Year ended
		December 31,
		2017				2016				2015
Domestic		$	(4,332	)		$	2,890			$	(2,475	)
Foreign			(8,942	)			(3,232	)			544
Total loss before income taxes		$	(13,274	)		$	(342	)		$	(1,931	)

Income tax expense (benefit) consists of the following:

 

The Company is subject to income and other taxes in a variety of jurisdictions, including the United States, Canada, and various state jurisdictions.  A reconciliation of income taxes computed at the United States statutory rate to the Company's effective income tax rate is shown below. 

 

Deferred income taxes result principally from temporary differences in the recognition of loss carry-forwards and expense items for financial and income tax reporting purposes.  Significant components of the Company’s deferred tax assets as of December 31, 2017 and 2016 were as follows:

 

As of December 31, 2017, the Company had federal and state net operating loss carryforwards of approximately $78,545 and $43,516, respectively.  The federal and state net operating losses do not include approximately $22,487 and $16,986, respectively, related to tax goodwill amortization that will not be realized for financial reporting purposes until the Company is able to take a tax benefit for those deductions. The federal and state net operating losses begin to expire in 2024 and 2018, respectively.  As of December 31, 2017, the Company had federal and state research and development credit carryforwards of approximately $210 and $86, respectively.  The federal research and development credit begins to expire in 2033. The state research and development credit carries forward indefinitely. The Company had foreign net operating loss carryforwards of approximately $20,816. Our ability to utilize our federal tax attribute carryforwards have been limited by Section 382 of the Internal Revenue Code of 1986, as amended (the ''Code''), which imposes an annual limit on the ability of a corporation that undergoes an ''ownership change'' to use its tax attribute carryforwards to reduce its liability.  An ownership change is generally defined as a greater than 50% increase in equity ownership by 5% shareholders in any three-year period.

At December 31, 2017, based on the weight of available evidence, including profitability in recent periods and the availability of expected future taxable income, the Company concluded that it is not more likely than not that the benefits of all deferred income tax assets will be realized. Accordingly, the Company increased the valuation allowances on some of its foreign and state related deferred income tax assets. The Company maintains a valuation allowance to offset foreign and certain state deferred tax assets, as realization of such assets do not meet the more-likely-than-not threshold. The net change in the total valuation allowance was an increase of $1,126 and a decrease of ($504) as of December 31, 2017 and December 31, 2016, respectively.

The Company accounts for income taxes in accordance with ASC Topic 740, “Income Taxes Recognition.”  The Company does not believe there are any material uncertain tax provisions under ASC 740.  The Company is subject to federal and state income tax, as well as income tax in various foreign jurisdictions in which the Company operates. The Company’s federal and state tax returns remain open and subject to potential government audit for the years 2014, 2015 and 2016. However, to the extent allowed by law the tax authorities may have the right to examine prior periods where net operating losses or tax credits were generated and carried forward, and make adjustments up to the amount of the net operating losses or credit carryforward amount.

The Tax Cuts and Jobs Act, enacted December 22, 2017, contains provisions that affect the Company in the current and future years. Reduction of the corporate tax rate from 35% to 21% reduced the value of our domestic deferred tax assets by $10,329, which is included in deferred tax expense in 2017. The Act also implemented a territorial tax system and imposed a repatriation tax on deemed repatriated earnings of foreign subsidiaries, neither of which had a significant impact on the current tax provision.