
	Year Ended December 31,
	2020		2019		2018

United States	$	(154,144)	$	(225,653)	$	(85,342)
Foreign	(6,157)		14,118		(8,341)
Loss before income taxes	$	(160,301)	$	(211,535)	$	(93,683)

Income taxes have been provided for based upon the tax laws and rates in the countries in which operations are conducted and income is earned. Components of income tax expense (benefit) consist of the following for the periods indicated (in thousands):


	Year Ended December 31,
	2020		2019		2018
Current
U.S. federal	$	(17,582)	$	—	$	—
U.S. state and local	—		209		7
Foreign	12,876		21,975		11,677
Total current	(4,706)		22,184		11,684

Deferred
U.S. federal	(2,515)		444		—

Foreign	3,140		1,166		(14,634)
Total deferred	625		1,610		(14,634)
Total income tax expense (benefit)	$	(4,081)	$	23,794	$	(2,950)

The variance in effective tax rates compared to prior periods is due primarily to the beneficial impact in the current year of provisions from the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which allows corporations with net operating losses (“NOLs”) incurred in 2018, 2019 and 2020 to carry back such NOLs to each of the five years preceding the year of the NOL, beginning with the earliest year in which there is taxable income, and claim an income tax refund in the applicable carryback year. As a result of the NOL carryback provision in the CARES Act, we were able to recognize an income tax refund of $17.5 million which was received in the third quarter of 2020.

A reconciliation of the differences between the income tax provision computed at the 21% U.S. statutory rate in effect at December 31, 2020 and the reported provision for income taxes for the periods indicated is as follows (in thousands):


	Year Ended December 31,
	2020		2019		2018

Income tax benefit at statutory rate	$	(33,663)	$	(44,422)	$	(19,673)
Branch profits tax	(8,015)		(12,129)		(4,267)
State taxes, net of federal benefit	(3,206)		154		(27)
Restricted stock units tax shortfall	1,695		405		1,025
Taxes on foreign earnings at higher rates	11,399		14,427		13,095
Effect of tax rate change	—		—		(2,929)
Effect of moving activity to higher tax rate jurisdiction	—		—		(14,620)
Management fee charged to international operations	4,848		3,455		1,515

Increase in valuation allowances	34,005		37,802		22,892
Goodwill impairment	(1,406)		25,677		—
Return-to-provision adjustments	(2,299)		(524)		(521)

Foreign tax credit	(6,574)		(5,707)		—
Other	(865)		4,656		560
Total income tax expense (benefit)	$	(4,081)	$	23,794	$	(2,950)

Deferred tax assets and liabilities are recorded for the anticipated future tax effects of temporary differences between the financial statement basis and tax basis of our assets and liabilities and are measured using the tax rates and laws expected to be in effect when the differences are projected to reverse. A valuation allowance is recorded when it is not more likely than not that some or all the benefit from the deferred tax asset will be realized.


	December 31,
	2020		2019
Deferred tax assets
Foreign net operating loss	$	23,744	$	17,121
U.S. net operating loss	105,802		104,105
Research and development credit	1,156		1,016
Foreign tax credit carryover	2,322		422
Intangibles	17,536		9,365
Inventory	2,615		2,280
Property and equipment	22,565		16,161

Investment in partnership	48,973		24,372
Other	913		1,442
Valuation allowance	(168,174)		(130,010)
Total deferred tax assets	57,452		46,274

Deferred tax liabilities
Investment in partnership	(40,970)		(23,728)
Property and equipment	—		(1,253)
Goodwill	—		(7,297)
Other	—		(329)
Total deferred liabilities	(40,970)		(32,607)

Net deferred tax assets	$	16,482	$	13,667

As of December 31, 2020, we have income tax NOL carryforwards related to both our U.S. and non-U.S. operations of approximately $476 million. In addition, we have research and development tax credit carryforwards of approximately $1.2 million. The ultimate utilization of the NOLs and research and development credits depend on the ability to generate sufficient taxable income in the appropriate tax jurisdiction. These tax attributes expire as follows (in thousands):


Year of Expiration	U.S. NOLs		Foreign NOLs		R&D Credits

2021 - 2025	$	—	$	21,230	$	—
2026 - 2030	—		5,648		—
2031 - 2039	168,163		335		1,156
Does not expire	209,702		70,668		—
	$	377,865	$	97,881	$	1,156

The valuation allowance on our deferred tax asset positions increased from $130.0 million to $168.2 million during 2020 as a result of accumulated tax losses in both the U.S. and various foreign tax jurisdictions. We evaluated all available evidence and determined that it is more likely than not that these losses will not be utilized.

It is our intention that all cash and earnings of our subsidiaries as of December 31, 2020, are permanently reinvested and will be used to meet operating cash flow needs. Existing plans do not demonstrate a need to repatriate foreign cash to fund parent company activity, however, should we determine that parent company funding is required, we estimate that any such cash needs may be met without adverse tax consequences.


	2020
Balance at December 31, 2019	$	342
Increase from positions taken in prior periods	20,327
Increase from positions taken in current period	7,012
Settlements	(527)

Balance at December 31, 2020	$	27,154

Approximately $3 million of the uncertain tax positions, if recognized in the future, would impact our effective tax rate. Approximately $24.1 million of our reserve relates to certain deductions and would only impact our rate if we were subsequently able to utilize operating loss carry-forwards. We have elected to classify interest and penalties incurred on income taxes as income tax expense. We do not foresee resolution of these positions in the coming twelve months.