Our income (loss) before income taxes and equity in net loss of affiliate consists of the following (in thousands):

	Year Ended February 29/28,
	2020			2019		2018
Domestic	$	(59,133	)	$	21,367	$	13,898
Foreign		813			2,488		14,811
Total income (loss) before income taxes and equity in net loss of affiliate	$	(58,320	)	$	23,855	$	28,709

The components of income tax benefit (provision) consists of the following (in thousands):

	Year Ended February 29/28,
	2020			2019			2018
Current:
Federal	$	-		$	404		$	(412	)
State		(273	)		(256	)		(694	)
Foreign		(1,629	)		(62	)		(2,204	)
Total current		(1,902	)		86			(3,310	)
Deferred:
Federal		(12,852	)		(2,015	)		(6,156	)
State		(10,645	)		(1,183	)		(1,458	)
Foreign		4,945			4,442			243
Total deferred		(18,552	)		1,244			(7,371	)
Income tax benefit (provision)	$	(20,454	)	$	1,330		$	(10,681	)

The income tax benefit (provision) differs from the amount obtained by applying the statutory rate as follows (in thousands):

	Year Ended February 29/28,
	2020			2019			2018
Income tax benefit (provision) at U.S. statutory federal rate	$	12,248		$	(5,010	)	$	(9,400	)
State income tax benefit (provision), net of federal income tax effect		1,218			(1,300	)		(574	)
Foreign taxes benefit (provision)		(50	)		(31	)		2,923
Impact of tax reform		-			-			(8,955	)
U.S. taxes on foreign income		(571	)
Valuation allowance reductions (increases)		(34,631	)		5,915			3,046
Research and other tax credits		2,594			1,658			1,034
Tax benefits on vested and exercised equity awards		(606	)		-			937
Other, net		(656	)		98			308
Total income tax benefit (provision)	$	(20,454	)	$	1,330		$	(10,681	)

The components of net deferred income tax assets for income tax purposes are as follows (in thousands):

	February 29/28,
	2020			2019
Net operating loss carryforwards	$	22,500		$	19,269
Depreciation, amortization and impairments		(10,528	)		(11,945	)
Research and development credits		20,603			19,189
Stock-based compensation		2,556			2,783
Other tax credits		2,172			1,018
Capitalized research costs		3,389			-
Lease liabilities		7,455			-
Payroll and employee benefit accruals		2,077			2,220
Allowance for doubtful accounts		965			454
Other accrued liabilities		4,887			6,208
Convertible debt		(9,477	)		(10,822	)
Other, net		3,276			4,218
Gross deferred tax assets		49,875			32,592
Valuation allowance		(45,560	)		(10,929	)
Net deferred tax assets	$	4,315		$	21,663

Reported as:
Deferred tax assets	$	4,437		$	22,626
Deferred tax liabilities		(122	)		(963	)
Net deferred tax assets	$	4,315		$	21,663

As of February 29, 2020, we maintained a valuation allowance with respect to certain of our deferred tax assets relating primarily to net operating losses and tax credits in U.S. and certain non-U.S. jurisdictions for which we cannot assert that they are more likely than not going to be realized. For the fiscal year ended February 29, 2020, we considered positive and negative evidence, in assessing our ability to realize our domestic net deferred tax assets and concluded that it is more likely than not that our domestic net deferred tax assets will not be realized. As such, we increased the valuation allowance against our domestic net deferred tax asset by approximately $33.0 million. For the fiscal year ended February 29, 2020, we increased the non-US valuation allowance against our net deferred tax assets related to net operating loss carryforwards by approximately $1.6 million. The amount of the net deferred tax assets considered realizable, however, could be adjusted in future periods in the event sufficient evidence is present to support a conclusion that it is more likely than not that all or a portion of our domestic deferred tax assets will be realized.

At February 29, 2020, we had net operating loss carryforwards of approximately $38.9 million, $36.8 million and $35.4 million for federal, state and foreign purposes, respectively, expiring at various dates through fiscal 2039. Approximately $18.5 million of foreign net operating loss carryforwards do not expire. The federal net operating loss carryforwards are subject to various limitations under Section 382 of the Internal Revenue Code. If substantial changes in our ownership were to occur, there may be certain annual limitations on the amount of the NOL carryforwards that can be utilized.

As of February 29, 2020, we had R&D tax credit carryforwards of $9.8 million and $9.8 million for federal and state income tax purposes, respectively. The federal R&D tax credits expire at various dates through 2039. A substantial portion of the state R&D tax credits have no expiration date. As of February 29, 2020, we had foreign tax credit carryforwards of $1.9 million for federal income tax purposes which expire beginning in fiscal 2022 through fiscal 2030.

We accounted for stock-based compensation pursuant to ASU 2016-09 and we have tax deductions on exercised stock options and vested restricted stock awards that did not exceed stock compensation expense amounts recognized for financial reporting purposes in fiscal 2020. The gross shortfall was $2.4 million in fiscal year 2020. In fiscal 2019 and 2018, there were excess tax deductions of $2.9 million and $2.6 in fiscal years 2019 and 2018, respectively. Under ASU 2016-09, all excess tax benefits and tax deficiencies are recognized in the income statement as they occur. We follow ASC Topic 740, “Income Taxes,” which clarifies the accounting for income taxes by prescribing a minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements. Management determined based on our evaluation of our income tax positions that we have uncertain tax benefit of $2.2 million, $3.2 million and $1.0 million at February 29, 2020, February 28, 2019 and 2018, respectively, for which we have not yet recognized an income tax benefit for financial reporting purposes.

At February 29, 2020, we decreased the uncertain tax benefits related to certain foreign net operating loss carryforwards and domestic tax credits by $0.9 million and $0.1 million, respectively. At February 28, 2019, we increased the uncertain tax benefits related to certain foreign net operating loss carryforwards. Such deferred tax assets were previously offset by a valuation allowance so that the increase in the unrecognized tax benefit coupled with the reduction of the valuation allowance on such net operating losses did not result in an income tax expense during the current fiscal year. If total uncertain tax benefits were realized in a future period, it would result in a tax benefit of $2.2 million. As of February 29, 2020, our liabilities for uncertain tax benefits were netted against our deferred tax assets on our consolidated balance sheet. It is reasonably possible the amount of unrecognized tax benefits could be reduced within the next 12 months by at least $0.5 million.

We recognize interest and/or penalties related to uncertain tax positions in income tax expense. No amounts of interest and/or penalties have been accrued as of February 29, 2020.

	Year Ended February 28/29,
	2020			2019			2018
Gross amounts of unrecognized tax benefits as of the beginning of the period	$	3,201		$	1,029		$	1,029
Increases related to prior period tax positions		-			2,241			-
Decreases related to prior period tax positions		(1,029	)		(69	)		-
Increases related to current period tax positions		-			-			-
Settlements		-			-			-
Gross amounts of unrecognized tax benefits as of the end of the period	$	2,172		$	3,201		$	1,029

We file income tax returns in the U.S. federal jurisdiction, various U.S. states and Puerto Rico, Canada, Ireland, Italy, United Kingdom, the Netherlands, Brazil, Mexico, Japan, Hong Kong and New Zealand. Certain income tax returns for the years 2015 through 2018 remain open to examination by U.S. federal and state tax authorities. To the extent allowed by law, the tax authorities may have the right to examine prior periods in which net operating losses or tax credits were generated and carried forward, and to make adjustments up to the net operating loss or tax credit carryforward amount. Our tax returns in the foreign jurisdictions remain open for examination for varying years by jurisdiction with certain jurisdictions being open for examination from 2014 to the present.

In fiscal 2019, we considered the earnings of our Irish subsidiary not to be indefinitely reinvested and we recorded a state income tax expense of approximately $0.3 million related to outside basis differences. We continue to assert our intention to indefinitely reinvest foreign earnings in all other remaining non-U.S. subsidiaries and accordingly, recorded no deferred income taxes on outside basis differences.