Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of Income Tax Expense Benefit

Income before income taxes and equity in net income of unconsolidated investments, and current and deferred income tax expense (benefit) are composed of the following (in thousands):

	Year Ended December 31,
	2022		2021		2020
Income before income taxes and equity in net income of unconsolidated investments:
Domestic	$	952,799	$	(186,077)	$	41,346
Foreign	1,480,645		319,695		332,173
Total	$	2,433,444	$	133,618	$	373,519
Current income tax expense (benefit):
Federal	$	33,230	$	11,722	$	(140)
State	4,965		694		(193)
Foreign	259,054		55,530		56,734
Total	$	297,249	$	67,946	$	56,401
Deferred income tax (benefit) expense:
Federal	$	84,054	$	(38,413)	$	4,564
State	(3,511)		(5,544)		(2,893)
Foreign	12,796		5,457		(3,647)
Total	$	93,339	$	(38,500)	$	(1,976)
Total income tax expense	$	390,588	$	29,446	$	54,425

Significant Differences Between United States Federal Statutory Rate and Effective Income Tax Rate

The reconciliation of the U.S. federal statutory rate to the effective income tax rate is as follows:

	% of Income Before Income Taxes
	2022		2021		2020
Federal statutory rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal tax benefit	—		(3.5)		0.3
Change in valuation allowance(a)	(3.9)		33.7		1.9
Impact of foreign earnings, net(b)(c)	(0.1)		(40.5)		(8.4)
Global intangible low tax inclusion	0.3		12.3		1.9
Foreign-derived intangible income	(3.0)		—		—
Section 162(m) limitation	0.3		4.5		0.5
Subpart F income	0.2		4.8		1.3
Stock-based compensation	(0.3)		(7.2)		(1.0)
Depletion	(0.2)		(2.9)		(0.9)
U.S. federal return to provision	(0.4)		(1.7)		(0.9)
Revaluation of unrecognized tax benefits/reserve requirements	2.3		3.0		(0.4)
Other items, net	(0.1)		(1.5)		(0.7)
Effective income tax rate	16.1	%	22.0	%	14.6	%

(a)The years ended December 31, 2022 and 2021 include benefits of $91.8 million and $6.0 million, respectively, due to the release of a foreign valuation allowance due to changes in expected profitability.

(b)The year ended December 31, 2021 includes a discrete tax benefit of $27.9 million related to the revision of an indemnification estimate for an ongoing tax-related matter in Germany.

(c)Our statutory rate is decreased by our share of the income of JBC, a Free Zones company under the laws of the Hashemite Kingdom of Jordan. The applicable provisions of the Jordanian law, and applicable regulations thereunder, do not have a termination provision and the exemption is indefinite. As a Free Zones company, JBC is not subject to income taxes on the profits of products exported from Jordan, and currently, substantially all of the profits are from exports. This resulted in a rate benefit of 3.2%, 34.6%, and 11.9% for 2022, 2021, and 2020, respectively.

Deferred Income Tax Assets and Liabilities Recorded on Consolidated Balance Sheets

Deferred income tax assets and liabilities recorded on the consolidated balance sheets as of December 31, 2022 and 2021 consist of the following (in thousands):

	December 31,
	2022		2021
Deferred tax assets:
Accrued employee benefits	$	20,060	$	18,374
Operating loss carryovers	1,157,841		1,295,925
Pensions	26,229		48,720
Tax credit carryovers	3,750		2,448
Other(a)	122,333		212,882
Gross deferred tax assets	1,330,213		1,578,349
Valuation allowance	(1,087,505)		(1,276,305)
Deferred tax assets	242,708		302,044
Deferred tax liabilities:
Depreciation	(446,942)		(411,336)
Intangibles	(84,690)		(83,182)
Other	(145,412)		(142,008)
Deferred tax liabilities	(677,044)		(636,526)
Net deferred tax liabilities	$	(434,336)	$	(334,482)
Classification in the consolidated balance sheets:
Noncurrent deferred tax assets	$	46,434	$	18,797
Noncurrent deferred tax liabilities	(480,770)		(353,279)
Net deferred tax liabilities	$	(434,336)	$	(334,482)

(a)    Decrease in other primarily related to a reduction in the deferred tax assets for the payment of the settlement of an arbitration ruling for a prior legal matter.

Changes in Balance of Deferred Tax Asset Valuation Allowance

Changes in the balance of our deferred tax asset valuation allowance are as follows (in thousands):

	Year Ended December 31,
	2022		2021		2020
Balance at January 1	$	(1,276,305)	$	(1,326,204)	$	(1,148,268)
Additions	(5,810)		(61,470)		(182,325)
Deductions	194,610		111,369		4,389
Balance at December 31	$	(1,087,505)	$	(1,276,305)	$	(1,326,204)

Reconciliation of Total Gross Liability Related to Uncertain Tax Positions

The following is a reconciliation of our total gross liability related to uncertain tax positions for 2022, 2021 and 2020 (in thousands):

	Year Ended December 31,
	2022		2021		2020
Balance at January 1	$	20,717	$	11,639	$	17,548
Additions for tax positions related to prior years	1,673		75		5,646
Reductions for tax positions related to prior years	—		(6)		(174)
Additions for tax positions related to current year	50,531		10,911		315
Lapses in statutes of limitations/settlements	(995)		(1,931)		(12,128)
Foreign currency translation adjustment	236		29		432
Balance at December 31	$	72,162	$	20,717	$	11,639