Table of Contents 10. Income taxes AVNET, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The components of income tax expense (“tax provision”) are included in the table below. The tax provision for deferred income taxes results from temporary differences arising primarily from net operating losses, inventories valuation, receivables valuation, certain accrued amounts and depreciation and amortization, net of any changes to valuation allowances. Years Ended June 29, 2019 June 30, 2018 July 1, 2017 (Thousands) Current: Federal $ (18,611)  $ 255,810 $ (45,351)  State and local 8,523 (3,174) 4,209 Foreign 78,988 104,156 106,441 Total current taxes 68,900 356,792 65,299 Deferred: Federal 17,725 (70,172) (30,025) State and local 580 (10,551)  (3,934)  Foreign (25,048) 11,897 15,713 Total deferred taxes (6,743)  (68,826)  (18,246)  Income tax expense $ 62,157 $ 287,966 $ 47,053 The tax provision is computed based upon income from continuing operations before income taxes from both U.S. and foreign operations. U.S. loss from continuing operations before income taxes was $68.5 million, $385.1 million and $174.3 million, in fiscal 2019, 2018 and 2017, respectively, and foreign income from continuing operations before income taxes was $310.8 million, $530.2 million and $484.7 million in fiscal 2019, 2018 and 2017, respectively. See further discussion related to income tax expense for discontinued operations in Note 3. On December 22, 2017 the U.S. federal government enacted tax legislation (the “Act”) which includes provisions to lower the corporate income tax rate from 35% to 21%, impose new taxes on certain foreign earnings, limit deductibility of certain U.S. costs and levy a one-time deemed repatriation tax on accumulated offshore earnings, among other provisions. The law is subject to interpretation and implementation guidance by both federal and state tax authorities, as well as amendments and technical corrections.  As a fiscal year-end taxpayer, certain provisions of the Act began to impact the Company in the second quarter of fiscal 2018, while other provisions began to impact the Company beginning in fiscal 2019. Additionally, new guidance from regulations, interpretation of the law and refinement of the Company’s estimates from ongoing analysis of tax positions may change the amounts recorded. Any changes to the amounts recorded will be reflected in income tax expense in the period they are identified, and may be material. The Company changed its historical assertion as of June 29, 2019, so that all of its unremitted foreign earnings are no longer permanently reinvested as certain foreign earnings are expected to be repatriated in the future. The Company believes any unrecorded liabilities related to this partial change in assertion are not material, and has recorded deferred tax liabilities for those certain foreign earnings expected to be repatriated in the future. 62