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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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,
			2020						2019						2018
Income before income taxes and equity in net income of unconsolidated investments:
Domestic			$	41,346					$	190,195					$	223,702
Foreign			332,173						372,755						570,999
Total			$	373,519					$	562,950					$	794,701
Current income tax expense (benefit):
Federal			$	(140)					$	21,258					$	(2,712)
State			(193)						5,453						6,793
Foreign			56,734						47,056						91,581
Total			$	56,401					$	73,767					$	95,662
Deferred income tax (benefit) expense:
Federal			$	4,564					$	13,255					$	15,573
State			(2,893)						(7,369)						1,614
Foreign			(3,647)						8,508						31,977
Total			$	(1,976)					$	14,394					$	49,164
Total income tax expense			$	54,425					$	88,161					$	144,826

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
			2020						2019						2018
Federal statutory rate			21.0		%				21.0		%				21.0		%
State taxes, net of federal tax benefit			0.3						(0.5)						0.9
Change in valuation allowance (a)			1.9						1.9						0.7
Impact of foreign earnings, net(b)			(8.4)						(3.7)						(0.3)
Global intangible low tax inclusion			1.9						1.8						0.8
Change in U.S. federal statutory rate			—						—						0.1
Transition tax on deferred foreign earnings(c)			—						—						(5.3)
Subpart F income			1.3						0.6						0.9
Stock-based compensation			(1.0)						(0.6)						(0.7)
Depletion			(0.9)						(0.7)						(0.6)
Revaluation of unrecognized tax benefits/reserve requirements			(0.4)						(2.7)						—
Other items, net			(1.1)						(1.4)						0.7
Effective income tax rate			14.6		%				15.7		%				18.2		%

(a)The year ended December 31, 2019 includes a $2.1 million benefit due to the release of a foreign valuation allowance due to changes in expected profitability. 2018 includes an $8.2 million expense due to the establishment of a valuation allowance due to a foreign restructuring plan and a $1.5 million benefit due to the release of a foreign valuation allowance due to changes in expected profitability.

(b)Our statutory rate is decreased by of 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 11.9%, 8.0%, and 3.3% for 2020, 2019, and 2018, respectively.

(c)During the year ended December 31, 2018, we recorded an income tax benefit of $42.3 million to refine the impact of the one-time transition tax calculation resulting from the TCJA.

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, 2020 and 2019 consist of the following (in thousands):

			December 31,
			2020						2019
Deferred tax assets:
Accrued employee benefits			$	21,878					$	17,462
Operating loss carryovers(a)			1,321,942						1,134,410
Pensions			78,683						64,230
Tax credit carryovers			1,582						1,497
Other			57,370						64,955
Gross deferred tax assets			1,481,455						1,282,554
Valuation allowance(a)			(1,326,204)						(1,148,268)
Deferred tax assets			155,251						134,286
Deferred tax liabilities:
Depreciation			(348,700)						(349,264)
Intangibles			(91,645)						(88,934)
Hedge of net investment of foreign subsidiary			(13,514)						(23,498)
Other			(75,927)						(55,173)
Deferred tax liabilities			(529,786)						(516,869)
Net deferred tax liabilities			$	(374,535)					$	(382,583)
Classification in the consolidated balance sheets:
Noncurrent deferred tax assets			$	20,317					$	15,275
Noncurrent deferred tax liabilities			(394,852)						(397,858)
Net deferred tax liabilities			$	(374,535)					$	(382,583)

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,
			2020						2019						2018
Balance at January 1			$	(1,148,268)					$	(1,213,750)					$	(458,288)
Additions(a)			(182,325)						(24,986)						(766,012)
Deductions			4,389						90,468						10,550
Balance at December 31			$	(1,326,204)					$	(1,148,268)					$	(1,213,750)

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 2020, 2019 and 2018 (in thousands):

			Year Ended December 31,
			2020						2019						2018
Balance at January 1			$	17,548					$	19,742					$	21,438
Additions for tax positions related to prior years			5,646						2,235						874
Reductions for tax positions related to prior years			(174)						—						—
Additions for tax positions related to current year			315						—						1,091
Lapses in statutes of limitations/settlements			(12,128)						(4,494)						(3,578)
Foreign currency translation adjustment			432						65						(83)
Balance at December 31			$	11,639					$	17,548					$	19,742

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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