Table:
|  |  | Year Ended December 31, |  |
| --- | --- | --- | --- |
|  | 2019 | 2018 | 2017 |
| Current income tax provision: |  |  |  |
| Federal | $— | $— | $— |
| State | 225 | 204 | 114 |
| Foreign | 2,467 | 2,514 | 1,580 |
| Total current income tax provision | 2,692 | 2,718 | 1,694 |
| Deferred income tax benefit: |  |  |  |
| Federal | $— | — | $— |
| State | — | — | — |
| Foreign | (2) | (123) | 52 |
| Total deferred income tax benefit | (2) | (123) | 52 |
| Total income tax provision | $2,690 | $2,595 | $1,746 |
Paragraphs:
The components of the provision for income taxes attributable to continuing operations are as follows (in thousands):
On a consolidated basis, the Company has incurred operating losses and has recorded a full valuation allowance against its US, UK, New Zealand, Hong Kong, and Brazil deferred tax assets for all periods to date and, accordingly, has not recorded a provision (benefit) for income taxes for any of the periods presented other than a provision (benefit) for certain foreign and state income taxes. Certain foreign subsidiaries and branches of the Company provide intercompany services and are compensated on a cost-plus basis, and therefore, have incurred liabilities for foreign income taxes in their respective jurisdictions.
Question:
Why has the company incurred liabilities for foreign income taxes?
Answer: Certain foreign subsidiaries and branches of the Company provide intercompany services and are compensated on a cost-plus basis