	Successor						Predecessor
	Consolidated (as restated)						Combined
	Year Ended December 31, 2020			March 20, 2019 to December 31, 2019				January 1, 2019 to March 19, 2019			Year Ended December 31, 2018
U.S.	$	(12,294	)	$	(19,901	)		$	115		$	2,871
Foreign		(274,869	)		(12,154	)			(24,787	)		11,960
	$	(287,163	)	$	(32,055	)		$	(24,672	)	$	14,831

	Successor						Predecessor
	Consolidated						Combined
	Year Ended December 31, 2020			March 20, 2019 to December 31, 2019				January 1, 2019 to March 19, 2019			Year Ended December 31, 2018
U.S. Federal	$	1,309		$	(340	)		$	(39	)	$	461
U.S. State		51			89				57			159
Foreign		(546	)		131				91			468
		814			(120	)			109			1,088
Current		(761	)	523					118			1,089
Deferred		1,575			(643	)			(9	)		(1	)
	$	814		$	(120	)		$	109		$	1,088

A reconciliation of the difference between the expected income tax expense (benefit) using the U.S. federal tax rate and our actual provision is as follows (in thousands):

	Successor						Predecessor
	Consolidated (as restated)						Combined

	Year Ended December 31, 2020			March 20, 2019 to December 31, 2019				January 1, 2019 to March 19, 2019			Year Ended December 31, 2018
Provision using statutory
U.S. federal tax rate	$	(60,304	)	$	(6,731	)		$	(5,162	)	$	3,114
Foreign rate differential		16,530			2,378				4,780			(1,730	)
Prior period true up adjustment		(1,798	)		-				-			-
State taxes		178			89				-			126
Change in valuation allowance		5,454			4,093				-			(439	)
Permanent differences		40,865			168				346			141
Uncertain tax position		-			-				-			(68	)
Other		(111	)		(117	)			145			(56	)
Total	$	814		$	(120	)		$	109		$	1,088

The difference between the expected provision for income taxes using the 21% U.S. federal income tax rate for 2020 and 2019 (Successor and Predecessor) and 2018 (Predecessor), and the Company’s actual provision is primarily attributable to the change in valuation allowance, foreign rate differential including income earned in jurisdictions not subject to income taxes, and prior period true- up adjustment.

A reconciliation of the beginning and ending amounts of uncertain tax positions, excluding interest and penalties, is as follows (in thousands):


	Year Ended December 31, 2020		March 20, 2019 to December 31, 2019		January 1, 2019 to March 19, 2019			Year Ended December 31, 2018
Beginning balance	$	1,663	$	1,663	$	1,697		$	1,781
Gross (decreases) increases—prior period tax position		-		-		(34	)		(84	)
Ending balance	$	1,663	$	1,663	$	1,663		$	1,697

As of December 31, 2020, the Company accrued $4.4 million, for uncertain tax positions, including interest and penalties that, if recognized, would affect the effective income tax rate.

The Company classifies interest and penalties on uncertain tax positions as a component of provision for income taxes in the consolidated and combined statements of operations. Accrued interest and penalties related to uncertain tax positions as of December 31, 2020 and 2019, amounted to $2.6 million and $2.2 million respectively, and are included in income tax contingency in the accompanying consolidated and combined balance sheets.

	As of December 31,
	2020			2019
Deferred income tax assets:
Stock options	$	5,809		$	4,807
Inventory reserves		16			36
Allowance for doubtful accounts		12			8
Depreciation and amortization		2,351			1,274
Other reserves and accruals		430			144
Gift certificates		202			185
Net operating losses		3,833			749
Total deferred income tax assets		12,653			7,203
Less valuation allowance		(11,543	)		(5,157	)
Deferred income tax asset, net	$	1,110		$	2,046
Deferred income tax liability	$	(1,012	)	$	(375	)
Net deferred income tax asset	$	98		$	1,671

The valuation allowance increased by $6.4 million in 2020, primarily stemming from the assessment of realizability of the deferred tax asset.

As of December 31, 2020, we had approximately $15.7 million of foreign tax operating loss carryforwards expiring as follows (in millions):

Expires
2021	$	0.6
2022		0.3
2023		0.5
2024		0.4
2025		1.4
2026		0.3
2027		0.6
2028		0.2
2030		0.3
Indefinite		11.1
Total	$	15.7

As the Company accounts for income taxes under the separate return method for the predecessor period, the combined statements of equity for period from January 1, 2019 to March 19, 2019 (Predecessor) and for the year ended December 31, 2018 (Predecessor) include $0.03 million, $1.2 million of current income taxes payable that were included in net Parent investment, as such income taxes are not actually owed to the tax authorities. The Company is subject to routine audits by U.S. federal, state, local and foreign tax authorities. These audits include questioning the timing and the amount of deductions and the allocation of income among various tax jurisdictions. The tax years 2015-2019 remain subject to examination by taxing authorities throughout the world in major jurisdictions, such as the U.S. and Italy.

In November 2016, the Company was notified by a foreign tax authority of a disagreement over how the withholding tax exemption was applied on dividend distributions. On February 17, 2017, the Company received a formal assessment related to this matter. The Company is disputing the assessment and believes that adequate accrual has been established for this matter. The Company has included $(0.1) million and $0.5 million of unrecognized tax benefit in the provision for income taxes for the year ended December 31, 2018 (Predecessor) which comprises the impact of foreign exchange movements on the income tax contingency accrual.

On December 22, 2017, the U.S. enacted significant changes to tax law following the passage and signing of The Tax Cuts and Jobs Act (“TCJA”). The Company has completed the analysis of the tax accounting implications of the TCJA during the year ended December 31, 2018 in accordance with the terms of SEC Staff Bulletin 118. The Company did not record any adjustments in the year ended December 31, 2018 to provisional amounts that were material to its combined financial statements.