Income (loss) before income taxes was generated in the United States and globally as follows:

Certain of the Company’s undistributed earnings of its foreign subsidiaries are not permanently reinvested, as management intends to repatriate foreign-held cash as needed to meet domestic cash needs for operating, investing, and financing activities. A liability of $0.7 million has been recorded for the deferred taxes on such undistributed foreign earnings. The deferred taxes are attributable primarily to the foreign withholding taxes that would become payable should the Company repatriate cash held in its foreign operations.

Income tax (benefit) expense consisted of the following for the years ended December 31:

(table only in thousands)	2019			2018			2017
Current:
Federal	$	(4,526	)	$	5,166		$	6,234
State		(616	)		1,660			388
Foreign		1,719			2,834			939
		(3,423	)		9,660			7,561
Deferred:
Federal		(604	)		1,144			(2,479	)
State		(220	)		56			114
Foreign		(116	)		(1,242	)		(758	)
		(940	)		(42	)		(3,123	)
	$	(4,363	)	$	9,618		$	4,438

The income tax (benefit) expense differs from the statutory rate due to the following:

(table only in thousands)	2019			2018			2017
Tax expense at statutory rate	$	2,802		$	524		$	494
Increase (decrease) in tax resulting from:
State income tax, net of federal benefit		(707	)		1,337			367
Change in uncertain tax position reserves		(236	)		73			465
Permanent differences related to divestitures		(4,201	)		7,048			—
Other Permanent differences		(842	)		693			1,026
Impact of rate differences and adjustments		884			57			(20	)
United States tax credits and incentives		(2,124	)		(354	)		(240	)
Foreign tax credits and incentives		(1,386	)		(1,088	)		—
Change in valuation allowance		198			1,521			1,044
Revaluation of deferred tax assets and liabilities		—			—			(4,819	)
Net deemed distribution on repatriation of foreign earnings		—			(1,713	)		6,426
Foreign withholding taxes on repatriation of foreign earnings		646			666			—
Earnout income		—			(69	)		(1,779	)
Domestic production activities deduction		—			—			(235	)
Intangible asset and goodwill impairment		—			—			1,789
Net effect GILTI and FDII		399			(172	)		—
Other		204			1,095			(80	)
	$	(4,363	)	$	9,618		$	4,438

Deferred income taxes reflect the future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and tax credit carry forwards. The net deferred tax liabilities consisted of the following at December 31:

	December 31
(table only in thousands)	2019			2018
Gross deferred tax assets:
Accrued expenses	$	1,167		$	417
Reserves on assets		1,566			1,276
Share-based compensation awards		410			459
Minimum pension		1,946			2,153
Net operating loss carry-forwards		3,141			3,478
Tax credit carry-forwards		2,940			2,352
Other		360			—
Depreciation		140			—
Valuation allowances		(5,810	)		(5,474	)
		5,860			4,661
Gross deferred tax liabilities:
Depreciation		—			(646	)
Goodwill and intangibles		(9,855	)		(10,907	)
Prepaid expenses and inventory		(554	)		(798	)
Withholding tax on unremitted foreign earnings		(646	)		(551	)
Revenue recognition		(748	)		(514	)
		(11,803	)		(13,416	)
Net deferred tax liabilities	$	(5,943	)	$	(8,755	)

As of December 31, 2019, the Company has utilized substantially all of its federal net operating loss carry forwards. State and local net operating loss carry forwards total $35.9 million, which expire from 2020 to 2039. The Company has recorded a valuation allowance on certain of these net operating loss carry forwards to reflect expected realization. The Company also has net operating loss carry forwards in foreign jurisdictions totaling $10.4 million. A full valuation allowance has been established against substantially all of these losses in foreign jurisdictions. As of December 31, 2019 and 2018, the Company has recorded a valuation reserve in the amount of $5.8 million and $5.5 million, respectively. The changes in the valuation allowance resulted in additional income tax expense of $0.2 million, $1.5 million, and $1.0 million in 2019, 2018, and 2017, respectively.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carry forward periods), projected future taxable income, and tax-planning strategies in making this assessment. Based on this assessment, management believes it is more likely than not that the Company will realize the benefits of these deductible differences, net of the existing valuation allowances at December 31, 2019. The amount of the deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward period are reduced.

The Company accounts for uncertain tax positions pursuant to FASB ASC Topic 740. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. A reconciliation of the beginning and ending amount of uncertain tax position reserves included in other liabilities on the Consolidated Balance Sheets is as follows:

(table only in thousands)	2019			2018
Balance as of January 1,	$	939		$	866
Additions for tax positions taken in prior years		4			73
Statute expirations		—			—
Reductions of tax positions taken in prior years		(240	)		—
Reductions for settlements on tax positions of prior years		(449	)		—
Balance as of December 31,	$	254		$	939

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. The reserve for uncertain tax positions includes $0.1 million, $0.3 million and $0.3 million of interest and penalties as of December 31, 2019, 2018 and 2017, respectively. The favorable settlement of all uncertain tax positions would impact the Company’s effective income tax rate. Tax years going back to 2014 remain open for all significant state and foreign authorities.