On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act of 2017 (the “Tax Reform Act”). The Tax Reform Act makes changes to the U.S. tax code that affected our income tax rate in 2017. The Tax Reform Act reduces the U.S. federal corporate income tax rate from 35.0% to 21.0% and requires companies to pay a one-time transition tax on certain unrepatriated earnings from foreign subsidiaries. The Tax Reform Act also establishes new tax laws that became effective January 1, 2018.

ASC 740 requires a company to record the effects of a tax law change in the period of enactment, however, shortly after the enactment of the Tax Reform Act, the SEC staff issued SAB 118, which allows a company to record a provisional amount when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change in the tax law. The measurement period ends when the company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year.

For 2017, we made a reasonable estimate of the impact of the Tax Reform Act and recorded a one-time credit in our 2017 income tax expense of $120.9 million, which reflects an estimated reduction in our deferred income tax liabilities of $124.2 million as a result of the maximum federal rate decreasing to 21.0% from 35.0%, which was partially offset by an estimated increase in income tax payable in the amount of $3.3 million as a result of the transition tax on cash and cash equivalent balances related to untaxed accumulated earnings associated with our international operations. During 2018, we made a credit adjustment to the transition tax on untaxed international operations in the amount of $1.6 million. This adjustment was a reduction of income tax expense for 2018 as a result of updated calculations based on the Company’s tax filings for the 2017 year end. As of December 31, 2020, management does not expect any further changes to the amounts previously recorded and adjusted under SAB 118.

Significant components of the provision for income taxes for the years ended December 31 are as follows:

(in thousands)	2020			2019			2018
Current:
Federal	$	93,620		$	85,507		$	77,694
State		34,123			28,905			25,096
Foreign		325			620			409
Total current provision		128,068			115,032			103,199
Deferred:
Federal		11,655			14,994			8,483
State		4,119			(2,587	)		6,519
Foreign		(226	)		(24	)		6
Total deferred provision		15,548			12,383			15,008
Total tax provision	$	143,616		$	127,415		$	118,207

A reconciliation of the differences between the effective tax rate and the federal statutory tax rate for the years ended December 31 is as follows:

	2020			2019			2018
Federal statutory tax rate		21.0	%		21.0	%		21.0	%
State income taxes, net of federal income tax benefit		5.3			3.8			5.7
Non-deductible employee stock purchase plan expense		0.3			0.3			0.2
Non-deductible meals and entertainment		0.1			0.3			0.3
Non-deductible officers’ compensation		0.3			0.2			0.3
Tax Reform Act deferred tax revaluation and transition tax impact		0.0			0.0			(0.3	)
Stock Vesting under ASU 2016-19		(3.5	)		(1.1	)		(1.4	)
Other, net		(0.5	)		(0.3	)		(0.2	)
Effective tax rate		23.0	%		24.2	%		25.6	%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for income tax reporting purposes.

Significant components of the Company’s net deferred tax liabilities as of December 31 are as follows:

(in thousands)	2020			2019
Non-current deferred tax liabilities:
Intangible assets	$	400,335		$	360,660
Fixed assets		11,740			10,325
ASC 842 ROU Asset		46,730			46,188
Impact of adoption of ASC 606 revenue recognition		19,928			24,687
Net unrealized holding (loss)/gain on available-for-sale securities		176			36
Total non-current deferred tax liabilities		478,909			441,896
Non-current deferred tax assets:
Deferred compensation		59,897			52,566
Accruals and reserves		19,497			7,743
ASC 842 lease liabilities		53,150			52,185
Net operating loss carryforwards and 163(j) disallowed carryforwards		3,168			2,377
Valuation allowance for deferred tax assets		(1,025	)		(1,252	)
Total non-current deferred tax assets		134,687			113,619
Net non-current deferred tax liability	$	344,222		$	328,277

Income taxes paid in 2020, 2019 and 2018 were $132.9 million, $110.0 million and $110.6 million, respectively.

At December 31, 2020, the Company had no net operating loss carryforwards for federal purposes and $36.0 million net operating loss carryforwards for state income tax reporting purposes, portions of which expire in the years 2021 through indefinite. The state carryforward amount is derived from the operating results of certain subsidiaries. As of December 31, 2020, the Company had a net operating loss carryforward in Canada of $6.4 million.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

(in thousands)	2020			2019			2018
Unrecognized tax benefits balance at January 1	$	1,127		$	1,639		$	1,694
Gross increases for tax positions of prior years		848			778			594
Gross decreases for tax positions of prior years		(708	)		(791	)		(5	)
Settlements		—			(499	)		(644	)
Unrecognized tax benefits balance at December 31	$	1,267		$	1,127		$	1,639

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2020, 2019 and 2018 the Company had $0.3 million, $0.2 million and $0.2 million of accrued interest and penalties related to uncertain tax positions, respectively.

The total amount of unrecognized tax benefits that would affect the Company’s effective tax rate if recognized was $1.3 million as of December 31, 2020, $1.1 million as of December 31, 2019 and $1.6 million as of December 31, 2018. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months.

The Company is subject to taxation in the United States and various state jurisdictions. The Company is also subject to taxation in the United Kingdom and Canada. In the United States, federal returns for fiscal years 2016 through 2020 remain open and subject to examination by the Internal Revenue Service. The Company files and remits state income taxes in various states where the Company has determined it is required to file state income taxes. The Company’s filings with those states remain open for audit for the fiscal years 2016 through 2020. In the United Kingdom, the Company’s filings remain open for audit for the fiscal years 2019 and 2020. In Canada, the Company’s filings remain open for audit for the fiscal years 2016 through 2020. The Company also operates in Bermuda and the Cayman Islands. The Company is not subject to any income taxes in these countries.

During 2018, the Company settled the previously disclosed State of Massachusetts income tax audit for the fiscal year 2013 through 2014.

During 2019, the Company settled the previously disclosed State of Colorado income tax audit for the fiscal years 2013-2016, the State of Kansas income tax audit for the fiscal years 2014-2016, and the State of New York income tax audit for the fiscal years 2015-2017. The Company is currently under audit in the states of California, Illinois, Massachusetts and Wisconsin for the fiscal years 2015 through 2017. In addition, the Company is under audit in the state of Wisconsin for the fiscal year 2018.

In general, it is our practice and intention to reinvest the earnings of our non-U.S. subsidiaries in those operations. The Company has determined it is not practical to determine the unrecognized deferred tax liabilities on the undistributed earnings from the Company’s international subsidiaries as such earnings are considered to be indefinitely reinvested.