We record current income tax expense for the amounts that we expect to report and pay on our income tax returns and deferred income tax expense for the change in the deferred tax assets and liabilities. On December 22, 2017, the United States enacted the Tax Act that significantly changed U.S. tax law. Also on that date, the SEC issued Staff Accounting Bulletin No. 118, which allowed us to record a provisional estimate at December 31, 2017 and finalize the tax effect of the law change within one year.

We completed the calculation of the effect of the Tax Act and recorded the adjustment to the provisional estimate by December 22, 2018, as required. In 2018, we reduced the provisional estimate of $16.1 million by $3.1 million, $2.6 million for the federal and state tax on deemed repatriation of foreign earnings and $0.5 million for the reduction in the corporate tax rate from 35% to 21%. Of the federal deemed repatriation tax of $5.2 million eligible for deferral ratably over eight years, after application of tax year 2017 estimated payments, $1.1 million of the liability remains and is due in 2024.

The Tax Act repealed the corporate alternative minimum tax and allows companies to claim a refund of 50% of the credit balance beginning in tax year 2018. The decrease in the repatriation tax restored alternative minimum tax credits and 50% of the alternative minimum tax credit balance, $4.0 million, was classified as an income tax receivable at December 31, 2018.

The Tax Act also established two new taxes; the base erosion anti-abuse tax (“BEAT”) and the global intangible low-taxed income (“GILTI”) tax effective January 1, 2018. The BEAT tax limits the deductibility of payments made to related foreign companies and imposes a minimum tax in excess of the company’s regular tax liability. At December 31, 2018, we were not subject to BEAT.

The GILTI tax is based on excess earnings of foreign subsidiaries over an allowable return on foreign fixed asset investments. We have applied the most current interpretation of the Tax Act in our calculation of the GILTI tax and the net GILTI tax, after GILTI-based foreign income tax credits, is $0.8 million for the year ended December 31, 2018. We will account for GILTI tax as a period cost in our financial statements.

Income from continuing operations before income taxes consisted of the following:

	Year Ended December 31,
(in thousands)	2018		2017		2016
Foreign	$	54,753	$	82,919	$	33,611
United States		10,256		21,431		31,118
Income from continuing operations before income taxes	$	65,009	$	104,350	$	64,729

Significant components of the income tax provision from continuing operations are as follows:

	Year Ended December 31,
(in thousands)	2018			2017		2016
Current:
United States:
Federal	$	41		$	1,693	$	3,685
State		(335	)		2,573		1,716
Foreign		12,039			15,583		8,177
Total current		11,745			19,849		13,578
Deferred:
United States:
Federal		1,860			19,893		8,427
State		860			1,761		(598	)
Foreign		2,630			4,395		(157	)
Total deferred		5,350			26,049		7,672
Income tax expense	$	17,095		$	45,898	$	21,250

We are subject to income tax in jurisdictions in which we operate. A reconciliation of the statutory federal income tax rate to the effective tax rate is as follows:

	Year Ended December 31,
(in thousands)	2018					2017					2016
Computed income tax expense at statutory federal income tax rate	$	13,665		21.0	%	$	36,522		35.0	%	$	22,655		35.0	%
State income taxes, net of federal benefit		3,489		5.4	%		1,160		1.1	%		292		0.5	%
Deemed mandatory repatriation state tax		(909	)	(1.4	)%		1,206		1.2	%		—		—
Deemed mandatory repatriation federal tax, net of foreign tax credit		(1,690	)	(2.6	)%		6,936		6.6	%		—		—
Remeasurement of deferred taxes due to reduction in U.S. tax rate *		(510	)	(0.8	)%		8,000		7.7	%		—		—
Foreign tax rate differential		4,138		6.4	%		(5,031	)	(4.8	)%		(882	)	(1.4	)%
U.S. tax on current year foreign earnings, net of foreign tax credits		(223	)	(0.3	)%		(2,726	)	(2.6	)%		(373	)	(0.6	)%
Change in valuation allowance		(653	)	(1.0	)%		(796	)	(0.8	)%		1,230		1.9	%
Other adjustments, net		(212	)	(0.3	)%		627		0.6	%		(1,672	)	(2.6	)%
Income tax expense	$	17,095		26.4	%	$	45,898		44.0	%	$	21,250		32.8	%

The components of deferred income tax assets and liabilities included in the Consolidated Balance Sheets are as follows:

	December 31,
(in thousands)	2018			2017
Deferred tax assets:
Tax credit carryforwards	$	9,156		$	6,654
Pension, compensation, and other employee benefits		13,022			15,173
Provisions for losses		5,133			5,826
Net operating loss carryforward		4,707			5,195
State income taxes		1,546			2,502
Other deferred income tax assets		2,920			2,796
Total deferred tax assets		36,484			38,146
Valuation allowance		(3,356	)		(4,010	)
Foreign deferred tax assets included above		(2,468	)		(2,396	)
Net deferred tax assets		30,660			31,740
Deferred tax liabilities:
Property and equipment		(14,501	)		(10,530	)
Deferred tax related to life insurance		(3,498	)		(3,556	)
Goodwill and other intangible assets		(4,759	)		(4,299	)
Other deferred income tax liabilities		(939	)		(463	)
Total deferred tax liabilities		(23,697	)		(18,848	)
Foreign deferred tax liabilities included above		9,808			7,869
United States net deferred tax assets	$	16,771		$	20,761

We use significant judgment in forming conclusions regarding the recoverability of our deferred tax assets and evaluate all available positive and negative evidence to determine if it is more-likely-than-not that the deferred tax assets will be realized. To the extent recovery does not appear likely, a valuation allowance must be recorded. We had gross deferred tax assets of $36.5 million as of December 31, 2018 and $38.1 million as of December 31, 2017. These deferred tax assets reflect the expected future tax benefits to be realized upon reversal of deductible temporary differences and the utilization of tax attributes, including tax credit carryforwards.

As of December 31, 2018, foreign tax credit carryforwards were $5.2 million, of which $4.9 million are foreign tax credits against U.S. income tax which will begin to expire in 2021 and $0.3 million are creditable against United Kingdom taxes, which can be carried forward indefinitely. As of December 31, 2018, we had alternative minimum tax credit carryforwards of $4.0 million.

We had gross state and foreign net operating loss carryforwards of $49.1 million as of December 31, 2018 and $68.4 million as of December 31, 2017, for which we had deferred tax assets of $4.7 million as of December 31, 2018 and $5.2 million as of December 31, 2017. The state net operating loss carryforwards of $1.8 million expire from 2019 through 2038 and are subject to a full valuation allowance since it is unlikely that we will utilize these tax benefits prior to expiration. The foreign net operating loss carryforwards of $2.9 million do not expire.

The valuation allowance was $3.4 million at December 31, 2018 and $4.0 million at December 31, 2017. The $0.6 million decrease was due to a net decrease of $1.5 million for state net operating loss return to provision true-ups, offset by an increase of $0.9 million for certain foreign net operating loss carryforwards that do not meet the more likely-than-not threshold for recognition.

While we believe that the deferred tax assets, net of existing valuation allowances, will be utilized in future periods, there are inherent uncertainties regarding the ultimate realization of these tax assets. It is possible that the relative weight of positive and negative evidence regarding the realization of deferred tax assets may change, which could result in a material increase or decrease in our valuation allowance. Such a change could result in a material increase or decrease to income tax expense in the period the assessment was made.

We have not recorded deferred taxes for withholding taxes on current unremitted earnings of our subsidiaries located in Canada, the United Kingdom, and the Netherlands as we expect to reinvest those earnings in operations outside of the United States.

We exercise judgment in determining the income tax provision for positions taken on prior returns when the ultimate tax determination is uncertain. We classify liabilities associated with uncertain tax positions as “Other deferred items and liabilities” in the Consolidated Balance Sheets unless expected to be paid or released within one year. We had liabilities associated with uncertain tax positions, including interest and penalties, of $0.4 million as of December 31, 2018 and $1.7 million as of December 31, 2017. Uncertain tax positions, including interest and penalties, are classified as a component of income tax expense.

During 2018, we decreased the liability for continuing operations uncertain tax positions, including interest and penalties, by $1.3 million due to the lapse of statute. We expect $0.3 million of the continuing operations uncertain tax positions to be resolved or settled within the next twelve months and have classified this amount as a current liability.

A reconciliation of the liabilities associated with uncertain tax positions (excluding interest and penalties) is as follows:

(in thousands)	Continuing Operations			Discontinued Operations			Total
Balance at December 31, 2015	$	307		$	636		$	943
Additions for tax positions taken in prior years		1,295			—			1,295
Reductions for lapse of applicable statutes		(43	)		—			(43	)
Balance at December 31, 2016		1,559			636			2,195
Additions for tax positions taken in prior years		43			—			43
Reductions for lapse of applicable statutes		(177	)		(636	)		(813	)
Balance at December 31, 2017		1,425			—			1,425
Additions for tax positions taken in prior years		31			—			31
Reductions for lapse of applicable statutes		(1,086	)		—			(1,086	)
Balance at December 31, 2018	$	370		$	—		$	370

We are subject to taxation in various jurisdictions and file federal, state and local income tax returns in the United States, Canada, the United Kingdom and other foreign countries. We are currently under audit by the U.S Internal Revenue Service for the 2016 tax year and by the Canada Revenue Agency for the 2016 and 2017 tax years. We successfully concluded a United Kingdom inquiry of the 2015 tax year during 2018. We cannot predict with certainty the outcome of these audits and, therefore, we may have to adjust our tax provision.

Our 2015 through 2018 U.S. federal tax years and various state tax years from 2014 through 2018 remain subject to income tax examinations by tax authorities. The tax years 2013 through 2018 remain subject to examination by various foreign taxing jurisdictions.

Cash paid for income taxes was $27.3 million during 2018, $14.6 million during 2017, and $14.1 million during 2016.