Table of Contents The provision for income taxes consisted of the following: $^{(1)}$  Includes U.S. taxes related to foreign income A reconciliation of the U.S. federal statutory rate to Arconic’s effective tax rate was as follows (the effective tax rate for all periods was a provision on income): $^{(1)}$  In 2019, a net tax benefit was recognized related to a U.S. tax election which caused the deemed liquidation of a foreign subsidiary's assets into its U.S. tax parent. The benefit is partially offset by an increase in uncertain tax positions. Losses reported in Spain's 2017 tax return related to the Separation of Alcoa are offset by an increased valuation allowance. $^{(2)}$  In 2018, the Company finalized its accounting for the Tax Cuts and Jobs Act of 2017 ("the 2017 Act”) and recorded an additional $59 charge. In December 2017, an estimated $272 tax charge was recorded with respect to the enactment of the 2017 Act. $^{(3)}$  In 2019, the Company released a valuation allowance related to 2015 and 2016 foreign tax credits, subsequent to filing U.S. amended tax returns to deduct, rather than credit, foreign taxes. $^{(4)}$  In 2019, the Company filed U.S. amended tax returns to deduct, rather than credit, 2015 and 2016 foreign taxes resulting in a tax cost associated with the write-off of the deferred tax asset for the credit, partially offset by a tax benefit for the deduction. 83 For the year ended December 31, 2019 2018 2017 Current: Federal (1) $ 4 $ 45 $ — Foreign 108 138 98 State and local 5 4 (2) 117 187 96 Deferred: Federal 65 146 489 Foreign (53) (94) 37 State and local (24 ) (13 ) (78 ) (12) 39 448 Total $ 105 $ 226 $ 544 For the year ended December 31, 2019 2018 2017 U.S. federal statutory rate 21.0  % 21.0  % 35.0  % Foreign tax rate differential 2.6 2.4 (8.7) U.S. and residual tax on foreign earnings 6.0 1.6 (0.1 ) U.S. State and local taxes 2.5 1.5 0.7 Federal benefit of state tax 0.4 (0.3 ) 3.7 Permanent differences related to asset disposals and items included in restructuring and other charges (1) (22.9) (16.9) (167.4) Non-deductible transaction costs 1.6 — 0.3 Non-deductible officer compensation 1.8 0.1 — Statutory tax rate and law changes (2) (0.2 ) 6.5 52.5 Tax holidays (3.2) (1.6) (3.0) Changes in valuation allowances (3) (14.2 ) 0.9 137.9 Impairment of goodwill — — 53.5 Changes in uncertain tax positions 6.1 12.8 10.1 Prior year tax adjustments (4) 15.2 (2.6) (0.9) Other 1.6 0.6 2.1 Effective tax rate 18.3 % 26.0 % 115.7 %