Consistent with applicable Securities and Exchange Commission guidance in Staff Accounting Bulletin 118 (“SAB118”), the Company recognized a provisional income tax benefit of $38,200,000 related to the re-measurement of deferred tax assets and liabilities and a provisional income tax expense of $6,900,000 for the one-time mandatory deemed repatriation tax during fiscal 2018. During fiscal 2019, the Company finalized the accounting for the TCJA and made no material adjustments to these provisional amounts.

Earnings before income taxes for the three fiscal years ended May 31 included the following components:

(in thousands)	2021		2020		2019
U.S. based operations	$	897,601	$	99,493	$	173,200
Non – U.S. based operations		20,116		11,293		33,256
Earnings before income taxes		917,717		110,786		206,456
Less: Net earnings attributable to noncontrolling interests*		17,655		5,648		9,818
Earnings before income taxes attributable to controlling interest	$	900,062	$	105,138	$	196,638

Significant components of income tax expense (benefit) for the fiscal years ended May 31 were as follows:

(in thousands)	2021			2020			2019
Current
Federal	$	160,903		$	20,739		$	15,454
State and local		6,018			1,713			2,309
Foreign		4,524			5,199			7,985
		171,445			27,651			25,748
Deferred
Federal		6,668			(2,350	)		18,195
State and local		(391	)		732			1,621
Foreign		(1,455	)		309			(2,381	)
		4,822			(1,309	)		17,435
	$	176,267		$	26,342		$	43,183

A reconciliation of the federal statutory corporate income tax rate to total tax provision follows:

	2021			2020			2019
Federal statutory corporate income tax rate		21.0	%		21.0	%		21.0	%
State and local income taxes, net of federal tax benefit		0.8			2.4			2.1
Non-U.S. income taxes at other than federal statutory rate		(0.3	)		3.1			0.2
Excess benefit related to share-based payment awards		(0.5	)		(1.2	)		(1.4	)
Nondeductible executive compensation		0.6			1.1			0.6
Oil & Gas capital stock loss		(1.5	)		-			-
Other		(0.5	)		(1.3	)		(0.5	)
Effective tax rate attributable to controlling interest		19.6	%		25.1	%		22.0	%

The above effective tax rate attributable to controlling interest excludes any impact from the inclusion of net earnings attributable to noncontrolling interests in our consolidated statements of earnings. The effective tax rates upon inclusion of net earnings attributable to noncontrolling interests were 19.2%, 23.8% and 20.9% for fiscal 2021, fiscal 2020 and fiscal 2019, respectively. Net earnings attributable to noncontrolling interests are primarily a result of our WSP, Spartan, and TWB consolidated joint ventures. The earnings attributable to the noncontrolling interests in WSP, Spartan and TWB’s U.S. operations do not generate tax expense to Worthington since the investors in WSP, Spartan and TWB’s U.S. operations are taxed directly based on the earnings attributable to them. The tax expense of TWB’s wholly-owned foreign corporations is reported in our consolidated tax expense.

Under applicable accounting guidance, a tax benefit may be recognized from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Any tax benefits recognized in our financial statements from such a position were measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement.

The total amount of unrecognized tax benefits was $3,836,000, $1,718,000, and $1,621,000 as of May 31, 2021, 2020 and 2019, respectively. As of May 31, 2021, the total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate attributable to controlling interest was $3,030,000. Unrecognized tax benefits are the differences between a tax position taken, or expected to be taken in a tax return, and the benefit recognized for accounting purposes. Accrued amounts of interest and penalties related to unrecognized tax benefits are recognized as part of income tax expense within our consolidated statements of earnings. As of May 31, 2021, 2020 and 2019, we had accrued liabilities of $12,000, $68,000 and $287,000, respectively, for interest and penalties related to unrecognized tax benefits.

Approximately $53,000 of the liability for unrecognized tax benefits is expected to be settled in the next twelve months due to the expiration of statutes of limitations in various tax jurisdictions and as a result of expected settlements with various tax jurisdictions. While it is expected that the amount of unrecognized tax benefits will change in the next twelve months, any change is not expected to have a material impact on our consolidated financial position, results of operations or cash flows.

The following is a summary of the tax years open to examination by major tax jurisdiction:

The components of our deferred tax assets and liabilities as of May 31 were as follows:

(in thousands)	2021			2020
Deferred tax assets
Accounts receivable	$	1,244		$	1,246
Inventories		4,946			5,554
Accrued expenses		24,714			21,214
Net operating loss carry forwards		9,907			11,732
Stock-based compensation		6,076			6,931
Derivative contracts		-			1,920
Operating lease - ROU liability		7,642			7,294
Other		2,309			3,549
Total deferred tax assets		56,838			59,440
Valuation allowance for deferred tax assets		(9,124	)		(11,178	)
Net deferred tax assets		47,714			48,262
Deferred tax liabilities
Property, plant and equipment		(111,789	)		(95,553	)
Investment in affiliated companies, principally due to undistributed earnings		(24,034	)		(15,884	)
Operating lease - ROU asset		(7,102	)		(6,241	)
Derivative contracts		(15,343	)		-
Other		(3,197	)		(2,526	)
Total deferred tax liability		(161,465	)		(120,204	)
Net deferred tax liability	$	(113,751	)	$	(71,942	)

At May 31, 2021, we had tax benefits for federal net operating loss carry forwards of $1,640,000 with no expiration date, and tax benefits for state net operating loss carry forwards of $8,125,000 that expire from fiscal 2022 to the fiscal year ending May 31, 2041.

The valuation allowance for deferred tax assets of $9,124,000 at May 31, 2021 is associated primarily with the state net operating loss carry forwards and relates to our former facility in Decatur, Alabama and our former oil & gas equipment business.

Based on our history of profitability, the scheduled reversal of deferred tax liabilities, and taxable income projections, we have determined that it is more likely than not that the remaining deferred tax assets are otherwise realizable.