CLB 2018 Annual Report

F-18 2018 2017 2016 Tax at the Netherlands income tax rate $ 26,189 $ 25,427 $ 18,652 International earnings taxed at rates other than the Netherlands statutory rate (14,997) (12,496) (16,840) Non-deductible expenses 4,452 6,645 3,043 Change in valuation allowance 1,513 (1,744) (899) State and provincial taxes 1,566 829 600 Adjustments of prior year taxes 2,350 (4,272) 2,412 Adjustments of income tax reserves (1,613) 1,869 (604) Foreign exchange 5,936 (1,792) 3,381 Accrued withholding taxes 2,911 3,067 246 Other (2,860) 716 864 Income tax expense $ 25,447 $ 18,249 $ 10,855 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, 2018 and 2017 are summarized as follows (in thousands): 2018 2017 Deferred tax assets: Net operating loss carry-forwards $ 6,300 $ 7,976 Tax credit carry-forwards 1,154 1,002 Accruals for compensation 7,160 9,399 Accruals for inventory capitalization 1,813 1,909 Unrealized benefit plan loss 3,417 4,006 Unrealized foreign exchange 7,542 5,932 Unearned revenue 2,760 2,649 Other 822 580 Total deferred tax assets 30,968 33,453 Valuation allowance (1) (9,732) (8,219) Net deferred tax assets 21,236 25,234 Deferred tax liabilities: Intangibles (6,025) (5,939) Property, plant and equipment (2,835) (2,968) Accrued interest (3,260) (4,885) Accruals for compensation — (1,501) Accrued withholding taxes (886) (2,191) Unrealized foreign exchange (4,043) (1,995) Other (569) (359) Total deferred tax liabilities (17,618) (19,838) Net deferred income taxes $ 3,618 $ 5,396 2018 2017 Long-term deferred tax assets $ 11,252 $ 10,719 Long-term deferred tax liabilities (7,634) (5,323) Total deferred tax assets (liabilities) $ 3,618 $ 5,396 (1) Valuation allowance at 12/31/16 was $10.0 million. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the "TCJA") was signed into law reducing the U.S. corporate income tax rate to 21% effective January 1, 2018. During 2018, various proposed regulations were released, providing guidance on identified issues and topics regarding the TCJA. The most impactful changes for the company from the TCJA are