Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the consolidated deferred tax assets and liabilities were: We have $417.3 million of U.S. and foreign net operating loss carryforwards at December 31, 2019. Of this total, $38.0 million are state net operating losses. Net operating losses generated in the U.S., if unused, will expire in 2024 through 2026 tax years. The majority of our foreign net operating losses carry forward without expiration. Additionally, we have $29.1 million of foreign tax credit carryforwards at December 31, 2019. The foreign tax credit carryforwards, if unused, will expire in 2026, 2028 and 2029 tax years. Our valuation allowances primarily relate to the deferred tax assets established for U.S. foreign tax credit carryforwards of $29.1 million, a foreign capital loss carryforward of $102.6 million, and other foreign deferred tax assets of $134.7 million. The foreign capital loss carryforward was the result of a reorganization of certain foreign subsidiaries in the current year. Due to its capital nature, it is uncertain if the loss will be utilized within its ten year carryforward period and, therefore, has a full valuation allowance. Earnings before income taxes comprised: December 31, 2019 2018 (Amounts in thousands) Deferred tax assets related to: Retirement benefits $ 25,214 $ 26,496 Net operating loss carryforwards 101,193 92,630 Compensation accruals 24,685 25,993 Inventories 33,773 25,553 Credit and capital loss carryforwards 131,744 16,056 Warranty and accrued liabilities 7,042 2,763 Bad debt reserve 30,884 28,194 Other 25,339 32,253 Total deferred tax assets 379,874 249,938 Valuation allowances (266,414 ) (133,929 ) Net deferred tax assets 113,460 116,009 Deferred tax liabilities related to: Property, plant and equipment (26,545) (18,773) Goodwill and intangibles (114,567 ) (123,692 ) Foreign undistributed earnings taxes (67,930) (70,331) Other (12,623 ) (17,935 ) Total deferred tax liabilities (221,665) (230,731) Deferred tax liabilities, net $ (108,205 ) $ (114,722 ) Year Ended December 31, 2019 2018 2017 (Amounts in thousands) U.S.  $ 129,917 $ 88,674 $ 102,372 Foreign 211,933 87,600 160,635 Total $ 341,850 $ 176,274 $ 263,007 97