Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Income before Income Tax, Domestic and Foreign

The following table presents components of income (loss) from continuing operations before income taxes for the years ended December 31:



	2012			2011		2010
Domestic	$	(37,910	)	$	16,173	$	(28,344	)
Foreign	155,336			148,219		25,947
Total	$	117,426		$	164,392	$	(2,397	)

Schedule of Components of Income Tax Expense (Benefit)

The following table presents the components of income tax expense (benefit) from continuing operations for the years ended December 31:



	2012			2011			2010
Current:
U.S. Federal	$	3,859		$	(921	)	$	649
Foreign	38,707			41,244			52,783
State and local	2,006			932			1,812
Total current	44,572			41,255			55,244
Deferred:
U.S. Federal	(2,344		)	9,727			(9,431		)
Foreign	(11,479		)	(35,318		)	(30,368		)
State and local	(844		)	(2,849		)	(884		)
Total deferred	(14,667		)	(28,440		)	(40,683		)
Taxes on income	$	29,905		$	12,815		$	14,561

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense (benefit) attributable to income from continuing operations differed from the amounts computed by applying the U.S. federal income tax rate of 35 percent to pretax income from continuing operations. The following table presents these differences for the years ended December 31:



	2012			2011			2010
Statutory tax expense (benefit)	$	41,099		$	57,537		$	(839	)
Brazil nontaxable incentive	(10,622		)	(10,652		)	(14,600		)
Change in valuation allowance	1,609			(32,315		)	(6,631		)
Brazil tax goodwill amortization	(4,802		)	(5,231		)	(4,938		)
Foreign tax rate differential	(14,397		)	(11,001		)	4,043
U.S. taxed foreign income	8,320			8,542			3,265
Foreign taxes on undistributed earnings	2,328			2,182			—
Goodwill impairment	—			—			27,647
FCPA provision, nondeductible portion	2,399			1,160			—
Other (1)	3,971			2,593			6,614
Taxes on income	$	29,905		$	12,815		$	14,561


(1)	Other consists of life insurance, state and local income taxes, net of federal benefit, nondeductible expenses, changes to uncertain tax position liabilities and other items, none of which are individually significant.

Summary of Income Tax Contingencies

Details of the unrecognized tax benefits are as follows:



	2012			2011
Balance at January 1	$	12,636		$	9,842
Increases related to prior year tax positions	712			4,431
Decreases related to prior year tax positions	(181		)	(162		)
Increases related to current year tax positions	180			3,297
Settlements	—			(4,442		)
Reduction due to lapse of applicable statute of limitations	(169		)	(330		)
Balance at December 31	$	13,178		$	12,636

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company's deferred tax assets and liabilities at December 31 are as follows:



	2012			2011
Deferred tax assets:
Accrued expenses	$	43,622		$	39,881
Warranty accrual	26,296			18,386
Deferred compensation	18,587			18,659
Allowance for doubtful accounts	9,239			7,189
Inventory	11,490			11,610
Deferred revenue	15,361			14,669
Pension and postretirement benefits	66,222			54,990
Finance lease receivables	6,210			—
Tax credits	23,738			46,330
Net operating loss carryforwards	74,528			86,918
Capital loss carryforwards	3,534			3,604
State deferred taxes	17,341			13,061
Other	7,083			7,961
	323,251			323,258
Valuation allowance	(57,303		)	(66,988		)
Net deferred tax assets	$	265,948		$	256,270

Deferred tax liabilities:
Property, plant and equipment	$	14,369		$	20,116
Goodwill	41,175			36,712
Finance lease receivables	—			3,655
Investment in partnership	17,056			18,372
Undistributed earnings	5,016			4,750
Other	3,511			3,867
Net deferred tax liabilities	81,127			87,472
Net deferred tax asset	$	184,821		$	168,798

Schedule of Deferred Income Taxes by Balance Sheet Account

Deferred income taxes reported in the consolidated balance sheets as of December 31 are as follows:



	2012			2011
Deferred income taxes - current assets	$	143,248		$	114,250
Deferred income taxes - long-term assets	76,375			91,090
Other current liabilities	(552		)	(4,513		)
Deferred income taxes - long-term liabilities	(34,250		)	(32,029		)
Net deferred tax asset	$	184,821		$	168,798

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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