The Tax Cuts and Jobs Act (TCJA) was enacted on December 22, 2017. Among other things, the TCJA reduced the U.S. federal corporate tax rate from 35.0 percent to 21.0 percent effective on January 1, 2018.

The domestic and foreign components of income before provision for income taxes are as follows (in thousands):

	Year Ended June 30,
	2020		2019		2018
Domestic	$	379,414	$	308,922	$	279,360
Foreign		22,223		18,987		19,304
Income before income taxes	$	401,637	$	327,909	$	298,664

	Year Ended June 30,
	2020			2019			2018
Current:
Federal	$	42,268		$	41,675		$	56,467
State and local		14,744			17,606			13,006
Foreign		5,271			4,033			5,344
Total current		62,283			63,314			74,817
Deferred:
Federal		12,940			(27	)		(80,395	)
State and local		5,465			(877	)		3,481
Foreign		(531	)		(105	)		(410	)
Total deferred		17,874			(1,009	)		(77,324	)
Total income tax expense (benefit)	$	80,157		$	62,305		$	(2,507	)

Income tax expense differs from the amounts computed by applying the U.S. federal statutory income tax rate as a result of the following (in thousands):

	Year Ended June 30,
	2020			2019			2018
Expected tax expense computed at federal statutory rate (1)	$	84,344		$	68,861		$	83,805
State and local taxes, net of federal benefit		15,965			13,216			11,860
Nonincludible and nondeductible items, net		3,133			1,971			1,832
Remeasurement of deferred taxes and transition tax		—			(2,182	)		(86,593	)
Effect of foreign tax rates		(377	)		(380	)		(1,261	)
R&D tax credit, net		(10,700	)		(6,755	)		(3,630	)
Other tax credits		(1,183	)		(2,138	)		(2,102	)
Stock-based compensation		(10,900	)		(7,493	)		(5,388	)
Other		(125	)		(2,795	)		(1,030	)
Total income tax expense (benefit)	$	80,157		$	62,305		$	(2,507	)

The tax effects of temporary differences that give rise to deferred taxes are presented below (in thousands):

	June 30,
	2020			2019
Deferred tax assets:
Deferred compensation and post-retirement obligations	$	33,094		$	29,206
Reserves and accruals		41,137			30,205
Stock-based compensation		9,860			9,881
Lease liability		99,539			—
Interest rate swaps		11,349			2,688
Other asset		6,786			9,392
Total deferred tax assets		201,765			81,372
Deferred tax liabilities:
Goodwill and other intangible assets		(273,088	)		(257,762	)
Unbilled revenue		(17,429	)		(17,640	)
Prepaid expenses		(6,444	)		(2,974	)
Right of use assets		(85,275	)		—
Property and equipment		(32,625	)		(8,335	)
Total deferred tax liabilities		(414,861	)		(286,711	)
Net deferred tax liability	$	(213,096	)	$	(205,339	)

The Company is subject to income taxes in the U.S. and various state and foreign jurisdictions. Tax statutes and regulations within each jurisdiction are subject to interpretation and require the application of significant judgment. The Company is currently under examination by the Internal Revenue Service for year 2015; one state jurisdiction for years 2016 through 2018; and one state jurisdiction for years 2016 and 2017. The Company does not expect the resolution of these examinations to have a material impact on its results of operations, financial condition or cash flows.

The effective income tax rate in FY2020, FY2019, and FY2018, was 20.0 percent, 19.0 percent, and (0.8) percent, respectively. The effective income tax rate increased in FY2020 primarily as a result of pretax book income increasing more than favorable credits and permanent items. In each period, the effective income tax rate was favorably affected by excess tax benefits from employee stock-based payment awards as well as a benefit from the research and development tax credit.

U.S. income taxes have not been provided for undistributed earnings of foreign subsidiaries that have been permanently reinvested outside the United States. As of June 30, 2020, the estimated deferred tax liability associated with these undistributed earnings is approximately $1.4 million.

The Company’s total liability for unrecognized tax benefits as of June 30, 2020, 2019 and 2018 was approximately $8.8 million, $1.5 million and $4.1 million, respectively. Any amount, if recognized, would positively impact the Company’s effective tax rate. A reconciliation of the beginning and ending amount of unrecognized benefits is shown in the table below (in thousands):

	Year Ended June 30,
	2020		2019			2018
Beginning of year	$	1,530	$	4,122		$	1,639
Additions based on current year tax positions		2,293		676			2,483
Lapse of statute of limitations		—		(164	)		—
Additions based on prior year tax positions		5,003		—			—
Reductions based on prior tax year positions		—		(3,104	)		—
End of year	$	8,826	$	1,530		$	4,122

The Company recognizes net interest and penalties as a component of income tax expense. Over the next 12 months, the Company does not expect a significant increase or decrease in the unrecognized tax benefits recorded at June 30, 2020. As of June 30, 2020, the entire balance of unrecognized tax benefits is included in other long-term liabilities.