For the years ended December 31, 2020, 2019 and 2018, our income tax benefit on the loss from continuing operations resulted in an effective tax rate of 5.8%, 1.3% and 33.0%, respectively. Our income tax benefit on continuing operations for the years ended December 31, 2020, 2019 and 2018 was $14.7 million, $0.4 million and $31.1 million, respectively, and includes federal, state and foreign taxes. The components of our tax benefit on continuing operations were as follows (in thousands):


	Current		Deferred		Total
Twelve months ended December 31, 2020:
U.S. Federal	$	(14,853)	$	(1,228)	$	(16,081)
State & local	1,113		(1,010)		103
Foreign jurisdictions	2,942		(1,679)		1,263
	$	(10,798)	$	(3,917)	$	(14,715)
Twelve months ended December 31, 2019:
U.S. Federal	$	(105)	$	(4,349)	$	(4,454)
State & local	519		(1,230)		(711)
Foreign jurisdictions	2,340		2,389		4,729
	$	2,754	$	(3,190)	$	(436)
Twelve months ended December 31, 2018:
U.S. Federal	$	(3,295)	$	(27,670)	$	(30,965)
State & local	509		(2,360)		(1,851)
Foreign jurisdictions	3,457		(1,704)		1,753
	$	671	$	(31,734)	$	(31,063)

The income tax benefit attributable to the loss from continuing operations differed from the amounts computed by applying the U.S. Federal income tax rate (21% in 2020, 2019 and 2018) to pre-tax loss from continuing operations as a result of the following (in thousands):


	Twelve Months Ended December 31,
	2020		2019		2018
Pre-tax loss from continuing operations	$	(251,918)	$	(32,853)	$	(94,209)
Computed income taxes at statutory rate	(52,903)		(6,899)		(19,784)
State income taxes, net of federal benefit1	(114)		(820)		(974)
Foreign tax rate differential	404		(300)		(52)

Deferred taxes on investment in foreign subsidiaries	525		18		(7,284)
Non-deductible expenses	518		658		686
Non-deductible compensation1	89		559		829
Foreign withholding 1	1,063		670		1,615
Convertible debt1	(2,949)		—		2,865
Other tax credits	—		—		(1,995)
Deemed repatriation tax	—		—		(1,751)
Goodwill impairment	12,586		—		—

Valuation allowance	32,957		3,682		2,923
Cares Act rate benefit	(7,267)		—		—
Rate change	(551)		684		81
Other1	927		1,312		(8,222)
Total benefit for income tax on continuing operations	$	(14,715)	$	(436)	$	(31,063)

1 Compared to our previously filed 2018 Annual Report on Form 10-K, $1.4 million was reclassified from “Other” to “State income taxes, net of federal benefit” for the twelve months ended December 31, 2018. Additionally, “Non-deductible compensation”, “Convertible debt “and “Foreign withholding tax” were moved from “Other” to separate line disclosures.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (in thousands):


	December 31,
	2020		2019
Deferred tax assets:
Accrued compensation and benefits	$	9,058	$	8,909
Receivables	1,551		1,644
Inventory	336		397
Share based compensation	256		768

Other accrued liabilities	2,109		1,247
Tax credit carry forward	3,642		312
Interest expense limitation	7,040		7,719
Goodwill and intangible costs	6,754		—
Net operating loss carry forwards	58,759		50,447
Other	1,013		1,798
Deferred tax assets	90,518		73,241
Less: Valuation allowance	(53,417)		(14,912)
Deferred tax assets, net	37,101		58,329
Deferred tax liabilities:
Property, plant and equipment	(23,783)		(17,921)
Goodwill and intangible costs	—		(28,655)
Unremitted earnings of foreign subsidiaries	(5,918)		(5,393)
Convertible debt	(1,755)		(5,767)
Other	(3,230)		(2,400)
Deferred tax liabilities	(34,686)		(60,136)
Net deferred tax asset (liability)	$	2,415	$	(1,807)

Management evaluates all available evidence, both positive and negative, to determine whether sufficient future taxable income will be generated to allow for the realization of the existing deferred tax assets. A valuation allowance is recognized if, based on the weight of available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized. A significant factor of negative evidence evaluated was the cumulative pre-tax loss incurred over the three-year period ended December 31, 2020. This objective evidence limits the ability to consider other subjective positive evidence, such as our projections for future pre-tax income.

On the basis of this evaluation, as of December 31, 2020, a valuation allowance of $53.4 million has been recorded to recognize only the portion of the deferred tax asset that is more likely than not to be realized. This valuation allowance relates primarily to the deferred tax assets for federal, foreign and state tax net operating loss carryforwards. The amount of deferred tax asset considered realizable could be adjusted if there are changes to net operating loss carryforward periods or there is a change to the weight assessed on various sources of positive and negative evidence.

The deferred tax asset presented for net operating loss carryforwards is net of any unrecognized tax benefits that has been established related to income tax returns filed.

At December 31, 2020, we had net operating loss carry forwards for U.S. federal income tax purposes of $174.9 million. Of this amount, $93.4 million expires in various dates through 2037 and $81.5 million has an indefinite carry forward period. These carryforwards are available, subject to certain limitations, to offset future taxable income. Further, we have state net operating loss carryforwards of $166.0 million with $151.5 million expiring on various dates through 2040 and $14.5 million with an indefinite carryforward period.

As of December 31, 2019, we had alternative minimum tax credits of approximately $2.1 million which can be used to offset regular income tax or is refundable. Pursuant to a provision of the CARES Act, we filed for and received the full refund of these alternative minimum tax credits in 2020.

As of December 31, 2020, we had foreign net operating loss carry forwards totaling $47.8 million. Of this amount, $26.1 million will expire in various dates through 2030 and $21.7 million has an unlimited carry forward period.

At December 31, 2020, none of our undistributed earnings of foreign operations were considered to be permanently reinvested overseas. As of December 31, 2020, the deferred tax liability related to undistributed earnings of foreign subsidiaries was $5.9 million.

As of December 31, 2020, $1.0 million of unrecognized tax benefits would affect our effective tax rate. We estimate the uncertain tax benefits that may be recognized within the next twelve months will not be material. Our policy is to recognize interest and penalties related to unrecognized tax benefits in income tax expense.

We file income tax returns in the U.S. with federal and state jurisdictions as well as various foreign jurisdictions. With few exceptions, we are no longer subject to U.S. Federal, state and local or non-U.S. income tax examinations by tax authorities for years prior to 2016. We are currently under federal audit for the tax year ended December 31, 2017 and under state audit in one of the taxing jurisdictions in which we do substantial business. We do not anticipate any material adjustments related to these examinations.

Periodic examinations of our tax filings occur by the taxing authorities for the jurisdictions in which we conduct business. These examinations review the significant positions taken on our returns, including the timing and amount of income and deductions reported, as well as the allocation of income among multiple taxing jurisdictions. We do not expect any material adjustments to result from positions taken on our income tax returns.

The following table summarizes the Company’s reconciliation of gross unrecognized tax benefits, excluding penalties and interest, for the year ended December 31, 2020, 2019 and 2018 (in thousands):


	Twelve Months Ended December 31,
	2020		2019		20181
Unrecognized tax benefits - January 1	$	1,547	$	1,749	$	991

Additions based on current year tax positions	7		—		—
Additions based on tax positions related to prior years	89		227		1,004
Reductions based on tax positions related to prior years			(415)		—
Settlements	—		—		—
Reductions resulting from a lapse of the applicable statute of limitations	(33)		(14)		(246)
Unrecognized tax benefits - December 31	$	1,610	$	1,547	$	1,749