Earnings before taxes and the provision for taxes consisted of the following:

		Years Ended March 31,
		2017		2016		2015
		(In thousands)
Pretax earnings:
U.S.	$	609,589	$	745,194	$	541,371
Non-U.S.		18,769		23,717		20,047
Total pretax earnings	$	628,358	$	768,911	$	561,418

Current provision (benefit)
Federal	$	38,723	$	118,974	$	112,634
State		10,818		15,988		14,248
Non-U.S.		3,334		3,303		2,599
		52,875		138,265		129,481
Deferred provision (benefit)
Federal		160,527		125,950		67,306
State		15,210		12,561		5,256
Non-U.S.		1,322		3,134		2,634
		177,059		141,645		75,196

Provision for income tax expense	$	229,934	$	279,910	$	204,677

Income taxes paid (net of income tax refunds received)	$	36,880	$	141,901	$	195,072

The difference between the tax provision at the statutory federal income tax rate and the tax provision attributable to income before taxes was as follows:

	Years Ended March 31,
	2017	2016	2015

Statutory federal income tax rate	35.00%	35.00%	35.00%
Increase (reduction) in rate resulting from:
State taxes, net of federal benefit	2.66%	2.34%	2.21%
Foreign rate differential	(0.31)%	(0.24)%	(0.32)%
Federal tax credits	(0.41)%	(0.19)%	(0.29)%
Dividend received deduction	(0.03)%	(0.02)%	(0.03)%
Other	(0.32)%	(0.49)%	(0.11)%
Actual tax expense of operations	36.59%	36.40%	36.46%

Significant components of our deferred tax assets and liabilities were as follows:

		March 31,
		2017		2016
		(In thousands)
Deferred tax assets:
Net operating loss and credit carry forwards	$	1,948	$	1,462
Accrued expenses		168,331		185,088
Policy benefit and losses, claims and loss expenses payable, net		21,287		21,911
Unrealized losses		–		–
Total deferred tax assets	$	191,566	$	208,461

Deferred tax liabilities:
Property, plant and equipment	$	986,334	$	831,914
Deferred policy acquisition costs		20,901		20,557
Unrealized gains		19,140		9,593
Other		200		9
Total deferred tax liabilities		1,026,575		862,073
Net deferred tax liability	$	835,009	$	653,612

The net operating loss and credit carry-forwards in the above table are primarily attributable to $29.0 million of state net operating losses that will begin to expire March 31, 2018 if not utilized.

ASC 740 prescribes a minimum recognition and measurement methodology that a tax position is required to meet before being recognized in the financial statements. The total amount of unrecognized tax benefits at March 31, 2016 was $23.9 million. This entire amount of unrecognized tax benefits if resolved in our favor, would favorably impact our effective tax rate. During the current year we recorded tax expense (net of settlements), resulting from uncertain tax positions in the amount of $2.8 million. At March 31, 2017, the amount of unrecognized tax benefits and the amount that would favorably affect our effective tax rate was $26.7 million.

A reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period are as follows:

		Unrecognized Tax Benefits
		March 31,
		2017		2016
		(In thousands)

Unrecognized tax benefits beginning balance	$	23,912	$	19,929
Additions based on tax positions related to the current year		2,964		4,313
Reductions for tax positions of prior years		(156)		(327)
Settlements		–		(3)
Unrecognized tax benefits ending balance	$	26,720	$	23,912

We recognize interest related to unrecognized tax benefits as interest expense, and penalties as operating expenses. At March 31, 2016, the amount of interest and penalties accrued on unrecognized tax benefits was $5.9 million, net of tax. During the current year we recorded expense from interest and penalties in the amount of $0.8 million, net of tax. At March 31, 2017, the amount of interest and penalties accrued on unrecognized tax benefits was $6.7 million, net of tax.

We file income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With some exceptions, we are no longer subject to audit for years prior to the fiscal year ended March 31, 2014. No provision was made for U.S. taxes payable on undistributed foreign earnings since these amounts are permanently reinvested; the amount of this unrecognized deferred tax liability is not practical to determine at this time.