Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes [Abstract]

Components of income (loss) from continuing operations before taxes and noncontrolling interest

Income (loss) from continuing operations before taxes and noncontrolling interests consists of the following components:

	Years ended December 31,
	2016			2015			2014
Domestic	$	(135,953	)	$	(40,929	)	$	(50,106	)
Foreign		230,169			115,669			217,249
	$	94,216		$	74,740		$	167,143

Components of income taxes

Significant components of income taxes are as follows:

	Years ended December 31,
	2016			2015		2014
Current:
Federal	$	358		$	290	$	(27,031	)
State and local		5			163		386
Foreign		46,999			63,573		60,282
		47,362			64,026		33,637
Deferred:
Federal		6,163			78,933		7,999
State and local		(3,039	)		311		204
Foreign		(5,643	)		39,203		7,460
		(2,519	)		118,447		15,663
Total income tax expense	$	44,843		$	182,473	$	49,300

Deferred tax assets and liabilities

Note 5 – Income Taxes (continued)

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows:

	December 31,
	2016			2015
Deferred tax assets:
Pension and other retiree obligations	$	47,104		$	40,322
Inventories		7,691			7,848
Net operating loss carryforwards		183,562			183,298
Tax credit carryforwards		25,432			23,512
Other accruals and reserves		29,401			35,176
Total gross deferred tax assets		293,190			290,156
Less valuation allowance		(165,269	)		(167,932	)
		127,921			122,224
Deferred tax liabilities:
Tax over book depreciation		(1,025	)		(4,038	)
Earnings not permanently reinvested		(139,165	)		(162,667	)
Convertible debentures		(203,641	)		(188,978	)
Other - net		(10,646	)		(9,245	)
Total gross deferred tax liabilities		(354,477	)		(364,928	)
Net deferred tax assets (liabilities)	$	(226,556	)	$	(242,704	)

Federal statutory income tax rate reconciliation

A reconciliation of income tax expense at the U.S. federal statutory income tax rate to actual income tax provision is as follows:

	Years ended December 31,
	2016			2015			2014
Tax at statutory rate	$	32,976		$	26,159		$	58,500
State income taxes, net of U.S. federal tax benefit		(1,972	)		309			384
Effect of foreign operations		(26,551	)		(13,212	)		(27,372	)
Tax on earnings not permanently reinvested		(3,553	)		163,699			25,728
Unrecognized tax benefits		(8,453	)		(1,353	)		(21,603	)
Change in valuation allowance on non-U.S. deferred tax assets		991			(8,888	)		-
Foreign income taxable in the U.S.		18,442			7,025			13,499
Termination of U.S. pension		34,853			-			-
Tax effect of impairment charges		(454	)		8,305			-
Other		(1,436	)		429			164
Total income tax expense	$	44,843		$	182,473		$	49,300

Net operating loss carryforwards

At December 31, 2016, the Company had the following significant net operating loss carryforwards for tax purposes:

			Expires
Austria	$	14,862	No expiration
Belgium		150,327	No expiration
Brazil		12,534	No expiration
Germany		22,916	No expiration
Israel		27,666	No expiration
Japan		5,295		2018 - 2025
Netherlands		19,019		2017 - 2025
The Republic of China (Taiwan)		9,019		2024 - 2026
United States		90,247		2033 - 2036
California		55,407		2020 - 2036
Pennsylvania		721,824		2018 - 2036

Summary of significant tax credit carryforwards available

At December 31, 2016, the Company had the following significant tax credit carryforwards available:

			Expires
U.S. Foreign Tax Credit	$	11,093		2020 - 2022
U.S. Federal Research Credit		1,986		2034 - 2036
California Research Credit		12,353	No expiration

Unrecognized tax benefits

The following table summarizes changes in the liabilities associated with unrecognized tax benefits:

	Years ended December 31,
	2016			2015			2014
Balance at beginning of year	$	23,527		$	26,583		$	45,877
Addition based on tax positions related to the current year		1,553			1,439			1,641
Addition based on tax positions related to prior years		1,047			1,894			6,484
Currency translation adjustments		(96	)		(1,370	)		(1,387	)
Reduction based on tax positions related to prior years		-			-			-
Reduction for settlements		(1,210	)		(4,879	)		(3,556	)
Reduction for lapses of statute of limitation		(8,016	)		(140	)		(22,476	)
Balance at end of year	$	16,805		$	23,527		$	26,583