We are subject to future federal, state, and foreign income taxes and have recorded net deferred tax assets on the Consolidated Balance Sheets at December 31, 2020 and 2019. Deferred tax assets and liabilities are determined based on the difference between the financial accounting and tax bases of assets and liabilities. We present below significant components of our deferred tax assets and liabilities as of December 31, 2020 and 2019 are as follows (in thousands):

	December 31,
	2020			2019
Deferred tax assets:
Accounts receivable	$	832		$	667
Accrued liabilities		8,407			8,083
Equity-based compensation		5,902			5,888
Capitalized costs		578			726
Accrued sales taxes		145			187
Operating lease liabilities		8,828			10,869
State tax credits		3,408			4,027
Foreign subsidiary net operating losses		78			62
Valuation allowance		(3,375	)		(2,886	)
Other		659			479
		25,462			28,102
Deferred tax liabilities:
Intangible assets		7,414			7,548
Depreciation		1,250			1,228
Deferred commissions		2,713			2,326
Operating lease right-of-use assets		8,325			10,223
		19,702			21,325
Net deferred tax assets	$	5,760		$	6,777

We present below income from domestic and foreign operations before income tax expense for the years ended December 31, 2020, 2019 and 2018 are as follows (in thousands):

	Year Ended December 31,
	2020		2019		2018
Domestic	$	101,681	$	104,878	$	126,542
Foreign		12,095		11,199		9,689
Total	$	113,776	$	116,077	$	136,231

The components of our income tax provision for the years ended December 31, 2020, 2019 and 2018 are as follows (in thousands):

	Year Ended December 31,
	2020			2019			2018
Current:
Federal	$	13,860		$	18,682		$	22,606
State		4,793			5,711			6,182
Foreign		6,847			7,323			7,018
		25,500		$	31,716		$	35,806
Deferred:
Federal		(393	)		(863	)		(3,127	)
State		1,113			(326	)		(674	)
Foreign		316			(212	)		(464	)
		1,036			(1,401	)		(4,265	)
Total	$	26,536		$	30,315		$	31,541

As a result of losses in foreign locations, we have a net operating loss carry-forwards (“NOLs”) of approximately $0.3 million available to offset future income. Approximately $0.2 million of the NOLs expire in 2025 with the remaining with no expiration. We have established a valuation allowance for a portion of these NOLs because the ability to utilize them is not more likely than not to occur.

We have tax credit carry-forwards of approximately $4.3 million available to offset future state tax. These tax credit carry-forwards expire in 2021 to 2030. These credits represent a deferred tax asset of $3.4 million after consideration of the federal benefit of state tax deductions. A valuation allowance of $2.2 million has been established for these credits because the ability to use them is not more likely than not.

At December 31, 2020 we had approximately $52.2 million of undistributed earnings and profits. The undistributed earnings and profits are considered previously taxed income and would not be subject to U.S. income taxes upon repatriation of those earnings, in the form of dividends. The undistributed earnings and profits are considered to be permanently reinvested, accordingly no provision for local withholdings taxes have been provided, however, upon repatriation of those earnings, in the form of dividends, we could be subject to additional local withholding taxes.

We present below a summary of the items that cause recorded income taxes to differ from taxes computed using the statutory federal income tax rate for the years ended December 31, 2020, 2019 and 2018:

	Year Ended December 31,
	2020			2019			2018

Statutory federal income tax rate		21.0	%		21.0	%		21.0	%
Effect of:
State income tax, net of federal benefit		3.9			3.5			3.4
State credit carryforwards		0.5			1.3			0.3
U.S. federal R&D tax credit		(1.9	)		(1.9	)		(1.7	)
Tax Reform		-		-				(0.1	)
Excess benefit of equity compensation		(3.4	)		(0.1	)		(0.6	)
Employee compensation limitation		2.7			2.1			0.9
Global Intangible Low Taxed Income (GILTI)		0.1		-			-
Foreign-derived intangible income (FDII) deduction		(2.7	)		(3.1	)		(1.6	)
Foreign operations		1.0			1.1			1.2
Tax contingencies		1.9			3.7			0.5
Other permanent differences		(0.2	)		(0.6	)		0.1
Change in valuation allowance		0.4			(0.9	)		(0.2	)
Income taxes		23.3	%		26.1	%		23.2	%

On December 22, 2017, the United States enacted tax reform legislation commonly known as the Tax Cuts and Jobs Act (“the Act”), resulting in significant modifications to existing law. In December 2017, we recorded a provisional estimate of $3.3 million for the one-time deemed repatriation transition tax on unrepatriated foreign earnings. The provisional amount was based on information available at that time, including estimated tax earnings and profits from foreign investments. In the fourth quarter of 2018, we finalized our transition tax calculation and recorded additional tax expense of $0.3 million. In December 2017, we also recorded a provisional write-down to deferred tax assets of $0.7 million related to changes in Section 162(m), Internal Revenue Code of 1986, regarding deductions for excessive employee compensation. In 2018, we finalized our calculation under Section 162(m) and recorded a tax benefit of $0.5 million. We also recorded a one-time tax benefit in December 2017 of $1.2 million from the remeasurement of deferred tax assets and liabilities from 35% to 21%. As of December 31, 2018, we completed the accounting for all of the impacts of the Act.

The Act provides for the global intangible low-taxed income (“GILTI”) provision which requires us in our U.S. income tax return, to include foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. The FASB staff provided additional guidance to address the accounting for the effects of the provisions related to the taxation of GILTI, noting that companies should make an accounting policy election to recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to include the tax expense in the year it is incurred. We have elected to include the tax expense in the year that we incur it.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended December 31, 2020, 2019 and 2018 (in thousands):

	December 31,
	2020			2019			2018

Unrecognized tax benefits at January 1,	$	(11,239	)	$	(7,113	)	$	(7,419	)
Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during a prior period		(118	)		(2,428	)		(873	)
Gross amount of decreases in unrecognized tax benefits as a result of tax positions taken during a prior period		1,598			445			233
Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during the current period		(3,256	)		(2,489	)		(78	)
Reductions to unrecognized tax benefits relating to settlements with taxing authorities		-		-				349
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations		211			346			675
Unrecognized tax benefits at December 31,	$	(12,804	)	$	(11,239	)	$	(7,113	)

Our unrecognized tax benefits totaled $12.8 million and $11.2 million as of December 31, 2020 and 2019, respectively. Included in these amounts are unrecognized tax benefits totaling $11.9 million and $10.2 million as of December 31, 2020 and 2019, respectively, which, if recognized, would affect the effective tax rate.

We recognize potential accrued interest and penalties related to unrecognized tax benefits within our global operations in income tax expense. For the years ended December 31, 2020, 2019 and 2018, the Company recognized the following income tax expense: $0.4 million, $0.5 million, and $0.5 million, respectively, for the potential payment of interest and penalties. Accrued interest and penalties were $2.0 million and $1.7 million for the years ended December 31, 2020 and 2019. We conduct business globally and, as a result, file income tax returns in the United State federal jurisdiction and in many state and foreign jurisdictions. We are generally no longer subject to U.S. federal, state, and local, or non-US income tax examinations for the years before 2012. Due to the expiration of statutes of limitations in multiple jurisdictions globally during 2020, the Company anticipates it is reasonably possible that unrecognized tax benefits may decrease by $3.9 million.