INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

INCOME TAXES

Components of income before income taxes

The components of income before income taxes were as follows:

	Year Ended December 31,
	2023		2022		2021
U.S.	$	508,316	$	359,760	$	143,290
Non-U.S.		178,550		233,067		181,708
Total	$	686,866	$	592,827	$	324,998

Components of income tax expense (benefit)

The components of income tax expense (benefit) were as follows:

	Year Ended December 31,
	2023		2022		2021
Current:
Federal	$	95,514	$	88,974	$	23,415
Non-U.S.		45,830		55,664		44,828
State and local		24,132		24,423		10,298
		165,476		169,061		78,541
Deferred:
Federal		(13,068)		(38,462)		(21,538)
Non-U.S.		(7,515)		(3,281)		(4,488)
State and local		(3,275)		(6,715)		(4,097)
		(23,858)		(48,458)		(30,123)
Total	$	141,618	$	120,603	$	48,418

Differences between total income tax expense and the amount computed by applying the statutory federal income tax rate to income before income taxes

The differences between total income tax expense and the amount computed by applying the statutory federal income tax rate to income before income taxes for the three years ended December 31, 2023 were as follows:

	Year Ended December 31,
	2023			2022			2021
Statutory rate applied to pre-tax income	$	144,242		$	124,492		$	68,250
State and local income taxes, net of federal tax benefit		17,979			12,904			4,005
Excess tax benefits resulting from exercises of stock-based compensation		(10,742)			(2,500)			(4,681)
Foreign Derived Intangible Income Deduction		(10,411)			(13,356)			(2,197)
Foreign rate variance		6,854			5,020			2,131
Valuation allowances		(4,135)			(4,547)			(4,209)
Research and development credit		(9,600)			(6,800)			(5,300)
Pension plan termination adjustment		—			—			(14,711)
U.S. tax cost of foreign source income		1,013			783			3,488
Other		6,418			4,607			1,642
Total	$	141,618		$	120,603		$	48,418
Effective tax rate		20.6	%		20.3	%		14.9	%

Significant components of deferred tax assets and liabilities

Significant components of deferred tax assets and liabilities at December 31, 2023 and 2022, were as follows:

	December 31,
	2023		2022
Deferred tax assets:
Tax loss and credit carry-forwards	$	45,319	$	44,674
Inventory		2,941		937
Other accruals		17,984		29,601
Research and development capitalization		64,836		26,982
Employee benefits		28,639		26,674
Pension obligations		7,375		6,218
Other		5,640		7,344
Deferred tax assets, gross		172,734		142,430
Valuation allowance		(36,876)		(44,627)
Deferred tax assets, net		135,858		97,803
Deferred tax liabilities:
Property, plant and equipment		43,339		40,198
Intangible assets		26,624		23,790
Inventory		4,918		3,846
Pension and other benefit liabilities		10,545		13,787
Other		18,402		10,393
Deferred tax liabilities		103,828		92,014
Total deferred taxes	$	32,030	$	5,789

Summary of the activity related to unrecognized tax benefits

The following table summarizes the activity related to unrecognized tax benefits:

	2023		2022
Balance at beginning of year	$	17,423	$	18,211
Increase related to current year tax provisions		1,983		2,263
(Decrease)/increase related to prior years' tax positions		(1,642)		91
Decrease related to settlements with taxing authorities		(4,036)		(868)
Resolution of and other decreases in prior years' tax liabilities		(1,380)		(1,379)
Other		244		(895)
Balance at end of year	$	12,592	$	17,423