v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
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,
202220212020
Income before income taxes and equity in net income of unconsolidated investments:
Domestic$952,799 $(186,077)$41,346 
Foreign1,480,645 319,695 332,173 
Total$2,433,444 $133,618 $373,519 
Current income tax expense (benefit):
Federal$33,230 $11,722 $(140)
State4,965 694 (193)
Foreign259,054 55,530 56,734 
Total$297,249 $67,946 $56,401 
Deferred income tax (benefit) expense:
Federal$84,054 $(38,413)$4,564 
State(3,511)(5,544)(2,893)
Foreign12,796 5,457 (3,647)
Total$93,339 $(38,500)$(1,976)
Total income tax expense$390,588 $29,446 $54,425 
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
202220212020
Federal statutory rate21.0 %21.0 %21.0 %
State taxes, net of federal tax benefit— (3.5)0.3 
Change in valuation allowance(a)
(3.9)33.7 1.9 
Impact of foreign earnings, net(b)(c)
(0.1)(40.5)(8.4)
Global intangible low tax inclusion0.3 12.3 1.9 
Foreign-derived intangible income(3.0)— — 
Section 162(m) limitation0.3 4.5 0.5 
Subpart F income0.2 4.8 1.3 
Stock-based compensation(0.3)(7.2)(1.0)
Depletion(0.2)(2.9)(0.9)
U.S. federal return to provision(0.4)(1.7)(0.9)
Revaluation of unrecognized tax benefits/reserve requirements2.3 3.0 (0.4)
Other items, net(0.1)(1.5)(0.7)
Effective income tax rate16.1 %22.0 %14.6 %
(a)The years ended December 31, 2022 and 2021 include benefits of $91.8 million and $6.0 million, respectively, due to the release of a foreign valuation allowance due to changes in expected profitability.
(b)The year ended December 31, 2021 includes a discrete tax benefit of $27.9 million related to the revision of an indemnification estimate for an ongoing tax-related matter in Germany.
(c)Our statutory rate is decreased by 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 3.2%, 34.6%, and 11.9% for 2022, 2021, and 2020, respectively.
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, 2022 and 2021 consist of the following (in thousands):
December 31,
20222021
Deferred tax assets:
Accrued employee benefits$20,060 $18,374 
Operating loss carryovers1,157,841 1,295,925 
Pensions26,229 48,720 
Tax credit carryovers3,750 2,448 
Other(a)
122,333 212,882 
Gross deferred tax assets1,330,213 1,578,349 
Valuation allowance(1,087,505)(1,276,305)
Deferred tax assets242,708 302,044 
Deferred tax liabilities:
Depreciation(446,942)(411,336)
Intangibles(84,690)(83,182)
Other(145,412)(142,008)
Deferred tax liabilities(677,044)(636,526)
Net deferred tax liabilities$(434,336)$(334,482)
Classification in the consolidated balance sheets:
Noncurrent deferred tax assets$46,434 $18,797 
Noncurrent deferred tax liabilities(480,770)(353,279)
Net deferred tax liabilities$(434,336)$(334,482)
(a)    Decrease in other primarily related to a reduction in the deferred tax assets for the payment of the settlement of an arbitration ruling for a prior legal matter.
Changes in Balance of Deferred Tax Asset Valuation Allowance Changes in the balance of our deferred tax asset valuation allowance are as follows (in thousands):
Year Ended December 31,
202220212020
Balance at January 1$(1,276,305)$(1,326,204)$(1,148,268)
Additions(5,810)(61,470)(182,325)
Deductions194,610 111,369 4,389 
Balance at December 31$(1,087,505)$(1,276,305)$(1,326,204)
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 2022, 2021 and 2020 (in thousands):
Year Ended December 31,
202220212020
Balance at January 1$20,717 $11,639 $17,548 
Additions for tax positions related to prior years1,673 75 5,646 
Reductions for tax positions related to prior years— (6)(174)
Additions for tax positions related to current year50,531 10,911 315 
Lapses in statutes of limitations/settlements(995)(1,931)(12,128)
Foreign currency translation adjustment236 29 432 
Balance at December 31$72,162 $20,717 $11,639