The components of income tax expense (benefit) for the years ended December 31, 2021, 2020 and 2019 are as follows:


(In thousands)	2021			2020			2019
Current
Federal	$	11		$	(10,574	)	$	(518	)
State		(63	)		(329	)		(1,065	)
International		4,166			3,635			(282	)
Total Current		4,114			(7,268	)		(1,865	)

Deferred
Federal		—			—			24,801
State		—			—			5,815
International		(1,784	)		(1,356	)		(546	)
Total Deferred		(1,784	)		(1,356	)		30,070
Total Income Tax Expense (Benefit)	$	2,330		$	(8,624	)	$	28,205

The effective income tax rate differs from the federal statutory rate due to the following:


	2021			2020			2019
Tax provision computed at the federal statutory rate		21.00	%		21.00	%		21.00	%
State income tax provision, net of federal benefit		13.33			11.10			6.97
Federal research credits		53.77			57.63			15.53
Foreign taxes		(4.69	)		(17.83	)		2.83
Tax-exempt income		3.75			1.93			0.49
State tax incentives		—			—			3.85
Change in valuation allowance		(75.26	)		44.79			(172.82	)
Non-deductible transaction costs		(39.48	)		—			—
Foreign tax credits		0.14			17.90			16.69
Stock-based compensation		10.74			(23.36	)		(6.01	)
Withholding taxes		0.14			(20.83	)		—
Alabama law change		(25.39	)		—			—
Impact of CARES Act		—			45.65			—
Return to accrual		9.48			—			—
Global intangible low-taxed income ("GILTI")		(4.29	)		(0.49	)		(1.87	)
Other, net		(0.19	)		0.56			(0.49	)
Effective Tax Rate		(36.95	)%		138.05	%		(113.83	)%

(Loss) income before expense (benefit) for income taxes for the years ended December 31, 2021, 2020 and 2019 is as follows:


(In thousands)	2021			2020			2019
U.S. entities	$	(14,982	)	$	(12,833	)	$	(29,829	)
International entities		8,677			6,587			5,052
Total	$	(6,305	)	$	(6,246	)	$	(24,777	)

(Loss) income before expense (benefit) for income taxes for international entities reflects (loss) income based on statutory transfer pricing agreements. This amount does not correlate to consolidated international revenue, which occurs from our U.S. entity.

Deferred income taxes on the Consolidated Balance Sheets result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The significant components of current and non-current deferred taxes as of December 31, 2021 and 2020 consist of the following:


(In thousands)	2021			2020
Deferred tax assets:
Inventory	$	9,538		$	8,882
Accrued expenses		3,851			2,331
Deferred compensation		7,027			6,714
Stock-based compensation		1,469			1,971
Uncertain tax positions related to state taxes and related interest		124			149
Pensions		6,061			8,554
Foreign losses		2,862			2,590
State losses and credit carry-forwards		5,914			5,509
Federal loss and research carry-forwards		21,606			17,323
Lease liabilities		1,471			1,588
Capitalized research and development expenditures		9,349			11,832
Valuation allowance		(50,564	)		(45,818	)
Total Deferred Tax Assets		18,708			21,625

Deferred tax liabilities:
Property, plant and equipment		(3,590	)		(4,546	)
Intellectual property		(3,230	)		(4,375	)
Right of use lease assets		(1,459	)		(1,585	)
Investments		(1,350	)		(1,250	)
Total Deferred Tax Liabilities		(9,629	)		(11,756	)
Net Deferred Tax Assets	$	9,079		$	9,869

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. Subsequently, the Internal Revenue Service (“IRS”) released its final GILTI regulations on July 9, 2020. The passage of the CARES Act and subsequent issuance of the GILTI final regulations together resulted in the Company’s recognition of a tax benefit in the amount of $10.8 million during 2020, $7.9 million of which related to the utilization of deferred tax assets which had previously been offset with a valuation allowance and $2.9 million primarily related to the tax rate differential on carrying back losses from 2018 and 2019 tax years to prior years in which the U.S. Corporate tax rate was 35% versus the current 21% federal tax rate.

On February 12, 2021, the Alabama Business Tax Competitiveness Act (the "Act") was signed into law. As a result of the Act, we recognized an expense of $1.6 million in the three months ended March 31, 2021 related to the revaluation of our deferred tax assets, which was offset by changes in our valuation allowance previously recorded against our domestic deferred tax assets.

During the three months ended September 30, 2021, Management decided to pursue a claim for refund related to the revocation of our IRC Section 59(e) election that was made on our originally filed 2018 U.S. federal tax return. The Company filed a related carryback claim of net operating losses generated in 2018 to prior years as allowed under the CARES Act that was passed in 2020. An IRS Section 59(e) election is generally non-revocable except in cases for which IRS Commissioner’s approval is given. Approval is granted only in rare and unusual circumstances. We filed a private letter ruling (“PLR”) request to revoke our election. During the three months ended December 31, 2021, a response to our PLR was published denying our request to revoke the previously made 59(e). As a result of these filings, and Management’s position to pursue them through appeals, we have established a receivable in the amount of $15.2 million and a deferred tax asset related to additional research and development credit carryforward in the amount of $1.8 million that would be available if our revocation request is successful, offset with an uncertain tax liability of $17.0 million.

As of December 31, 2021 and 2020, non-current deferred taxes reflected deferred taxes on net unrealized gains and losses on available-for-sale investments and deferred taxes on unrealized losses in our pension plan. The net change in non-current deferred taxes associated with these items, which resulted in a deferred tax expense of $1.6 million and a deferred tax benefit of $0.1 million in 2021 and 2020, respectively, was recorded as an adjustment to other comprehensive (loss) income, presented in the Consolidated Statements of Comprehensive (Loss) Income.

The Company continually reviews the adequacy of its valuation allowance and recognizes the benefits of deferred tax assets only as the reassessment indicates that it is more likely than not that the deferred tax assets will be recognized in accordance with ASC 740, Income Taxes. Our assessment of the realizability of our deferred tax assets includes the evaluation of evidence, some of which requires significant judgment, including historical operating results, the evaluation of a three-year cumulative income position, future taxable income projections and tax planning strategies. Should management’s conclusion change in the future and additional valuation allowance or a partial or full release of the valuation allowance become necessary, it could have a material effect on our consolidated financial statements.

As of December 31, 2021 and 2020, the Company had gross deferred tax assets totaling $59.6 million offset by a valuation allowance totaling $50.6 million and gross deferred tax assets totaling $55.7 million offset by a valuation allowance of $45.8 million, respectively. Of the current valuation allowance, $48.3 million was established against our domestic deferred tax assets and the remaining $2.3 million is related to foreign net operating loss and research and development credit carryforwards where we lacked sufficient activity to realize those deferred tax assets. The change in our valuation allowance for the year ending December 31, 2021 was an increase of $4.7 million. The change in the valuation allowance was primarily related to increases in our deferred tax assets during the year related to generated federal research and development credit carryforwards. As of December 31, 2021, the remaining $9.1 million in deferred tax assets that were not offset by a valuation allowance were located in various foreign jurisdictions where the Company believed it was more likely than not it will realize these deferred tax assets.

Supplemental balance sheet information related to deferred tax assets as of December 31, 2021 and 2020 were as follows:


	December 31, 2021
(In thousands)	Deferred Tax Assets		Valuation Allowance			Deferred Tax Assets, net
Domestic	$	48,265	$	(48,265	)	$	—
International		11,378		(2,299	)		9,079
Total	$	59,643	$	(50,564	)	$	9,079


	December 31, 2020
(In thousands)	Deferred Tax Assets		Valuation Allowance			Deferred Tax Assets, net
Domestic	$	43,791	$	(43,791	)	$	—
International		11,896		(2,027	)		9,869
Total	$	55,687	$	(45,818	)	$	9,869

As of December 31, 2021 and 2020, the deferred tax assets for foreign and domestic loss carry-forwards, research and development tax credits, unamortized research and development costs and state credit carry-forwards totaled $39.7 million and $37.3 million, respectively. As of December 31, 2021, $27.3 million of these deferred tax assets will expire at various times between 2022 and 2041. The remaining deferred tax assets will either amortize through 2029 or carryforward indefinitely.

As of December 31, 2021 and 2020, respectively, our cash and cash equivalents were $56.6 million and $60.2 million and short-term investments were $0.4 million and $3.1 million, which provided available short-term liquidity of $57.0 million and $63.3 million. Of these amounts, our foreign subsidiaries held cash of $47.7 million and $49.7 million, respectively, representing approximately 83.5% and 78.5% of available short-term liquidity, which is used to fund ongoing liquidity needs of these subsidiaries. As part of our restructuring plan, the Company’s assertion on being indefinitely reinvested changed in a particular jurisdiction in a previous year. The Company has a withholding tax liability of $0.7 million as of December 31, 2021 and 2020. The Company maintains its assertion in all other jurisdictions that it is indefinitely reinvesting its funds held in foreign jurisdictions outside of the U.S., except to the extent any of these funds can be repatriated without withholding tax. However, if all of these funds were repatriated to the U.S., or used for U.S. operations, certain amounts could be subject to tax. Due to the timing and circumstances of repatriation of such earnings, if any, it is not practicable to determine the amount of funds subject to unrecognized deferred tax liability.

During 2021, 2020 and 2019, no income tax benefit or expense was recorded for stock options exercised as an adjustment to equity.

The change in the unrecognized income tax benefits for the years ended December 31, 2021, 2020 and 2019 were as follows:


(In thousands)	2021			2020			2019
Balance at beginning of period	$	1,078		$	1,487		$	1,868
Increases for tax position related to:
Prior years		17,025			4			—
Current year		136			165			161
Decreases for tax positions related to:
Prior years		(27	)		—			(71	)
Expiration of applicable statute of limitations		(376	)		(578	)		(471	)
Balance at end of period	$	17,836		$	1,078		$	1,487

As of December 31, 2021, 2020 and 2019, our total liability for unrecognized tax benefits was $17.8 million, $1.1 million and $1.5 million, respectively, of which $17.8 million, $1.0 million and $1.4 million, respectively, would reduce our effective tax rate if we were successful in upholding all of the uncertain positions and recognized the amounts recorded. We classify interest and penalties recognized on the liability for unrecognized tax benefits as income tax expense. As of December 31, 2021, 2020 and 2019, the balances of accrued interest and penalties were $0.2 million, $0.3 million and $0.5 million, respectively.

We do not anticipate a single tax position generating a significant increase or decrease in our liability for unrecognized tax benefits within 12 months of this reporting date, unless a resolution is reached regarding the appeal of our PLR denial noted above. We file income tax returns in the U.S. for federal and various state jurisdictions and several foreign jurisdictions. We are not currently under audit by the Internal Revenue Service. Generally, we are not subject to changes in income taxes by any taxing jurisdiction for the years prior to 2018.