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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Components of Earnings Before Income Taxes and Noncontrolling Interests

Components of earnings before income taxes and noncontrolling interests are as follows (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

United States

 

$

9,076,921

 

 

$

1,215,909

 

 

$

1,806,704

 

Foreign

 

 

123,937

 

 

 

(380,371

)

 

 

(23,897

)

 

 

$

9,200,858

 

 

$

835,538

 

 

$

1,782,807

 

Provision for Income Taxes

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

 

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

1,753,376

 

 

$

(177,159

)

 

$

241,074

 

State

 

 

293,752

 

 

 

(4,298

)

 

 

62,685

 

Foreign

 

 

19,695

 

 

 

18,131

 

 

 

8,981

 

Total current

 

 

2,066,823

 

 

 

(163,326

)

 

 

312,740

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

10,916

 

 

 

177,035

 

 

 

101,946

 

State

 

 

(3,042

)

 

 

(25,500

)

 

 

8,013

 

Foreign

 

 

3,791

 

 

 

11,301

 

 

 

(10,802

)

Total deferred

 

 

11,665

 

 

 

162,836

 

 

 

99,157

 

Total provision for income taxes

 

$

2,078,488

 

 

$

(490

)

 

$

411,897

 

Reconciliation of the Federal Statutory Tax Rate to Total Provisions

A reconciliation of the federal statutory tax rate (21%) to the total provision is as follows:

 

 

 

Year Ended December 31,

 

 

2021

 

2020

 

2019

Taxes computed at statutory rate

 

21.00%

 

21.00%

 

21.00%

State income taxes, net of federal income tax benefit

 

2.49%

 

-3.37%

 

3.16%

Federal research credit

 

-0.07%

 

-0.79%

 

-0.34%

Equity in losses of foreign joint venture

 

 

0.64%

 

0.19%

Impairment on investment in foreign joint venture

 

 

11.20%

 

Tax loss on investment in foreign joint venture

 

 

-22.73%

 

Foreign rate differential

 

-0.03%

 

1.15%

 

Noncontrolling interests

 

-0.67%

 

-2.88%

 

-1.18%

CARES Act NOL carryback

 

 

-5.77%

 

Other, net

 

-0.13%

 

1.49%

 

0.27%

Provision for income taxes

 

22.59%

 

-0.06%

 

23.10%

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities resulted from the following (in thousands):                

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Accrued liabilities and reserves

 

$

232,898

 

 

$

171,998

 

Allowance for doubtful accounts

 

 

34,124

 

 

 

16,434

 

Inventory

 

 

81,437

 

 

 

62,755

 

Post-retirement benefits

 

 

10,763

 

 

 

12,714

 

Commodity hedges

 

 

243

 

 

 

4,033

 

Net operating loss carryforward

 

 

38,290

 

 

 

63,952

 

Tax credit carryforwards

 

 

172,629

 

 

 

187,267

 

Other deferred tax assets

 

 

11,336

 

 

 

10,674

 

Valuation allowance

 

 

(183,759

)

 

 

(207,653

)

Total deferred tax assets

 

 

397,961

 

 

 

322,174

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Holdbacks and amounts not due under contracts

 

 

(13,956

)

 

 

(14,051

)

Intangibles

 

 

(178,304

)

 

 

(177,061

)

Property, plant and equipment

 

 

(770,791

)

 

 

(680,688

)

Book/Tax differences on debt modifications

 

 

(45,173

)

 

 

(46,813

)

Total deferred tax liabilities

 

 

(1,008,224

)

 

 

(918,613

)

Total net deferred tax liabilities

 

$

(610,263

)

 

$

(596,439

)

Reconciliation of the Beginning and Ending Amounts of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits recorded in deferred credits and other liabilities in the consolidated balance sheets is as follows (in thousands):

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Balance at beginning of year

 

$

47,965

 

 

$

50,920

 

 

$

48,605

 

Additions based on tax positions related to current year

 

 

52,853

 

 

 

4,138

 

 

 

9,272

 

Reductions based on tax positions related to

   current year

 

 

 

 

 

 

 

 

 

Additions based on tax positions related to prior years

 

 

2,405

 

 

 

223

 

 

 

2,106

 

Reductions based on tax positions related to

   prior years

 

 

(3,060

)

 

 

 

 

 

(2,863

)

Reductions due to settlements with taxing authorities

 

 

 

 

 

 

 

 

(1,514

)

Reductions due to statute of limitations lapse

 

 

(5,027

)

 

 

(7,316

)

 

 

(4,686

)

Balance at end of year

 

$

95,136

 

 

$

47,965

 

 

$

50,920