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Income taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income taxes | Income taxes The provision for taxes on income for the years ended December 31 consists of the following:
| 2022 |  | 2021 |  | 2020
Pretax income |  |  |  |  |
Domestic | $ | 363,518 |  |  | $ | (342,951) |  |  | $ | 54,397 |
Foreign | 207,764 |  |  | 181,969 |  |  | 201,195 |
Total pretax income | $ | 571,282 |  |  | $ | (160,982) |  |  | $ | 255,592 |
Current |  |  |  |  |
Federal | $ | 55,016 |  |  | $ | 21,247 |  |  | $ | 10,868 |
State | 15,997 |  |  | 15,212 |  |  | 4,608 |
Foreign | 59,762 |  |  | 55,018 |  |  | 42,764 |
Total current | $ | 130,775 |  |  | $ | 91,477 |  |  | $ | 58,240 |
Deferred |  |  |  |  |
Federal | $ | (2,495) |  |  | $ | (120,243) |  |  | $ | 432 |
State | (5,441) |  |  | (39,709) |  |  | 512 |
Foreign | (4,330) |  |  | 1,045 |  |  | (6,154) |
Total deferred | $ | (12,266) |  |  | $ | (158,907) |  |  | $ | (5,210) |
Total taxes | $ | 118,509 |  |  | $ | (67,430) |  |  | $ | 53,030 |
Deferred tax (liabilities)/assets are comprised of the following at December 31:
| 2022 |  | 2021
Property, plant and equipment | $ | (104,162) |  |  | $ | (97,806) |
Intangibles | (104,171) |  |  | (96,057) |
Leases | (89,226) |  |  | (75,587) |
Outside basis in Metal Packaging | (74,092) |  |  | — |
Gross deferred tax liabilities | $ | (371,651) |  |  | $ | (269,450) |
Retiree health benefits | $ | 1,222 |  |  | $ | 2,935 |
Foreign loss carryforwards | 79,460 |  |  | 76,462 |
U.S. Federal loss and credit carryforwards | 36,529 |  |  | 34,700 |
Capital loss carryforwards | 3,626 |  |  | 4,050 |
U.S. State loss and credit carryforwards | 20,961 |  |  | 21,900 |
Capitalized research and development costs | 45,826 |  |  | 22,875 |
Employee benefits | 42,641 |  |  | 46,503 |
Leases | 89,416 |  |  | 78,518 |
Accrued liabilities and other assets | 56,601 |  |  | 30,835 |
Gross deferred tax assets | $ | 376,282 |  |  | $ | 318,778 |
Valuation allowance on deferred tax assets | $ | (82,046) |  |  | $ | (93,992) |
Total deferred taxes, net | $ | (77,415) |  |  | $ | (44,664) |
The Company has total federal net operating loss carryforwards of approximately $64,646 remaining at December 31, 2022. These losses are limited based upon future taxable earnings of the Company and expire between 2031 and 2037. U.S. foreign tax credit carryforwards of approximately $22,873 exist at December 31, 2022 and expire in 2027. Foreign subsidiary loss carryforwards of approximately $321,473 remain at December 31, 2022. Their use is limited to future taxable earnings of the respective foreign subsidiaries or filing groups. Approximately $205,054 of these loss carryforwards do not have an expiration date. Of the remaining foreign subsidiary loss carryforwards, approximately $22,860 expire within the next five years and approximately $93,559 expire between 2028 and 2042. Foreign subsidiary capital loss carryforwards of approximately $14,493 exist at December 31, 2022 and do not have an expiration date. Their use is limited to future capital gains of the respective foreign subsidiaries. Approximately $9,662 in tax value of state loss carryforwards and $16,871 of state credit carryforwards remain at December 31, 2022. These state loss and credit carryforwards are limited based upon future taxable earnings of the respective entities or filing group and expire between 2023 and 2042. State loss and credit carryforwards are reflected at their "tax" value, as opposed to the amount of expected gross deduction due to the vastly different apportionment and statutory tax rates applicable to the various entities and states in which the Company files. A reconciliation of the U.S. federal statutory tax rate to the actual provision for/(benefit from) income taxes is as follows:
| 2022 |  | 2021 |  | 2020
Statutory tax rate | $ | 119,945 |  |  | 21.0 | % |  | $ | (33,806) |  |  | 21.0 | % |  | $ | 53,674 |  |  | 21.0 | %
State income taxes, net of federal tax benefit | 13,149 |  |  | 2.3 | % |  | (15,863) |  |  | 9.9 | % |  | 4,859 |  |  | 1.9 | %
Valuation allowance | (10,477) |  |  | (1.8) | % |  | (33,576) |  |  | 20.9 | % |  | 1,589 |  |  | 0.6 | %
Tax examinations including change in reserve for uncertain tax positions | 567 |  |  | 0.1 | % |  | 5,665 |  |  | (3.5) | % |  | 5,546 |  |  | 2.2 | %
Adjustments to prior year deferred taxes | (2,110) |  |  | (0.4) | % |  | 1,239 |  |  | (0.8) | % |  | (265) |  |  | (0.1) | %
Foreign earnings taxed at other than U.S. rates | 12,334 |  |  | 2.2 | % |  | 9,659 |  |  | (6.0) | % |  | 3,275 |  |  | 1.3 | %
Divestiture of business | — |  |  | — | % |  | (808) |  |  | 0.5 | % |  | (15,356) |  |  | (6.0) | %
Effect of tax rate changes | (2,151) |  |  | (0.4) | % |  | 275 |  |  | (0.2) | % |  | (523) |  |  | (0.2) | %
Foreign withholding taxes | 4,670 |  |  | 0.8 | % |  | 8,107 |  |  | (5.0) | % |  | 2,157 |  |  | 0.8 | %
Tax credits | (14,077) |  |  | (2.5) | % |  | (21,936) |  |  | 13.6 | % |  | (13,529) |  |  | (5.3) | %
Global intangible low-taxed income (GILTI) | 2,851 |  |  | 0.5 | % |  | 11,323 |  |  | (7.0) | % |  | 15,795 |  |  | 6.2 | %
Foreign-derived intangible income | (657) |  |  | (0.1) | % |  | (202) |  |  | 0.1 | % |  | (1,238) |  |  | (0.5) | %
Foreign currency gain/(loss) on distributions of previously taxed income | (1,280) |  |  | (0.2) | % |  | 3,365 |  |  | (2.1) | % |  | (344) |  |  | (0.1) | %
Other, net | (4,255) |  |  | (0.7) | % |  | (872) |  |  | 0.5 | % |  | (2,610) |  |  | (1.0) | %
Provision for/(Benefit from) income taxes | $ | 118,509 |  |  | 20.7 | % |  | $ | (67,430) |  |  | 41.9 | % |  | $ | 53,030 |  |  | 20.8 | %
The total amount of the one-time transition tax on certain accumulated foreign earnings as part of the Tax Cuts and Jobs Act ("Tax Act") was $80,580. Under the provisions of the Tax Act, the transition tax is payable in installments over a period of 8 years. The Company has satisfied all installments through 2022 and further reduced the liability by amendment of its 2017 U.S. income tax return to reflect a decrease in the transition tax from the increased use of foreign tax credits. The resulting overpayment reduced the remaining installment payments by $44,929. The remaining obligation of $1,366 is included in "Accrued taxes" in the Company's Consolidated Balance Sheet at December 31, 2022. The change in “Tax examinations including change in reserve for uncertain tax positions” is shown net of associated deferred taxes and accrued interest. Included in the change are net increases in reserves for uncertain tax positions of approximately $2,051, $2,330 and $1,866 for uncertain items arising in 2022, 2021 and 2020, respectively, combined with adjustments related to prior year items, primarily decreases related to lapses of statutes of limitations in international, federal and state jurisdictions as well as overall changes in facts and judgment. These adjustments changed the reserve by a total of approximately $(1,484), $3,743 and $(2,601) in 2022, 2021 and 2020, respectively. In many of the countries in which the Company operates, earnings are taxed at rates different than in the U.S. This difference is reflected in “Foreign earnings taxed at other than U.S. rates” along with other items, if any, that impacted taxes on foreign earnings in the periods presented. The benefits included in “Adjustments to prior year deferred taxes” for each of the years presented consist primarily of adjustments to deferred tax assets and liabilities arising from changes in estimates. Of the $14,077 of tax credits for 2022, $1,245 directly offset the $2,851 of GILTI tax, resulting in a net GILTI tax of $1,606. Of the remainder, $6,563 relates to research and development tax credits. The GILTI tax in 2021 of $11,323 was partially offset by GILTI tax credits of $7,872, resulting in a net GILTI tax of $3,451. The benefits included in "Valuation allowance" include a $13,182 net recognized benefit associated with the release of valuation allowance on foreign tax credits due to an increase in the projected foreign source income in future years. The Company maintains its assertion that its undistributed foreign earnings are indefinitely reinvested and, accordingly, has not recorded any deferred income tax liabilities that would be due if those earnings were repatriated. As of December 31, 2022, these undistributed earnings total $955,833. While the majority of these earnings have already been taxed in the U.S., a portion would be subject to foreign withholding and U.S. income taxes and credits if distributed. Computation of the deferred tax liability associated with unremitted earnings deemed to be indefinitely reinvested is not practicable at this time. Reserve for uncertain tax positions The following table sets forth the reconciliation of the gross amounts of unrecognized tax benefits at the beginning and ending of the periods indicated:
| 2022 |  | 2021 |  | 2020
Gross Unrecognized Tax Benefits at January 1 | $ | 18,142 |  |  | $ | 11,230 |  |  | $ | 12,200 |
Increases in prior years’ unrecognized tax benefits | 223 |  |  | 12,283 |  |  | 91 |
Decreases in prior years’ unrecognized tax benefits | (144) |  |  | (275) |  |  | (464) |
Increases in current year's unrecognized tax benefits | 1,807 |  |  | 1,088 |  |  | 1,569 |
Decreases in unrecognized tax benefits from the lapse of statutes of limitations | (1,174) |  |  | (6,170) |  |  | (1,866) |
Settlements | (233) |  |  | (14) |  |  | (300) |
Gross Unrecognized Tax Benefits at December 31 | $ | 18,621 |  |  | $ | 18,142 |  |  | $ | 11,230 |
Of the unrecognized tax benefit balances at December 31, 2022 and December 31, 2021, $17,821 and $17,425, respectively, would have an impact on the effective tax rate if ultimately recognized. Interest and/or penalties related to income taxes are reported as part of income tax expense. The Company had $859 and $875 accrued for interest related to uncertain tax positions at December 31, 2022 and December 31, 2021, respectively. Tax expense for the year ended December 31, 2022, includes an interest benefit of $16, which is comprised of an interest benefit of $501 related to the adjustment of prior years' items and interest expense of $485 on unrecognized tax benefits. The amounts listed above for accrued interest and interest expense do not reflect the benefit of a federal tax deduction which would be available if the interest were ultimately paid. The Company and/or its subsidiaries file federal, state and local income tax returns in the United States and various foreign jurisdictions. With few exceptions, the Company is no longer subject to income tax examinations by tax authorities for years before 2016. The Company believes that it is reasonably possible that the amount reserved for uncertain tax positions at December 31, 2022 will increase by $470 over the next twelve months. This change includes the anticipated increase in reserves related to existing positions offset by settlements of issues currently under examination and the release of existing reserves due to the expiration of the statute of limitations. Although the Company's estimate for the potential outcome for any uncertain tax issue is highly judgmental, management believes that any reasonably foreseeable outcomes related to these matters have been adequately provided for. However, future results may include favorable or unfavorable adjustments to estimated tax liabilities in the period the assessments are made or resolved or when statutes of limitation on potential assessments expire. Additionally, the jurisdictions in which earnings or deductions are realized may differ from current estimates. As a result, the effective tax rate may fluctuate significantly on a quarterly basis. The Company has operations in many countries outside of the United States and the taxes paid on those earnings are subject to varying rates. The Company is not dependent upon the favorable benefit of any one jurisdiction to an extent that loss of those benefits would have a material effect on the Company's overall effective tax rate.

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- 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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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