Income taxes (Tables)

12 Months Ended

Dec. 31, 2019

The provision for taxes on income for the years ended December 31 consists of the following:


	2019		2018		2017
Pretax income
Domestic	$	217,098	$	225,442	$	168,180
Foreign	163,668		153,089		146,374
Total pretax income	$	380,766	$	378,531	$	314,554
Current
Federal	$	14,933	$	37,345	$	120,398
State	2,565		6,164		5,623
Foreign	45,911		38,648		40,328
Total current	$	63,409	$	82,157	$	166,349
Deferred
Federal	$	25,064	$	(5,571)	$	(16,797)
State	8,599		$	(738)	3,499
Foreign	(3,803)		(840)		(6,462)
Total deferred	$	29,860	$	(7,149)	$	(19,760)
Total taxes	$	93,269	$	75,008	$	146,589

Deferred tax liabilities/(assets)

Deferred tax (liabilities)/assets are comprised of the following at December 31:


	2019		2018
Property, plant and equipment	$	(91,207)	$	(102,007)
Intangibles	(134,868)		(178,883)
Leases	(79,332)		—
Gross deferred tax liabilities	$	(305,407)	$	(280,890)
Retiree health benefits	$	2,405	$	2,989
Foreign loss carryforwards	58,527		57,581
U.S. Federal loss and credit carryforwards	86,748		86,655
Capital loss carryforwards	2,703		2,757
Employee benefits	87,295		114,872
Leases	79,673		—
Accrued liabilities and other	63,700		102,349
Gross deferred tax assets	$	381,051	$	367,203
Valuation allowance on deferred tax assets	$	(105,347)	$	(103,289)
Total deferred taxes, net	$	(29,703)	$	(16,976)

Reconciliation of U.S. Federal Statutory Tax Rate to actual consolidated tax expense

A reconciliation of the U.S. federal statutory tax rate to the actual consolidated tax expense is as follows:


	2019						2018						2017
Statutory tax rate	$	79,961	21.0	%	$	79,491	21.0	%	$	110,094	35.0	%
State income taxes, net of federal tax benefit	7,767		2.0	%	7,534		2.0	%	4,780		1.5	%
Valuation allowance	3,174		0.8	%	(14,902)		(3.9)	%	(3,333)		(1.1)	%
Tax examinations including change in reserve for uncertain tax positions	(1,639)		(0.4)	%	(3,076)		(0.8)	%	4,895		1.6	%
Adjustments to prior year deferred taxes	(499)		(0.1)	%	(1,899)		(0.5)	%	(1,415)		(0.4)	%
Foreign earnings taxed at other than U.S. rates	5,083		1.3	%	8,224		2.2	%	(16,233)		(5.2)	%
Disposition of business	—		—	%	—		—	%	537		0.2	%
Effect of tax rate changes	531		0.1	%	(6,218)		(1.6)	%	(22,183)		(7.1)	%
Deduction related to qualified production activities	—		—	%	341		0.1	%	(5,384)		(1.7)	%
Transition tax	—		—	%	3,647		1.0	%	76,933		24.5	%
Tax credits	(13,310)		(3.5)	%	(10,083)		(2.7)	%	(1,197)		(0.4)	%
Global intangible low-taxed income (GILTI)	12,340		3.2	%	12,878		3.4	%	—		—	%
Foreign-derived intangible income	(1,225)		(0.3)	%	(1,174)		(0.3)	%	—		—	%
Other, net	1,086		0.3	%	245		0.1	%	(905)		(0.3)	%
Total taxes	$	93,269	24.5	%	$	75,008	19.8	%	$	146,589	46.6	%

Reconciliation of gross amounts of unrecognized tax benefits

The following table sets forth the reconciliation of the gross amounts of unrecognized tax benefits at the beginning and ending of the periods indicated:


	2019		2018		2017
Gross Unrecognized Tax Benefits at January 1	$	14,400	$	17,100	$	17,700
Increases in prior years’ unrecognized tax benefits	—		—		700
Decreases in prior years’ unrecognized tax benefits	(1,300)		(700)		(2,400)
Increases in current year's unrecognized tax benefits	1,300		1,200		1,600
Decreases in unrecognized tax benefits from the lapse of statutes of limitations	(2,300)		(2,600)		(300)
Settlements	100		(600)		(200)
Gross Unrecognized Tax Benefits at December 31	$	12,200	$	14,400	$	17,100