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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Summary of Components of Income before Tax, Domestic and Foreign

Income (loss) from continuing operations before taxes consisted of the following:


	Years Ended December 31,
	2022		2021		2020
U.S.	$	(39,294)	$	(85,258)	$	(243,760)
International	79,174		77,843		60,391
Total	$	39,880	$	(7,415)	$	(183,369)

Summary of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes from continuing operations consisted of the following:


	Years Ended December 31,
	2022			2021			2020
U.S. Federal:
Current	$	223		$	(7,419)		$	(10,582)
Deferred	(12,284)			(13,825)			6,516
	(12,061)			(21,244)			(4,066)
U.S. State and Local:
Current	(9,716)			5,401			(2,569)
Deferred	7,137			(5,827)			4,100
	(2,579)			(426)			1,531
International:
Current	8,745			10,979			4,993
Deferred	8,835			(231)			4,664
	17,580			10,748			9,657

Total current	(748)			8,961			(8,158)
Total deferred	3,688			(19,883)			15,280
Total provision (benefit) for income taxes	$	2,940		$	(10,922)		$	7,122

Effective tax rate	7.4		%	147.3		%	(3.9)		%

Summary of Reconciliation of Effective Income Tax Rate Reconciliation

A reconciliation of income taxes computed at the federal statutory rate and our provision for income taxes consist of the following:


	Years Ended December 31,
	2022		2021		2020
Federal statutory provision	$	8,375	$	(1,558)	$	(38,507)
State and local income taxes (1)	(1,612)		(336)		1,209
Impact of foreign operations taxed at rates other than the U.S. statutory rate (2)	3,349		(2,220)		(3,345)
Accrual/release of uncertain tax amounts related to foreign operations	(2,753)		(7,288)		1,802
U.S. tax impacts of foreign income in the U.S. (3)	1,089		4,441		(2,300)
CARES Act carryback benefit	—		(2,270)		(1,646)
Tax credits	(850)		(500)		(750)
Unrealized stock compensation benefits	572		(505)		2,312
Surrender of company-owned life insurance policies	—		—		10,313
Goodwill impairment	—		—		40,328
Borderfree tax basis differences	(5,610)		—		—

Other, net (4)	380		(686)		(2,294)
Provision (benefit) for income taxes	$	2,940	$	(10,922)	$	7,122

(1) Includes a benefit of $1 million related to tax resolutions and a benefit of $1 million for tax return true-ups for the year ended December 31, 2022 and a charge of $2 million for the surrender of company-owned life insurance for the year ended December 31, 2020.

(2) Includes a charge of $2 million for a deferred rate change and a charge of $1 million for the establishment of a valuation allowance for the year ended December 31, 2022, a benefit of $5 million for a deferred rate change for the year ended December 31, 2021, and a benefit of $3 million for tax balance corrections and a deferred tax rate change benefit of $2 million for the year ended December 31, 2020.

(3) Includes a benefit of $1 million associated with the sale of a 2019 business for the year ended December 31, 2022.

(4) Includes a $3 million benefit from an affiliate reorganization and charge of $3 million related to the sale of a business for the year ended December 31, 2021, and a $2 million benefit related to tax balance corrections and a $1 million charge related to interest for the year ended December 31, 2020.

Summary of Components of Deferred Tax Assets and Liabilities

Deferred tax liabilities and assets consisted of the following:


	December 31,
	2022		2021
Deferred tax liabilities:
Depreciation	$	(51,717)	$	(85,544)
Deferred profit (for tax purposes) on sale to finance subsidiary	(26,765)		(26,745)
Lease revenue and related depreciation	(216,282)		(202,862)
Intangible assets	(65,916)		(76,672)
Operating lease liability	(73,403)		(46,496)
Other	(27,366)		(25,438)
Gross deferred tax liabilities	(461,449)		(463,757)

Deferred tax assets:
Postretirement medical benefits	24,892		34,681
Pension	9,640		20,472
Operating lease asset	78,765		52,271


Long-term incentives	12,946		12,308
Net operating and capital losses	130,640		125,699
Tax credit carry forwards	66,256		65,931
Section 163j carryforward	23,917		10,556
Tax uncertainties gross-up	4,982		6,929
Other	50,345		38,641
Gross deferred tax assets	402,383		367,488
Less: Valuation allowance	(157,450)		(121,778)
Net deferred tax assets	244,933		245,710

Total deferred taxes, net	$	(216,516)	$	(218,047)

Summary of Tax Uncertainties Roll Forward

A reconciliation of the amount of unrecognized tax benefits is as follows:


	2022		2021		2020
Balance at beginning of year	$	45,072	$	50,064	$	60,302
Increases from prior period positions	6		3,016		2,147
Decreases from prior period positions	(6,830)		(4,247)		(47)
Increases from current period positions	340		492		3,472

Decreases relating to settlements with tax authorities	(1,966)		(1,270)		(12,508)
Reductions from lapse of applicable statute of limitations	(3,322)		(2,983)		(3,302)
Balance at end of year	$	33,300	$	45,072	$	50,064