As of March 31, 2020, 2019, and 2018, the Company’s unrecognized tax benefits totaled $19,481, $11,663, and $8,342, respectively, of which $10,648 would impact the Company’s March 31, 2020 effective tax rate, if recognized. The following summarizes the changes to unrecognized tax benefits:


	March 31,
	2020		2019		2018
Balance at April 1	$	11,663	$	8,342	$	15,196
Increase for current year tax positions	6,425		447		482
Increase (reductions) for prior year tax positions	4,177		7,048		(7,296)
Impact of changes in exchange rates	(1,226)		(227)		(40)
Reduction for settlements	(1,558)		(3,947)		—
Balance at March 31	$	19,481	$	11,663	$	8,342

The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. During the years ended March 31, 2020 and 2019, the Company reduced interest, penalties, and related exchange losses pertaining to unrecognized tax benefits of $(33) and $(1,096), respectively. As of March 31, 2020, accrued interest and penalties totaled $1,209 and $815, respectively. During the year ending March 31, 2020, the Company reduced its accrued interest and penalties by $263 related to the expiration of statute of limitations. As of March 31, 2019, accrued interest and penalties totaled $1,175 and $883, respectively.

During the fiscal year ending March 31, 2020, the Company’s total liability for unrecognized tax benefits, including the related interest and penalties, and associated exchange losses, increased from $13,720 to $21,505. The change in the liability for unrecognized tax benefits relates to additional reserves recorded in the U.S. of $6,280, expiration of statute of limitations of approximately $185 and increases related to prior period foreign positions of approximately $2,880. Of the change in the liability for unrecognized tax benefits, unrecognized tax benefits of $1,532 and $4,799 were recorded as a reduction of the foreign tax credit and the U.S. federal net operating loss carryforward, respectively. The U.S. federal foreign tax credit carryforward was reduced for certain positions reflected in the computation of the transition tax as filed on the U.S. tax return in the fourth quarter. The Company amended its March 31, 2018 U.S. Federal income tax return to account for the impact of, (i) the release of final Regulations under IRC Section 965 and (ii) changes in underlying facts and circumstances. U.S. federal net operating loss carryforward was reduced to reflect the impacts of certain tax accounting methods on global intangible low-taxed income (“GILTI”).

To the extent that they represent an underpayment of taxes, the Company expects to continue accruing interest expenses related to the remaining unrecognized tax benefits. Additionally, the Company is subject to fluctuations in the unrecognized tax liability due to currency exchange rate movements.

The Company does not foresee settling material positions currently accrued for in the next twelve months. In addition, it is reasonably possible that the Company's unrecognized tax benefits may decrease in the next twelve months by $363 due to the expiration of the statute of limitations, but the Company must acknowledge circumstances can change due to unexpected developments in the law. In certain jurisdictions, tax authorities have challenged positions that the Company has taken that resulted in recognizing benefits that are material to its financial statements. The Company believes it is more likely than not that it will prevail in these situations and accordingly have not recorded liabilities for these positions. The Company expects the challenged positions to be settled at a time greater than twelve months from its balance sheet date.

The Company and its subsidiaries file a U.S. federal consolidated income tax return as well as returns in several U.S. states and a number of foreign jurisdictions. As of March 31, 2020, the Company’s earliest open tax year for U.S. federal income tax purposes was its fiscal year ended March 31, 2017. Open tax years in state and foreign jurisdictions generally range from three to six years. In applicable jurisdictions, the Company’s tax attributes from prior periods remain subject to adjustment


	Years Ended March 31,
	2020		2019		2018
Current
Federal	$	(1,115)	$	2,018	$	8,247
State	—		—		—
Non-U.S.	22,065		22,741		22,972
	$	20,950	$	24,759	$	31,219
Deferred
Federal	$	102,658	$	6,129	$	(98,785)
State	—		—		—
Non-U.S.	8,181		6,952		8,802
	$	110,839	$	13,081	$	(89,983)
Total	$	131,789	$	37,840	$	(58,764)


	Years Ended March 31,
	2020		2019		2018
Tax benefit at U.S. statutory rate	$	(30,328)	$	(9,013)	$	(5,098)
Effect of non-U.S. income taxes	(1,951)		462		(2,137)
Tax on future remittances	10,561		(1,038)		(22,735)
Foreign tax credits	78		(173)		1,328
Change in valuation allowance	117,553		17,622		(106,804)
Increase (decrease) in reserves for uncertain tax positions	10,807		5,304		(5,871)
Change in tax rates	822		(66)		66,935
Exchange effects and currency translation	10,896		12,904		8,282
Permanent items	3,791		(677)		(78)
Benefit (expense) on income tax payable/recoverable adjustments	810		(1,163)		109
Deductible dividends	(2,140)		(3,046)		(3,338)
Withholding tax expense	2,225		2,577		1,868
Benefit of other tax credits	(721)		(377)		(3,176)
Nondeductible interest	2,767		1,624		1,052
Transition tax after foreign tax credits	(1,227)		1,827		10,899
U.S. taxes on non-U.S. earnings	2,071		11,073		—
Goodwill impairment	5,775		—		—
Actual tax expense (benefit)	$	131,789	$	37,840	$	(58,764)


	March 31,
	2020		2019
Deferred tax assets:
Reserves and accruals	$	(11,418)	$	(20,539)
Tax credits	(1,486)		(3,159)
Tax loss carryforwards	(93,024)		(88,924)
Derivative transactions	(698)		(1,580)
Postretirement and other benefits	(15,586)		(15,465)
Unrealized exchange loss	(7,296)		(7,793)
Non-deductible interest carryforward	(28,364)		(13,607)
Other	(5,209)		(1,531)
Gross deferred tax assets	(163,081)		(152,598)
Valuation allowance	151,058		36,524
Total deferred tax assets	$	(12,023)	$	(116,074)
Deferred tax liabilities:
Unremitted earnings of foreign subsidiaries	$	17,254	$	5,516
Intangible assets	12,251		13,936
Fixed assets	5,419		6,984
Total deferred tax liabilities	$	34,924	$	26,436
Net deferred tax liability (asset)	$	22,901	$	(89,638)


Balance at March 31, 2017	$	131,774
Changes to expenses⁽³⁾	(466)
Changes to other accounts⁽²⁾	(274)
Deductions⁽¹⁾⁽⁴⁾	(111,292)
Balance at March 31, 2018	$	19,742
Changes to expenses	18,073
Changes to other accounts⁽²⁾	(156)
Deductions⁽¹⁾	(1,135)
Balance at March 31, 2019	$	36,524
Changes to expenses⁽⁵⁾	117,633
Changes to other accounts⁽²⁾	(1,207)
Deductions⁽¹⁾	(1,926)
Other	34
Balance at March 31, 2020	$	151,058

During the year ended March 31, 2020, the net deferred tax asset balance decreased by $1,700 for certain adjustments not included in the deferred tax expense (benefit), primarily for deferred tax assets related to pension accruals recorded in equity as part of other comprehensive income loss, currency translation adjustments, and other items not included in the deferred tax expense (benefit).

For the year ended March 31, 2020, the valuation allowance increased by $114,535, which is inclusive of $(1,207) related to adjustments to other comprehensive income and $(1,926) due to currency translation adjustments. The valuation allowance increased primarily due to changes in facts and circumstance around the Company’s ability to rely on future income to support realization of deferred tax assets, which totaled $117,668. The valuation allowance is based on the Company's assessment that it is more likely than not that a majority of deferred tax assets, primarily U.S. net operating losses, deferred interest expense, and foreign tax credits, will not be realized in the foreseeable future. This is principally due to the impact of the Company's current and foreseeable capital structure.

At March 31, 2020, the Company has U.S federal tax loss carryovers of $370,444, non-U.S. tax loss carryovers of $55,159, and U.S. state tax loss carryovers of $627,890. Of the U.S. federal tax loss carryovers, $358,739 will expire in 2031 and thereafter and $11,705 can be carried forward indefinitely. Of the non-U.S. tax loss carryovers, $10,802 will expire within the next five years, $41,239 will expire in later years, and $3,118 can be carried forward indefinitely. Of the U.S. state tax loss carryovers, $1,495 will expire within the next five years, $614,383 will expire in later years, and $12,013 can be carried forward indefinitely. The Company is recognizing a tax benefit related to tax losses generated in the current year of $4,758 to be utilized in foreign jurisdictions. As of March 31, 2020, the Company has foreign tax credit carryovers in the U.S. of $4,555, of which $2,663 will expire within the next five years. These amounts reflect gross net operating losses ("NOLs") and foreign tax credits for tax return basis, which are different from financial statement attributes primarily due to the reduction of the financial statement NOLs and foreign tax credits under the FASB's guidance on accounting for uncertainty in income taxes. As of March 31, 2020, the Company had Canadian investment tax credit carryforwards of approximately $274 that will expire beyond five years.

Realization of deferred tax assets is dependent on generating sufficient taxable income in the appropriate timeframe and of the appropriate character. Although expiration is not assured, the Company believes it is more likely than not that a majority of the deferred tax assets will not be realized. As a result, the Company has recorded a valuation allowance on its deferred tax assets. The amount of the deferred tax assets considered realizable could be reduced or increased if estimates of future taxable income change during the carryover period.

A provision of $17,254 has been made for U.S. and foreign taxes that may result from future remittances of foreign earnings of $203,510. No provision has been made for U.S. or foreign taxes that may result from future remittances of approximately $381,046 at March 31, 2020 and $486,678 at March 31, 2019 of undistributed earnings of foreign subsidiaries because the Company expects that such earnings will be reinvested overseas indefinitely. Due to the one-time transition tax on foreign earnings required by the 2017 Tax Cuts and Jobs Act and fiscal 2020 earnings being subject to GILTI inclusion, additional taxes due with respect to such earnings or the excess of the amount for financial reporting over the tax basis of the Company’s foreign investments would generally be limited to foreign withholding taxes if the Company’s indefinite reinvestment assertion changes. Determination of the amount of any unrecognized deferred income tax liability on these unremitted earnings is not practicable.

Included in the CARES Act are numerous income tax provisions. Some of the provisions are related to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, and technical amendments regarding the income tax depreciation of qualified improvement property. These amendments allow, for taxable years beginning in 2019 and 2020, the base for interest deductibility to increase from 30% to 50% of EBITDA. The Company assessed the tax impact of the CARES Act and did not identify items that that would require revision to the Company's accounting for income taxes.