The Company's income (loss) before income taxes and income tax expense (benefit), each by tax jurisdiction, consists of the following (dollars in thousands):


	Year ended December 31,
	2020		2019		2018
Income (loss) before income taxes:
Domestic	$	(134,630)	$	52,190	$	64,670
Foreign	31,920		26,070		27,690
Total income (loss) before income taxes	$	(102,710)	$	78,260	$	92,360
Current income tax expense:
Federal	$	200	$	3,530	$	4,410
State and local	810		1,280		2,060
Foreign	7,750		7,070		6,200
Total current income tax expense	8,760		11,880		12,670
Deferred income tax expense (benefit):
Federal	(16,900)		4,890		4,570
State and local	(4,430)		500		1,310
Foreign	(10,380)		(950)		100
Total deferred income tax expense (benefit)	(31,710)		4,440		5,980
Income tax expense (benefit)	$	(22,950)	$	16,320	$	18,650


	December 31, 2020		December 31, 2019
Deferred tax assets:
Accounts receivable	$	260	$	480
Inventories	5,080		4,390

Accrued liabilities and other long-term liabilities	19,190		12,210
Operating lease liability	8,950		6,790
Tax loss and credit carryforwards	20,760		9,200
Other	340		340
Gross deferred tax asset	54,580		33,410
Valuation allowances	(10,180)		(8,310)
Net deferred tax asset	44,400		25,100
Deferred tax liabilities:
Property and equipment	(24,140)		(20,650)
Right of use asset	(8,930)		(6,700)
Goodwill and other intangible assets	(16,230)		(13,250)
Investment in foreign affiliates, including withholding tax	(370)		(830)

Gross deferred tax liability	(49,670)		(41,430)
Net deferred tax liability	$	(5,270)	$	(16,330)

The following is a reconciliation of income tax expense (benefit) computed at the U.S. federal statutory rate to income tax expense (benefit) allocated to income (loss) before income taxes (dollars in thousands):


	Year ended December 31,
	2020			2019			2018
U.S. federal statutory rate	21		%	21		%	21		%
Tax at U.S. federal statutory rate	$	(21,570)		$	16,440		$	19,390
State and local taxes, net of federal tax benefit	(2,850)			970			2,730
Differences in statutory foreign tax rates	(1,500)			(870)			490
Change in recognized tax benefits	(920)			(920)			(560)
Goodwill and other intangible assets impairment	13,430			—			—

Nontaxable income	—			(570)			(940)


Research and manufacturing incentives	(2,130)			(1,160)			(1,740)

Net change in valuation allowance	(6,390)			3,580			280
Tax Reform Act	—			—			(400)

Other, net	(1,020)			(1,150)			(600)
Income tax expense (benefit)	$	(22,950)		$	16,320		$	18,650

During 2020, the Company undertook certain tax-planning actions with respect to intercompany debt restructuring within the group. These actions resulted in the recognition of an approximate $6.4 million deferred tax benefit related to an interest limitation carryforward.

The Company has recorded deferred tax assets on $43.4 million of various state operating loss carryforwards and $61.6 million of various foreign operating loss carryforwards. The majority of the state tax loss carryforwards expire between 2026 and 2032 and the majority of the foreign losses have indefinite carryforward periods.

The Company has not made a provision for U.S. or additional foreign withholding taxes related to investments in foreign subsidiaries that are indefinitely reinvested since any excess of the amount for financial reporting over the tax basis in these investments is not significant as of December 31, 2020.

In December 2017, the Tax Cuts and Jobs Act ("Tax Reform Act") was signed into law, and, among the provisions, reduced the Federal statutory corporate income tax rate from 35% to 21% effective January 1, 2018, and implemented a territorial tax system, imposing a one-time tax on the deemed repatriation of undistributed earnings of non-U.S. subsidiaries ("Transition Tax"). The Transition Tax is payable over eight years beginning in 2019.

The Company recorded provisional expenses in 2017 related to the Transition Tax and finalized the measurement of the provisional expenses in 2018. In 2018, the Company recognized an approximate $1.1 million income tax benefit in connection with finalizing the revaluation of its net deferred tax assets following the filing of the Company's 2017 corporate income tax return, and recognized an approximate $0.7 million income tax expense related to finalizing the Transition Tax, resulting in a $0.4 million net reduction in 2018 to the $12.7 million provisional tax expense recorded in 2017.

The Company had approximately $1.6 million and $2.3 million of unrecognized tax benefits ("UTBs") as of December 31, 2020 and 2019, respectively. If the UTBs were recognized, the impact to the Company's effective tax rate would be to reduce reported income tax expense for the years ended December 31, 2020 and 2019 by approximately $1.4 million and $1.9 million, respectively.


	Unrecognized Tax Benefits
Balance at December 31, 2018	$	3,020
Tax positions related to current year:
Additions	110
Tax positions related to prior years:
Additions	—
Reductions	—
Settlements	—
Lapses in the statutes of limitations	(880)
Balance at December 31, 2019	$	2,250
Tax positions related to current year:
Additions	150
Tax positions related to prior years:
Additions	—
Reductions	—
Settlements	—
Lapses in the statutes of limitations	(760)
Balance at December 31, 2020	$	1,640

In addition to the UTBs summarized above, the Company has recorded approximately $0.8 million and $1.4 million in potential interest and penalties associated with uncertain tax positions as of December 31, 2020 and 2019, respectively.