10-K FY 2022 FINAL MOOG Inc - Flipbook - Page 72
Table of Contents
Note 15 - Income Taxes
The reconciliation of the provision for income taxes to the amount computed by applying the U.S. federal statutory tax
rate to earnings before income taxes is as follows:
2022
Earnings before income taxes:
Domestic
Foreign
Total
Federal statutory income tax rate
Increase (decrease) in income taxes resulting from:
Impacts of Tax Act
Revaluation of deferred taxes
Withholding taxes
Reversal of indefinite reinvestment assertion
R&D and foreign tax credits
Divestiture impacts
Foreign tax rates
Equity-based compensation
Change in valuation allowance for deferred taxes
State taxes, net of federal benefit
Other
Effective income tax rate
$
$
151,870
51,109
202,979
21.0 %
2021
$
$
(0.4)%
—%
0.6 %
—%
(5.4)%
2.3 %
4.5 %
(0.2)%
(2.3)%
1.9 %
1.6 %
23.6 %
141,665
62,109
203,774
21.0 %
2020
$
$
(1.2)%
1.6 %
0.4 %
0.2 %
(4.6)%
—%
4.4 %
(0.1)%
(1.6)%
2.1 %
0.6 %
22.8 %
1,126
4,291
5,417
21.0 %
(96.4)%
(21.6)%
27.5 %
(2.9)%
(102.8)%
—%
76.0 %
(6.5)%
21.1 %
(1.9)%
16.6 %
(69.9)%
Our accounting policy is to treat tax on the Global Intangible Low-Tax Income ("GILTI") as a current period cost
included in tax expenses the year incurred. As such, we don't measure the impact of the GILTI in our determination of
deferred taxes. In 2022, we recorded $443 of GILTI tax and received a benefit of $646 related to the Foreign-Derived
Intangible Income deduction. In 2022, we also recorded a tax benefit for provision to return adjustments of $4,871
primarily related to domestic research and development tax credits. In addition, we recorded a current year expense
of $1,700 for a total accrual of $9,283 for taxes on undistributed earnings not considered permanently reinvested.
During 2022, 2021 and 2020, we repatriated available unremitted earnings from various foreign subsidiaries that were
previously taxed under the Tax Act of $37,986, $41,987 and $23,001, respectively. We no longer indefinitely reinvest
unremitted earnings and therefore we record a liability related to the remaining unremitted earnings generated by the
foreign subsidiaries in the current year. We continue to be permanently invested in outside basis differences other
than the unremitted earnings as we have no plans to liquidate or sell those foreign subsidiaries.
The components of income taxes are as follows:
2022
Current:
Federal
Foreign
State
Total current
Deferred:
Federal
Foreign
State
Total deferred
Income taxes (benefit)
$
$
72
6,270
26,730
3,063
36,063
8,076
1,742
1,921
11,739
47,802
2021
$
$
9,907
23,801
4,684
38,392
4,625
2,898
639
8,162
46,554
2020
$
$
14,789
18,997
3,271
37,057
(35,603)
(1,843)
(3,399)
(40,845)
(3,788)