Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

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 and discontinued operations in the consolidated statements of earnings:


	Years Ended December 31,
	2024		2023		2022
Domestic	$	1,127,389	$	608,423	$	634,494
Foreign	629,627		514,577		555,709
Total	$	1,757,016	$	1,123,000	$	1,190,203

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) related to continuing operations for the years ended December 31, 2024, 2023 and 2022 is comprised of the following:


	Years Ended December 31,
	2024		2023		2022
Current:
U.S. federal	$	233,348	$	114,195	$	87,950
State and local	47,199		13,930		(1,570)
Foreign	168,151		143,216		140,696
Total current	448,698		271,341		227,076
Deferred:
U.S. federal	(35,304)		(28,471)		(4,760)
State and local	(12,362)		4,047		303
Foreign	(43,984)		(67,781)		(22,328)
Total deferred	(91,650)		(92,205)		(26,785)
Provision for income taxes	$	357,048	$	179,136	$	200,291

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,
	2024		2023		2022
U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
State and local taxes, net of federal income tax benefit	1.0		1.5		1.5
Foreign operations tax effect	0.6		0.5		0.2



Foreign-derived intangible income	(1.0)		(1.5)		(1.4)
Share awards	(0.3)		(0.4)		(0.2)
Withholding tax	0.1		2.7		0.2
Change in valuation allowance	(0.4)		(6.2)		(0.8)

Dispositions	0.6		—		—
Tax credits	(0.4)		(0.6)		(0.5)
Audit resolutions	(0.2)		(0.7)		(3.5)
Other	(0.7)		(0.3)		0.3
Effective tax rate	20.3	%	16.0	%	16.8	%

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, 2024		December 31, 2023
Deferred Tax Assets:
Accrued compensation, postretirement and other employee benefits	$	45,145	$	46,068
Accrued expenses	17,218		20,154
Net operating loss and other carryforwards	311,043		326,437
Inventories	31,583		28,729
Allowance for credit losses	8,428		7,679
Accrued insurance	2,340		4,574

Long-term liabilities, warranty and environmental costs	6,818		1,864
Lease obligations	51,837		55,634
Capitalized research and development	68,240		54,397
Total gross deferred tax assets	542,652		545,536
Valuation allowance	(198,082)		(209,931)
Total deferred tax assets, net of valuation allowances	$	344,570	$	335,605
Deferred Tax Liabilities:
Intangible assets	$	(440,946)	$	(405,504)
Property, plant and equipment	(69,920)		(78,668)
Lease right-of-use assets	(48,088)		(52,769)

Other liabilities	(21,250)		(34,642)
Total deferred tax liabilities	(580,204)		(571,583)
Net deferred tax liability	$	(235,634)	$	(235,978)

Classified as follows in the Consolidated Balance Sheets:

Other assets and deferred charges	$	116,372	$	110,405

Deferred income taxes	(352,006)		(346,383)
	$	(235,634)	$	(235,978)

Summary of Valuation Allowance

The following table is a reconciliation of the beginning and ending balances of the Company's valuation allowance on deferred tax assets:


	Total
Balance at January 1, 2022	$	306,066
Additions	4,960
Reductions	(39,823)
Balance at December 31, 2022	271,203
Additions	31,388
Reductions	(92,660)
Balance at December 31, 2023	209,931
Additions	27,192
Reductions	(39,041)
Balance at December 31, 2024	$	198,082

Schedule of Unrecognized Tax Benefits Roll Forward

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, 2022	$	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	28,186
Additions based on tax positions related to the current year	1,235
Additions for tax positions of prior years	2,223
Reductions for tax positions of prior years	(3,361)
Cash settlements	(1,791)
Lapse of statutes	(3,983)
Unrecognized tax benefits at December 31, 2023	22,509
Additions based on tax positions related to the current year	33,688
Additions for tax positions of prior years	507
Reductions for tax positions of prior years	(337)
Cash settlements	(2,307)
Lapse of statutes	(4,314)
Unrecognized tax benefits at December 31, 2024	$	49,746

If recognized, the net amount of potential tax benefits as of December 31, 2024 that would impact the Company's effective tax rate is $42,913. During the years ended December 31, 2024, 2023 and 2022, the Company recorded income of $617, $1,378 and $8,931, 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 $4,181 at December 31, 2024 and $4,798 at December 31, 2023, which are not included in the unrecognized tax benefits table above.