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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Earnings (loss) from continuing operations before income taxes | Following is a summary of earnings before income taxes for United States and foreign operations:
| 2017 |  | 2016 |  | 2015
United States | $ | 754,562 |  |  | 627,567 |  |  | 324,210 |
Foreign | 563,295 |  |  | 613,558 |  |  | 424,651 |
Earnings before income taxes | $ | 1,317,857 |  |  | 1,241,125 |  |  | 748,861 |
Income tax expense (benefit) | Income tax expense (benefit) for the years ended December 31, 2017, 2016 and 2015 consists of the following:
| 2017 |  | 2016 |  | 2015
Current income taxes: |  |  |  |  |
U.S. federal | $ | 327,697 |  |  | 247,917 |  |  | 117,602 |
State and local | 17,811 |  |  | 31,939 |  |  | 11,175 |
Foreign | 73,248 |  |  | 61,712 |  |  | 31,981 |
Total current | 418,756 |  |  | 341,568 |  |  | 160,758 |
Deferred income taxes: |  |  |  |  |
U.S. federal | (17,419 | ) |  | (16,167 | ) |  | 4,165 |
State and local | (3,046 | ) |  | (22,115 | ) |  | (3,983 | )
Foreign | (55,126 | ) |  | 4,273 |  |  | (29,065 | )
Total deferred | (75,591 | ) |  | (34,009 | ) |  | (28,883 | )
Total | $ | 343,165 |  |  | 307,559 |  |  | 131,875 |
Reconciliation of income tax expense (benefit) | Income tax expense (benefit) attributable to earnings before income taxes differs from the amounts computed by applying the U.S. statutory federal income tax rate to earnings before income taxes as follows:
| 2017 |  | 2016 |  | 2015
Income taxes at statutory rate | $ | 461,250 |  |  | 434,394 |  |  | 262,102 |
State and local income taxes, net of federal income tax benefit | 10,133 |  |  | 6,298 |  |  | 4,951 |
Foreign income taxes(a) | (113,520 | ) |  | (111,217 | ) |  | (95,198 | )
Change in valuation allowance | 10,008 |  |  | (21,106 | ) |  | (14,237 | )
2017 revaluation of deferred tax assets and liabilities (b) | (150,546 | ) |  | — |  |  | — |
Deemed Repatriation Transition Tax | 105,165 |  |  | — |  |  | — |
Tax contingencies and audit settlements, net | 23,097 |  |  | 2,496 |  |  | (23,032 | )
Other, net | (2,422 | ) |  | (3,306 | ) |  | (2,711 | )
| $ | 343,165 |  |  | 307,559 |  |  | 131,875 |
(a) Foreign income taxes includes statutory rate differences, financing arrangements, withholding taxes, local income taxes, notional deductions, and other miscellaneous items. (b) 2017 revaluation of deferred tax assets and liabilities includes $106,107 related to TCJA and $44,439 related to Belgium tax reform.
Deferred tax assets and deferred tax liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2017 and 2016 are presented below:
| 2017 |  | 2016
Deferred tax assets: |  |  |
Accounts receivable | $ | 18,481 |  |  | 23,521 |
Inventories | 41,169 |  |  | 48,673 |
Employee benefits | 42,191 |  |  | 76,143 |
Accrued expenses and other | 52,635 |  |  | 72,258 |
Deductible state tax and interest benefit | 2,087 |  |  | 5,186 |
Intangibles | 22,119 |  |  | 12,874 |
Federal, foreign and state net operating losses and credits | 530,978 |  |  | 456,130 |
Gross deferred tax assets | 709,660 |  |  | 694,785 |
Valuation allowance | (362,963 | ) |  | (289,078 | )
Net deferred tax assets | 346,697 |  |  | 405,707 |
Deferred tax liabilities: |  |  |
Inventories | (14,423 | ) |  | (13,099 | )
Plant and equipment | (397,668 | ) |  | (426,087 | )
Intangibles | (170,817 | ) |  | (243,339 | )
Other liabilities | (31,702 | ) |  | (50,041 | )
Gross deferred tax liabilities | (614,610 | ) |  | (732,566 | )
Net deferred tax liability | $ | (267,913 | ) |  | (326,859 | )
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| 2017 |  | 2016
Balance as of January 1 | $ | 46,434 |  |  | 51,037 |
Additions based on tax positions related to the current year | 28,663 |  |  | 2,221 |
Additions for tax positions of acquired companies | 1,776 |  |  | — |
Additions for tax positions of prior years | 876 |  |  | 6,412 |
Reductions resulting from the lapse of the statute of limitations | (14,502 | ) |  | (6,294 | )
Settlements with taxing authorities | (655 | ) |  | (6,555 | )
Effects of foreign currency translation | 3,039 |  |  | (387 | )
Balance as of December 31 | $ | 65,631 |  |  | 46,434 |

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