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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

The provision (benefit) for income taxes consists of the following:


	Year Ended December 31,
	2022		2021		2020
	(Amounts in thousands)
Current:
U.S. federal	$	45,130	$	66,486	$	40,234
Foreign	40,876		29,987		42,487
State and local	6,177		1,478		5,894
Total current provision (benefit)	92,183		97,951		88,615
Deferred:
U.S. federal	(88,498)		(92,021)		(50,038)
Foreign	(42,756)		(4,339)		26,742
State and local	(4,568)		(4,185)		(3,902)
Total deferred provision (benefit)	(135,822)		(100,545)		(27,198)
Total provision (benefit)	$	(43,639)	$	(2,594)	$	61,417

Schedule of Reconciliation Statutory Corporate Rate to Provision for Income Taxes

The provision for income taxes differs from the statutory corporate rate due to the following:


	Year Ended December 31,
	2022			2021			2020
	(Amounts in millions)
Statutory federal income tax at 21%	$	32.4		$	28.1		$	39.2
Base Erosion and Anti-abuse Tax	(7.6)			7.6			—
Foreign impact, net	(22.3)			(158.0)			0.1

Change in valuation allowances	(50.5)			146.6			26.9
State and local income taxes, net	1.6			(2.7)			2.0
Reversal of deferred tax liabilities following legal entity reorganizations	—			(22.6)			—
Research and development credit	(1.0)			(3.6)			(5.2)
Non-deductible items	2.3			4.4			1.8
U.S. federal tax return to accrual adjustments, not separately disclosed in other categories	1.8			(0.8)			(1.6)
Recognition of compensation costs related to restricted shares	2.4			(1.3)			1.0
Intercompany profit in inventory	(2.0)			(0.3)			0.3
Other, net	(0.7)			—			(3.1)
Total	(43.6)			(2.6)			61.4
Effective tax rate	(28.3)		%	(1.9)		%	30.4		%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the consolidated deferred tax assets and liabilities were:


	December 31,
	2022		2021
	(Amounts in thousands)
Deferred tax assets related to:

Net operating loss carryforwards	$	183,541	$	200,196


Credit and capital loss carryforwards	197,774		185,832
Warranty and accrued liabilities	49,302		26,116


Section 59(e) capitalized expenses	54,486		43,434
Other	168,933		161,418
Total deferred tax assets	654,036		616,996
Valuation allowances	(356,557)		(415,962)
Net deferred tax assets	$	297,479	$	201,034
Deferred tax liabilities related to:

Goodwill and intangibles	$	(123,088)	$	(123,133)
Foreign undistributed earnings	(11,154)		(15,529)
Operating lease right-of-use-assets	(20,453)		(25,556)
Other	(1,395)		(1,936)
Total deferred tax liabilities	(156,090)		(166,154)
Deferred tax asset (liabilities), net	$	141,389	$	34,880

Schedule of Deferred Tax Asset Valuation Allowance

The following schedule presents the changes in deferred tax asset valuation allowance as follows:


(Amounts in thousands)	Balance at beginning of year		Additions charged to cost and expenses		Additions charged to other accounts - currency effects and other, net		Deductions from reserve		Balance at end of year
Year Ended December 31, 2022
Deferred tax asset valuation allowance(1):	$	415,962	$	36,822	$	(11,775)	$	(84,452)	$	356,557
Year Ended December 31, 2021
Deferred tax asset valuation allowance(1):	287,410		178,203		(15,572)		(34,079)		415,962
Year Ended December 31, 2020
Deferred tax asset valuation allowance(1):	266,414		49,950		(529)		(28,425)		287,410

______________________________

(1)Deductions from reserve result from the release of valuation allowances on deferred tax assets, expiration or utilization of net operating losses and foreign tax credits previously reserved. Additions to reserve result from the establishment of valuation allowances on deferred tax assets, generation of net operating losses and foreign tax credits.

Schedule of Earnings Before Income Tax

Earnings before income taxes comprised:


	Year Ended December 31,
	2022		2021		2020
	(Amounts in thousands)
U.S.	$	63,508	$	(52,915)	$	73,109
Foreign	90,868		186,504		129,183
Total	$	154,376	$	133,589	$	202,292

Reconciliation of Unrecognized Tax Benefits

A tabular reconciliation of the total gross amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in millions):


	2022		2021		2020
Balance — January 1	$	49.9	$	54.8	$	40.6
Gross amount of increase (decrease) in unrecognized tax benefits resulting from tax positions taken:
During a prior year	5.4		8.0		3.8
During the current period	5.8		4.5		11.1
Decreases in unrecognized tax benefits relating to:
Settlements with taxing authorities	(5.5)		(10.2)		(0.2)
Lapse of the applicable statute of limitations	(4.1)		(5.1)		(2.5)
Increase (decrease) in unrecognized tax benefits relating to foreign currency translation adjustments	(1.3)		(2.1)		2.0
Balance — December 31	$	50.2	$	49.9	$	54.8