Income from continuing operations before income taxes was as follows for the years ended August 31 (in thousands):

	2019		2018		2017
United States	$	69,476	$	131,518	$	43,871
Foreign		6,764		10,335		4,819
Total	$	76,240	$	141,853	$	48,690

Income tax expense (benefit) from continuing operations consisted of the following for the years ended August 31 (in thousands):

		2019	2018			2017
Current:
Federal	$	2,690	$	19,511		$	(1,130	)
State		315		894			190
Foreign		52		—			(16	)
Total current tax expense (benefit)		3,057		20,405			(956	)
Deferred:
Federal		12,930		(5,700	)		2,046
State		794		(1,962	)		232
Foreign		889		(30,333	)		—
Total deferred tax expense (benefit)		14,613		(37,995	)		2,278
Total income tax expense (benefit)	$	17,670	$	(17,590	)	$	1,322

A reconciliation of the difference between the federal statutory rate and the Company’s effective tax rate for the years ended August 31 is as follows:

	2019		2018		2017
Federal statutory rate	21.0	%	25.7	%	35.0	%
State taxes, net of credits	1.2		0.4		1.8
Foreign income taxed at different rates	(0.2	)	(0.5	)	(1.9	)
Valuation allowance on deferred tax assets	(0.2	)	(35.8	)	(31.2	)
Federal rate change	—		(4.9	)	—
Non-deductible officers’ compensation	1.8		1.6		2.2
Noncontrolling interests	(0.5	)	(0.6	)	(1.8	)
Research and development credits	(0.5	)	(0.6	)	(1.5	)
Tax return to provision adjustment	0.5		—		—
Unrecognized tax benefits	0.7		3.4		1.3
Realized foreign investment basis	(0.4	)	(0.2	)	(0.9	)
Excess tax benefit from stock-based compensation	(1.2	)	(0.3	)	—
Other	1.0		(0.6	)	(0.3	)
Effective tax rate	23.2	%	(12.4	)%	2.7	%

On December 22, 2017, the President of the United States signed and enacted into law comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”), which, except for certain provisions, is effective for tax years beginning on or after January 1, 2018. The Tax Act’s primary change is a reduction in the federal statutory corporate tax rate from 35% to 21%, resulting in a pro rata reduction for the Company from 35% to 25.7% for fiscal 2018 and a full reduction to 21% for fiscal 2019. As a change in tax law is accounted for in the period of enactment, the Company recognized a discrete benefit of $7 million in the second quarter of fiscal 2018 due to the revaluation of U.S. net deferred tax liabilities to reflect the lower statutory rate. The Company’s effective tax rate in fiscal 2018 also reflected application of the Tax Act’s lower federal statutory corporate tax rate to fiscal 2018 taxable income. Other pertinent changes in the Tax Act include, but are not limited to, the acceleration of deductions for qualified property placed in service after September 27, 2017, limitations to the deductibility of some executive compensation, and the elimination of the deduction for qualified domestic production activities. Changes in the Tax Act that did not significantly impact the Company upon enactment include implementation of a modified territorial tax system and other modifications to how foreign earnings are subject to U.S. tax, including a tax on Global Intangible Low-Taxed Income which the Company has elected to treat as period costs if and when incurred. The Company’s accounting for the impacts of the Tax Act was complete as of November 30, 2018. The Company did not record any material adjustments to the provisional amounts recorded in the second quarter of fiscal 2018 related to the Tax Act.

The Company’s effective tax rate from continuing operations in fiscal 2019 was an expense of 23.2%, compared to a benefit of 12.4% in the prior year. The Company reported a tax benefit on pre-tax income for fiscal 2018 primarily due to the release of valuation allowances against certain deferred tax assets, resulting in recognition of discrete tax benefits totaling $37 million in fiscal 2018, and the impact of the Tax Act.

The Company’s effective tax rate from continuing operations in fiscal 2017 was an expense of 2.7%, which was lower than the U.S. federal statutory corporate rate at the time of 35% primarily due to the Company’s full valuation allowance positions and federal income tax refund claims, partially offset by increases in deferred tax liabilities from indefinite-lived assets in all jurisdictions.

Deferred tax assets and liabilities comprised the following as of August 31 (in thousands):

		2019			2018
Deferred tax assets:
Amortizable goodwill and other intangibles	$	22,646		$	27,433
State credit carryforwards		8,202			8,243
Environmental liabilities		7,164			7,853
Net operating loss carryforwards		7,122			7,206
Employee benefit accruals		6,289			10,677
Inventory valuation methods		1,748			944
Other		6,405			6,320
Valuation allowances		(16,436	)		(16,484	)
Total deferred tax assets		43,140			52,192
Deferred tax liabilities:
Accelerated depreciation and other basis differences		37,493			31,622
Prepaid expense acceleration		2,263			1,979
Total deferred tax liabilities		39,756			33,601
Net deferred tax asset	$	3,384		$	18,591

As of August 31, 2019, foreign operating loss carryforwards were $16 million, which expire if not used between 2024 and 2039. State credit carryforwards will expire if not used between 2019 and 2032.

The Company assesses the realizability of its deferred tax assets on a quarterly basis through an analysis of potential sources of future taxable income, including prior year taxable income available to absorb a carryback of tax losses, reversals of existing taxable temporary differences, tax planning strategies, and forecasts of taxable income. The Company considers all negative and positive evidence, including the weight of the evidence, to determine if valuation allowances against deferred tax assets are required. In fiscal 2018, the Company released valuation allowances against certain U.S. federal and state and Canadian deferred tax assets resulting in discrete tax benefits totaling $37 million. The release of these valuation allowances was the result of sufficient positive evidence at the time, including cumulative income in the Company’s U.S. and Canadian tax jurisdictions in recent years and projections of future taxable income based primarily on the Company's improved financial performance, that it is more-likely-than-not that the deferred tax assets will be realized. The Company continues to maintain valuation allowances against certain U.S. federal, state, Canadian and all Puerto Rican deferred tax assets. Canadian deferred tax assets against which the Company continues to maintain a valuation allowance relate to indefinite-lived assets.

The following table summarizes the activity related to the Company’s reserve for unrecognized tax benefits, excluding interest and penalties, for the years ended August 31 (in thousands):

		2019			2018			2017
Unrecognized tax benefits, as of the beginning of the year	$	5,054		$	5,548		$	4,724
Additions (reductions) for tax positions of prior years		(151	)		171			(120	)
Additions for tax positions of the current year		507			596			944
Reduction attributable to federal tax reform		—			(1,261	)		—
Unrecognized tax benefits, as of the end of the year	$	5,410		$	5,054		$	5,548

The Company does not anticipate any material changes to the reserve in the next 12 months. The recognized amounts of tax-related penalties and interest were not material for all periods presented.

The Company files federal and state income tax returns in the U.S. and foreign tax returns in Puerto Rico and Canada. For U.S. federal income tax returns, fiscal years 2013 to 2018 remain subject to examination under the statute of limitations.