible low-taxed income inclusion	(0.3)		(7.0)		(6.6)
One-Time transition tax	—		—		(2.8)
Nondeductible expenses	(13.5)		(1.8)		(2.3)
Taxes related to distributions	—		(0.8)		(2.3)
Foreign income tax rate differential	(3.3)		1.0		(1.5)
Deemed income related to foreign operations	(1.6)		(0.5)		(1.5)
Tax rate change	(0.3)		(1.1)		(1.4)
Employee share-based payments	(1.4)		—		0.1
Other	(0.4)		(0.9)		0.6
Deferred and payable adjustments	(2.6)		3.3		0.9
ASU 842 Adoption	—		(0.1)		—
State taxes, net of federal benefit, before valuation allowance	0.5		2.8		2.4
Return to provision adjustments	0.9		(2.5)		2.7
Other tax credits	0.2		(1.9)		5.1
U.S. Tax Cuts and Jobs Act - rate change adjustment	—		—		6.4
Uncertain tax positions and audit settlements	(7.5)		2.8		9.4
Effective tax rate	(4.3)	%	(7.0)	%	(4.6)	%

The difference between our effective tax rate for 2020 and the federal statutory rate was 25.3 percentage points. The difference in the effective rate is primarily due to valuation allowance changes, nondeductible impairment charges, dividends not taxable, net operating loss carryback claim, and adjustments to uncertain tax positions.

The difference between our effective tax rate for 2019 and the federal statutory rate was 28.0 percentage points. The difference in the effective rate is primarily due to valuation allowance changes, provisions for GILTI, prior period adjustments and adjustments to uncertain tax positions.

The difference between our effective tax rate for 2018 and the federal statutory rate was 25.6 percentage points. The difference in the effective rate is primarily due to the impact of the Tax Act, including adjustments related to the Tax Act, the new provisions for GILTI, tax credits, adjustments to uncertain tax positions related to statute of limitations expiration and change in valuation allowances. For the report year ending December 31, 2018, we had completed our accounting for all of the enactment date income tax effects of the Tax Act, and we recorded an adjustment of a $1,524 tax benefit, which was offset by an adjustment to our valuation allowance of $1,524 tax expense.

In 2020, 2019 and 2018, there were no significant changes to our valuation allowance assertions. We continue to review results of operations and forecast estimates to determine if it is more likely than not that the deferred tax assets will be realized.


(in thousands)	2020		2019
Deferred income tax assets:
Intangibles	$	17,395	$	20,624
Stock options and restricted stock awards	2,544		6,065
Reserves and allowances	10,450		11,959
Net operating loss carryforwards	67,025		57,782
Tax credit carryforwards	18,813		12,749
Accrued liabilities	6,077		3,218
Deferred revenue	4,637		3,940
Lease Tax Asset	8,343		5,970
163(j) Limitation Carryforward	2,854		1,519
Valuation allowance	(123,113)		(109,643)
Total deferred income tax assets	15,025		14,183

Deferred income tax liabilities:
Intangibles	2,548		4,495
Property, plant and equipment	2,662		3,282
Lease Tax Liability	6,379		4,195
Liabilities related to distributions	—		—
Other	1,345		830
Total deferred income tax liabilities	12,934		12,802

Deferred income tax asset held for sale	$	560	$	—

Net deferred income tax assets	$	1,531	$	1,381

At December 31, 2020, $67,025 of our deferred income tax assets was attributable to $417,802 of gross net operating loss carryforwards, which consisted of $223,724 of loss carryforwards for U.S. federal income tax purposes, $155,366 of loss carryforwards for U.S. state income tax purposes and $38,713 of loss carryforwards for foreign income tax purposes.

The net operating loss carryforwards for U.S. federal income tax purposes begin to expire in 2035. The net operating loss carryforwards for U.S. state income tax purposes began to expire in 2018. In addition, certain loss carryforwards for foreign income tax purposes begin to expire in 2020 and certain other loss carryforwards for foreign purposes do not expire.

At December 31, 2020, tax credit carryforwards included in our deferred income tax assets consisted of $6,359 of research and experimentation credit carryforwards for U.S. federal income tax purposes, $4,037 of research and experimentation tax credit carryforwards for U.S. state income tax purposes, $6,629 of foreign tax credits for U.S. federal income tax purposes, $1,059 of research and experimentation tax credit carryforwards for foreign income tax purposes and $729 of other state tax credits. Certain state research and experimentation and other state credits begin to expire in 2021. We have recorded a valuation allowance related to the U.S. federal and state tax credits.

Due to the one time transition tax, our previously unremitted earnings have been subjected to U.S. federal income tax, although, other additional taxes such as, withholding tax, could be applicable. We intend to permanently reinvest its earnings outside the U.S. and as such, have not provided for any additional taxes on approximately $189,699 of unremitted earnings. We believe the unrecognized deferred tax liability related to these earnings is approximately $7,114.

Including interest and penalties, we decreased our unrecognized benefits by $788 for the year ended December 31, 2020 and increased our unrecognized tax benefits by $11,223 for the year ended December 31, 2020. The decrease was primarily related to the release of unrecognized tax benefits due to the expiration of statute of limitations. The increase was primarily related to the net operating loss carryback claim. We do not anticipate any additional unrecognized tax benefits during the next 12 months that would result in a material change to its consolidated financial position. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $15,380. We include interest and penalties in the consolidated financial statements as a component of income tax expense. On February 2, 2021, the Company received two private letter rulings from the IRS, which triggered the release of a reserve for uncertain tax position of $8,900 in the first quarter of 2021. See Note 26.


	Unrecognized Tax Benefits*
(in thousands)	2020		2019		2018
Balance at January 1	$	(15,467)	$	(13,031)	$	(18,310)
Increases related to prior year tax positions	(10,426)		(2,684)		(1,400)
Decreases related to prior year tax positions	788		857		8,272
Increases related to current year tax positions	(797)		(609)		(1,593)


Balance at December 31	$	(25,902)	$	(15,467)	$	(13,031)

Tax years 2013 through 2019 remain subject to examination by the U.S. Internal Revenue Service (“IRS”). State income tax returns are generally subject to examination for a period of three to four years after filing the respective tax returns. The tax years 2015 through 2019 remain open to examination by the various foreign taxing jurisdictions to which the Company is subject.


Year Ended	Item	Balance at beginning of year		Additions (reductions) charged to expense		Other		Balance at end of year
2020	Deferred income tax asset valuation allowance	$	109,643	$	13,470	$	—	$	123,113
2019	Deferred income tax asset valuation allowance	95,398		14,245		—		109,643
2018	Deferred income tax asset valuation allowance	80,796		14,602		—		95,398