Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Components of Income before Tax, Domestic and Foreign

Income from continuing operations before taxes consisted of the following:



	Years Ended December 31,
	2018		2017		2016
U.S.	$	114,982	$	140,574	$	126,856
International	97,379		81,341		74,933
Total	$	212,361	$	221,915	$	201,789

Components of Income Tax Expense (Benefit)

The provision for income taxes from continuing operations consisted of the following:



	Years Ended December 31,
	2018			2017			2016
U.S. Federal:
Current	$	(50,333	)	$	31,691		$	76,117
Deferred	56,715			(49,812		)	(1,979		)
	6,382			(18,121		)	74,138
U.S. State and Local:
Current	(10,489		)	(2,330		)	6,377
Deferred	(911		)	15,316			4,682
	(11,400		)	12,986			11,059
International:
Current	16,224			(3,418		)	21,014
Deferred	1,177			9,106			764
	17,401			5,688			21,778

Total current	(44,598		)	25,943			103,508
Total deferred	56,981			(25,390		)	3,467
Total provision for income taxes	$	12,383		$	553		$	106,975

Effective tax rate	5.8		%	0.2		%	53.0		%

Reconciliation of Effective Income Tax Rate Reconciliation

income taxes computed at the federal statutory rate and our provision for income taxes consist of the following:



	Years Ended December 31,
	2018			2017			2016
Federal statutory provision	$	44,596		$	77,671		$	70,627
State and local income taxes ⁽¹⁾	1,251			5,418			7,188
Impact of foreign operations taxed at rates other than the U.S. statutory rate	(1,988		)	(15,859		)	(9,236		)
Accrual/release of uncertain tax amounts related to foreign operations	(4,595		)	(17,919		)	(7,482		)
U.S. tax impacts of foreign income in the U.S.	7,683			2,778			2,929
Tax exempt income/reimbursement	—			—			(935		)
Tax incentives/credits/exempt income	2,026			(14,329		)	(9,020		)
Goodwill impairments	—			—			50,003
Remeasurement of U.S. deferred taxes	(13,121		)	(129,960		)	—
U.S. tax on unremitted earnings	(23,711		)	90,916			—
Other, net	242			1,837			2,901
Provision for income taxes	$	12,383		$	553		$	106,975

⁽¹⁾ Includes release of tax uncertainties of $(9) million, $(3) million and $(3) million for the years ended December 31, 2018, 2017 and 2016, respectively.

Components of Deferred Tax Assets and Liabilities

Deferred tax liabilities and assets at December 31, 2018 and 2017 consisted of the following:



	December 31,
	2018			2017
Deferred tax liabilities:
Depreciation	$	(102,726	)	$	(77,415	)
Deferred profit (for tax purposes) on sale to finance subsidiary	(41,951		)	(60,340		)
Lease revenue and related depreciation	(166,544		)	(133,908		)
Intangible assets	(98,707		)	(106,488		)
Other	(33,353		)	(22,468		)
Gross deferred tax liabilities	(443,281		)	(400,619		)

Deferred tax assets:
Nonpension postretirement benefits	42,422			48,387
Pension	60,063			66,270
Inventory and equipment capitalization	7,216			11,380
Restructuring charges	5,064			12,476
Long-term incentives	11,517			11,544
Net operating loss	106,029			108,006
Tax credit carry forwards	64,148			82,285
Tax uncertainties gross-up	6,692			9,920
Other	46,885			36,936
Gross deferred tax assets	350,036			387,204
Less: Valuation allowance	(142,496		)	(178,156		)
Net deferred tax assets	207,540			209,048
Total deferred taxes, net	$	(235,741	)	$	(191,571	)

Tax Uncertainties Roll Forward

A reconciliation of the amount of unrecognized tax benefits is as follows:



	2018			2017			2016
Balance at beginning of year	$	89,767		$	124,728		$	139,249
Increases from prior period positions	88			528			—
Decreases from prior period positions	(15,145		)	(31,470		)	(21,207		)
Increases from current period positions	6,001			5,951			10,867
Decreases relating to settlements with tax authorities	(4,844		)	(6,953		)	(1,791		)
Reductions from lapse of applicable statute of limitations	(4,409		)	(3,017		)	(2,390		)
Balance at end of year	$	71,458		$	89,767		$	124,728