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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

The provision for income taxes consists of the following:


	Year Ended December 31,
	2021		2020		2019
	(Amounts in thousands)
Current:
U.S. federal	$	66,486	$	40,234	$	22,001
Foreign	29,987		42,487		61,976
State and local	1,478		5,894		4,506
Total current	97,951		88,615		88,483
Deferred:
U.S. federal	(92,021)		(50,038)		(1,644)
Foreign	(4,339)		26,742		(12,243)
State and local	(4,185)		(3,902)		897
Total deferred	(100,545)		(27,198)		(12,990)
Total provision	$	(2,594)	$	61,417	$	75,493

Schedule of Reconciliation Statutory Corporate Rate to Provision for Income Taxes

The provision for income taxes differs from the statutory corporate rate due to the following:


	Year Ended December 31,
	2021			2020			2019
	(Amounts in millions)
Statutory federal income tax at 21%	$	28.1		$	39.2		$	67.7
Base Erosion and Anti-abuse Tax	7.6			—			—
Foreign impact, net	(158.0)			0.1			4.5

Change in valuation allowances	146.6			26.9			0.3
State and local income taxes, net	(2.7)			2.0			5.4
Reversal of deferred tax liabilities following legal entity reorganizations	(22.6)			—			—
Research and development credit	(3.6)			(5.2)			(5.4)
Non-deductible items	4.4			1.8			1.9
Other, net	(2.4)			(3.4)			1.1
Total	(2.6)			61.4			75.5
Effective tax rate	(1.9)		%	30.4		%	23.4		%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the consolidated deferred tax assets and liabilities were:


	December 31,
	2021		2020
	(Amounts in thousands)
Deferred tax assets related to:
Retirement benefits	$	17,212	$	29,754
Net operating loss carryforwards	200,196		108,643

Inventories	21,216		36,402
Credit and capital loss carryforwards	185,832		136,956
Warranty and accrued liabilities	26,116		27,483

Operating lease liability	27,211		25,446
Section 59(e) capitalized expenses	43,434		21,668
Other	95,779		76,202
Total deferred tax assets	616,996		462,554
Valuation allowances	(415,962)		(287,410)
Net deferred tax assets	201,034		175,144
Deferred tax liabilities related to:
Property, plant and equipment	—		(11,714)
Goodwill and intangibles	(123,133)		(123,486)
Foreign undistributed earnings	(15,529)		(50,332)
Operating lease right-of-use-assets	(25,556)		(25,799)
Other	(1,936)		(19,100)
Total deferred tax liabilities	(166,154)		(230,431)
Deferred tax asset/(liabilities), net	$	34,880	$	(55,287)

Schedule of Earnings Before Income Tax

Earnings before income taxes comprised:


	Year Ended December 31,
	2021		2020		2019
	(Amounts in thousands)
U.S.	$	(52,915)	$	73,109	$	110,500
Foreign	186,504		129,183		211,933
Total	$	133,589	$	202,292	$	322,433

Reconciliation of Unrecognized Tax Benefits

A tabular reconciliation of the total gross amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in millions):


	2021		2020		2019
Balance — January 1	$	54.8	$	40.6	$	41.2
Gross amount of increase (decrease) in unrecognized tax benefits resulting from tax positions taken:
During a prior year	8.0		3.8		8.8
During the current period	4.5		11.1		6.3
Decreases in unrecognized tax benefits relating to:
Settlements with taxing authorities	(10.2)		(0.2)		(11.4)
Lapse of the applicable statute of limitations	(5.1)		(2.5)		(3.2)
Increase (decrease) in unrecognized tax benefits relating to foreign currency translation adjustments	(2.1)		2.0		(1.1)
Balance — December 31	$	49.9	$	54.8	$	40.6

Summary of Valuation Allowance

The following schedule presents the changes in deferred tax asset valuation allowance as follows:


(Amounts in thousands)	Balance at Beginning of Year	Additions Charged to Cost and Expenses	Additions Charged to Other Accounts— Acquisitions and Related Adjustments	Deductions From Reserve	Balance at End of Year
Year Ended December 31, 2021
Deferred tax asset valuation allowance(1):	287,410	178,203	(15,572)	(34,079)	415,962
Year Ended December 31, 2020
Deferred tax asset valuation allowance(1):	266,414	49,950	(529)	(28,425)	287,410
Year Ended December 31, 2019
Deferred tax asset valuation allowance(1):	133,929	145,010	1,832	(14,357)	266,414

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(1)Deductions from reserve result from the expiration or utilization of net operating losses and foreign tax credits previously reserved. Additions in 2021 include generation of net operating losses and foreign tax credits and in 2019 include the generation of a capital loss carryforward