Entity information:

The components of income before income tax expense for 2017, 2016 and 2015 are as follows (in thousands):
 
2017
 
2016
 
2015
United States
$
28,632

 
$
6,233

 
$
55,143

Other countries
73,074

 
68,374

 
93,547

Income before income tax expense
$
101,706

 
$
74,607

 
$
148,690



The components of income tax expense for 2017, 2016 and 2015 are as follows (in thousands):
 
2017
 
2016
 
2015
Current:
 
 
 
 
 
United States
$
10,699

 
$
(2,469
)
 
$
17,257

Other countries
9,508

 
16,533

 
14,629

State and provincial
725

 
600

 
1,979

Total current
20,932

 
14,664

 
33,865

Deferred:
 
 
 
 
 
United States
(2,948
)
 
1,844

 
(2,905
)
Other countries
626

 
(5,845
)
 
2,947

State and provincial
—

 
85

 
(149
)
Total deferred
(2,322
)
 
(3,916
)
 
(107
)
Income tax expense
$
18,610

 
$
10,748

 
$
33,758



The differences in income tax expense computed using the Netherlands statutory income tax rate of 25% in 2017, 2016 and 2015 and our income tax expense as reported in the accompanying Consolidated Statements of Operations for 2017, 2016 and 2015 are as follows (in thousands):
 
2017
 
2016
 
2015
Tax at the Netherlands income tax rate
$
25,427

 
$
18,652

 
$
37,173

International earnings taxed at rates other than
    the Netherlands statutory rate
(12,496
)
 
(16,840
)
 
(14,066
)
Non-deductible expenses
7,006

 
2,936

 
2,832

Change in valuation allowance
(1,744
)
 
(899
)
 
3,625

State and provincial taxes
829

 
600

 
1,133

Adjustments of prior year taxes
(4,272
)
 
2,412

 
483

Adjustments of income tax reserves
1,869

 
(604
)
 
(1,205
)
Foreign exchange
(1,792
)
 
3,381

 
4,358

Accrued withholding taxes
3,067

 
246

 
(247
)
Other
716

 
864

 
(328
)
Income tax expense
$
18,610

 
$
10,748

 
$
33,758



Deferred tax assets and liabilities result from various temporary differences between the financial statement carrying amount and their tax basis. Deferred tax assets and liabilities as of December 31, 2017 and 2016 are summarized as follows (in thousands):
 
2017
 
2016
Deferred tax assets:
 
 
 
Net operating loss carry-forwards
$
7,976

 
$
9,885

Tax credit carry-forwards
1,002

 
2,925

Accruals for compensation
9,399

 
14,573

Accruals for inventory capitalization
1,909

 
2,587

Unrealized benefit plan loss
4,006

 
4,931

Unrealized foreign exchange
5,932

 
7,221

Unearned revenue
2,649

 
1,249

Other
580

 
1,959

Total deferred tax assets
33,453

 
45,330

Valuation allowance (1)
(8,219
)
 
(9,963
)
Net deferred tax assets
25,234

 
35,367

Deferred tax liabilities:
 
 
 
Intangibles
(5,939
)
 
(7,061
)
Property, plant and equipment
(2,968
)
 
(5,774
)
Accrued interest
(4,885
)
 
—

Accruals for compensation
(1,501
)
 
(3,439
)
Accrued withholding taxes
(2,191
)
 
(160
)
Unrealized foreign exchange
(1,995
)
 
(4,206
)
Other
(359
)
 
(399
)
Total deferred tax liabilities
(19,838
)
 
(21,039
)
Net deferred income taxes
$
5,396

 
$
14,328

 
 
 
 
 
2017
 
2016
Long-term deferred tax assets
10,719

 
20,605

Long-term deferred tax liabilities
(5,323
)
 
(6,277
)
   Total deferred tax assets (liabilities)
$
5,396

 
$
14,328

 
 
 
 
 
 
 
(1) Valuation allowance at 12/31/15 was $10.9 million.


On December 22, 2017, the Tax Cuts and Jobs Act of 2017 was signed into law reducing the U.S. corporate income tax rate to 21% effective January 1, 2018. We recorded a $1.6 million non-cash discrete tax charge in the fourth quarter of 2017, primarily as a result of revaluing deferred tax positions for the net impact of the reduction in tax rate. We are continuing our analysis of the effects this tax reform will have on the Company in future periods.

We have not provided for deferred taxes on the unremitted earnings of certain subsidiaries that we consider to be indefinitely reinvested. Should we make a distribution of the unremitted earnings of these subsidiaries, we may be required to record additional taxes. As of December 31, 2017, we consider $246.0 million to be indefinitely reinvested. Repatriation of these earnings would be subject to income and withholding taxes estimated at $25.3 million. There are no restrictions preventing any of our subsidiaries from repatriating earnings, and there are no restrictions or income taxes associated with distributing cash to the parent company through loans or advances.

At December 31, 2017, we had tax net operating loss carry-forwards in various tax jurisdictions of $32.7 million. Although we cannot be certain that these operating loss carry-forwards will be utilized, we anticipate that we will have sufficient taxable income in future years to allow us to fully utilize the carry-forwards that are not subject to a valuation allowance. As of December 31, 2017, if unused, $3.0 million will expire between 2018-2020, $3.9 million will expire between 2021-2023, $17.5 million will expire between 2024-2027 and $1.0 million will expire beyond 2027. The remaining balance of $7.3 million is not subject to expiration. During 2017, $1.1 million of net operating loss carry-forwards, which carried a full valuation allowance, expired unused.

We file income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions. We are currently undergoing multiple examinations in various jurisdictions, and the years 2000 through 2016 remain open for examination in various tax jurisdictions in which we operate. The ultimate settlement and timing of these additional tax assessments is uncertain but the Company will continue to vigorously defend its return filing position and does not view the assessments as probable at this time.

During 2017, adjustments were made to estimates for uncertain tax positions in certain tax jurisdictions based upon changes in facts and circumstances, resulting in a reduction to the unrecognized tax benefits. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

 
2017
 
2016
 
2015
Unrecognized tax benefits at January 1,
$
8,557

 
$
9,964

 
$
11,747

Tax positions, current period
3,472

 
983

 
1,044

Tax positions, prior period
180

 
83

 
(640
)
Settlements with taxing authorities
(1,154
)
 
(1,657
)
 
(1,371
)
Lapse of applicable statute of limitations
(931
)
 
(816
)
 
(816
)
  Unrecognized tax benefits at December 31,
$
10,124

 
$
8,557

 
$
9,964



Changes in our estimate of, or the recognition of, the unrecognized tax benefits shown in the table above would affect our effective tax rate.

Our policy is to record accrued interest and penalties on uncertain tax positions, net of any tax effect, as part of total tax expense for the period. The corresponding liability is carried along with the tax exposure as a non-current payable in Other Long-term Liabilities. For the years ended December 31, 2017, 2016 and 2015, we recognized $0.6 million, $0.6 million and $(0.5) million, respectively, in interest and penalties. For the years ended December 31, 2017, 2016 and 2015, we had $3.3 million, $2.7 million and $2.0 million, respectively, accrued for the payment of interest and penalties. Changes in our estimate of unrecognized tax benefits would affect our effective tax rate. As of December 31, 2017, 2016, and 2015, there are $1.8 million, 1.2 million and $2.4 million, respectively, of unrecognized tax benefits that could be resolved within the next twelve months which could have a positive effect on the annual effective tax rate.