15. Income Taxes

The provision for income taxes for the fiscal years 2017, 2016 and 2015 consists of the following (in thousands):

                                                                                                                                                                                    

The difference between the U.S. statutory federal income tax rate and the effective income tax rate is summarized below:

                                                                                                                                                                                    

The tax effects of temporary differences that give rise to our deferred tax assets and liabilities are as follows (in thousands):

                                                                                                                                                                                    

We believe that it is more-likely-than-not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets, net of the valuation allowance. We have recorded a valuation allowance to account for uncertainties regarding recoverability of certain deferred tax assets, primarily foreign loss carry-forwards.

Domestic earnings before provision for income taxes were $332.5 million, $327.1 million and $362.1 million in the fiscal years 2017, 2016 and 2015, respectively. Foreign operations had earnings before provision for income taxes of $13.2 million, $27.0 million and $16.4 million in the fiscal years 2017, 2016 and 2015, respectively.

Tax reserves are evaluated and adjusted as appropriate, while taking into account the progress of audits by various taxing jurisdictions and other changes in relevant facts and circumstances evident at each balance sheet date. We do not expect the outcome of current or future tax audits to have a material adverse effect on our consolidated financial condition, results of operations or cash flow.

At September 30, 2017, undistributed earnings of our foreign operations are intended to remain permanently invested to finance anticipated future growth and expansion. Accordingly, federal and state income taxes have not been provided on accumulated but undistributed earnings of $286.8 million and $263.0 million as of September 30, 2017 and 2016, respectively, as such earnings have been permanently reinvested in the foreign operations. A determination of the amount of the unrecognized deferred tax liability related to the undistributed earnings is not practicable.

At September 30, 2017 and 2016, we had total operating loss carry-forwards of $135.6 million and $117.9 million, respectively, of which $117.0 million and $104.0 million, respectively, are subject to a valuation allowance. At September 30, 2017, operating loss carry-forwards of $19.2 million expire between 2018 and 2029 and operating loss carry-forwards of $116.4 million have no expiration date. At September 30, 2017 and 2016, the Company had tax credit carry-forwards of $2.8 million and $3.1 million, respectively, including, at September 30, 2017, tax credit carry-forwards of $1.4 million that expire between 2024 and 2027, and tax credit carry-forwards of $1.4 million that have no expiration date. Tax credit carry-forwards of $1.2 million and $0.4 million are subject to a valuation allowance at September 30, 2017 and 2016, respectively.

The changes in the amount of unrecognized tax benefits are as follows (in thousands):

                                                                                                                                                                                    

If recognized, these positions would affect our effective tax rate.

We recognize interest and penalties, accrued in connection with unrecognized tax benefits, in provision for income taxes. Accrued interest and penalties, in the aggregate, were $0.2 million at both September 30, 2017 and 2016.

Because existing tax positions will continue to generate increased liabilities for unrecognized tax benefits over the next 12 months, and the fact that from time to time our tax returns are routinely under audit by various taxing authorities, it is reasonably possible that the amount of unrecognized tax benefits will change during the next 12 months. An estimate of the amount of such change, or a range thereof, cannot reasonably be made at this time. However, we do not expect the change, if any, to have a material effect on our consolidated financial condition or results of operations within the next 12 months.

The IRS has concluded the field work associated with its examination of our consolidated federal income tax returns for the fiscal years ended September 30, 2007 through September 30, 2016, and issued its examination reports. The Company is currently seeking relief from double taxation through competent authority on certain cross-border adjustments related to the fiscal years ended September 30, 2007 through September 30, 2012, and it does not anticipate the ultimate resolution of these items to have a material impact on its financial statements.

Our consolidated federal income tax return for the fiscal year ended September 30, 2017 is currently under IRS examination. Pending the resolution of the adjustments discussed in the preceding paragraph, our statute remains open for the years ended September 30, 2007 through September 30, 2012, and from the year ended September 30, 2014 forward. Our foreign subsidiaries are impacted by various statutes of limitations, which are generally open from 2012 forward. Generally, states' statutes in the United States are open for tax reviews from 2007 forward.