Deferred tax liabilities and assets of continuing operations and discontinued operations are comprised of the following: At August 2, 2020, our U.S. and non-U.S. subsidiaries had tax loss carryforwards of approximately $361. Of these carryforwards, $39 may be carried forward indefinitely, and $322 expire between 2021 and 2037, with the majority expiring after 2028. At August 2, 2020, deferred tax asset valuation allowances have been established to offset $134 of these tax loss carryforwards. Additionally, as of August 2, 2020, our U.S. and non-U.S. subsidiaries had capital loss carryforwards of approximately $382, all of which were offset by valuation allowances. The decrease in the total capital loss carryforwards for 2020 was primarily due to the sale of the Arnott's and other international operations. The net change in the deferred tax asset valuation allowance in 2020 was a decrease of $305. The decrease was primarily due to the sale of the Arnott's and other international operations. The net change in the deferred tax asset valuation allowance in 2019 was an increase of $294. The increase was primarily due to the sale of Bolthouse Farms and the pending sale of the Arnott's and other international operations. The net change in the deferred tax asset valuation allowance in 2018 was an increase of $13. The increase was primarily due to the acquisition of Snyder's-Lance and the impact of currency.  As of August 2, 2020, and July 28, 2019, other deferred tax assets included $13 of state tax credit carryforwards related to various states that expire between 2021 and 2031. As of August 2, 2020, and July 28, 2019, deferred tax asset valuation allowances have been established to offset the $13 of state credit carryforwards. As of August 2, 2020, we had approximately $18 of undistributed earnings of foreign subsidiaries. Consistent with prior years, these unremitted earnings and the investment in our foreign subsidiaries are deemed to be permanently reinvested and no additional tax has been provided. It is not practical to estimate the tax liability that might be incurred if such earnings were remitted to the U.S. A reconciliation of the activity related to unrecognized tax benefits follows: The amount of unrecognized tax benefits that, if recognized, would impact the annual effective tax rate was $18 as of August 2, 2020, $17 as of July 28, 2019, and $23 as of July 29, 2018. The total amount of unrecognized tax benefits can change due to audit settlements, tax examination activities, statute expirations and the recognition and measurement criteria under accounting for uncertainty in income taxes. Our accounting policy with respect to interest and penalties attributable to income taxes is to reflect any expense or benefit as a component of our income tax provision. The total amount of interest and penalties recognized in the Consolidated 68 2020 2019 2018 Balance at beginning of year $ 24 $ 32  $ 64  Increases related to prior-year tax positions — 1  —  Decreases related to prior-year tax positions (1) (1) (37) Increases related to current-year tax positions 2 2  2  Settlements (1) (9) (1) Lapse of statute (1) (1) —  Increase due to acquisitions — —  4  Balance at end of year $ 23 $ 24  $ 32  2020 2019 Depreciation $ 319 $ 336  Amortization 856 877  Other 9 16  Deferred tax liabilities 1,184 1,229  Benefits and compensation 144 157  Pension benefits 58 46  Tax loss carryforwards 31 43  Capital loss carryforwards 95 287  Outside basis difference — 116  Other 65 82  Gross deferred tax assets 393 731  Deferred tax asset valuation allowance (122) (427) Deferred tax assets, net of valuation allowance 271 304  Net deferred tax liability $ 913 $ 925 