Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes

Schedule of provision for income taxes

(thousands)	2023		2022		2021
Current:
Federal	$	33,832	$	139,730	$	68,555
State		16,108		29,117		18,418
International		299,031		293,195		214,184
	$	348,971	$	462,042	$	301,157
Deferred:
Federal	$	(59,342)	$	(39,658)	$	(347)
State		(11,960)		(5,613)		(388)
International		(22,678)		32,221		25,484
		(93,980)		(13,050)		24,749
	$	254,991	$	448,992	$	325,906

Schedule of effective income tax rate reconciliation

The principal causes of the difference between the U.S. federal statutory tax rate of 21% and effective income tax rates for the years ended December 31 are as follows:

(thousands)	2023		2022		2021
United States	$	(38,848)	$	517,642	$	339,499
International		1,203,202		1,366,508		1,096,875
Income before income taxes	$	1,164,354	$	1,884,150	$	1,436,374
Provision at statutory tax rate	$	244,514	$	395,672	$	301,638
State taxes, net of federal benefit		2,379		18,675		14,162
International effective tax rate differential		27,993		26,210		(5,402)
Change in valuation allowance		(7,755)		(6,378)		(1,723)
Other non-deductible expenses		2,993		7,441		9,058
Changes in tax accruals		1,153		5,993		9,937
Tax credits		(7,666)		980		(17,555)
U.S. tax (benefit) on foreign earnings		(10,075)		3,879		10,289
Other		1,455		(3,480)		5,502
Provision for income taxes	$	254,991	$	448,992	$	325,906

Schedule of reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 is as follows:

(thousands)	2023		2022		2021
Balance at beginning of year	$	75,666	$	71,422	$	62,203
Additions based on tax positions taken during a prior period		7,466		6,760		2,528
Reductions based on tax positions taken during a prior period		(4,448)		(3,007)		(1,542)
Additions based on tax positions taken during the current period		5,505		3,526		9,326
Reductions based on tax positions taken during the current period		—		—		(370)
Reductions related to settlement of tax matters		—		(2,271)		(692)
Reductions related to a lapse of applicable statute of limitations		(1,381)		(764)		(31)
Balance at end of year	$	82,808	$	75,666	$	71,422

Schedule of open tax years, by major tax jurisdiction

In many cases the company’s uncertain tax positions are related to tax years that remain subject to examination by tax authorities. The following describes the open tax years, by major tax jurisdiction, as of December 31, 2023:

United States - Federal	2016 - present
United States - States	2015 - present
Germany (a)	2015 - present
China and Hong Kong	2016 - present
Italy (a)	2013 - present
Netherlands	2018 - present
Sweden	2018 - present
Taiwan	2018 - present
United Kingdom	2019 - present

(a) Includes federal as well as local jurisdictions.

Schedule of deferred tax assets and liabilities

Deferred tax assets and liabilities consist of the following at December 31:

(thousands)	2023		2022
Deferred tax assets:
Net operating loss carryforwards	$	17,987	$	18,409
Capital loss carryforwards		—		56,618
Inventory adjustments		68,542		46,188
Allowance for credit losses		27,637		25,779
Accrued expenses		73,251		35,940
Interest carryforward		4,170		4,014
Stock-based compensation awards		5,692		7,559
Lease liability		68,605		71,415
Research and experimentation costs (a)		59,277		33,426
Other		3,332		—
		328,493		299,348
Valuation allowance		(15,832)		(75,842)
Total deferred tax assets	$	312,661	$	223,506
Deferred tax liabilities:
Goodwill	$	(152,551)	$	(144,287)
Depreciation		(58,419)		(76,527)
Intangible assets		—		(3,042)
Lease right-of-use assets		(64,937)		(66,775)
Other comprehensive income items		(13,204)		(9,842)
Other		—		(3,002)
Total deferred tax liabilities	$	(289,111)	$	(303,475)
Total net deferred tax assets (liabilities)	$	23,550	$	(79,969)