INCOME TAXES

Income before the impact of income taxes for the years ended December 31 consisted of the following:



	2015		2014		2013
U.S.	$	94,242	$	72,800	$	59,006
Foreign	247,375		211,674		159,295
Total	$	341,617	$	284,474	$	218,301

The Company's provision for income taxes for the years ended December 31 consisted of the following:



	2015			2014			2013
Current:
Federal	$	(30,334	)	$	(22,549	)	$	(19,285	)
State	(6,616		)	(2,823		)	(2,617		)
Foreign	(69,793		)	(60,143		)	(46,787		)
Total current	$	(106,743	)	$	(85,515	)	$	(68,689	)
Deferred:
Federal	$	6,303		$	454		$	3,834
State	312			27			203
Foreign	538			1,005			2,131
Total deferred	$	7,153		$	1,486		$	6,168
Provision for income taxes	$	(99,590	)	$	(84,029	)	$	(62,521	)

A reconciliation of income tax expense at the U.S. federal statutory income tax rate to the recorded tax provision for the years ended December 31, is as follows:



	2015			2014			2013
Tax at statutory rate	$	(119,566	)	$	(99,867	)	$	(76,406	)
Non-U.S. rate differential — net	15,931			14,590			10,761
State income taxes — net	(2,094		)	(1,787		)	(1,512		)
Effect of changes in enacted tax rates on deferred tax assets and liabilities	(153		)	(44		)	186
Nondeductible stock compensation expense	(338		)	(483		)	(101		)
Other nondeductible expenses	(1,039		)	(2,063		)	(1,666		)
Federal and state tax credits	8,837			5,865			7,500
Change in reserves, including interest and penalties	(1,522		)	(7		)	(1,273		)
Change in valuation allowance	(620		)	—			—
Other — net	974			(233		)	(10		)
	$	(99,590	)	$	(84,029	)	$	(62,521	)

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, are as follows:



	2015			2014			2013
Property, plant and equipment	$	(8,031	)	$	(5,310	)	$	(2,230	)
Inventory provisions	14,566			10,497			8,261
Allowances and accrued liabilities	2,590			1,570			3,634
Other tax credits	3,763			726			769
Deferred compensation	5,891			4,218			(434		)
Net operating loss carryforwards	923			—			229
Valuation allowance	(678		)	—			—
Net deferred tax assets	$	19,024		$	11,701		$	10,229

It is the Company's practice and intention to reinvest the earnings of non-U.S. subsidiaries in those operations. Accordingly, it has not made any provision for additional U.S. or foreign withholding taxes with respect to repatriation of earnings of non-U.S. subsidiaries. At December 31, 2015 and 2014, the cumulative unremitted earnings that are reinvested in non-U.S. subsidiaries are approximately $734,000 and $522,000, respectively.

As of December 31, 2015, 2014 and 2013, the Company has state tax credit carry-forwards of $3,740, $1,225 and $2,074, respectively. The state tax credit carry-forwards begin expiring in 2018. In addition, 2014 includes for the Company net operating loss carry-forwards available for future periods of $2,509 related to deductions for stock-based compensation for its UK subsidiary. The UK net operating loss can be carry-forward indefinitely. These amounts are not included in deferred tax assets, because when these net operating loss and state tax credit carry-forwards are utilized they will be credited to additional paid-in capital.

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:



	2015		2014			2013
Balance at January 1	$	6,494	$	6,501		$	5,392
Change in prior period positions	33		(795		)	(505		)
Additions for tax positions in current period	1,052		788			1,614
Balance at December 31	$	7,579	$	6,494		$	6,501

Substantially all of the liability for uncertain tax benefits related to various federal, state and foreign income tax matters, would benefit the Company's effective tax rate, if recognized.

Estimated penalties and interest related to the underpayment of income taxes are $437, $(192) and $374 for the years ended December 31, 2015, 2014 and 2013, respectively, and are included within the provision for income taxes. Total accrued penalties and interest related to the underpayment of income taxes are $1,107 and $670 at December 31, 2015 and 2014, respectively.

The Company's uncertain tax positions are related to tax years that remain subject to examination by the relevant taxing authorities. If realized, all of the Company's uncertain tax positions would affect its effective tax rate. Certain of the Company's uncertain tax positions are expected to settle within one year. Open tax years by major jurisdictions are:




• United States		2012 — 2015
• Germany		2011 — 2015
• Russia		2010 — 2015

The Company currently has an ongoing audit of its German subsidiary's tax filings for the years 2011-2013.