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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The income tax expense (benefit) consists of the following:

Year Ended December 31,
202120202019
 (In thousands)
Current:
US federal$3,480 $(249)$1,378 
US state250 (406)909 
Non US13,219 10,681 12,861 
 16,949 10,026 15,148 
Deferred:
US federal(4,802)(1,220)(3,781)
US state(1,288)(657)(3,107)
Non US(4,275)(2,819)(8,040)
(10,365)(4,696)(14,928)
Total$6,584 $5,330 $220 
Income (loss) before income taxes includes the following components:
Year Ended December 31,
202120202019
 (In thousands)
US$(33,311)$(27,528)$(47,574)
Non US106,834 121,685 138,365 
Total$73,523 $94,157 $90,791 
A reconciliation of the statutory federal income tax rate to the effective income tax rate consists of the following:
Year Ended December 31,
202120202019
Statutory US federal income tax rate21.0 %21.0 %21.0 %
US state income taxes, net of federal benefit(1.1)%(0.9)%(2.3)%
Non-US tax rate differential(3.2)%(12.2)%(13.6)%
GILTI Related13.7 %12.5 %18.6 %
Tax holidays(14.3)%(4.0)%(6.0)%
Tax Credits(9.5)%(10.0)%(15.0)%
Passive income exemption— %(0.4)%(1.2)%
Acquisition contingent earn-out liability adjustments— %(0.7)%(4.0)%
Nondeductible items0.9 %2.0 %1.0 %
Effect of valuation allowance0.6 %(1.2)%1.2 %
Prior year Transition Tax and related true-ups1.4 %0.5 %0.7 %
Uncertain tax positions(0.5)%(1.0)%(0.1)%
Other— %— %(0.1)%
Effective income tax rate9.0 %5.7 %0.2 %

The Company's effective tax rate increased to 9.0% in 2021, compared with 5.7% in 2020. The increase in effective tax rate in 2021 is primarily related to the release of valuation allowance on expired domestic loss carryforwards and greater impact of GILTI related items.
Deferred tax assets and liabilities are comprised of the following:
December 31, 2021December 31, 2020
DeferredDeferred
AssetsLiabilitiesAssetsLiabilities
(In thousands)
Depreciation and amortization$— $6,424 $— $3,450 
Share-based compensation307 — 451 — 
Accruals and prepaids5,613 — 6,586 — 
Bad debts6,139 — 2,727 — 
Acquired intangible assets— 12,509 — 13,071 
Net operating loss carryforwards37,242 — 33,247 — 
Tax credit carryforwards (primarily Minimum Alternative Tax ("MAT") in India)53,995 — 48,669 — 
 103,296 18,933 91,680 16,521 
Valuation allowance(999)— (2,160)— 
Total deferred taxes$102,297 $18,933 $89,520 $16,521 
    
We have US Federal, state and foreign operating losses and credit carryforwards as follows:

Year Ended December 31,
20212020
 (In thousands)
US Federal loss carryforwards$52,544 $55,029 
US state loss carryforwards85,635 79,907 
Foreign loss carryforwards90,826 73,922 
US Federal credit carryforwards7,144 1,818 
Foreign credit carryforwards46,851 46,851 
The US federal and state operating loss carryforwards expire at varying dates through 2025. The federal credits begin to expire in 2028. We also have non-U.S. tax credits (primarily MAT paid in India) carried forward of approximately $46.9 million as of December 31, 2021, which is available for set-off against the future tax liability of certain Indian operations on a staggered basis over a period up-to fifteen years.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in the United States. The CARES Act provides numerous tax provisions and other stimulus measures, including temporary changes regarding the prior and future utilization of net operating losses, temporary suspension of certain payment requirements for the employer portion of Social Security taxes, technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property, and the creation of certain refundable employee retention credits. The Company evaluated the provisions of the CARES Act and does not anticipate the associated impacts, if any, will have a material effect on the Company’s provision for income taxes for the year ended December 31, 2021.

The Company has not recognized a deferred U.S. tax liability and associated income tax expense for the undistributed earnings of its foreign subsidiaries which we consider indefinitely invested because those foreign earnings will remain permanently reinvested in those subsidiaries to fund ongoing operations and growth. Upon distribution of those earnings in the form of dividends or otherwise, we may be subject to income taxes and withholding taxes payable in various jurisdictions, which could potentially be partially offset by foreign tax credits. At December 31, 2021, the cumulative amount of the Company’s undistributed foreign earnings was approximately $864.6 million, inclusive of income previously taxed in the United States.
The following table summarizes the activity related to provision made by the Company in the books for uncertain tax positions:
Year Ended December 31,
202120202019
(In thousands)
Beginning Balance$8,291 $9,199 $9,294 
Additions for tax positions related to current year— — — 
Additions for tax positions of prior years769 966 195 
Reductions for tax position of prior years(2,860)(1,874)(290)
Ending Balance$6,200 $8,291 $9,199 
The Company recognizes estimated interest accrued and/or penalties related to uncertain tax positions as part of the income tax expense provided for such positions. The Company accrued as of December 31, 2021 and 2020 approximately $2.3 million and $3.0 million, respectively, of estimated interest and penalties related to uncertain tax positions. These amounts are included in the December 31, 2021 and 2020 balances in the preceding table of $6.2 million and $8.3 million, respectively, which is included in other long-term liabilities in the accompanying consolidated balance sheets.
We file income tax returns in the US federal, many US state and local jurisdictions, and certain foreign jurisdictions. We have substantially resolved all US federal income tax matters for tax years prior to 2014. Our state and foreign tax matters may remain open from 2009 forward.