Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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,
	2023		2022		2021
Income before income taxes and equity in net income of unconsolidated investments:
Domestic	$	(461,897)	$	952,799	$	(186,077)
Foreign	708,635		1,480,645		319,695
Total	$	246,738	$	2,433,444	$	133,618
Current income tax expense (benefit):
Federal	$	(54,250)	$	33,230	$	11,722
State	(3,395)		4,965		694
Foreign	387,045		259,054		55,530
Total	$	329,400	$	297,249	$	67,946
Deferred income tax expense (benefit):
Federal	$	(8,545)	$	84,054	$	(38,413)
State	(4,154)		(3,511)		(5,544)
Foreign	113,576		12,796		5,457
Total	$	100,877	$	93,339	$	(38,500)
Total income tax expense	$	430,277	$	390,588	$	29,446

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
	2023		2022		2021
Federal statutory rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal tax benefit	(2.8)		—		(3.5)
Change in valuation allowance(a)	98.8		(3.9)		33.7
Impact of foreign earnings, net(b)(c)	7.7		(0.1)		(40.5)
Global intangible low tax inclusion	4.2		0.3		12.3
Foreign-derived intangible income	—		(3.0)		—
Section 162(m) limitation	4.4		0.3		4.5
Subpart F income	(1.9)		0.2		4.8
Stock-based compensation	(3.9)		(0.3)		(7.2)
Depletion	(2.4)		(0.2)		(2.9)
U.S. federal return to provision	(6.1)		(0.4)		(1.7)
Revaluation of unrecognized tax benefits/reserve requirements(d)	39.1		2.3		3.0
Legal accrual(e)	18.6		—		—
Other items, net	(2.3)		(0.1)		(1.5)
Effective income tax rate	174.4	%	16.1	%	22.0	%

(a)Due to the Company being in a three-year cumulative loss position in China as of December 31, 2023, the year ended December 31, 2023 includes the establishment of a valuation allowance of $223.0 million on current year losses in one of our Chinese entities. 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 20.1%, 3.2%, and 34.6% for the years ended December 31, 2023, 2022, and 2021, respectively.

(d)The year ended December 31, 2023 includes a $96.5 million expense recorded for a current year tax reserve related to an uncertain tax position in Chile.

(e)The year ended December 31, 2023 includes the tax impact of a non-deductible $218.5 million legal accrual recorded for the agreements to resolve a previously disclosed legal matter with the DOJ and SEC during the year ended December 31, 2023. See Note 17, “Commitments and Contingencies,” for further details on this matter.

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, 2023 and 2022 consist of the following (in thousands):

	December 31,
	2023		2022
Deferred tax assets:
Accrued employee benefits	$	31,917	$	20,060
Operating loss carryovers	1,316,916		1,157,841
Pensions	23,527		26,229
Inventory reserves	83,136		3,600
Tax credit carryovers	1,431		3,750
Other(a)	103,517		118,733
Gross deferred tax assets	1,560,444		1,330,213
Valuation allowance	(1,349,924)		(1,087,505)
Deferred tax assets	210,520		242,708
Deferred tax liabilities:
Depreciation	(541,245)		(446,942)
Intangibles	(54,413)		(84,690)
Other	(150,859)		(145,412)
Deferred tax liabilities	(746,517)		(677,044)
Net deferred tax liabilities	$	(535,997)	$	(434,336)
Classification in the consolidated balance sheets:
Noncurrent deferred tax assets	$	22,433	$	46,434
Noncurrent deferred tax liabilities	(558,430)		(480,770)
Net deferred tax liabilities	$	(535,997)	$	(434,336)

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,
	2023		2022		2021
Balance at January 1	$	(1,087,505)	$	(1,276,305)	$	(1,326,204)
Additions	(262,469)		(5,810)		(61,470)
Deductions	50		194,610		111,369
Balance at December 31	$	(1,349,924)	$	(1,087,505)	$	(1,276,305)

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 2023, 2022 and 2021 (in thousands):

	Year Ended December 31,
	2023		2022		2021
Balance at January 1	$	72,162	$	20,717	$	11,639
Additions for tax positions related to prior years	6,216		1,673		75
Reductions for tax positions related to prior years	—		—		(6)
Additions for tax positions related to current year	101,179		50,531		10,911
Lapses in statutes of limitations/settlements	(770)		(995)		(1,931)
Foreign currency translation adjustment	(2)		236		29
Balance at December 31	$	178,785	$	72,162	$	20,717