	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Domestic	$	(51,041	)	$	(120,784	)	$	(84,278	)
Foreign		61,470			5,795			18,634
Total	$	10,429		$	(114,989	)	$	(65,644	)

	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Current:
Federal	$	(569	)	$	(24,366	)	$	20,435
Foreign		8,513			9,163			(2,671	)
Total current		7,944			(15,203	)		17,764
Deferred:
Federal		-			-			20,592
Foreign		765			(4,091	)		(3,361	)
Total deferred		765			(4,091	)		17,231
Total	$	8,709		$	(19,294	)	$	34,995

The difference between the effective income tax rate reflected in the provision for income taxes and the U.S. federal statutory rate was as follows:

	Year Ended December 31,
	2019			2018			2017
Federal income tax statutory rate		21.00	%		21.00	%		35.00	%
Foreign income tax rate differential		16.20			(0.94	)		2.41
Foreign development tax incentive		(0.91	)		0.24			1.78
Nondeductible goodwill impairment		-			(5.21	)		-
Exempt income		(24.02	)		2.32			-
Foreign taxes and inclusions (net of FTC)		21.00			(1.83	)		-
Transition tax (net of FTC)		-			5.80			(28.62	)
Nondeductible expenses		15.51			(1.03	)		(1.75	)
Foreign intellectual property tax benefit		-			-			16.06
Manufacturing benefit		-			(1.18	)		-
Change in valuation allowance		24.96			(1.99	)		(35.61	)
Changes to PY Accruals		6.28			(1.17	)		(4.01	)
Deferred tax rate change		(0.36	)		0.66			(20.66	)
Change in Uncertain tax positions		4.31			(0.78	)		(25.59	)
Interest on net equity		-			1.02			3.15
General business credits		(11.14	)		0.59			1.39
Branch income		9.64			(0.66	)		-
Other		1.03			(0.06	)		3.14
Effective tax rate		83.50	%		16.78	%		(53.31	)%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred tax assets (liabilities) are as follows:

	As of December 31,
	2019			2018
	(In thousands)
Deferred tax assets:
Foreign tax credit carryforward	$	4,817		$	2,918
Inventory		17,777			28,181
Net operating losses		18,991			4,899
Allowance for doubtful accounts		358			1,729
Reserve for accrued liabilities		2,732			3,357
Stock options		2,782			3,908
Unrealized gain/loss		1,862			-
Other		867			1,003
Total deferred tax assets		50,186			45,995
Valuation allowance		(34,464	)		(31,833	)
Deferred tax liabilities:
Property, plant and equipment		(5,757	)		(6,601	)
Goodwill & Intangibles		(2,092	)		(881	)
Deferred revenue		(1,830	)		-
Other		(1,257	)		(1,151	)
Total deferred tax liability		(10,936	)		(8,633	)
Net deferred tax asset	$	4,786		$	5,529

Tax operating loss carryforwards totaled $88.9 million at December 31, 2019. These operating losses will expire as shown in the table below.

In assessing the realizability of our deferred tax assets, the Company has assessed whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. In making this determination, the Company considered taxable income in prior years, if carryback is permitted, the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies. The Company has a three-year cumulative loss at December 31, 2019 in the United States and certain foreign jurisdictions and has recorded a valuation allowance at December 31, 2019 of $34.5 million against deferred tax assets in those jurisdictions.

On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act of 2017 (US Tax Reform). US Tax Reform eliminated the deferral of U.S. income tax on the historical unrepatriated earnings by imposing a transition tax, which is a one-time mandatory deemed repatriation tax on undistributed earnings. Certain undistributed earnings of the Company’s foreign subsidiaries are considered to be indefinitely reinvested and, accordingly, no provision for income taxes has been provided thereon. The estimate of undistributed earnings of the Company’s foreign subsidiaries amounted to $535 million as of December 31, 2019. Upon distribution of those earnings in the form of dividends or otherwise, the Company may be subject to both income taxes and withholding taxes payable. Determination of the amount of the potential tax liability on repatriation is not practicable at this time because of the complexities associated with its hypothetical calculation; however, unrecognized foreign tax credits would be available to reduce a portion of the U.S. tax liability.

US Tax Reform subjects a US shareholder to tax on Global Intangible Low-Taxed Income (GILTI). We have elected to account for GILTI in the year that the tax is incurred as a period expense.

The Company evaluates uncertain tax positions for recognition and measurement in the consolidated financial statements. To recognize a tax position, the Company determines whether it is more likely than not that the tax positions will be sustained upon examination, including resolution of any related appeals or litigation, based on the technical merits of the position. A tax position that meets the more likely than not threshold is measured to determine the amount of benefit to be recognized in the consolidated financial statements. The amount of tax benefit recognized with respect to any tax position is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. The Company had an uncertain tax position of $18.7 million at December 31, 2019 due to uncertainty in tax positions taken in the U.S. and certain foreign tax jurisdictions. The tax years which remain subject to examination by major tax jurisdictions are the years ended December 31, 2012 through December 31, 2019.

A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows:

	2019		2018		2017
	(In thousands)
Balance at beginning of year	$	18,648	$	18,323	$	5,151
Additions for tax positions related to the current year		-		-		16,800
Additions for tax positions related to the prior year		17		325		-
Settlements with tax authorities		-		-		(3,628	)
Balance at end of year	$	18,665	$	18,648	$	18,323

The amounts above exclude accrued interest and penalties of $1.6 million, $1.1 million and $0.6 million at December 31, 2019, 2018 and 2017 respectively. The Company classifies interest and penalties relating to uncertain tax positions within Tax expense(benefit) in the Consolidated Statement of Income (Loss).

It is reasonably possible that the Company's existing liabilities for unrecognized tax benefits may increase or decrease in the year ending December 31, 2019, primarily due to the progression of any audits and the expiration of statutes of limitation. However, the Company cannot reasonably estimate a range of potential changes in its existing liabilities for unrecognized tax benefits due to various uncertainties, such as the unresolved nature of any possible audits. As of December 31, 2019, if recognized, $7.3 million of the Company's unrecognized tax benefits would favorably impact the effective tax rate.

The Company received a net income tax refund of $10.9 million in 2019 and paid $3.8 million and $8.4 million in income taxes in 2018 and 2017, respectively.