

	Year Ended September 30,
(in thousands)	2020			2019			2018
Current:
Federal	$	15,431		$	21,745		$	757
Foreign	1,495			732			6,492
State	523			3,365			2,340
	17,449			25,842			9,589
Deferred:
Federal	(127,096		)	(35,809		)	(508,256		)
Foreign	(12,390		)	2,804			7,415
State	(18,069		)	(11,549		)	14,083
	(157,555		)	(44,554		)	(486,758		)
Total benefit	$	(140,106	)	$	(18,712	)	$	(477,169	)



	Year Ended September 30,
(in thousands)	2020			2019			2018
Domestic	$	(458,364	)	$	(45,118	)	$	27,436
Foreign	(178,134		)	(6,104		)	(11,595		)
	$	(636,498	)	$	(51,222	)	$	15,841



	Year Ended September 30,
	2020		2019		2018
U.S. Federal income tax rate	21.0	%	21.0	%	24.5	%
Effect of foreign taxes	(0.2	)	(0.6	)	87.8
State income taxes, net of federal tax benefit	2.8		17.2		68.8
Remeasurement of deferred tax related to Tax Cuts and Jobs Act	—		—		(3,169.4	)
Other impact of foreign operations	(0.5	)	0.9		(43.4	)
Non-deductible meals and entertainment	(0.2	)	(2.5	)	8.2
Equity compensation	(0.3	)	2.7		(5.3	)
Excess officer's compensation	(0.2	)	(1.9	)	1.7
Contingent consideration adjustment	—		4.5		10.7
Other	(0.4	)	(4.8	)	4.1
Effective income tax rate	22.0	%	36.5	%	(3,012.3	)%

Effective tax rates differ from the U.S. federal statutory rate of 21.0 percent due to state and foreign income taxes and the tax effect of non-deductible expenditures.

Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities. Recoverability of any tax assets are evaluated, and necessary valuation allowances are provided. The carrying value of the net deferred tax assets is based on management’s judgments using certain estimates and assumptions that we will be able to generate sufficient future taxable income in certain tax jurisdictions to realize the benefits of such assets. If these estimates and related assumptions change in the future, additional valuation allowances may be recorded against the deferred tax assets resulting in additional income tax expense in the future.



	September 30,
(in thousands)	2020			2019
Deferred tax liabilities:
Property, plant and equipment	$	685,389		$	867,909
Marketable securities	1,957			—
Other	26,138			15,681
Total deferred tax liabilities	713,484			883,590
Deferred tax assets:
Marketable securities	—			771
Pension reserves	7,369			7,324
Self-insurance reserves	10,360			14,294
Net operating loss, foreign tax credit, and other federal tax credit carryforwards	33,747			41,126
Financial accruals	32,481			54,511
Other	15,632			2,531
Total deferred tax assets	99,589			120,557
Valuation allowance	(36,780		)	(43,578		)
Net deferred tax assets	62,809			76,979
Net deferred tax liabilities	$	650,675		$	806,611

As of September 30, 2020, we had federal, state and foreign tax net operating loss carryforwards of $7.3 million, $25.7 million and $39.9 million, respectively, and foreign tax credit carryforwards of approximately $23.9 million (of which $19.1 million is reflected as a deferred tax asset in our Consolidated Financial Statements prior to consideration of our valuation allowance) which will expire in fiscal years 2021 through 2040. The valuation allowance is primarily attributable to foreign net operating loss carryforwards of $11.3 million, foreign tax credit carryforwards of $19.1 million, equity compensation of $4.9 million, and foreign minimum tax credit carryforwards of $1.4 million which more likely than not will not be utilized.

We recognize accrued interest related to unrecognized tax benefits in interest expense, and penalties in other expense in the Consolidated Statements of Operations. As of September 30, 2020, and 2019, we had accrued interest and penalties of $2.8 million and $2.1 million, respectively. A reconciliation of the change in our gross unrecognized tax benefits for the fiscal years ended September 30, 2020 and 2019 is as follows:



(in thousands)	2020			2019
Unrecognized tax benefits at October 1,	$	15,759		$	14,905
Gross decreases - current period effect of tax positions	(2,338		)	(28		)
Gross increases - current period effect of tax positions	20			1,067
Expiration of statute of limitations for assessments	(1		)	(185		)
Unrecognized tax benefits at September 30,	$	13,440		$	15,759

As of September 30, 2020, and 2019, our liability for unrecognized tax benefits includes $13.0 million and $15.3 million, respectively, of unrecognized tax benefits related to discontinued operations that, if recognized, would not affect the effective tax rate. The remaining unrecognized tax benefits would affect the effective tax rate if recognized. The liabilities for unrecognized tax benefits and related interest and penalties are included in other noncurrent liabilities in our Consolidated Balance Sheets.

For the next 12 months, we cannot predict with certainty whether we will achieve ultimate resolution of any uncertain tax position associated with our U.S. and international operations that could result in increases or decreases of our unrecognized tax benefits. However, we do not expect the increases or decreases to have a material effect on our results of operations or financial position.

We file a consolidated U.S. federal income tax return, as well as income tax returns in various states and foreign jurisdictions. The tax years that remain open to examination by U.S. federal and state jurisdictions include fiscal years 2016 through 2019, with exception of certain state jurisdictions currently under audit. The tax years remaining open to examination by foreign jurisdictions include 2003 through 2019.