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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes
14. Income Taxes

Income taxes have been based on the following components of earnings before provision for income taxes in the consolidated statements of earnings:
 Years Ended December 31,
 202220212020
Domestic$731,796 $835,773 $464,145 
Foreign555,709 565,053 377,589 
Total$1,287,505 $1,400,826 $841,734 

Income tax expense (benefit) for the years ended December 31, 2022, 2021 and 2020 is comprised of the following:
 
 Years Ended December 31,
 202220212020
Current:
U.S. federal$106,768 $150,990 $79,305 
State and local1,450 28,106 13,312 
Foreign140,696 154,147 97,106 
Total current248,914 333,243 189,723 
Deferred:
U.S. federal(4,760)(14,143)2,777 
State and local303 3,165 (10,526)
Foreign(22,328)(45,257)(23,691)
Total deferred (26,785)(56,235)(31,440)
Total expense $222,129 $277,008 $158,283 
Differences between the effective income tax rate and the U.S. federal income statutory tax rate are as follows:
 Years Ended December 31,
 202220212020
U.S. federal income tax rate21.0 %21.0 %21.0 %
State and local taxes, net of federal income tax benefit1.6 1.8 1.7 
Foreign operations tax effect0.1 (0.2)(0.8)
Foreign-derived intangible income(1.3)(0.8)(1.1)
Share awards(0.2)(0.8)(1.2)
Dispositions— 0.3 — 
Audit resolutions(3.2)(1.4)(0.9)
Other
(0.7)(0.1)0.1 
Effective tax rate17.3 %19.8 %18.8 %

The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows:
December 31, 2022December 31, 2021
Deferred Tax Assets:
Accrued compensation, postretirement and other employee benefits$46,008 $61,388 
Accrued expenses20,608 30,143 
Net operating loss and other carryforwards317,186 334,483 
Inventories30,569 28,698 
Allowance for credit losses9,224 9,988 
Accrued insurance3,978 4,708 
Long-term liabilities, warranty and environmental costs2,851 3,043 
Lease obligations47,887 41,653 
Capitalized research and development 26,548 — 
Total gross deferred tax assets504,859 514,104 
Valuation allowance(271,203)(306,066)
Total deferred tax assets, net of valuation allowances$233,656 $208,038 
Deferred Tax Liabilities:
Intangible assets$(417,809)$(392,208)
Property, plant and equipment(82,658)(77,918)
Lease right-of-use assets(45,202)(40,181)
Other liabilities(27,447)(28,786)
Total gross deferred tax liabilities(573,116)(539,093)
Net deferred tax liability$(339,460)$(331,055)
Classified as follows in the Consolidated Balance Sheets:
Other assets and deferred charges$35,690 $33,062 
Deferred income taxes(375,150)(364,117)
$(339,460)$(331,055)

As of December 31, 2022, the Company has $263,260 of deferred tax assets recorded related to non-U.S. tax loss carryforwards primarily resulting from non-operating activities. The non-U.S. losses as of December 31, 2022 are available to be carried forward, with $59,366 of these losses expiring during the years 2023 through 2042, and the remaining $203,894 carried forward indefinitely.

As of December 31, 2022, the Company has $53,617 of deferred tax assets recorded related to U.S. federal and state tax loss and tax credit carryforwards. The U.S. federal and state tax losses and credits as of December 31, 2022 are available to be carried forward, with $46,186 expiring during the years 2023 through 2042, and the remaining $7,431 carried forward indefinitely.
 
The Company maintains valuation allowances by jurisdiction against the deferred tax assets related to certain of these carryforwards for which it is more likely than not that some portion or all will not be realized.

Unrecognized Tax Benefits

The Company files U.S federal, state, local and non-U.S. tax returns. The Company is routinely audited by the tax authorities in these jurisdictions, and a number of audits are currently underway. It is reasonably possible during the next twelve months that uncertain tax positions may be settled, which could result in a decrease in the gross amount of unrecognized tax benefits. This decrease may result in an income tax benefit. Due to the potential for resolution of U.S federal, state and non-U.S. examinations, and the expiration of various statutes of limitation, the Company's gross unrecognized tax benefits balance may change within the next twelve months by a range of zero to $5,113. All significant U.S. federal, state, local and non-U.S. matters have been concluded through 2018. The Company believes adequate provision has been made for all income tax uncertainties.

The following table is a reconciliation of the beginning and ending balances of the Company's unrecognized tax benefits:
 Total
Unrecognized tax benefits at January 1, 2020$83,214 
Additions based on tax positions related to the current year3,134 
Additions for tax positions of prior years5,490 
Reductions for tax positions of prior years(3,599)
Cash settlements(6,214)
Lapse of statutes(9,687)
Unrecognized tax benefits at December 31, 2020 (1)
72,338 
Additions based on tax positions related to the current year5,859 
Additions for tax positions of prior years3,784 
Reductions for tax positions of prior years(13,008)
Cash settlements(1,490)
Lapse of statutes(2,831)
Unrecognized tax benefits at December 31, 2021 (1)
64,652 
Additions based on tax positions related to the current year3,315 
Additions for tax positions of prior years3,421 
Reductions for tax positions of prior years (39,439)
Cash settlements(411)
Lapse of statutes(3,352)
Unrecognized tax benefits at December 31, 2022 (1)
$28,186 
(1) If recognized, the net amount of potential tax benefits as of December 31, 2022 that would impact the Company's effective tax rate is $23,496. During the years ended December 31, 2022, 2021 and 2020, the Company recorded income of $8,931, $2,654 and $78, respectively, as a component of provision for income taxes related to the accrued interest and penalties on net reductions to unrecognized tax benefits. The Company had accrued interest and penalties of $6,175 at December 31, 2022 and $15,107 at December 31, 2021, which are not included in the above table.