Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Earnings (Loss) From Continuing Operations Before Income Taxes

Following is a summary of earnings before income taxes for United States and foreign operations:

	2020		2019	2018
United States	$	94,829	163,764	387,564
Foreign	489,545		585,781	661,637
Earnings before income taxes	$	584,374	749,545	1,049,201

Income Tax Expense (Benefit)

Income tax expense (benefit) for the years ended December 31, 2020, 2019 and 2018 consists of the following:

	2020		2019	2018
Current income taxes:
U.S. federal	$	(33,821)	19,936	22,700
State and local	7,794		12,659	14,521
Foreign	72,350		80,221	58,669
Total current	46,323		112,816	95,890
Deferred income taxes:
U.S. federal	14,533		11,993	54,983
State and local	112		15,371	19,076
Foreign	7,679		(135,206)	14,397
Total deferred	22,324		(107,842)	88,456
Total income tax expense	$	68,647	4,974	184,346

Reconciliation Of Income Tax Expense (Benefit)

Income tax expense (benefit) attributable to earnings before income taxes differs from the amounts computed by applying the U.S. statutory federal income tax rate to earnings before income taxes as follows:

	2020		2019	2018
Income taxes at statutory rate	$	122,719	157,404	220,332
State and local income taxes, net of federal income tax benefit	8,081		22,185	22,315
Foreign income taxes(a)	(57,898)		(17,276)	(39,915)
Change in valuation allowance	35,381		(21,975)	2,472
European Restructuring(b)	—		(136,194)	—
Loss on previously taxed earnings	(10,346)		—	—
Carryback rate differential(c)	(33,739)		—	—
Transition Tax	—		—	28,201
Transition tax planning initiatives	—		—	(18,706)
Tax contingencies and audit settlements, net	6,779		6,686	(31,874)
Other, net	(2,330)		(5,856)	1,521
	$	68,647	4,974	184,346

(a) Foreign income taxes include statutory rate differences, financing arrangements, withholding taxes, local income taxes, notional deductions, and other miscellaneous items.

(b) The Company implemented select operational, administrative and financial restructurings that centralized certain business processes and intangible assets in various European jurisdictions into a new entity.

(c) The CARES Act permits the Company to carry back its 2020 U.S. taxable loss to a tax year before the corporate income tax rate was lowered by the Tax Cuts and Jobs Act.

Deferred Tax Assets And Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2020 and 2019 are presented below:

	2020		2019
Deferred tax assets:
Accounts receivable	$	14,384	7,063
Inventories	44,597		50,585
Employee benefits	39,526		36,068
Accrued expenses and other	103,892		67,638
Deductible state tax and interest benefit	4,042		3,665
Intangibles	152,499		146,953
Lease liabilities	91,359		86,717
Federal, foreign and state net operating losses and credits	433,822		376,375
Gross deferred tax assets	884,121		775,064
Valuation allowance	(267,838)		(232,196)
Net deferred tax assets	616,283		542,868
Deferred tax liabilities:
Inventories	(17,403)		(12,885)
Plant and equipment	(489,240)		(510,952)
Intangibles	(197,009)		(182,424)
Right of use assets	(87,351)		(83,271)
Prepaids	(56,140)		—
Other liabilities	(46,121)		(24,220)
Gross deferred tax liabilities	(893,264)		(813,752)
Net deferred tax liability	$	(276,981)	(270,884)

Reconciliation Of Unrecognized Tax Benefits

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

	2020		2019
Balance as of January 1	$	1,260,970	1,330,713
Additions based on tax positions related to the current year (a)	1,694		2,302
Additions for tax positions of acquired companies	—		2,094
Additions for tax positions of prior years	7,663		4,744
Transition tax planning initiatives	—		—
Reductions resulting from the lapse of the statute of limitations	(1,239)		(2,729)
Reductions due to Luxembourg tax rate change	—		(46,841)
Settlements with taxing authorities	(497)		(1,929)
Effects of foreign currency translation	119,800		(27,384)
Balance as of December 31	$	1,388,391	1,260,970

(a)The tax effected loss was adjusted for tax rate and foreign currency translation changes in 2020, resulting in an updated balance of $1,344,589 as of December 31, 2019. This $1,344,589 of unrecognized benefit is presented as a reduction to the related deferred tax asset in the balance sheet.