The Company’s provision for income tax expense for fiscal 2019 and fiscal 2018 was as follows:

	2019			2018
	(In thousands)
Current:
Federal	$	(437	)	$	3,071
Foreign, state and other		6			8
Prior year federal and state, with interest		—			119
Deferred:
Federal		69			272
Foreign, state and other		10			(9	)
(Benefit) provision for income tax expense	$	(352	)	$	3,461

The Company files a consolidated federal return and certain state and local income tax returns.

The difference between the effective rate reflected in the provision for income taxes and the amounts determined by applying the statutory federal rate of 21% to earnings before income taxes for fiscal 2019 and 31% for fiscal 2018 is analyzed below:

	2019			2018
	(In thousands)
Statutory provision	$	(553	)	$	(1,044	)
Foreign subsidiary		(36	)		(80	)
State taxes		(219	)		91
Permanent differences		39			1
Effect of new rate per Tax Act on deferred tax asset		—			325
Adjustment to prior year taxes		(449	)		(106	)
Federal taxes on Section 965		—			3,121
Valuation allowance		917			160
Utilization of NOL on Section 965		—			997
NOL Adjustments		(51	)		(4	)
(Benefit) provision for income tax expense	$	(352	)	$	3,461

As of March 31, 2019 and March 31, 2018, the significant components of the Company’s deferred tax assets which were classified as non-current, were as follows:

	2019			2018
	(In thousands)
Deferred tax assets:
Accounts receivable reserves	$	41		$	86
Inventory reserves		159			125
Accruals		21			43
Property, plant and equipment and intangible assets		227			262
Net operating loss and credit carry forwards		1,365			460
Valuation allowance		(1,365	)		(448	)
Total deferred tax assets	$	448		$	528

The Company has $3.3 million of U.S. federal net operating loss carry forwards (“NOLs”) as of March 31, 2019.

Loss Year (Fiscal)	Included in DTA	Expiration Year (Fiscal)
2014	$2.4 million		2034
2017	$0.9 million		2036
2018	$4.0 million	2037
2019	$3.2 million	2038

The tax benefits related to these state net operating loss carry forwards and future deductible temporary differences are recorded to the extent management believes it is more likely than not that such benefits will be realized.

The income of foreign subsidiaries before taxes was $419,000 for the fiscal year ended March 31, 2019 as compared to a loss before taxes of $276,000 for the fiscal year ended March 31, 2018, respectively.

Except for the accrual of the one-time transition tax on the deemed repatriation of the Company’s undistributed earnings of its foreign subsidiaries, for March 31, 2018 as detailed below, no provision was made for U.S. or additional foreign taxes on undistributed earnings of foreign subsidiaries. Such earnings have been and will be reinvested but could become subject to additional tax if they were loaned to the Company or a domestic affiliate, or if the Company should sell its stock in the foreign subsidiaries.

The Company analyzed the future reasonability of recognizing its deferred tax assets at March 31, 2019. As a result, the Company concluded that a valuation allowance of approximately $1,365,000 would be recorded against the assets.

The Company is subject to examination and assessment by tax authorities in numerous jurisdictions. As of March 31, 2019, the Company’s open tax years for examination for U.S. federal tax are 2016-2018, and for U.S. states’ tax are 2011-2018. Based on the outcome of tax examinations or due to the expiration of statutes of limitations, it is reasonably possible that the unrecognized tax benefits related to uncertain tax positions taken in previously filed returns may be different from the liabilities that have been recorded for these unrecognized tax benefits. As a result, the Company may be subject to additional tax expense.

In December 2017, President Trump signed into law H.R.1, commonly known as the Tax Cuts and Jobs Act (“TCJA”), which makes significant changes to the Internal Revenue Code. Subsequent to enactment of the TCJA in December 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to provide guidance regarding accounting for the TCJA’s impact. SAB 118 requires companies to recognize those tax items for which accounting can be completed. For items whose accounting has not been completed, companies must recognize provisional amounts to the extent they are reasonably estimable, with subsequent adjustments over a measurement period as more information is available and calculations are finalized.

Enactment of the TCJA resulted in a one-time transition tax on the deemed repatriation of the Company’s undistributed earnings of its foreign subsidiaries. The Company has estimated that it will have a gross transition tax liability of $4.6 million which will be reduced by $1.5 million due to net operating losses of $4.7 million. Thus the Company had recorded tax expense of $3.1 million in the year ended March 31, 2018 as a provisional estimate of its US federal transition tax liability. Final regulations were issued regarding the one-time transition tax prior to the filing of the March 31, 2018 tax return in January, 2019. The final regulations made changes that resulted in the one-time transition tax being reduced by $342,000. The Company also discovered after filing the March 31, 2018 tax return that the estimated intercompany charges were not removed prior to filing the federal return. The Company is in the process of amending that return which will result in a further reduction of the one-time transition tax of $107,000.

The TCJA lowered the Company’s US statutory federal tax rate from 34% to 21% effective January 1, 2018. The Company recorded a tax expense of $0.3 million in the year ended March 31, 2018 as a provisional estimate of the reduction in its US deferred tax assets resulting from the rate change.

For the year ended March 31, 2018, the Company estimated the provisional tax effect of the transition tax on deemed repatriation and the revaluation of deferred tax assets and liabilities in its financial statements. For the year ended March 31, 2019, the Company completed its evaluation and its impact is reflected in the financial statements as of March 31, 2019.

Prior to March 2018, the Company had asserted under ASC 740-30 that all of the unremitted earnings of its foreign subsidiaries were indefinitely invested. The Company evaluates this assertion each period based on a number of factors, including the operating plans, budgets, and forecasts for both the Company and its foreign subsidiaries; the long-term and short-term financial requirements in the U.S. and in each foreign jurisdiction; and the tax consequences of any decision to repatriate earnings of foreign subsidiaries to the U.S. As of March 31, 2019 the Company has remitted its prior earnings of its foreign subsidiaries.

The TCJA establishes new tax rules designed to tax U.S. companies on global intangible low-taxed income (GILTI) earned by foreign subsidiaries. The Company has evaluated this provision of the TCJA and the application of ASC 740 and its impact is reflected in the financial statements as of March 31, 2019.