Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:

	2019			2018
Deferred tax assets related to:
Expenses not yet deducted for tax purposes	$	281,468		$	254,684
Operating lease liabilities	303,400			—
Pension liability not yet deducted for tax purposes	261,909			277,929
Capital loss	18,317			11,944
Net operating loss	38,445			29,785
	903,539			574,342
Deferred tax liabilities related to:
Employee and retiree benefits	215,815			218,124
Inventory	93,440			95,280
Operating lease assets	295,109			—
Other intangible assets	333,935			296,736
Property, plant and equipment	68,619			72,463
Other	39,149			32,978
	1,046,067			715,581
Net deferred tax liability before valuation allowance	(142,528		)	(141,239		)
Valuation allowance	(35,524		)	(26,095		)
Total net deferred tax liability	$	(178,052	)	$	(167,334	)

Components of Income before Income Taxes

The components of income before income taxes are as follows:

	2019		2018		2017
United States	$	587,104	$	790,592	$	813,078
Foreign	243,196		285,020		196,190
Income before income taxes	$	830,300	$	1,075,612	$	1,009,268

Components of Income Tax Expense

The components of income tax expense are as follows:

	2019			2018			2017
Current:
Federal	$	171,718		$	144,615		$	252,337
State	48,012			39,326			29,288
Foreign	60,417			77,306			44,896
Deferred:
Federal	(34,362		)	15,167			71,238
State	(13,449		)	5,770			13,663
Foreign	(23,121		)	(17,046		)	(18,911		)
	$	209,215		$	265,138		$	392,511

Difference Between Total Tax Expense and Amount Computed by Applying Statutory Federal Income Tax Rate

The reasons for the difference between total tax expense and the amount computed by applying the statutory Federal income tax rate to income before income taxes are as follows:

	2019			2018			2017
Statutory rate applied to income (1)	$	174,363		$	225,879		$	353,259
Plus state income taxes, net of Federal tax benefit	27,305			35,626			27,918
Taxation of foreign operations, net (2)	(18,331		)	(7,639		)	(33,984		)
U.S. tax reform - transition tax (3)	4,492			4,875			37,132
U.S. tax reform - deferred tax remeasurement (3)	—			424			13,854
Foreign rate change - deferred tax remeasurement	6,215			(1,461		)	(9,338		)
Book tax basis difference in investment	—			(11,944		)	—
Valuation allowance	4,745			20,505			1,273
Other	10,426			(1,127		)	2,397
	$	209,215		$	265,138		$	392,511

(1) U.S. statutory rates applied to income are as follows: 2019 and 2018 at 21%, 2017 at 35%.

(2) The Company's effective tax rate reflects the net benefit of having operations outside of the U.S. which are taxed at statutory rates different from the U.S. statutory rate, with some income being fully or partially exempt from income taxes due to various operating and financing activities.

(3)

Impact of the Tax Cuts and Jobs Act, enacted December 22, 2017.

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:

	2019			2018			2017
Balance at beginning of year	$	18,428		$	14,697		$	15,190
Additions based on tax positions related to the current year	3,701			2,034			2,644
Additions for tax positions of prior years	620			4,787			1,511
Reductions for tax positions for prior years	(965		)	(725		)	(430		)
Reduction for lapse in statute of limitations	—			(2,338		)	(3,917		)
Settlements	(323		)	(27		)	(301		)
Balance at end of year	$	21,461		$	18,428		$	14,697