On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted in the United States. The Act includes a number of changes to existing U.S. tax laws that impact us including the reduction of the U.S. corporate income tax rate from 35% to 21% for tax years beginning after December 31, 2017. The Act also provides for a one-time transition tax on indefinitely reinvested foreign earnings and the acceleration of depreciation for certain assets placed into service after September 27, 2017, as well as prospective changes beginning in 2018, including the elimination of certain domestic deductions and credits and additional limitations on the deductibility of executive compensation. While we consider our accounting for the Act to be complete, we continue to evaluate new guidance and legislation as it is issued.

The components of earnings from continuing operations before income taxes is comprised of the following:

(In thousands)	2021			2020			2019
United States	$	(3,123	)	$	83,871		$	84,807
Foreign		(108,546	)		(1,436	)		(6,548	)
Total Earnings (Loss) from Continuing Operations before Income Taxes	$	(111,669	)	$	82,435		$	78,259

(In thousands)	2021			2020			2019
Current
U.S. federal	$	(106,397	)	$	16,313		$	13,657
International		1,391			322			1,649
State		10,223			3,383			4,029
Total Current Income Tax Expense (Benefit)		(94,783	)		20,018			19,335
Deferred
U.S. federal		48,511			(463	)		3,632
International		2,773			1,145			2,594
State		(12,142	)		(22	)		1,474
Total Deferred Income Tax Expense		39,142			660			7,700
Total Income Tax Expense (Benefit) – Continuing Operations	$	(55,641	)	$	20,678		$	27,035

Reconciliation of the United States federal statutory rate to our effective tax rate from continuing operations is as follows:

	2021			2020			2019
U. S. federal statutory rate of tax		21.00	%		21.00	%		21.00	%
State taxes (net of federal tax benefit)		1.35			3.62			5.67
Foreign rate differential		(0.25	)		(2.21	)		(2.56	)
Change in valuation allowance		(10.70	)		3.64			11.51
Credits		0.44			(0.93	)		(2.65	)
Permanent items		(0.66	)		1.72			2.27
Uncertain federal, state and foreign tax positions		—			(2.01	)		(1.68	)
Transition tax		—			—			2.23
CARES Act		41.53			—			—
Outside Basis Difference - IRC Section 165(g) 3		10.34			—			—
Goodwill Impairment		(13.50	)		—			—
Other		0.28			0.25			(1.24	)
Effective Tax Rate		49.83	%		25.08	%		34.55	%

The Fiscal 2021 effective tax rate reflects the favorable impact of the CARES Act, enacted on March 27, 2020. Due to the net operating loss provisions of the CARES Act, we realized a $46.4 million tax benefit in Fiscal 2021. A change to our international operations that took effect in January 2021 resulted in an additional $12.8 million tax benefit in Fiscal 2021. These tax benefits were offset partially by an increase in the valuation allowance in foreign jurisdictions and a non-deductible goodwill impairment charge.

We are subject to a tax on global intangible low-tax income (“GILTI”). GILTI taxes foreign income in excess of deemed return on tangible assets of a foreign corporation and we elected to treat this tax as a period cost. Because of tax losses in foreign jurisdictions, there was no liability for GILTI in any period.

	January 30,			February 1,
(In thousands)	2021			2020
Pensions	$	229		$	332
Lease obligation		175,113			188,590
Book over tax depreciation		13,528			4,558
Expense accruals		10,388			7,386
Uniform capitalization costs		4,886			7,292
Provisions for discontinued operations and restructurings		650			674
Inventory valuation		2,242			810
Tax net operating loss and credit carryforwards		39,829			11,972
Allowances for bad debts and notes		888			181
Deferred compensation and restricted stock		2,945			3,344
Identified intangibles		1,586			—
Other		34			144
Gross deferred tax assets		252,318			225,283
Deferred tax asset valuation allowance		(36,561	)		(23,333	)
Deferred tax asset net of valuation allowance		215,757			201,950
Identified intangibles		(4,677	)		(3,616	)
Prepaids		(1,765	)		(1,929	)
Right of use asset		(163,674	)		(176,930	)
Tax over book depreciation		(64,009	)		—
Other		(1,120	)		—
Gross deferred tax liabilities		(235,245	)		(182,475	)
Net Deferred Tax Assets (Liabilities)	$	(19,488	)	$	19,475

We have an income tax receivable of $108.6 million included in prepaids and other current assets on the Consolidated Balance Sheets as of January 30, 2021.

The deferred tax balances have been classified in our Consolidated Balance Sheets as follows:

As of January 30, 2021 and February 1, 2020, we had state net operating loss carryforwards of $22.4 million and $3.4 million, respectively. We provided a valuation allowance against these attributes of $3.2 million as of January 30, 2021 and February 1, 2020. The attributes expire in fiscal years 2022 through 2039.

As of January 30, 2021 and February 1, 2020, we had state tax credits of $0.5 million and $0.6 million, respectively. These credits expire in fiscal years 2022 through 2026.

As of January 30, 2021 and February 1, 2020, we had foreign net operating loss carryforwards of $57.6 million and $29.5 million, respectively, which have a carryforward period at least 18 years.

As of January 30, 2021, we have provided a total valuation allowance of approximately $36.6 million on deferred tax assets associated primarily with foreign and state net operating losses for which management has determined it is more likely than not that the deferred tax assets will not be realized. The $13.3 million net increase in valuation allowance during Fiscal 2021 from the $23.3 million provided for as of February 1, 2020 relates primarily to foreign tax attributes. Management believes that it is more likely than not that the remaining deferred tax assets will be fully realized.

As of January 30, 2021, no deferred taxes have been provided on the accumulated undistributed earnings of our foreign operations beyond the amounts recorded for deemed repatriation of such earnings, as required in the Act. An actual repatriation of earnings from our foreign operations could still be subject to additional foreign withholding and U.S. state taxes. Based upon evaluation of our foreign operations, undistributed earnings are intended to remain permanently reinvested to finance anticipated future growth and expansion, and accordingly, deferred taxes have not been provided. If undistributed earnings of our foreign operations were not considered permanently reinvested as of January 30, 2021, an immaterial amount of additional deferred taxes would have been provided.

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for Fiscal 2021, 2020 and 2019.

(In thousands)	2021		2020			2019
Unrecognized Tax Benefit – Beginning of Period	$	178	$	1,835		$	3,701
Gross Increases (Decreases) – Tax Positions in a Current Period		—		178			(638	)
Settlements		—		(931	)		—
Lapse of Statutes of Limitations		—		(904	)		(1,228	)
Unrecognized Tax Benefit – End of Period	$	178	$	178		$	1,835

The amount of unrecognized tax benefits as of January 30, 2021, February 1, 2020 and February 2, 2019 which would impact the annual effective rate if recognized were $0.2 million, $0.2 million and $0.6 million, respectively. The amount of unrecognized tax benefits may change during the next twelve months but we do not believe the change, if any, will be material to our consolidated financial position or results of operations.

We recognize interest expense and penalties related to the above unrecognized tax benefits within income tax expense on the Consolidated Statements of Operations and it was not material for Fiscal 2021, 2020 or 2019.

We file income tax returns in federal and in many state and local jurisdictions as well as foreign jurisdictions. With few exceptions, our state and local income tax returns for fiscal years ended January 31, 2018 and beyond remain subject to examination. In addition, we have subsidiaries in various foreign jurisdictions that have statutes of limitation generally ranging from two to six years. Our US federal income tax returns for fiscal years ended January 31, 2018 and beyond remain subject to examination.