The components of income tax expense (benefit) for the years ended December 31, 2020, 2019 and 2018 are as follows:

(In thousands)	2020			2019			2018
Current
Federal	$	(10,574	)	$	(518	)	$	(8,001	)
State		(329	)		(1,065	)		(476	)
International		3,635			(282	)		11,705
Total Current		(7,268	)		(1,865	)		3,228

Deferred
Federal		—			24,801			(14,448	)
State		—			5,815			(3,390	)
International		(1,356	)		(546	)		581
Total Deferred		(1,356	)		30,070			(17,257	)
Total Income Tax Expense (Benefit)	$	(8,624	)	$	28,205		$	(14,029	)

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

	2020			2019			2018
Tax provision computed at the federal statutory rate		21.00	%		21.00	%		21.00	%
State income tax provision, net of federal benefit		11.10			6.97			14.53
Federal research credits		57.63			15.53			14.23
Foreign taxes		(17.83	)		2.83			(11.45	)
Tax-exempt income		1.93			0.49			0.45
State tax incentives		—			3.85			3.15
Change in valuation allowance		44.79			(172.82	)		—
Foreign tax credits		17.90			16.69			—
Stock-based compensation		(23.36	)		(6.01	)		(2.87	)
Withholding taxes		(20.83	)		—			—
Bargain purchase		—			—			8.82
Impact of CARES Act		45.65			—			—
Impact of U.S. tax reform		—			—			12.00
Global intangible low-taxed income ("GILTI")		(0.49	)		(1.87	)		(17.48	)
Other, net		0.56			(0.49	)		(0.34	)
Effective Tax Rate		138.05	%		(113.83	)%		42.04	%

Income (loss) before expense (benefit) for income taxes for the years ended December 31, 2020, 2019 and 2018 is as follows:

(In thousands)	2020			2019			2018
U.S. entities	$	(12,833	)	$	(29,829	)	$	(74,131	)
International entities		6,587			5,052			40,760
Total	$	(6,246	)	$	(24,777	)	$	(33,371	)

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

Deferred income taxes on the Consolidated Balance Sheets result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The significant components of current and non-current deferred taxes as of December 31, 2020 and 2019 consist of the following:

(In thousands)	2020			2019
Deferred tax assets:
Inventory	$	8,882		$	7,144
Accrued expenses		2,331			2,330
Deferred compensation		6,714			5,660
Stock-based compensation		1,971			2,451
Uncertain tax positions related to state taxes and related interest		149			241
Pensions		8,554			7,074
Foreign losses		2,590			2,925
State losses and credit carry-forwards		5,509			3,995
Federal loss and research carry-forwards		17,323			12,171
Lease liabilities		1,588			2,496
Capitalized research and development expenditures		11,832			22,230
Valuation allowance		(45,818	)		(48,616	)
Total Deferred Tax Assets		21,625			20,101

Deferred tax liabilities:
Property, plant and equipment		(4,546	)		(2,815	)
Intellectual property		(4,375	)		(5,337	)
Right of use lease assets		(1,585	)		(2,496	)
Investments		(1,250	)		(1,892	)
Total Deferred Tax Liabilities		(11,756	)		(12,540	)
Net Deferred Tax Assets	$	9,869		$	7,561

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. Subsequently, the Internal Revenue Service (“IRS”) released its final Global Intangible Low Tax Income (“GILTI”) regulations on July 9,2020. The passage of the CARES Act and subsequent issuance of the GILTI final regulations together resulted in the Company’s recognition of a tax benefit in the amount of $10.8 million during 2020, $7.9 million of which related to the utilization of deferred tax assets which had previously been offset with a valuation allowance and $2.9 million primarily related to the tax rate differential on carrying back losses from 2018 and 2019 tax years to prior years in which the U.S. Corporate tax rate was 35% versus the current 21% federal tax rate.

As of December 31, 2020 and 2019, non-current deferred taxes reflect deferred taxes on 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, which resulted in a deferred tax benefit of $0.1 million and $0.4 million in 2020 and 2019, respectively, was recorded as an adjustment to other comprehensive income (loss), presented in the Consolidated Statements of Comprehensive Income (Loss).

The Company continually reviews the adequacy of its 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. Our assessment of the realizability of our deferred tax assets includes the evaluation of evidence, some of which requires significant judgement, including historical operating results, the evaluation of a three-year cumulative income position, future taxable income projections and tax planning strategies. Should management’s conclusion change in the future and additional valuation allowance or a partial or full release of the valuation allowance is necessary, it could have a material effect on our consolidated financial statements.

As of December 31, 2020 and 2019, the Company had gross deferred tax assets totaling $55.7 million offset by a valuation allowance totaling $45.8 million and gross deferred tax assets totaling $56.2 million offset by a valuation allowance of $48.6 million, respectively. Of the current valuation allowance, $43.8 million has been established against our domestic deferred tax assets and the remaining $2.0 million is related to foreign net operating loss and research and development credit carryforwards where we lack sufficient activity to realize those deferred tax assets. The change in our valuation allowance for the year ending December 31, 2020 was a decrease of $2.8 million. The change in the valuation allowance was primarily related to increases in our deferred tax assets during the year, offset with the impact of monetizing deferred tax assets through net operating loss carryback claims related to the CARES Act of $7.9 million. As of December 31, 2020, the remaining $9.9 million in deferred tax assets that were not offset by a valuation allowance are located in various foreign jurisdictions where the Company believes it is more likely than not we will realize these deferred tax assets.

Supplemental balance sheet information related to deferred tax assets as of December 31, 2020 and 2019 is as follows:

	December 31, 2020
(In thousands)	Deferred Tax Assets		Valuation Allowance			Deferred Tax Assets, net
Domestic	$	43,791	$	(43,791	)	$	—
International		11,896		(2,027	)		9,869
Total	$	55,687	$	(45,818	)	$	9,869

	December 31, 2019
(In thousands)	Deferred Tax Assets		Valuation Allowance			Deferred Tax Assets, net
Domestic	$	46,266	$	(46,266	)	$	—
International		9,911		(2,350	)		7,561
Total	$	56,177	$	(48,616	)	$	7,561

As of December 31, 2020 and 2019, the deferred tax assets for foreign and domestic loss carry-forwards, research and development tax credits, unamortized research and development costs and state credit carry-forwards totaled $37.3 million and $41.3 million, respectively. As of December 31, 2020, $25.1 million of these deferred tax assets will expire at various times between 2021 and 2040. The remaining deferred tax assets will either amortize through 2029 or carryforward indefinitely.

As of December 31, 2020 and 2019, respectively, our cash and cash equivalents were $60.2 million and $73.8 million and short-term investments were $3.1 million and $33.2 million, which provided available short-term liquidity of $63.3 million and $107.0 million. Of these amounts, our foreign subsidiaries held cash of $49.7 million and $52.3 million, respectively, representing approximately 78.5% and 48.9% of available short-term liquidity, which is used to fund ongoing liquidity needs of these subsidiaries. As part of our restructuring plan, the Company’s assertion on being indefinitely reinvested changed in a particular jurisdiction during the current year resulting in the accrual of $0.7 million in withholding tax liabilities. The Company maintains its assertion in all other jurisdictions that it is indefinitely reinvesting its funds held in foreign jurisdictions outside of the U.S., except to the extent any of these funds can be repatriated without withholding tax. However, if all of 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 practicable to determine the amount of funds subject to unrecognized deferred tax liability.

During 2020, 2019 and 2018, no income tax benefit or expense was recorded for stock options exercised as an adjustment to equity.

The change in the unrecognized income tax benefits for the years ended December 31, 2020, 2019 and 2018 is reconciled below:

(In thousands)	2020			2019			2018
Balance at beginning of period	$	1,487		$	1,868		$	2,366
Increases for tax position related to:
Prior years		4			—			3
Current year		165			161			254
Decreases for tax positions related to:
Prior years		—			(71	)		—
Expiration of applicable statute of limitations		(578	)		(471	)		(755	)
Balance at end of period	$	1,078		$	1,487		$	1,868

As of December 31, 2020, 2019 and 2018, our total liability for unrecognized tax benefits was $1.1 million, $1.5 million and $1.9 million, respectively, of which $1.0 million, $1.4 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, 2020, 2019 and 2018, the balances of accrued interest and penalties were $0.3 million, $0.5 million and $0.7 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. for 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 2017.