Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule Of Earnings Before Provision For Income Taxes And Discontinued Operations

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,
	2022		2021		2020
Domestic	$	731,796	$	835,773	$	464,145
Foreign	555,709		565,053		377,589
Total	$	1,287,505	$	1,400,826	$	841,734

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) for the years ended December 31, 2022, 2021 and 2020 is comprised of the following:


	Years Ended December 31,
	2022		2021		2020
Current:
U.S. federal	$	106,768	$	150,990	$	79,305
State and local	1,450		28,106		13,312
Foreign	140,696		154,147		97,106
Total current	248,914		333,243		189,723
Deferred:
U.S. federal	(4,760)		(14,143)		2,777
State and local	303		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

Schedule of Effective Income Tax Rate Reconciliation

Differences between the effective income tax rate and the U.S. federal income statutory tax rate are as follows:


	Years Ended December 31,
	2022		2021		2020
U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
State and local taxes, net of federal income tax benefit	1.6		1.8		1.7
Foreign operations tax effect	0.1		(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 rate	17.3	%	19.8	%	18.8	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows:


	December 31, 2022		December 31, 2021
Deferred Tax Assets:
Accrued compensation, postretirement and other employee benefits	$	46,008	$	61,388
Accrued expenses	20,608		30,143
Net operating loss and other carryforwards	317,186		334,483
Inventories	30,569		28,698
Allowance for credit losses	9,224		9,988
Accrued insurance	3,978		4,708

Long-term liabilities, warranty and environmental costs	2,851		3,043
Lease obligations	47,887		41,653
Capitalized research and development	26,548		—
Total gross deferred tax assets	504,859		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)

Schedule Of Unrecognized Tax Benefits

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 year	3,134
Additions for tax positions of prior years	5,490
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 year	5,859
Additions for tax positions of prior years	3,784
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 year	3,315
Additions for tax positions of prior years	3,421
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.