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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Schedule of Earnings before Income Taxes | Earnings before income taxes consisted of the following:
| December 31,
(DOLLARS IN THOUSANDS) | 2019 |  | 2018 |  | 2017
U.S. loss before taxes | $ | (110,363 | ) |  | $ | (99,125 | ) |  | $ | (24 | )
Foreign income before taxes | 667,815 |  |  | 546,882 |  |  | 537,069 |
Total income before taxes | $ | 557,452 |  |  | $ | 447,757 |  |  | $ | 537,045 |
Schedule of Income Tax Provision | The income tax provision consisted of the following:
| December 31,
(DOLLARS IN THOUSANDS) | 2019 |  | 2018 |  | 2017
Current tax provision |  |  |  |  |
Federal | $ | 9,979 |  |  | $ | (11,568 | ) |  | $ | 68,886 |
State and local | 429 |  |  | 1,709 |  |  | 137 |
Foreign | 146,055 |  |  | 98,433 |  |  | 113,468 |
Total current tax provision | 156,463 |  |  | 88,574 |  |  | 182,491 |
Deferred tax provision |  |  |  |  |
Federal | (41,126 | ) |  | (8,287 | ) |  | 74,446 |
State and local | 7,598 |  |  | (7,092 | ) |  | (11,537 | )
Foreign | (25,751 | ) |  | 34,781 |  |  | (4,020 | )
Total deferred tax (benefit) provision | (59,279 | ) |  | 19,402 |  |  | 58,889 |
Total taxes on income | $ | 97,184 |  |  | $ | 107,976 |  |  | $ | 241,380 |
Schedule of Reconciliation between U.S. Federal Statutory Income Tax Rate to Actual Effective Tax Rate | Reconciliation between the U.S. federal statutory income tax rate to the actual effective tax rate was as follows:
| December 31,
(DOLLARS IN THOUSANDS) | 2019 |  | 2018 |  | 2017
Statutory tax rate | 21.0 | % |  | 21.0 | % |  | 35.0 | %
Difference in effective tax rate on foreign earnings and remittances | (6.8 | ) |  | (6.1 | ) |  | (12.6 | )
Tax benefit from supply chain optimization | (1.0 | ) |  | (3.0 | ) |  | (2.3 | )
Unrecognized tax benefit, net of reversals | 3.4 |  |  | 2.9 |  |  | 2.3 |
U.S. tax reform | — |  |  | (1.8 | ) |  | 26.5 |
Deferred taxes on deemed repatriation | 0.8 |  |  | 10.1 |  |  | 0.3 |
Global intangible low-taxed income | — |  |  | 1.8 |  |  | — |
Acquisition costs | 0.5 |  |  | 1.3 |  |  | — |
Establishment (release) of valuation allowance on state deferred | 1.7 |  |  | (1.5 | ) |  | (1.7 | )
State and local taxes | (0.8 | ) |  | 0.6 |  |  | 0.1 |
Other, net | (1.4 | ) |  | (1.2 | ) |  | (2.7 | )
Effective tax rate | 17.4 | % |  | 24.1 | % |  | 44.9 | %
Schedule of Deferred Tax Assets and Liabilities | The deferred tax assets and liabilities consisted of the following amounts:
| December 31,
(DOLLARS IN THOUSANDS) | 2019 |  | 2018
Employee and retiree benefits | $ | 87,924 |  |  | $ | 80,382 |
Credit and net operating loss carryforwards | 220,156 |  |  | 225,152 |
Intangible assets | 8,477 |  |  | 12,489 |
Amortizable R&D expenses | 15,477 |  |  | 481 |
Gain on foreign currency translation | 3,285 |  |  | — |
Interest limitation | 39,867 |  |  | 19,380 |
Inventory | 14,396 |  |  | 13,308 |
Lease obligations | 53,751 |  |  | — |
Other, net | 14,351 |  |  | 17,528 |
Gross deferred tax assets | 457,684 |  |  | 368,720 |
Property, plant and equipment, net | (49,158 | ) |  | (22,511 | )
Intangible assets | (621,044 | ) |  | (616,333 | )
Right-of-use assets | (53,555 | ) |  | — |
Loss on foreign currency translation | — |  |  | (7,717 | )
Deferred taxes on deemed repatriation | (46,066 | ) |  | (88,759 | )
Gross deferred tax liabilities | (769,823 | ) |  | (735,320 | )
Valuation allowance | (203,765 | ) |  | (200,280 | )
Total net deferred tax liabilities | $ | (515,904 | ) |  | $ | (566,880 | )
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| December 31,
(DOLLARS IN THOUSANDS) | 2019 |  | 2018 |  | 2017
Balance of unrecognized tax benefits at beginning of year | $ | 50,953 |  |  | $ | 38,162 |  |  | $ | 26,428 |
Gross amount of increases in unrecognized tax benefits as a result of positions taken during a prior year | 20,361 |  |  | 9,751 |  |  | 1,169 |
Gross amount of decreases in unrecognized tax benefits as a result of positions taken during a prior year | (2,241 | ) |  | (5,362 | ) |  | (268 | )
Gross amount of increases in unrecognized tax benefits as a result of positions taken during the current year | 13,274 |  |  | 14,677 |  |  | 13,191 |
The amounts of decreases in unrecognized benefits relating to settlements with taxing authorities | (3,575 | ) |  | (4,550 | ) |  | — |
Reduction in unrecognized tax benefits due to the lapse of applicable statute of limitation | (3,973 | ) |  | (1,725 | ) |  | (2,358 | )
Balance of unrecognized tax benefits at end of year | $ | 74,799 |  |  | $ | 50,953 |  |  | $ | 38,162 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
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