A summary of the components of the provision (benefit) for income taxes for the years ended December 31, 2018, 2017 and 2016 is as follows:

(In thousands)	2018			2017			2016
Current
Federal	$	(8,001	)	$	466		$	12,733
State		(476	)		(150	)		1,141
International		11,705			6,458			477
Total Current		3,228			6,774			14,351

Deferred
Federal		(14,448	)		8,024			647
State		(3,390	)		1,882			73
International		581			4,167			(3,405	)
Total Deferred		(17,257	)		14,073			(2,685	)
Total Provision (Benefit) for Income Taxes	$	(14,029	)	$	20,847		$	11,666

Our effective income tax rate differs from the federal statutory rate due to the following:

	2018			2017			2016
Tax provision computed at the federal statutory rate		21.00	%		35.00	%		35.00	%
State income tax provision, net of federal benefit		14.53			2.17			3.93
Federal research credits		14.23			(11.88	)		(8.15	)
Foreign taxes		(11.45	)		(2.27	)		(0.34	)
Tax-exempt income		0.45			(0.75	)		(0.53	)
State tax incentives		3.15			(2.71	)		(2.77	)
Stock-based compensation		(2.87	)		1.43			2.53
Domestic production activity deduction		—			(1.13	)		(2.23	)
Bargain purchase		8.82			—			(2.64	)
Impact of U.S. tax reform		12.00			26.70			—
Global intangible low-taxed income (GILTI)		(17.48	)		—			—
Other, net		(0.34	)		0.09			0.08
Effective Tax Rate		42.04	%		46.65	%		24.88	%

Income (loss) before provision for income taxes for the years ended December 31, 2018, 2017 and 2016 is as follows:

(In thousands)	2018			2017		2016
U.S. entities	$	(74,131	)	$	26,552	$	54,077
International entities		40,760			18,135		(7,182	)
Total	$	(33,371	)	$	44,687	$	46,895

Income (loss) before provision (benefit) for income taxes for international entities reflects income (loss) based on statutory transfer pricing agreements. This amount does not correlate to consolidated international revenues, many of which occur from our U.S. entity.

Deferred income taxes on the balance sheet result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The principal components of our current and non-current deferred taxes are as follows:

(In thousands)	2018			2017
Deferred tax assets
Inventory	$	6,609		$	7,545
Accrued expenses		2,850			3,103
Investments		1,122			—
Deferred compensation		4,779			5,204
Stock-based compensation		3,069			2,988
Uncertain tax positions related to state taxes and related interest		326			370
Pensions		5,538			4,727
Foreign losses		3,097			3,091
State losses and credit carry-forwards		8,164			3,854
Federal loss and research carry-forwards		17,495			3,058
Valuation allowance		(5,816	)		(6,006	)
Total Deferred Tax Assets		47,233			27,934

Deferred tax liabilities
Property, plant and equipment		(3,515	)		(3,553	)
Intellectual property		(6,531	)		(663	)
Investments		—			(290	)
Total Deferred Tax Liabilities		(10,046	)		(4,506	)
Net Deferred Tax Assets	$	37,187		$	23,428

On December 22, 2017, the Tax Cuts and Jobs Act (the Act) was signed into law. As a result of the Act, we recognized an estimated expense of $11.9 million in the fourth quarter of 2017, of which $9.2 million related to the write-down of deferred tax assets and $2.7 million related to tax on unrepatriated foreign earnings. We calculated our best estimate of the impact of the Act in our 2017 year-end income tax provision, in accordance with Staff Accounting Bulletin No. 118, which was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed to finalize the accounting for certain income tax effects of the Act. Additional work to complete a more detailed analysis of historical foreign earnings, as well as the full impact relating to the write-down of deferred tax assets, was completed in the third quarter of 2018 and resulted in a tax benefit of $4.0 million.

At December 31, 2018 and 2017, non-current deferred taxes related to our investments and our defined benefit pension plan reflect deferred taxes on the net unrealized gains and losses on available-for-sale investments and deferred taxes on unrealized losses in our pension plan. The net change in non-current deferred taxes associated with these items, a deferred tax benefit of $2.8 million and $1.7 million in 2018 and 2017, respectively, is recorded as an adjustment to other comprehensive income, presented in the Consolidated Statements of Comprehensive Income.

The Company continually reviews the adequacy of the valuation allowance and recognizes the benefits of deferred tax assets only as the reassessment indicates that it is more likely than not that the deferred tax assets will be recognized in accordance with ASC 740, Income Taxes (ASC 740). As of December 31, 2018, we had foreign losses of $3.1 million. A valuation allowance of $2.4 million has been established against the loss carryforwards. The foreign loss carryforwards primarily resulted from an acquisition in 2009. As of December 31, 2018, we had $8.2 million of state loss and tax credit carryforwards. We believe it is more likely than not we will not realize the full benefit of the deferred tax asset arising from these losses and credit carryforwards. Therefore, a valuation allowance of $3.4 million has been established against these carryforwards. The valuation allowance relates to a particular state where we no longer generate sufficient state income. As of December 31, 2018, we had $17.5 million of federal loss and research carryforwards. These carryforwards are the result of acquisitions in 2011 and 2018 as well as domestic operating losses in 2018. Management will continue to assess the realization of our deferred tax assets and related valuation allowance. As such, we may release a portion of the valuation allowance or establish a new valuation allowance based on operations in the jurisdictions in which these assets arose. Management continues to evaluate all evidence including historical operating results, the existence of losses in the most recent year, forecasted earnings, future taxable income, and tax planning strategies. Should management determine a valuation allowance is needed in the future due to not being able to absorb loss carryforwards, it would have a material impact on our consolidated financial statements.

The deferred tax assets for foreign and domestic carry-forwards, research and development tax credits, unamortized research and development costs, and state credit carry-forwards are $28.8 million. Some of these deferred tax assets will expire between 2019 and 2030 and others carryforward indefinitely. We will continue to assess the realization of our deferred tax assets and related valuation allowances. The net change in our valuation allowance from December 31, 2017 to December 31, 2018 was $(0.2) million.

As of December 31, 2018 and 2017, respectively, our cash and cash equivalents were $105.5 million and $86.4 million and short-term investments were $3.2 million and $16.1 million, which provided available short-term liquidity of $108.7 million and $102.6 million. Of these amounts, our foreign subsidiaries held cash of $87.1 million and $56.8 million, respectively, representing approximately 80.1% and 55.4% of available short-term liquidity, which is used to fund on-going liquidity needs of these subsidiaries. We intend to permanently reinvest these funds outside the U.S., except to the extent any of these funds can be repatriated without withholding tax, and our current business plans do not indicate a need to repatriate to fund domestic operations. However, if all these funds were repatriated to the U.S. or used for U.S. operations, certain amounts could be subject to tax. Due to the timing and circumstances of repatriation of such earnings, if any, it is not practical to determine the amount of funds subject to unrecognized deferred tax liability.

During 2018, 2017 and 2016, we recorded no income tax benefit or expense for stock options exercised as an adjustment to equity. This is calculated on the difference between the exercise price of stock option exercises and the market price of the underlying common stock upon exercise.

The change in the unrecognized income tax benefits for the years ended December 31, 2018, 2017 and 2016 is reconciled below:

(In thousands)	2018			2017			2016
Balance at beginning of period	$	2,366		$	2,226		$	2,537
Increases for tax position related to:
Prior years		3			465			95
Current year		254			285			428
Decreases for tax positions related to:
Prior years		—			(14	)		—
Settlements with taxing authorities		—			—			—
Expiration of applicable statute of limitations		(755	)		(596	)		(834	)
Balance at end of period	$	1,868		$	2,366		$	2,226

As of December 31, 2018, 2017 and 2016, our total liability for unrecognized tax benefits was $1.9 million, $2.4 million and $2.2 million, respectively, of which $1.7 million, $2.2 million and $1.7 million, respectively, would reduce our effective tax rate if we were successful in upholding all of the uncertain positions and recognized the amounts recorded. We classify interest and penalties recognized on the liability for unrecognized tax benefits as income tax expense. As of December 31, 2018, 2017 and 2016, the balances of accrued interest and penalties were $0.7 million, $0.8 million and $0.8 million, respectively.

We do not anticipate a single tax position generating a significant increase or decrease in our liability for unrecognized tax benefits within 12 months of this reporting date. We file income tax returns in the U.S. federal and various state jurisdictions and several foreign jurisdictions. We are not currently under audit by the Internal Revenue Service. Generally, we are not subject to changes in income taxes by any taxing jurisdiction for the years prior to 2015.