Income/(loss) before income taxes from domestic and international jurisdictions is comprised of the following:

Year Ended December 31,	2019			2018			2017
(Dollars in thousands)
Income/(loss) before income taxes:
Domestic	$	(60,170	)	$	(44,058	)	$	(63,716	)
Foreign		(32,867	)		76,310			64,582
	$	(93,037	)	$	32,252		$	866

Year Ended December 31,	2019			2018			2017
(Dollars in thousands)
Current taxes
Federal	$	3,834		$	3,714		$	6,121
State		(146	)		127			(390	)
Foreign		(10,615	)		(11,180	)		(12,564	)
Total current taxes		(6,927	)		(7,339	)		(6,833	)
Deferred taxes
Federal		(3,174	)		(919	)		(4,387	)
State		1,014			521			1,492
Foreign		5,664			1,446			2,853
Total deferred taxes		3,504			1,048			(42	)
Income tax benefit (provision)	$	(3,423	)	$	(6,291	)	$	(6,875	)

The following is a reconciliation of the U.S. federal tax rate to our effective income tax rate:

Year Ended December 31,	2019			2018			2017
Statutory rate		(21.0	)%		(21.0	)%		(35.0	)%
State tax provisions, net of federal income tax benefit		(2.7	)		6.4			263.4
Tax credits		(6.6	)		1.3			88.9
Foreign income taxes at rates other than the statutory rate		(17.7	)		16.8			1,206.6
Valuation allowance and other		6.9			(28.0	)		(138.0	)
Changes in tax liabilities, net		0.3			(0.6	)		(11.3	)
Share based compensation		1.8			(1.0	)		(61.5	)
Transaction costs		—			—			(372.2	)
US Tax Reform implementation		—			10.9			(1,918.7	)
US tax on non-US income		6.7			(16.1	)		—
Non taxable income		(2.4	)		16.3			152.6
Impairment of goodwill		34.0			—			—
Other		4.4			(4.5	)		31.3
Effective income tax rate		3.7	%		(19.5	)%		(793.9	)%

Tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:

December 31,	2019			2018
(Dollars in thousands)
Deferred income tax assets:
Accrued liabilities	$	4,695		$	8,117
Hedging and foreign currency losses		2,386			(1,163	)
Deferred compensation		8,018			8,021
Inventory reserves		4,609			3,984
Net loss carryforwards and credits		38,342			51,552
Interest carryforwards		19,632			11,269
Competent authority deferred tax assets and other foreign timing differences		3,954			6,749
Other		782			(3,921	)
Total before valuation allowance		82,418			84,608
Valuation allowance		(22,879	)		(16,576	)
Net deferred income tax assets		59,539			68,032
Deferred income tax liabilities:
Intangibles, property, plant and equipment and other		(33,301	)		(44,591	)
Deferred income tax liabilities		(33,301	)		(44,591	)
Net deferred income tax assets	$	26,238		$	23,441

December 31,	2019			2018
(Dollars in thousands)
Long-term deferred income tax assets	$	38,607		$	42,105
Long-term deferred income tax liabilities		(12,369	)		(18,664	)
Net deferred tax asset	$	26,238		$	23,441

Realization of any of our deferred tax assets at December 31, 2019 is dependent on the Company generating sufficient taxable income in the future. The determination of whether or not to record a full or partial valuation allowance on our deferred tax assets is a critical accounting estimate requiring a significant amount of judgment on the part of management. In determining when to release the valuation allowance established against our deferred income tax assets, we consider all available evidence, both positive and negative. We perform our analysis on a jurisdiction by jurisdiction basis at the end of each reporting period. The increase in the valuation allowance of $6.3 million relates to interest expense carryforwards and state net operating loss carryforwards the Company is not more likely than not to utilize prior to expiration.

The Tax Cut and Jobs Act (“the Act”) was enacted on December 22, 2017. The Act contains significant changes to corporate taxation, including the reduction of the corporate tax rate from 35 percent to 21 percent, a one-time transition tax on offshore earnings at reduced tax rates regardless of whether earnings are repatriated, the elimination of U.S. tax on foreign dividends (subject to certain important exceptions), new tax on U.S. shareholders of certain foreign subsidiaries earnings — Global Intangible Low-Tax Income (“GILTI”), limitations on deductibility of interest expense, immediate deductions for certain new investments and the modification or repeal of many business deductions and credits.

The Company had recorded a provisional amount of $16.6 million expense for enactment-date income tax effects of the Act at December 31, 2017. Following the guidance in SAB 118, at December 31, 2018, the Company has completed the accounting for all enactment-date income tax effects of the Act and recorded a benefit of $3.9 million as an adjustment to the provisional amounts.

As of December 31, 2019, we have cumulative tax effected U.S. state and Germany NOL carryforwards of $12.2 million that expire in the years 2020 to 2038. Also, we have $26.0 million of tax credit carryforwards, primarily in Poland, which expire in the years 2021 to 2026.

The transition tax substantially eliminated the basis difference on foreign subsidiaries that existed previously for purposes of accounting standards codification topic 740. However, there are limited other taxes that could continue to apply such as foreign withholding and certain state taxes. Taxes have not been provided on basis differences in investments of $227 million that are deemed indefinitely reinvested. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested basis differences is not practicable.

We account for our uncertain tax positions in accordance with U.S. GAAP. A reconciliation of the beginning and ending amounts of these tax benefits is as follows:

Year Ended December 31,	2019			2018			2017
(Dollars in thousands)
Beginning balance	$	31,036		$	33,054		$	3,446
Increases (decreases) due to foreign currency translations		(632	)		(2,018	)		—
Increases (decreases) as a result of positions taken during:		—			—			—
Prior periods		(36	)		—			—
Current period		—			—			29,773
Expiration of applicable statutes of limitation		—			—			(165	)
Ending balance	$	30,368		$	31,036		$	33,054

Our policy regarding interest and penalties related to uncertain tax positions is to record interest and penalties as an element of income tax expense. At the end of 2019, 2018 and 2017, the Company had liabilities of $3.9 million, $3.3 million and $2.4 million of potential interest and penalties associated with uncertain tax positions. Included in the unrecognized tax benefits is $2.6 million that, if recognized, would favorably affect our annual effective tax rate. Within the next twelve-month period we expect no decrease in unrecognized tax benefits.

Income tax returns are filed in multiple jurisdictions and are subject to examination by tax authorities in various jurisdictions where the Company operates. The Company has open tax years from 2014 to 2018 with various significant tax jurisdictions, including ongoing tax audits in the U.S. for 2015 to 2017 and Germany for 2017 and 2018