XML 53 R23.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | 14. Income Taxes Income taxes have been based on the following components of earnings before provision for income taxes in the Consolidated Statements of Earnings:
| Years Ended December 31,
| 2021 |  | 2020 |  | 2019
Domestic | $ | 835,773 |  |  | $ | 464,145 |  |  | $ | 448,301 |
Foreign | 565,053 |  |  | 377,589 |  |  | 394,708 |
Total | $ | 1,400,826 |  |  | $ | 841,734 |  |  | $ | 843,009 |
Income tax expense (benefit) for the years ended December 31, 2021, 2020 and 2019 is comprised of the following:
| Years Ended December 31,
| 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
U.S. federal | $ | 150,990 |  |  | $ | 79,305 |  |  | $ | 71,069 |
State and local | 28,106 |  |  | 13,312 |  |  | 16,709 |
Foreign | 154,147 |  |  | 97,106 |  |  | 102,284 |
Total current | 333,243 |  |  | 189,723 |  |  | 190,062 |
Deferred: |  |  |  |  |
U.S. federal | (14,143) |  |  | 2,777 |  |  | (6,033) |
State and local | 3,165 |  |  | (10,526) |  |  | 1,770 |
Foreign | (45,257) |  |  | (23,691) |  |  | (20,708) |
Total deferred | (56,235) |  |  | (31,440) |  |  | (24,971) |
Total expense | $ | 277,008 |  |  | $ | 158,283 |  |  | $ | 165,091 |
Differences between the effective income tax rate and the U.S. federal income statutory tax rate are as follows:
| Years Ended December 31,
| 2021 |  | 2020 |  | 2019
U.S. federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State and local taxes, net of federal income tax benefit | 1.8 |  |  | 1.7 |  |  | 1.7 |
Foreign operations tax effect | (0.2) |  |  | (0.8) |  |  | (1.3) |
Foreign tax credits | — |  |  | — |  |  | (0.1) |
Foreign-derived intangible income | (0.8) |  |  | (1.1) |  |  | (1.0) |
Share awards | (0.8) |  |  | (1.2) |  |  | (1.7) |
Dispositions | 0.3 |  |  | — |  |  | 1.2 |
Audit resolutions | (1.4) |  |  | (0.9) |  |  | 0.3 |
Other | (0.1) |  |  | 0.1 |  |  | (0.5) |
Effective tax rate | 19.8 | % |  | 18.8 | % |  | 19.6 | %
The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows:
| December 31, 2021 |  | December 31, 2020
Deferred Tax Assets: |  |  |
Accrued compensation, principally postretirement and other employee benefits | $ | 61,388 |  |  | $ | 60,797 |
Accrued expenses, principally for state income taxes, interest and warranty | 30,143 |  |  | 32,418 |
Net operating loss and other carryforwards | 334,483 |  |  | 319,291 |
Inventories, principally due to reserves for financial reporting purposes and capitalization for tax purposes | 28,698 |  |  | 23,723 |
Accounts receivable, principally due to allowance for doubtful accounts | 9,988 |  |  | 7,118 |
Accrued insurance | 4,708 |  |  | 4,165 |
Long-term liabilities, principally warranty, environmental and exit costs | 3,043 |  |  | 2,273 |
Lease obligations | 41,653 |  |  | 40,984 |
Total gross deferred tax assets | 514,104 |  |  | 490,769 |
Valuation allowance | (306,066) |  |  | (287,679) |
Total deferred tax assets, net of valuation allowances | $ | 208,038 |  |  | $ | 203,090 |
Deferred Tax Liabilities: |  |  |
Intangible assets, principally due to different tax and financial reporting bases and amortization lives | $ | (392,208) |  |  | $ | (387,897) |
Property, plant and equipment, principally due to differences in depreciation | (77,918) |  |  | (62,667) |
Lease right-of-use assets | (40,181) |  |  | (38,742) |
Other liabilities | (28,786) |  |  | 9,992 |
Total gross deferred tax liabilities | (539,093) |  |  | (479,314) |
Net deferred tax liability | $ | (331,055) |  |  | $ | (276,224) |
Classified as follows in the Consolidated Balance Sheets: |  |  |
Other assets and deferred charges | $ | 33,062 |  |  | $ | 22,199 |
Deferred income taxes | (364,117) |  |  | (298,423) |
| $ | (331,055) |  |  | $ | (276,224) |
As of December 31, 2021, the Company had non-U.S loss carryforwards of $1,128.7 million primarily resulting from non-operating activities. The entire balance of the non-U.S. losses as of December 31, 2021 is available to be carried forward, with $274.4 million of these losses expiring during the years 2022 through 2042. The remaining $854.3 million of such losses can be carried forward indefinitely. The Company has $305.1 million of state tax loss carryovers as of December 31, 2021. The balance of the state losses as of December 31, 2021 is available for carry over, with $289.3 million of these losses expiring during the years 2022 and 2042, and the remaining $15.8 million being carried over indefinitely. The Company maintains valuation allowances by jurisdiction against the deferred tax assets related to certain of these carryforwards for which it is more likely than not that some portion or all will not be realized. Unrecognized Tax Benefits The Company files federal, state, local and foreign tax returns. The Company is routinely audited by the tax authorities in these jurisdictions, and a number of audits are currently underway. It is reasonably possible during the next twelve months that uncertain tax positions may be settled, which could result in a decrease in the gross amount of unrecognized tax benefits. This decrease may result in an income tax benefit. Due to the potential for resolution of federal, state and foreign examinations, and the expiration of various statutes of limitation, the Company's gross unrecognized tax benefits balance may change within the next twelve months by a range of zero to $30.6 million. All significant federal, state, local and international matters have been concluded through 2016. The Company believes adequate provision has been made for all income tax uncertainties. The following table is a reconciliation of the beginning and ending balances of the Company’s unrecognized tax benefits:
|  |  |  |  | Total
Unrecognized tax benefits at January 1, 2019 |  |  |  |  | $ | 93,461 |
Additions based on tax positions related to the current year |  |  |  |  | 4,493 |
Additions for tax positions of prior years |  |  |  |  | 6,668 |
Reductions for tax positions of prior years |  |  |  |  | (9,217) |
Cash settlements |  |  |  |  | (922) |
Lapse of statutes |  |  |  |  | (11,269) |
Unrecognized tax benefits at December 31, 2019 |  |  |  |  | 83,214 |
Additions based on tax positions related to the current year |  |  |  |  | 3,134 |
Additions for tax positions of prior years |  |  |  |  | 5,490 |
Reductions for tax positions of prior years |  |  |  |  | (3,599) |
Cash settlements |  |  |  |  | (6,214) |
Lapse of statutes |  |  |  |  | (9,687) |
Unrecognized tax benefits at December 31, 2020 (1) |  |  |  |  | 72,338 |
Additions based on tax positions related to the current year |  |  |  |  | 5,859 |
Additions for tax positions of prior years |  |  |  |  | 3,784 |
Reductions for tax positions of prior years |  |  |  |  | (13,008) |
Cash settlements |  |  |  |  | (1,490) |
Lapse of statutes |  |  |  |  | (2,831) |
Unrecognized tax benefits at December 31, 2021 (1) |  |  |  |  | $ | 64,652 |
(1) If recognized, the net amount of potential tax benefits that would impact the Company’s effective tax rate is $58.0 million. During the years ended December 31, 2021, 2020 and 2019, the Company recorded income of $2.7 million, $0.1 million and $0.6 million, respectively, as a component of provision for income taxes related to the accrued interest and penalties on net reductions to unrecognized tax benefits. The Company had accrued interest and penalties of $15.1 million at December 31, 2021 and $17.8 million at December 31, 2020, which are not included in the above table.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration